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Short Sale approval vs names on contract

If the original contract and short sale approval was only in one persons name but when qualifying for the loan it was realized they will need to add a co borrower for quailying DTI, will the co borrower need to be added on both the short sale approval and the contract? If co borrower is going to be needed on short sale approval, is it going to take the bank months to approve that as well? by j.d.co_877_246 from Manasquan, New Jersey. Nov 15th 2012 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

All buyers will need to be listed on the sales contract.. Somewhere in the short sale addendum from the lender is a statement that addresses name changes on the contract.. If your adding someone, you will need short sale lender approval.. it should not take weeks.. a few days maybe but not weeks.. and this isn't something you should be freaking out over.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Nov 15th 2012
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Travis Torcoletti (travis.torcoletti)
#0 ranked lender in South Carolina - 372 contributions

They most definitely will need to be added to both the contract and the loan, as well as the Short Sale Approval Letter. Short sale approvals are very specific and thoroughly overseen. They do a lot of verification of not only the seller(s) but also the buyers, for your sake I hope the shorting lender isn't BOA because if it is then it will take them at least a month to get that resolved.

Nov 15th 2012
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Dave Pressel (DavePressel)
#93 ranked lender in New Jersey - 12 contributions

You would most probably need to get a rider / addendum to the short sale contract and approval, as the current short sale holder is under the presumption that the one person (and only that one person) was on the approval / contractHow long it should take obviously varies -- some banks take months for the simplest of tasks, others take hours.DP

Nov 15th 2012
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Jamie Edwards (JamieLynn)
#37 ranked lender in New Jersey - 13 contributions

Unfortunately yes, the co borrower will need to be on the contract to also be on the loan. As for the short sale, I would say yes but it depends on the bank. I'm still 99% sure they will though. And yes, it could take them more time to "review" that. I would check with your realtor or lender to be sure. It's always possible the short asle app doesn't need the 2nd name, since it was already approved. That approval is based mor eonthe dollar amount than names anyway.

Nov 15th 2012
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Manuel Gonzalez (mmortgage1)
#91 ranked lender in New Jersey - 90 contributions

Hi J.D.CO, Both the Sales Contract and the Shortsale approval need to have all buyers and sellers listed on them.

Nov 15th 2012
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#77 ranked lender in Florida - 2,244 contributions

I would say the co borrower will need to be added to everything.

Nov 15th 2012
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Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions

The co-borrower will certainly need to be added to the short sale approval. This process should not take that long. If you are looking to see if you are getting the best mortgage program for you, send me an email with your loan scenario at PBotros@OmegaLoans.Net or call me 908-933-0253 office or 347-231-4444 cell. We are Direct Lenders here in NJ.

Nov 15th 2012
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