You've been working for quite a while to receive short sale approval only to have the buyer walk. This is the most frustrating part of the short sale. All your hard work for naught. Plus, it places the seller one step closer to being foreclosed on.
Here are some things you can do to help keep the buyer on board.
- Negotiate a fair price that you can support. It needs to be close to market value or the lender will reject it.
- Make sure BOTH the buyer and their agent have realistic expectations. The buyer needs to allow 120 days for short sale approval. If it happens sooner then you are a hero.
- Cash or very strong financing with no more than 3% in seller concessions. Get an updated pre-approval letter every 30-45 days.
- Deposit at time of contract.
- Inspections within 10 days of contract.
- Make sure you have gathered all necessary documents up front so that when the bank asks for something you have it on hand so that it keeps the short sale moving forward and not stalled out.
- Send out weekly updates to the buyer's side. Specifically state how many days it has been since contract. "We are currently 54 days into a 120 short sale contingency"
Give me a qualified, realistic and patient buyer and I will get the short sale approved and closed about 98% of the time. It's a safe bet.