What happens after short sale is accepted???
If my short sale package is accepted, what type of paperwork do I need to receive from the motgage holder? More or less, what I'm asking is: What are the next steps after acceptance?
Generally speaking,
the mortgagor will receive a letter from the mortgagee stating the reason(s) why the short sale proposal was rejected, or the conditional terms of short sale approval.
Typically, irrespective of what you've asked for in your Proposal, or what is agreed upon between Buyer and Seller, the boilerplate approval letter will state that the approval is conditionally valid for 30 days meaning that after a month or two or three of waiting, you'll have to switch into high gear and prepare for closing.
So the only document I will need to get from the mortgagee is the approval letter? After receiving that letter, is there anything else that needs to be done before I can close on the property?
At closing, do I deliver funds to the defaulting home owners or directly to the mortgagee?
TheShortSalePro you are the man! Thanks for your help!
"So the only document I will need to get from the mortgagee is the approval letter?"
The Seller/Mortgagor receives the Letter of Approval. You won't, unless you specifically request a that a copy of the letter sent to the mortgagor be sent to you, as well.
"After receiving that letter, is there anything else that needs to be done before I can close on the property?"
The checklist of items might include a title search, survey, termite inspections, etc., and an updated mortgage loan commitment (if you aren't paying cash).
"At closing, do I deliver funds to the defaulting home owners or directly to the mortgagee?"
Your closing agent (title company or attorney) will distribute the funds per the HUD1 that was approved by the foreclosing mortgagee, and specified in the short sale approval letter w/closing instructions.