Short Sale Option Period
I am a realtor doing my first short sale and trying to get a feel for the process. I am representing the seller who is financially hardshipped, 5 months in arrears. We just got an offer over the weekend. Does my seller sign the contract or do I just give the offer to the bank and negotiate with them before he signs? So the buyer would have to wait until a deal is made with the bank, then the seller signs and the contract is in effect, option period begins, and the party starts, correct? Since this may take a while, the buyers may not want to get involved in this type of transaction as they will be homeowners, not investors. I have all the other short sale package info ready. Just wondering about this as it is not your typical transaction with a buyer and seller, the seller is really not involved in deciding, it is ultimately the bank, right?
Unsually, the Contract for Sale must be devised, and signed by all parties, and included in the SS application presented to the mortgagee.
The mortgagee performs it's own due diligence to determine if the offer will result in an acceptable net recovery. If it does they'll issue their terms and conditions of acceptance to the Seller.
If the Seller agrees, then the transaction may proceed to closing within the framework outlined by the foreclosing mortgagee.