What is short sale third party approval?
What is short sale third party approval?
A short sale occurs when a homeowner agrees to sell his home to an independent, third-party buyer for less than the outstanding balance on his mortgage. From the short sale home buyer’s perspective, this third-party (lender) approval process is the major difference between a short sale and a regular sale.
What is third party authorization form?
A third party authorization form says to your mortgage company that you allow a third party to receive information about you and your mortgage. If you sign a Third Party Authorization make sure you know what you are allowing that person or company to do on your behalf.
How do I get a short sale approval?
Approved Short Sale
- The selling agent lists the short sale.
- The seller delivers the lender’s required documents to the agent.
- The buyer submits an offer subject to lender approval.
- The seller signs the buyer’s offer.
- The listing agent sends the seller’s package and the accepted offer to the short sale bank.
What is a short sale affidavit?
Description Arm’s Length Affidavit In real estate, a short sale occurs when a bank or mortgage lender agrees to discount a loan balance due to an economic hardship on the part of the mortgagor (i.e., the seller). A short sale typically is executed to prevent a home foreclosure.
Is a short sale bad for the buyer?
Short sales are a mixed bag for the buyer, the seller and the lender. If you’re a seller, a short sale is likely to damage your credit — but not as badly as a foreclosure. You’ll also walk away from your home without a penny from the deal, making it difficult for you to find another place to live.
What is borrower authorization form?
The borrower authorization form is a standard form that is signed by a loan applicant authorizing the lender to verify his/her information from a third party.
How does Wells Fargo work for short sale transactions?
In a short sale transaction, Wells Fargo works with the listing agent designated by the homeowner as an authorized third party. We provide process information for listing agents, but you’ll also find important information for buyer’s agents in our helpful tips, resources, and answers to frequently asked questions.
What are the requirements for a short sale?
A short sale must be an arms-length transaction. This means that family, friends, neighbors, or anyone with a close personal or business relationship to the homeowner, would not be eligible to buy the house. Complete, sign, and submit your authorized third party form without delay, so that you can communicate with us on behalf of your customer.
Does Wells Fargo offer free fair housing training?
Wells Fargo provides complimentary Fair Housing training information to real estate professionals, as well as to the public. If you would like to receive this information, please call 1-877-617-5274.
How does wellwells Fargo work with investors?
Wells Fargo will work with the investor to negotiate the property sale price but ultimately the decision to accept an offer rests with the investor. The timeline for offer review and acceptance or counteroffer varies by investor.
