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Should you open escrow on a short sale before you have an answer from the bank

  • September 20 2009 - US
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Answers (8)

It depends on several factors, but it never hurts to be ready to open escrow.  The junior lien holder encouraged one of my sellers to do a short sale to ensure they would get some of the proceeds.  The accepted offer was sufficient to pay off the first completely and 3/4 of the second, so it was fairly certain this transaction was going to close as a short sale.  The buyers were anxious to open escrow & that signaled to the bank that we were working with some serious buyers.  The buyers were prepared for the process to move slowly, but it was quickly approved & closed.  Both banks said the open escrow made the process easier for them to approve & close.  The REO broker assigned to the property was not pleased, because they didn't get the listing since the short sale was approved.
  • September 28 2009
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Profile picture for asugradinwa
Nothing wrong with contacting an escrow company and getting everything filled out and be READY to open Escrow once the short sale offer is accepted by the bank.  Otherwise, don't open Escrow until that time.
  • September 28 2009
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No.
  • September 27 2009
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part of the short sale package is the hud-1 and without it the bank is not going to take you serious. The closing company is not going to give you a hud-1 unless there is an escrow assocated with it.
  • September 26 2009
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Considering that only one out of three short sales ever reach completion, it's ill advised.

That's a big no.
  • September 20 2009
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Absolutely no! That's a waste of everyone's time and money! 
  • September 20 2009
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Profile picture for The Leonardo Group
Hi Veo,

Unlike my other coleague in here i would not open escrow without a writern confirmation. Those are my 2 cents.
  • September 20 2009
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Profile picture for pvhomes
Absolutely. Yes.
  • September 20 2009
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