Myrtle Beach Short Sale – Close Quickly

Short Sale Team Myrtle Beach Have you found yourself in a short sale situation? The best advice we can give you is to close as quickly as possible. Even if you are fortunate enough to have a letter of approval from the mortgage holder and the green light to close by a set date, this does not mean that things won’t change. The mortgage company will usually honor the approval agreement if you can close by the specified time, however, circumstances and terms can change which will necessitate getting an extension.

How can an extension affect a short sale?

Let me explain this by way of an example. We recently had a sale where we were allowed almost 60 days to close. This is very unusual since most short sales are allowed only 30 days. The potential buyer was filing for a USDA loan and as with most government transactions, this took longer than the 60 days we were allotted. (As a side note, USDA loans are not a good fit when it comes to short sales.) We just needed a one week extension to close the deal. We were fortunate enough to obtain the extension, however, in the interim the guidelines had changed with the mortgage holder and the closing costs were no longer part of the deal. We went higher up in the organization but in the end we were unable to get the closing costs back into the previously approved deal. The buyer literally had to start the whole underwriting process all over again.

What about a service release?

This is another area that can cause real problems with buyers, seller and agents. A service release is when the mortgage is literally moved from one service provider to another. With some mortgage lenders such as GMAC in bankruptcy their loans are often purchased by another investor or may simply be serviced by another company. The circumstances really don’t matter and it can happen at any time in the Myrtle Beach short sale process. We have seen instances where we are three days from closing and had the file service released. At that point you literally start the process over.

How does the possibility of foreclosure affect short sales?

Common belief in the real estate world is that as long as a home is in short sale the bank won’t foreclose. There is an unwritten rule that a mortgage company would extend the foreclosure date to allow the short sale to close. There has never been a guarantee that the bank would hold off on the foreclosure and there are some new service providers whose goal is to foreclose on the property as quickly as possible. There have been instances where the property was sold in auction in the middle of the short sale process even in instances where there was a solid offer for the property.

So the lesson of this story is if you have a short sale approval from your lender get to the closing table as quickly as possible.

The team at JP Real Estate Experts have years of experience in short sales and foreclosures. We work with local banks and lending institutions to get you to the closing table quickly. Call us today to discuss your options.

JP Short Sales Team
604 N. 27th Ave Myrtle Beach, SC 29577‎

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