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Short Sale-Two Liens Already Cleared-Listing Price "Approved by Lender"

I Posted this question earlier but I wanted to repost as I do not feel I was clear on the fact that two liens have already been cleared.  Also I did not specify our loan type.

We are first time homebuyers with a fully underwitten FHA loan.  We are considering making an offer on a short sale.  The property previously had two buyers.  One of them backed out.  I do not know why nor do I know what happened with the other buyer.  I know one of the two of them had a conventional loan.  The home has tenants that according to the listing agent are "cooperative and aware of the situation"  The current list price is "approved by lender".  I am looking for insight and opinion on this situation.

Thanks in advance!
  • December 11 2013 - US
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Answers (3)

as long as you do your inspections and up front work you should feel comfortable moving forward.  With short sales, generally there is a special provision in the purchase contract for closing, typically "3 weeks after short sale approval", rather than a set date.  This being because the timeframe can vary as to how long the approval process can take.  You can float an interest rate or pay a little extra for a long term lock (90 days for example) if you are worried about delays and a rising rate environment.   Good luck!
  • December 12 2013
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In a short sale like this the condition of the home can vary from one week to the next. The renter won't care, the seller won't care, the lender won't care. Does your price take into account the condition may be less than the comps in the area? In my experience the "approved price" short sale is too expensive. 
  • December 12 2013
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I am a realtor and also bought a home that was an "approved price" short sale.  It does shorten the process.  Typically, short sales can take 3-6 months to complete. 

My short sale closed within 75 days from start to finish, but everyone was on top of their game to get this through. 

My only concern for you is the FHA part. The home will have to meet FHA standards and may require repairs prior to being able to close.  Typically, sellers/lenders aren't willing to make any repairs.

Let me know if you have any additional questions!
  • December 11 2013
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