Another short sale question

Once a short sale goes to contract is it smooth sailing (like a regular sale) or can there be delays after that point as well?

Re: Another short sale question

With a short sale, the delays and issues crop up because third party approval (i.e., approval of the bank/investors) is required.

Typically, the parties go to contract (contingent on the bank's approval) and THEN the bank evaluates the short sale and gives approval. Rather than showing as "under contract" (or UC) on MLS, during this phase, the listing shows as "pending bank approval" (or PBA).

So bottom line - yes, the contract does not give any assurance that a short sale will go through. In a typical sale, a contract means the parties are committed to the deal and barring something unusual (e.g., buyer can't get financing), the deal is done. But in a short sale, the contract just means the parties are commiitted, but has nothing to do with the bank, which can still reject the short sale and tank the deal.

Re: Another short sale question

You rock christine!!

Thanks for the info!