A key point for Short Sale Buyers to consider. Decide when writing the offer what the name of the purchaser will be - and plan on sticking with that decision!
In a Short Sale The Buyer’s Name on the Deed and Settlement Statement Must Match Exactly The Name on the Purchase and Sales Contract.
Foreclosing lenders in a short sale transaction have a lot of power and control, even though they are neither the seller nor the buyer and have not signed the purchase and sales agreement.
Lenders strictly insist that the names on the deed and on the HUD1 settlement statement match the sales contract. The lenders have their internal reasons for this rule. Whatever the rationale, a rule is a rule is a rule.
Buyers, their Realtors and their loan officers assume that the buyer's name can change
Buyers, their agents and their loan officers are often unpleasantly surprised when they are told they can’t purchase the property because they added a co-owner or changed the buyer from personal name to a business entity. This disturbing news is usually made known a few days prior to closing or right at the closing table when the buyer's agent suddenly discloses that the buyer's name changed. The listing agent and the closing attorney realize that the buyer is in non-compliance with the short sale acceptance letter.
In non-short-sale transaction the seller usually doesn’t care who buys the property as long as it closes. A little assignment agreement may be drawn up to be put in everyone’s file.
Like a volcano erupting on top of an earthquake
In a short sale, any addition, subtraction or change of buyer’s name is like a volcano erupting on top of an earthquake. The buyer’s agent and their loan officer can protest all they want and assert that they have done 100 assignments in the last 20 years – it just won’t help. The short sale lender halts the process and may retroactively reject the short sale or spend valuable days or weeks reapproving the sale.
All short sale listing agents must disclose well in advance to the buyers that name changes are not allowed. Buyer’s agents should make it clear to the buyer’s loan officer that whoever is on the purchase contract should be the same person or entity getting approved for the loan.
Just another one of the 1,000 things a short sale expert needs to know to get to a smooth closing! Always get an expert on your side!
If you are considering a Traditional or Short Sale of your home in Phoenix, Scottsdale or any location in Maricopa County Arizona, you owe it to yourself to talk with the BVO Luxury Group @ Keller Williams Arizona Realty to determine whether Tony and Suzanne Marriott are the best real estate Brokers in the Phoenix and Scottsdale metropolitan area to help you with the Successful Sale of your home.
Tony and Suzanne have personally Listed, Sold and Closed more than a hundred Short Sales with the highest list to close rate in the Phoenix Metro Area!
Tony Marriott - Chief Operating Officer - BVO Luxury Group @ Keller Williams Arizona Realty
Suzanne Marriott - Chief Learning Officer - BVO Luxury Group @ Keller Williams Arizona Realty