What does short sale subject to lender approval mean?
Table of Contents
What does short sale subject to lender approval mean?
DEFINITION. A short sale approval letter is a letter that a lender issues to the seller if a short sale offer is approved for less than the amount the borrower owes on a mortgage. It’s issued by the lender at the end of a short sale to demand the “short” loan payoff in return for releasing the lien on the property.
What is a short pay on a mortgage?
A short pay occurs when the market value of a property is not enough to cover the mortgage or loan secured against that same property. In essence, the bank or lending institution will be forced to accept a payment that is significantly lower than the total amount owed by the property owner.
What happens after a short sale is approved by the bank?
The lender agrees to accept the sale proceeds and release the lien on the property. The proceeds of the sale pay off a portion of the amount owed. Short sales are one way for borrowers to avoid foreclosure.
What does short pay mean?
A short pay is a partial payment of an invoice which can occur for any reason. Short pays can happen when a buyer feels the contracted work or services has not been fulfilled, or they can be used as a stalling tactic to avoid paying the entire amount due.
How does a short payoff affect credit?
A short payoff, unlike a short sale, doesn’t affect the credit of the borrower. In this circumstance the borrower is not in default and the borrower has the ability to pay the loan. Instead, a short payoff lets the borrower move from a home with the promise to continue to pay the debt due, hence the deficiency.
How often do short sales fall through?
Even when the buyer and the seller have both signed the paperwork — indicating a binding contract — only about 40 percent of short sales ever close at all.
Is it legal to short pay an invoice?
in which short paying an invoice (i.e., paying only a portion of the billed amount) is perfectly acceptable and even advised, but there is one best practice that absolutely needs to be followed.
Can you dispute an invoice after payment?
Can you dispute a paid invoice? Yes. The process is the same, although in this case, the burden is on the customer, and you may have to convince them that the work done was as agreed and the goods delivered were as requested.
