What if short sale is rejected???
If I send my short sale package to the bank and it is rejected or countered, do I have to go back to the homeowners and create a new purchase agreement for my new counter offer in price?
In 99.9% of all mortgagee approved short sales, the mortgaor is permitted zero proceeds from sale, so it shouldn't matter to the Seller.
In the future, You, as the Investor &/or SS Facilitator should make sure your Offer to Purchase or Purchase and Sale Agreement is a forward thinking document that anticipates mortgagee's rejection... so that you don't have to run back and amend the terms of the Offer to the Seller.
Incidentally, the terms of short sale approval vary from lender to lender based upon their own internal policy, or external servicing criteria. Don't get yourself stuck in an Agreement that isn't flexible. Make it say exactly what you need it to say.
Thanks shortsalepro, I always gain useful knowledge from all of your posts.
I understand what you are saying, but I am wondering how would I go about making my purchase agreement a forward thinking document. If it is rejected/countered I will have to counter with a better offer which would change my terms. That leads me to believe I would have to go back to the sellers and have them sign a new agreement at a different price. How do you handle it? How can I make my agreement flexible?
What I do is have the agreement filled out with the seller that has everythihg but the sale price filled in on the agreement. Inform the seller that the sale price was left blank because of the anticipation that the lender will counter your initial offer. Since most lenders will accept most short sale offers by fax, just make copies of the original and if the lender counters just fill in the copy and fax it off. Only fill in the original agreement when you have received an acceptance IN WRITING from the lender.
Hope this helps...