I work with a lot of short sales, both on the buying and the listing (seller) side.
A seller has to “qualify” for a short sale, much like a buyer has to qualify for a mortgage loan. So the seller picks the title company and pays for the owner’s title policy. The title company handles the negotiations and title work.
From a buyer’s perspective this can sometimes be a huge hurdle to get through when the title company/short sale negotiator doesn’t do a very good job.
I had some buyers under contract for a short sale in Sunrise, Florida. It took a couple of months to get the short sale approved, and when the bank finally approved it, they only gave us 25 days to close. (Not the easiest thing to do in today’s real estate lending market.)
The buyers were using the lender I recommended so we were able to get the loan done in time.
We were going to do the walk through at the home and then go to closing in the afternoon. The buyer calls me freaked out around 10am. Apparently the listing agent and the title company never told us there was a screening process for the association and we can’t close unless that is done.
Oh, and the short sale expired that day. (Of course it did!)
My buyers filled out the application, got the references done and did everything they could as quickly as possible to get it in to the association screening company. The association processed it as quickly as possible but they needed a cashier’s check for the application fee, and wouldn’t accept a credit card over the phone.
I drove to Sunrise, did the walk through, got the check from them and drove to Delray Beach (off Atlantic Avenue) to hand deliver it to the association. And I did it all before 4pm when the association was closing.
Yes, that effort saved the day, my buyers closed and they love their home!