Instructions for Short Sale Offers

Your buyer is making an offer to the seller and the terms of the contract must be approved by the seller’s lender(s).

All offers must include the following language in the special stipulations section of the offer.

 

Please include the following language in the special stips section of your offer:

1. Buyer acknowledges that the sale of the Property will not generate sufficient cash to pay off the mortgages on the Property and the other obligations of Seller with respect to this purchase and sale transaction. This Agreement is therefore contingent upon Seller’s mortgage lender(s) agreeing to: (1) take a reduced pay off on its mortgage(s) in an amount sufficient such that the purchase price of the Property pays off the reduced amount of the mortgage(s), any other liens, judgments and other encumbrances on the Property, the real estate commission(s) owing to the Broker(s) and the other expenses of sale for which Seller is obligated under this Agreement without Seller having to pay any additional sums; and (2) release Seller from any claim, cause of action, suit or judgment for the amount of the reduction in the payoff on said mortgage(s). In the event, the mortgage lender(s) do not agree to such reductions, either Seller or Buyer may terminate this Agreement, by delivering written notice to the other, without penalty upon notice to the other party.

2.  All parties agree that this Agreement will be binding upon notice of Seller's lender(s) approval of short sale.
3. Property sold as is.
4. In the event mortgage lender(s) approves the short sale, Buyer & Seller agree to extend the closing date of the contract, not to exceed 30 days if the lender(s) requires additional time to complete the short sale closing.
5. Closing attorney will be Seller's choice.
6. Subject property listing is to remain in "Active" status and Seller(s) reserve the right to continue to market the listing and accept additional back-up offers until sellers have received written approval of this offer from seller's lender(s).


Any offers submitted must have the above language.
 
If your contract is to be a back up offer, please state this in the special stips section.
 

Our Information

Broker Code: KWCP01

Office Lisc #: H-47138

Office Ph: (678) 341-7468

eFax: (678) 527-6069

Fax all offers to the above number.


The biggest questions we are asked are these:

Q. Why does the short sale take so long?

A. Each short sale is unique, but the average time to complete a short sale is 6 – 12 weeks. The short sale timeline below gives a picture of why the banks may take as long as they do.

Sample Short sale time line

· Once the short sale package, including the offer, is received by the mortgage company, it is assigned to a loss mitigator within 1 – 3 weeks

· The BPO, or appraisal, is ordered by the lender within 1 – 2 weeks of a file being assigned to a loss mitigator

· Once the BPO or appraisal is completed, it can take 2 – 10 days for a loss mitigator to approve it

· Once the BPO or appraisal has been reviewed, negotiations can take 1 – 2 weeks

 

We look forward to doing business with you!

Adam Pendleton