What Does Adding A Buyer To An Approved Short Sale Mean For The Transaction?
Adding a buyer to a purchase agreement after a short sale is approved is typically a red flag. It’s usually a sign of a weak buyer who can’t obtain financing on their own, but equally as important adding a buyer will delay the closing and will eat up some of your much needed allotted closing time. More importantly, if an approval letter is buyer specific, you will have to obtain an updated approval letter. This furthermore will delay the short sale and when a file is resubmitted you never know what is going to happen, as nothing is ever guaranteed. For example; If the banks value has expired, they may order a new one and it may come back much higher than the previous value or the investor may not approve the same terms again. This is not always the case as it’s possible to have a smooth transition to adding a new buyer, but having a deal resubmitted if not necessary is always something that should be avoided. You need to preemptively act to prevent any potential problems in closing and one way to do this is to choose strong buyers. Sometimes it’s as easy as cross qualifying a buyer with a trusted lender as this alone will prevent many loans from falling through.
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