Under normal circumstances, banks are not required to extend the closing of a short sale. The last thing a buyer would want to hear is that their mortgage lender can't perform especially after waiting for a number of months to buy a home. For the non-short sale transaction the buyer's lender has complete control of the entire transaction and decides on the closing date. This is not the case in a short sale. Why not?
With a short sale the short sale bank usually says the short sale approval is only good for 30 days. If the sale doesn't close before that, then the short sale approval is null and void. If the buyer's lender can't meet that date, the buyer could end up losing out on the opportunity to buy the home. Even worse, the seller loses their opportunity to sell their home and avoid foreclosure. Sometimes, banks prefer to foreclose if the auction date is at hand. However, some banks under certain circumstances will extend the closing date. A short sale may be extended provided:
It is always advisable to close on time and not need an extension. Some lenders do not understand that the short sale closing date is not always flexible, and that they should do their best to meet that time frame. You might have to let them understand this just to try and prevent foreclosure from coming your way.
With a short sale the short sale bank usually says the short sale approval is only good for 30 days. If the sale doesn't close before that, then the short sale approval is null and void. If the buyer's lender can't meet that date, the buyer could end up losing out on the opportunity to buy the home. Even worse, the seller loses their opportunity to sell their home and avoid foreclosure. Sometimes, banks prefer to foreclose if the auction date is at hand. However, some banks under certain circumstances will extend the closing date. A short sale may be extended provided:
- It is not a Fannie Mae short sale in default.
- The bank wants to postpone the auction.
It is always advisable to close on time and not need an extension. Some lenders do not understand that the short sale closing date is not always flexible, and that they should do their best to meet that time frame. You might have to let them understand this just to try and prevent foreclosure from coming your way.
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