What is "Subject to 3rd party approval"

[loveliestangel]

I found a house I like, like, like and I want to say LOVE but someone advised me not to fall in love too soon!

 

It states "Subject to 3rd party approval" What does that mean?

[Brian B The Loan Professor]

My guess would be that it is a short sale and the bank that holds the note must agree to the terms

Often the bank will not even know the seller is attempting to sell for less than what is owed until an offer is presented

At that point the bank can decide if they are willing to play along

Dont be surprised if thats what it is and a full price offer is rejected or countered as the bank always has final say

 

Good luck

B

[loveliestangel]

I knew I shouldn't have liked it. Thanks Brian!

[brazen]

Good to know. I have seen quite a few that say subject to lender approval. Didn't realize that is what it meant.

[loveliestangel]

Me either Brazen. Guess thats why it's always good to ask questions. Then others get the knowledge too.

[Polaroy2]

Just HOPE there is only one bank...

 

Many short sale homes have two mortgages by two different banks. In order for the house to sell, BOTH banks must agree to the sale. Often the bank with the second mortgage holds out for a better offer so they aren't out as much, as a large portion of the sale price is given to the first mortgage holder.

[loveliestangel]

I am staying FAR away from short sales! I didn't realize "3rd party approval" and the like meant "bank". EEK!

[Lynn37]

I was looking at a house, that I now know is a short sale, The realtor showing me the house slipped in something about 2 banks, But I never gave it another thought, till last night. Today I went to see if it sold.... still there empty