WHO’S WHO and WHAT’s WHAT in a SHORT sale

The sale is between the BUYERS & SELLERS, the bank is NOT part of the sale rather the sale is subject to the banks approval of terms & allowances.

Buyer & Seller agree to terms they wish to send to the bank for review. Those terms are NOT binding and the sale cannot move forward UNTIL the bank approves them. Rarely does the bank approve the original buyer & seller terms.

The bank will issue a counter or an approval in writing of; sales price, paid closing costs for the buyer, total closing costs allowed to cover commission, title insurance, jr liens, HOA & utility costs. They will set future terms for the seller. Penalties, promissory note, cash contribution and difference balance terms.

Once the approval letter and all final terms the bank will accept and won’t accept are presented to the seller’s agency or seller decisions need to be made. At that time the seller and buyer and their agency must decide if they feel comfortable with those terms.

If they do they move forward with a binding contract in writing with real terms and real dates of the contract. The buyer is then given time to complete inspections and loan process. The buyer can still walk away from the deal during their dated contractual time frames without losing their earnest money.

All parties MUST close by the date the bank requires and send final funds and HUDS in time to have them approved and dispersed. Any pending foreclosure dates and bank requirements MUST be managed through the process. Some lenders require approval to close, so be careful not to show up to closing until approval to close is given from the servicer.