| Author |
Previous Topic | Next Topic |
|
melrose38
179 Posts |
 Posted - 02/14/2008 : 2:17:08 PM
|
If someone is looking to buy a short sale, does the buyer have to get financing approved for a loan with the lender that is servicing the property? From what I hear, that is the case, but the buyer does not have to use the servicing lender for the final deal. Does anyone know if I am right or wrong?
Thanks. |
|
isitfree
771 Posts |
Posted - 02/14/2008 : 2:39:40 PM
|
That happens with REO, unless it's a small community bank, they'll try to get the loan back to the lender.
Not the same at all in a short sale.
If you know what you're doing, your borrower needs you in a short sale. The tables are turned. It's like we're the builder and we're recommending our own in-house financing co. Your borrower should know that and see value from day one. |
|
|
slants
4274 Posts |
Posted - 02/14/2008 : 3:06:19 PM
|
quote:
Originally posted by melrose38
If someone is looking to buy a short sale, does the buyer have to get financing approved for a loan with the lender that is servicing the property? From what I hear, that is the case, but the buyer does not have to use the servicing lender for the final deal. Does anyone know if I am right or wrong?
Thanks.
That's not the case. By the time the existing lender receives and reviews the shortsale package including the purchase agreement and estimated fee hud, etc., you will ususally have had enough time to get the buyer's loan approved. In fact, if able to document to the lender that the buyer's financing is approved and the deal can close, you are more likely to get an approval on the shortsale offer.
With REO properties where the bank has already taken ownership of the property, they will generally want the buyer to be prequalified by their lender to ensure buyer is able to obtain financing so that they do not waste their time in escrow with a buyer who won't close. |
|
|
genelman
290 Posts |
Posted - 02/14/2008 : 3:11:52 PM
|
In short sales, the lender usually will not consider short sales unless an offer is received (unlike the old days when seller used to get the lender's approval first) and usually an offer is submitted with an approval letter.
In REO, the answer is yes, the buyer usually submit an application to the bank. |
|
|
| |
Previous Topic | Next Topic |
|
|
|
Search for: 
