We submitted an offer to the selling agent on a short sale property last week at full price. My question is... should the current owner sign the purchase contract
accepting our offer prior to submitting it to their lender? We have not yet received any word from the current owner regarding our offer and the selling agent said that she would be submitting it to the lender. I thought that the current owner of the property would still need to acknowledge and accept our offer prior to it being submitted to the lender for final approval. Thanks in advance for everyones help.
2007-08-03 21:34:57 · 3 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
No, the seller has no say...it's the lender that approves the contract...that is the purpose of the short sale.
Any offer to where what is being collected from the sale of the home that doesn't fully pay off all mortgages incurred by the seller is a short sale...if BY CHANCE your offer was high enough...then the seller can call the bank, cancel the short sale (which he is more than welcome to do...and they will be happy to do so), and then the SELLER is in control of accepting or rejecting the contract.
These shouldn't take anymore than a week or so to approve....don't believe people on here that will say it takes 3 weeks or a month...walk away from those deals b/c that means something is "up"...that means that the bank is just waiting for more offers and as soon as it gets a higher one, they'll decline yours.
However, it appears that the lender has to approve this one...if you offered full price, then you will most-likely get it approved.
2007-08-03 21:52:29 · answer #1 · answered by Expert8675309 7 · 0⤊ 0⤋
It depends on how the offer was written. If the offer specifically did not indicate that the acceptance would be contingent upon lender approval, then the offer must be submitted to the lender FIRST for approval. If the homeowner accepts a binding offer to purchase and the lender rejects it, the homeowner is bound to a contract which he cannot honor. Once the lender approves the offer, then the homeowner as well must accept the offer. All parties involved need to agree, and in a short sale, there are three parties.
2007-08-04 04:42:16 · answer #2 · answered by acermill 7 · 0⤊ 0⤋
probably it depends on what he told his agent what was acceptable before hand.
2007-08-04 04:38:03 · answer #3 · answered by just hanging around 5 · 0⤊ 0⤋