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Who sets the closing date? And does this make a difference on a Short Sale or regular sale?

....already know Short Sales need to be approved by lenders 1st!!! Just want to know who decides on the closing date?
  • October 08 2013 - US
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Answers (8)

Profile picture for Melanie and Jenny

The seller's lender in a short sale will dictate (yes, they do dictate) what date a home is close on or before. A buyer in short sale has to have patience and be willing to get the wheels going as soon as the short sale is approved. Even though a buyer would like to say I will close on this date, until there is approval it is all up in the air.  Patience is a virtue and the willingness to be flexible will make you successful. IF you can close within the time frames you are doing great!  If not then get the lising agent on your side to convince the lender why more time is needed.  If it is reasonable, the seller's lender will normally ok it. 

  • October 08 2013
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Traditional sale: The closing date is negotiated between the buyer and the seller. But typically, the buyer is the one who starts the negotiating with the closing date due to financing. Sellers might have a certain time they need inorder to prepare for the move.

Short Sales: This is a different beast. The buyer will put a closing date on the contract, which usually never goes as planned. Banks usually take 3-6 months to decide on a buyers offer for a short sale. The bank will come back after all is agreed on with a pre-approval letter and usually give 45 days to close, on or before.
  • October 08 2013
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The closing date is part of the negotiation between the Buyer and Seller and typically memorialized in the accepted Offer to Purchase and Purchase and Sale Agreement.

Of course, in a short-sale, both parties need to be aware of the time-related restrictions imposed by the Lender.

  • October 08 2013
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Profile picture for Shane Torres
Typically buyers side when offering. 
  • October 08 2013
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Generally the lender approval on the Short-Sale will stipulate when the property has to close by or the approval is voided.

We always try to get 45 days if the buyer is financing, and 20 days for cash after written approval.

Regular sale closing date is a negotiation between both parties during the negotiation phase of the contract.  This date can be adjusted as long as everyone agrees, and generally only if there are circumstances that require a modification.
  • October 08 2013
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In a traditional sale the buyer will usually propose a closing date and either the seller agrees upon that date when they accept the offer or they counter it.
In a short sale, the bank will typically give a "range" during which time the transaction needs to close. The buyer most often picks a date within that range. Often times it may be determined by an addendum to their contract. In Utah we use a standard addendum that sets the contract dates based on bank acceptance. For instance it may be "closing to be 21 days after bank acceptance" so the date would be calculated based on that.
Again, those dates are typically generated by the buyer and then mutual agreement is reached between the buyer and seller.
  • October 08 2013
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Typically on short sales , you will have a projected closing date to allow  time for the bank approval . 
The closing date is usually requested  in  the offer from the purchaser but can generally  be negotiated to meet the needs of both the buyer and the seller .
- Hope this helps 

- Chris

  • October 08 2013
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Normally when the bank gets around to approving the sale they will tell you what they want for the house, it is often more than you offered the owner, and they will tell you they want to close in 30 days. You can pick any day you want in that 30 day period.

tim
  • October 08 2013
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