short sale approval question

jeno111

Hi ladies,

We received word today that our sellers bank approved our purchase price, however, they are asking the seller to bring 8k to closing with them.  Has anyone heard of this?  Now they are going back to negotiating the cash amount down.  I doubt that the sellers have this cash, otherwise they wouldn't be short-selling.  We are on month 5 now and are getting anxious to close!

TIA!!

 

julygal

My understanding this is more common than most people realize (we actually researched doing a short sale and read books about it when we thought there was a chance we were relocating).  The bank has access to all the seller's financials from their packet they had to submit to the bank with your offer, so the bank could feel that they have that amount of cash on hand to pay some of the difference.  The hardship for the short sale the seller cited might not be financial but a move due to job, divorce, etc.   I hope they get it resolved quickly and good luck!

jeno111

Thanks for the response.  I thought of that too...obviously they see that they have 8k somewhere.  Thanks for the well wishes!

 

rayraex

People short sale their homes when it is not worth what they paid for it.  If they would need to come up with a larger amount (say $30,000) if they sold their home in a traditional sale, only needing to bring $8,000 to the table in order to get out from under their home is still a pretty good deal.  I'm not sure whether the bank is confident that they have that money or not.