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When should title company get involved in short sale process?

I'm trying to purchase an "approved" short sale. The home had been under contract prior to my involvement but that short sell fell through. My agent described the "approved" short sale moniker as meaning the bank has a set price, which is the list price that will be automatically and quickly accepted by the bank. I made a clean, list price offer that was accepted by the listing agent and forwarded to the bank for approval. My agent said bank approval would take only a few days. It has been over one week since our offer was completed and we do not yet have a bank approval letter. Now our buyer's agent is saying it could be two more weeks before we have an approval letter from the bank. She also says it is possible the bank will want to re-appraise the property before accepting our offer despite the "approved" designation of the short sale. This is obviously becoming a much different scenario than what was initially sold to us by our buyer's agent (whose company also is listing the property). I've now received a request from the title company to provide a lot of detailed personal information. Should I complete this and return it to the title company prior to receiving an approval letter from the bank? Will waiting to submit the information cause any delays in the closing?
  • November 21 2012 - Eugene
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Answers (2)

Hi,
Couple of things you should find out;
1- who is the lender & 2- when was the banks BPO completed?
BPO (Brokers Price Opinion) is the what the lender uses to determine fair market value, much like an appraisal. This is important because a BPO is only valid for 90 days and then a new one has to be done which could come back more or less than the first one. Depending on what region your in, with lower supply, the value could certainly go up. It's  based on last 3 months of closed comps and depending on who the lender is, they may not allow other short sales or foreclosures as comps.  I have done many short sales on both buy and sell side and I have never ever seen anything come back in a couple of days.
  • November 21 2012
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Good question.  My suggestion is to discuss this with your agent, they are your expert and would know if the cart is being put in front of the horse so to say.  The title company is just trying to get the transaction ready to close and your agent can tell you what you need to provide and when.  Good luck and hope you get a great deal.
  • November 21 2012
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