I'm looking at buying a house. The listing says, "Short-Sale subject to Lender's Approval". What does that mean exactly? I would like to know before I try and buy the house.
2006-10-12 11:14:55 · 6 answers · asked by Chelle 2 in Business & Finance ➔ Renting & Real Estate
it means that the owner is listing the house for sale and anticipates that the sale amount will not be sufficient to fully pay off the amount due to the mortgage holder (lender). the lender is aware that they will be taking a loss with the sale. therefore, the lender will have to approve the details of the transaction.
2006-10-12 11:26:04 · answer #1 · answered by le_longgunr 3 · 3⤊ 0⤋
What idiot told you that you didn't have to wait for the lender approval? Lenders approve ALL short sales....there is no exception unless what you are offering is more than the payoff, then the seller is free to sell it like any other property. The seller has ZERO say in the terms of the short-sale, the lender handles ALL negotiations. So don't be suprised if the lender comes back with something different than the seller...b/c the seller doesn't have a say-so anymore, again, unless you are offering more than the loan payoff.
2016-03-17 04:36:25 · answer #2 · answered by Beverly 4 · 0⤊ 0⤋
Subject To Short Sale
2016-12-12 03:40:07 · answer #3 · answered by ? 4 · 0⤊ 0⤋
le_longgunner is correct. Let's say I have a home worth 80k and my loan is for 100k and you make an offer for 80k on the home. The lender will need to approve the 20k hit in order for the seller to sell the place without the seller comming up with 20k at close of escrow.
Lenders will usually take a hit if the seller can prove that he is unable to pay the difference and if selling the place at a loss is in the lender's best interest as oppossed to foreclosure proceedings.
Regards
2006-10-12 21:29:55 · answer #4 · answered by Anonymous · 1⤊ 0⤋
I think it means that you contract period will not last long. Typically, after you make an offer and they accept, it takes about a month for the house to be yours. There is paperwork, apraisals, inspections that have to happen, then the lender approves the terms and then you go to closing and get the keys.
So short sale means that the paperwork, inspection and apraisal may have already happened but under the sellers conditions which should be done by you because you are the one investing in the house.
I'm not positive though.
2006-10-12 11:42:52 · answer #5 · answered by tightlies 3 · 0⤊ 5⤋
Le_longgunner is correct in his answer.
The only thing I can add is to make sure the seller or sellers real estate agent has already talked to the sellers mortgage company to determine what sale numbers are acceptable to the mortgage company.
If the sellers don't know this in advance, you might have to wait for them to negotiate with the mortgage company.
2006-10-13 04:02:38 · answer #6 · answered by txrealestateagent 3 · 0⤊ 0⤋
It means that the house is being taken back from the current owner by the bank and the bank is accepting offers from prospective buyers. Because the bank has a lien on the property and the current debt maybe higher than the value of the house, they will review your offer. The process maybe a little longer because of the addditional paperwork (longer escrow) but in the long run it maybe a good invesment for you if the price is right and your are not in a hurry to move in. Aside from than, there is nothing else for your to be skeptical about.
2006-10-12 11:23:17 · answer #7 · answered by jd 2 · 1⤊ 3⤋