Short Sale Approvals:
Short sales receive 3 distinct types of “Approvals” prior to an actual escrow being opened.
Our Maui Real Estate Team: Fine Island Properties has been involved in over 40 shorts sales in the past couple years. The rules of short sales do change very often, but the approval process has pretty much held.
The first type of approval is the approval a seller may receive by the lender prior to listing the property.
The seller may have gone over their options with the lender and the lender may have advised/approved of them to list the property short sale.
The second type of approval is where the negotiator for the seller’s lender states that they have “approved” your offer. This is the first step in a two step process. Once the buyer and negotiator have come to terms for the amounts on the file using the guidelines the negotiator follows another level of approval is needed: The Investor approval.
The third type of approval is the Investor who owns the loan. They are the ultimate decision maker and sometimes counter their own negotiators guidelines. Be sure that when you are “approved” that it has the Investor blessing. A final written letter will come shortly after a verbal or “Equator System” approval.
If you or someone you know is thinking about a short sale on Maui please have them contact us for further information. We do advise our clients to explore all their options, receive legal and tax advice prior to entering into a short sale process. Contact us for further information.