I made an offer to buy a potential short sale investment house about 2
months ago. After the short sale was approved by first and second lenders. I
made another offer which was more than the approved list price. Contract
was binding with 2 lender's approval letters.
I thought that should be a done deal. However, the title search revealed
that there were three new LIENS put on the property in the last 30 days!!
The list agent is very experienced in short sale and she said she made a pre
-title search before she tried to get the first and second lender's approval
. As you may guess, the house has to go to foreclose and the deal is
terminated.
This story shows you have to be very lucky to get a short sale close.
I prefer REOs.