As we continue in our occasional articles discussing the demise of the AAR Residential Resale Purchase Contract, let’s take a look at the Short Sale Addendum …
According to the boilerplate on the form, once the lender has approved the short sale and the seller has given notice to the buyer, the buyer has 30 days to close escrow.
At least, that’s what the form says.
On Thursday, Bank of American approved a short sale offer made by one of my buyers and set a 12-day close (the inspection period alone is 10 days.)
Since this is a cash transaction, it’s probably going to work out but it’s far from unusual. Some lenders give buyers weeks, others give you a week or two. And all of it seems to be part of the ongoing game since the approval letters almost inevitably get revised to reflect a realistic closing period.
None of these shenanigans should take place, not if the lenders paid attention to the contract executed between the buyer and seller. A 30-day close ought to mean, well, a 30-day close.
Yet, as with almost every other instance of outside influences rewriting the way real estate is transacted, lenders are able to set their own rules because no on will stand up to the banks collectively and tell them to get stuffed.
It’s a pipe dream to wish for that to happen but a man can dream.