Profile picture for Brokerstevens

When should the home inspection be preformed on a short sale?

After an offer on a short sale has been accepted by the sellers, should the inspection wait until after the lien holder also accepts the offer even though this may take several weeks?

  • September 05 2011 - Springfield
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Answers (6)

You can wait, but make sure you have all of your ducks lined up.  Some lenders will allow 30 days or less to close once an approval have been issued.  I use a disclosure with all of my short sales which states that Buyers have a 10-day due diligence period after approval to get inspections, financing approval etc.
  • September 05 2011
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I agree with the others.  I advise my buyers to do inspections only after the bank has approved the short-sale and their offer.
  • September 05 2011
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I have my clients wait until the bank approves the short sale offer.  In my state, a new 10 day Option Period begins after the bank accepts the short sales offer and the contract is executed.  It is during this 10 day period that my buyers get their home inspection. 
  • September 05 2011
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Profile picture for Ofe Polack
I would wait until the bank gives the green light, otherwise the buyer may lose that $$$$
  • September 05 2011
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Every situation is different.  In most cases you need to do it within days of the bank approval.  I have had some short sales where the bank won't review an offer if it hasn't had a home inspections. Good Luck.
  • September 05 2011
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Profile picture for wetdawgs
IMHO, yes.
  • September 05 2011
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