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Short sale authorization form

Short sale authorization form 2025

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The document is a Short Sale or Arms-Length Affidavit of Seller, where the seller affirms that the sale of a specified property to a buyer is conducted without any undisclosed agreements or relationships between the parties involved. It confirms that no party has a familial or business connection with the seller, and that there are no hidden terms regarding the seller's future occupancy or ownership of the property post-sale.

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We have answers to the most popular questions from our customers. If you can't find an answer to your question, please contact us.

Why would a lender agree to a short sale?

They agree to the short sale so they do not have to foreclose on the property. There is much higher costs to a lender to go through the foreclosure process, acquire and maintain the property, and then resell it for a statistically 20% to 40% lower price than the typical short sale approvable offer.

Is there a short sale addendum?

A short sale addendum is added to a purchase agreement when a propertys selling price wont pay off the sellers outstanding mortgage balance. The form creates a special condition that requires the sellers mortgage lender to approve the transaction before the sale can be completed.

Why would a bank accept a short sale?

Lenders allow short sales in order to avoid foreclosure, which is a time-consuming and expensive process. A short sale can only happen with the lenders permission, and a lender wont agree to it unless the seller successfully demonstrates hardship.

What is the short sale approval letter?

A short sale approval letter is a letter that a lender issues to the seller if a short sale offer is approved for less than the amount the borrower owes on a mortgage. Its issued by the lender at the end of a short sale to demand the short loan payoff in return for releasing the lien on the property.

Which lenders would be least likely to approve a short sale?

Which of these lenders would be least likely to approve a short sale? junior leaners (Because theyre in a secondary position when it comes to liens against the property, they realize that there may not be any money left to pay them after the lender in first position is paid.)

What does short sale approval mean?

In California, the lenders approval of a short sale is a release of the remaining loan amount. California is one of only a few states that prohibits deficiency judgments on an approved short sale, including junior lienholders who agreed to the sale.

Why would a bank approve a short sale?

A lender is interested in securing the best deal it can and will only accept a short sale offer after concluding that it provides an equal or better deal than a foreclosure sale.

Short sale authorization form 2025

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