What a Buyer Will Need to Make an Offer on a Short Sale in Baldwin County

1. Proof of Cash Funds for a cash offer or an Unconditional Mortgage Loan Committment Letter specifying only appraisal and title exceptions. (This letter can only be issued after a buyer has submitted formal application for a loan, submitted your W2s, income verification, etc to the lender.) Each seller is different, but most request that this be from a local lender of your choice.
 
2. Proof of funds for your downpayment and your earnest money. This is accomplished by supplying a copy of your bank statement showing at least the down payment amount plus closing costs that you will need for your lender to make the loan. Black out your bank account numbers for security.
 
What to Expect When Buying a Gulf Shores or Orange Beach Short Sale
  • Earnest Money will be required and will normally be non-refundable during the 90-120 day short sale approval process. If 90-120 day approval period passes with no word from lender, buyer will usually have the option to cancel the contract with earnest money refunded or to extend the contract with mutual consent of buyer and seller. A buyer should not submit an offer if they are unable or unwilling to wait 90-120 days for a closing date.
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  • All offers are subject to lender approval with seller review and agreement of lender terms upon receiving demand letter from lender. Sellers will reserve the right to agree to the lender’s terms of short sale or to cancel the contract if not released from further financial obligation.
  • All offers must close in the name of the buyers on the contract. No assigns.
  • Closings shall be no later than 30 days from third party approval notification for a financed purchase or approximately14 days for a cash transaction.
  • It is best to understand that the sellers will not have funds to make repairs to the property as may be required as a result of any home inspection, mortgage requirement, or other demand, therefore the property will be conveyed “AS IS”. If the buyers wish to have a Professional Home Inspection, this contingency to be removed usually within 7 days of fully executed Purchase Agreement between Purchaser and Buyer and before submittal of offer to the lender. Any objection to the findings of the home inspection to be provided in writing within the 7 days, and lack of written objection within this time frame constitutes the expiration of the buyer’s contingency.
  • Seller will not always provide termite letter or bond. Purchaser may order these through buyer’s agent and pay for same. No seller paid surveys or home warranty.
  • There is no guarantee that the short sale bank will accept your offer price, even if it is for the listed price stated in the MLS.  The MLS price is based on surrounding sales of comparable properties and the listing agent's determination of price based on those sales.  To determine fair market value, the short sale bank may order a Broker Price Opinion (BPO) or a full Appraisal and will use this to place a value on the property once you have submitted an offer.