Sept. 22, 2010
Alexandria VA Short Sale Approved With Two Loans
Foyer of 1030 Anderson Street
Proof that not all distressed properties show signs of stress. My short sale listing at 1030 Anderson Street in Lincolnia Hills (Alexandria VA) was approved for a short sale. Two banks involved, Citi Mortgage and Bank of America.
What exactly does short sale approval mean?
That means that the banks involved have provided written approval to accept less than what is owed on the outstanding mortgage balance. To see an example of a short sale approval letter, click here
What happens after the short sale approval letter has been issued by the bank? Obtaining short sale approval is a pivotal step in the transaction. It does not necessarily mean that you go immediately to closing. Rather, the owner/seller has to agree to the terms of the approval. There may be conditions of the short sale approval that the seller finds unacceptable. For example, if the short sale approval letter does not have language specifiying that they will not pursue a deficiency judgment. Another issue could be if the lender is asking the seller to sign a promissory note. Our contracts are written so that the short sale contingency is removed after the seller has agreed to the terms, and delivered the written approval to the buyer.
What happens if the short sale approval letter does not agree with the contract terms that have been already been signed by the buyer and seller? Negotiations open back up, and it is up to the buyer and seller to modify the terms of the contract to now match the terms of the short sale approval letter. For example, if the bank will not allow purchaser closing costs, then the buyer and seller will have to sign an addendum stating this.
The short sale approval letter is also a critical document that is required to close. The settlement attorney will require this written statement as proof that the lienholder has agreed to release the lien on the property. The purchaser's lender will require it before they will begin processing the loan.
Alexandria VA Short Sale Specialist | 703-623-8759
As a Certified Distressed Property Expert and Certified Default Resolution Specialist, I help homeowners who are in distress understand their options. These options may include loan modification, forebearance, short sale, Homeowner Assistance Program (HAP) for Northern Virginia military families, or other alternatives that may be approved by your lender. Before you max out your credit cards or deplete your savings trying to keep your mortgage current, feel comfortable giving me a call at 703-623-8759.