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Final Approval on a Short Sale

We just received a clear to close from our bank. The sellers agent notified us that she is waiting on "on final approval from short sale bank." What does this mean? The bank already signed off on the purchase agreement, all of the addendums, and the current occupants have had 2 months to move out since signing the purchase agreement. Our bank wants to close by Friday.
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April 26 2011 - US
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Short Sale transactions are complex and one can be different from another.  Keep in constant contact with your attorney and agent who will guide you through this process, good luck!
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April 26 2011
I agree. They are very complex sales. Additionally each bank has its own criteria for how the transaction should close. Keep in touch with your Realtor and or Attorney. Im sure they are working very hard behind the scenes sot that your transaction can close smoothly. Good Luck!
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April 27 2011
There should be a short sale letter from the bank that holds the mortgage/is agreeing to short sale. It will show the terms and conditions of their agreeing to the seller's contract to sell the property and a closing date.

Have your agent get a copy of the short sale letter from the listing agent. I would highly suggest make sure the unit is vacant before you close escrow and you've done a final inspection.

Good luck.
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April 27 2011
If it is waiting for short sale approval, just because you and your lender are ready to close, doesn't mean the seller's bank has truly approved the shortage.  Until there is a LETTER OF APPROVAL of the Short Sale IN HAND and signed by the seller, you can't close.  Those letters also include at least 30 days to because the owner/occupant needs time to move.
Good luck and be patient.  Short sales can take 3-6+months to get approved.  The problem lies in YOUR mortgage commitment expiring, a possible rate lock expiring, any change in YOUR credit waiting the extra months it takes to close.
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May 04 2011
 
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