Lender Approval and Closing
- A short sale transaction may take anywhere from 30 days or less or up to 6 months or longer for lender approval.
- The addendum to the contract that makes the contract "subject to lender's approval" should stipulate how long the buyer will wait.
- If the time allowed for lender approval is unrealistic, it will weaken the buyer's offer. The seller's property would be tied up in a contract that does not have a reasonable chance of closing.
- On the other hand, the value of the property may decline during the wait for lender approval. The buyer's representative must consistently update the CMA for the buyer.