The buyer must submit the mortgage application according to the contract as well. There is often a quick turnaround between lender approval of the short sale and the lender's required closing date. The buyer must be ready, willing, and able to meet the specified closing date without asking for more time to get their financing in place.
Low Interest Rate in the Offer
- Most short-sale transactions will not close within the typical time span of 30 to 60 days. The buyer's interest rate lock-in may expire during that time.
- If there is a low interest rate in the contract and the interest rate goes up and never comes back down to what the contract stipulates, the buyer may be able to walk away from the transaction with no recourse on the part of the seller.
- The seller's property has been under contract for sometimes months only to have the buyer not be required to close. Again, this would weaken the offer since it would not have a reasonable chance of closing.