Is the Buyer Required to Sign the Short Sale Approval?
A short sale is a negotiated remedy between a seller and his mortgage company. A properly written purchase and sale agreement will include a provision making the sale of the property contingent upon the receipt of written approval of the sale from the seller's mortgage company.
Once the seller and his mortgage company reach an agreement, the mortgage company typically issues a short sale approval letter which sets forth the terms of the agreement. A copy of the short sale approval letter is forwarded to the purchaser or his agent and soon thereafter the closing will take place.
Recently a buyer asked whether her signature was required on the short sale approval letter in order to make the purchase and sale agreement legally enforceable. The answer to this question is no. Once a buyer's offer is accepted by the seller and the purchase and sale agreement has been signed by all parties, it is a legally enforceable document. Again, a well written contract will include a short sale contingency provision.
Additionally, the short sale agreement is between the seller and his lender. The buyer is not a party to the negotiations or the the agreement that is ultimately reached between the seller and the lender. Therefore, the buyer's signature is not required on the short sale approval letter to make the purchase and sale agreement legally enforceable.
For more information on short sales, visit: http://GeorgiaShortSaleCentral.com.
Once the seller and his mortgage company reach an agreement, the mortgage company typically issues a short sale approval letter which sets forth the terms of the agreement. A copy of the short sale approval letter is forwarded to the purchaser or his agent and soon thereafter the closing will take place.
Recently a buyer asked whether her signature was required on the short sale approval letter in order to make the purchase and sale agreement legally enforceable. The answer to this question is no. Once a buyer's offer is accepted by the seller and the purchase and sale agreement has been signed by all parties, it is a legally enforceable document. Again, a well written contract will include a short sale contingency provision.
Additionally, the short sale agreement is between the seller and his lender. The buyer is not a party to the negotiations or the the agreement that is ultimately reached between the seller and the lender. Therefore, the buyer's signature is not required on the short sale approval letter to make the purchase and sale agreement legally enforceable.
For more information on short sales, visit: http://GeorgiaShortSaleCentral.com.
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