Buyers are going to great lengths to get an offer accepted in this very competitive market. Buyers know that sellers are looking for cash offers or offers with conventional financing when looking at multiple offers. If you are getting advice to submit an offer with more favorable financing and being told that you can change your financing later and the property is a short sale BEWARE! Once the accepted contract is submitted to the lien holder it is almost impossible to change the terms. Just had a short sale where the buyer wanted to change from conventional financing to VA financing. This change to the contract changed the net proceeds to the lien holder and the lien holder rejected the change and the buyer is now unable to complete the transaction under the original contract terms. The buyer’s agent and lender didn’t seem to think this would be a big deal, but it is. This may not be an issue in a traditional sale but with short sales it is a deal killer.
Financing is not the only thing that can’t be changed once the lien holder is in receipt of the offer. Buyers names cannot be changed, so be sure to have the full legal name the buyer plans to close with on the offer. You cannot substitute one buyer for another. You cannot remove a buyer. Buyer’s agents should be working closely with the buyer’s lender to make sure whomever is on the contract is qualified to purchase.
Don’t risk waiting for months lien holder approval only to have the deal fall apart because you didn’t provide an accurate picture of the purchaser and their ability to purchase. Buyers looking at purchasing a short sale need to be working with an agent who has experience with short sales. Knowing upfront what lien holders will and won’t allow is key to structuring an offer that the seller can accept with confidence and forward to the lien holder for approval is key.