10 Items In A Florida Short Sale Approval Letter
When a lender approves your Florida short sale, you will receive an approval letter that documents the terms and conditions of the short sale. This letter details the specifics about the contract to buy your home and the lender’s conditions for approving the short sale whether it’s in Florida or anywhere else.
The approval letter confirms the acceptance of an offer to buy your short sale property by the lender and details all the terms and conditions of the sale of the property. These letters vary from lender to lender, but most contain the same basic information:
1. Terms of the Sale – The terms will include things like the contract sales price, cash due from seller at closing, sale remittance instructions and often include an itemized list of closing costs and who is responsible for each cost.
2. Closing Date – The lender will document the date by which closing must be completed. In some cases, the lender will include a list of required documents needed before closing.
3. Junior Lienholders – The lender will usually include language that says the seller must provide signoff of the sale from all junior lienholders before the sale can proceed.
4. Statement of Repairs – In some cases, short sales are sold ‘as is’. If the buyer requires a home inspection, a lender may state that no repair costs will be approved for payment out of the sales price.
5. Relocation Expenses – If relocation assistance is available, the approval letter will specify the amount due to the seller at closing.
6. Real Estate Commissions – Allowable real estate commissions are noted in the terms of the sale (closing costs) or in a separate paragraph.
7. Tax Consequences – Some lenders will document their intent to report any debt forgiveness to the IRS.
8. Consumer Reporting – Some lenders will tell you that they intend to report the short sale to consumer credit agencies.
9. Deficiency Forgiveness – If you negotiated the forgiveness of the deficiency after the short sale, the release of liability may be included in the approval letter or may come as a separate document.
10. Promissory Note – If the deficiency was NOT waived, a promissory note to cover the deficiency may be included with the approval letter.
The short sale approval letter is critical because it contains all the specific requirements necessary for the short sale to close. Short Sale Facilitators of Casselberry, Florida has experience negotiating short sales with many lenders and have understand the importance of this letter in getting your short sale to closing.
There is no shortage to the paperwork in a short sale, but managing the documents and the dates associated with each one is critical to the successful conclusion of a Florida short sale. Alma Korshak works closely with her clients and their realtors to make sure everyone is up to date on the status of the short sale at all times. This is critical especially when the approval comes in and the closing date is at hand.
Some lenders may include more or less than the ten items above, but these are the most common. Just another reason why having the strong negotiation skills of Short Sale Facilitators is so important.
It’s easy to make an appointment to meet with Alma Korshak in her Casselberry Florida office. She understands the paperwork and how to negotiate the best short sale terms possible for her clients. Call 321-397-5505 to schedule an appointment.