Short Sale...when it doesn't work.....question....
If you sign a contract/agreement with a seller in a preforeclosure, I'm assuming that 99% of the time, you'll only go through with the deal if the lender actually shorts the loan amount to an amount within the REI range of acceptability.
Assuming they don't short at all, for whatever reason, do you just walk away from the deal (assuming you have the condition in your contract where you can walk away if the lender doesn't short)?
Assuming the seller has committed to you, and you're in a non-judicial state(i.e. Texas), haven't you just condemed the seller to foreclosure? I assume you let the seller know up front that there is a distinct possibility you may not be able to get the bank to play ball, and therefore they need to be prepared for your efforts to come to naught?!
Thanks,
If the seller asks what are their chances, then you should reply, "you have a 50/50 chance." You cannot save everyone from foreclosure, so you must be honest and let them know you might be able to help them. You can also state, "But, I will do everything in my power to help you out of this horrible situation."
Tanya
The indicated sales price on the Contract For Sale isn't possible unless the mortgagee approves short sale, and/or the Seller agrees to pay the difference at closing...
Just condition the Sales Contract, "subject to mortgagee(s)' written short sale approval at terms and conditions acceptable to both the Seller and Purchaser."