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Short sale contingencies, the ins and outs:
Short Sale Contingencies That Won’t Get Accepted:
- Making the short sale offer contingent on selling your home – The offer will probably get rejected since they want to sell the house as fast as possible when THEY are ready and will continue taking offers and will only accept the best and it may take a long time to wait for a response from the lender in which 8 weeks later they may reject your offer.
- Time Contingency – Placing a time contingency is a waste of time. Your offer may expire before the bank gets around to approving it and many banks do not pay attention to time contingencies. If you really want the property stay around and wait or ask your Realtor to include some fancy writing noting that the buyer will continue looking for homes till the buyer accepts the lenders final approval on the short sale.
OK Short Sale Contingencies That Will Get Accepted:
- Obtaining financing. Unless you are a cash buyer, the offer should be contingent on your ability to obtain a loan
- Inspection – The seller cannot and probably will not do any repairs so the bank will require you to purchase the home AS IS, so it’s important to do the inspection.
- Making the offer contingent on the bank’s approval of the short sale – Also request proof that the seller has provided the bank with the appropriate paperwork, application and hardship letter that is required as part of the process. You will want a written confirmation of what this is to occur.
- Short Sale Disclosure – Make sure the clock doesn’t start until the bank actually accepts your offer.