Short Sale With Option Or Purchase Contract?
I have read that some investors use option contracts to negotiate short sales, while others use purchase contracts and get the deed. Which is appropriate?
As for financing...
My contracts have disclosure addendum recommending the distressed homeowner seek advice from an accountant and/or attourny, ect. and gives them three days to rescind the contract. I figured I would use this three days to check the title and arrange for a hard money loan. My question is when doing a short sale do you already have the approval letter, or do you have a contingent upon financing. My Short Sale Purchase and Sale agreeement says proof of funds will be submitted within 7 days of the effective date (just in case it takes longer than 3 days) or this contract becomes void. Is this something that banks would find acceptable, if not what do you recommend?
The hard money lenders...they typically provide all the documents you need for the loan and agreement for deed between you and them, right?
Thanks, M
the banks i have corresponded with want a purchase and sale agreement. If they approve the short sale, they want you to be obligated and an option will not obligate you to purchase the house. Unless you use a reverse option, obligating you and not the seller.