End stages of short sale clarification.
To this point I haven't completed a short sale. However I have gone through the signing of contract, release for info, deed transfer, and negotiation with the bank. The loan was FHA and the lender and I couldn't come to an agreement that would allow much for profit.
So, I'm meeting with someone today who claims they can feed be leads to people wanting to sell preforeclosure. I feel pretty clear on the first stages of short sale but need some clarity on the end stages.
1. After agreement has been made with lender what is the typical max. amount of time the lender allows for the mortgage to be satisfied? Where I'm coming from is I'd rather auction the house (with me having the deed of course) and use the proceeds to satisfy the mortgage. CAN I DO THIs LEGALLY? Would the lender give me 60 days if I put down $5k or so?
2. When agreement with lender has been made and it is time for closing, does the seller have to be present? I know that sounds silly but when they find out what the settlement was---- 
. When you inititally have the seller sign the contract with a purchase price of: "whatever it takes to satisfy the mortgage" can you have them sign a Power of Attorney, which would allow you to do the close without them?
Appreciate any help the experienced can offer. 
Dear TomJerry,
When you are working a short sale you are working on behalf of the homeowner. Therefore, you NEVER give the bank a $5000 deposit. What you have is a deposit with the homeowner via a sales contract.
You can ask the bank for as long as you need to close. What you have to consider is how much time the homeowner has before the sale date. If 60 days exsist... go for it. When you need longer to close, simply ask. We ask for extensions all the time. The bank usually asks for a "proof of funds" letter before granting an extension. They want to be certain we can close.
Next time you deal with a FHA appraiserstry this...meet them at the house, lay a big guilt trip on them by making them aware that the entire transaction depends on this appraisal and they are the difference between the homeowner starting over and being homeless, give them a complete copy of your short sale package, runs low comps for them. FHA will accept anywhere from 82% to 87% of the appraisal. They key is the appraiser.
Good luck.....
Dwan