Miami Condo Short Sale Contract Tip #9

Short sales of Miami condos and homes are often a great way for a buyer to get an excellent deal on a property and a seller to get out from under an upside down mortgage with hopefully less damage to credit and his or her pocketbook.  This is the ninth and last of as many blog entries, in no particular order, each with a tip for the buyer or seller or both, to help make sure the deal goes smoothly while giving protection to one or both parties.

Miami Condo Short Sale Tip #9:

Short Sale Approved–Now What?  FOLLOW THE LENDER’S INSTRUCTIONS!  Immediately inform the buyer so they can prepare to close, or finalize the financing on the property.  If the approval came in with a net payoff amount to the lender which is different than that on the proposed settlement statement, the difference will have to be accounted for.  Typically, the lender will have cut the broker fees to a total of 5%, and trimmed off some of the listed closing fees.  This is normal as in the short sale contract offer the price is low and the listed costs high, and everybody should already be prepared for this, including the buyer who should be ready to pay some additional funds to finalize the transaction.  The title and closing agent must anticipate the closing time lines, and prorate the closing items accordingly, because once the approval is in hand, it is impractical to update it to add, for instance, an additional 25 days of property taxes and condo maintenance.  In the cases where an update is sought, two weeks or more may be lost, or some party to the transaction, such as a Realtor or closing agent, may be expected to cover the costs to make the deal close.  Sellers, Buyers, Realtors, and closing agents: anticipate all delays and costs or be prepared to pay them!

Also, once everybody is in agreement, there are often very strict time periods and rules to obtain the FINAL approval and go-ahead to close and forward the funds to the lender.  If the closing agent and parties do not abide by these rules, a lender may cancel the transaction or otherwise hold it up for several days or more, which can cause problems for the short sale buyer’s loan and other time sensitive plans.  The parties, Realtors, and closing agent MUST follow the requirements or be prepared to be responsible for the results, which in some cases may be a foreclosure and a lawsuit against somebody.

http://www.southptc.com/short-sale-miami-florida-attorney.html

http://www.southptc.com/florida-title-company.html