Getting a Conditional Approval to Secure an Extension on a Short Sale Contract.

James from Palm Coast, Florida has a short sale contract in Orlando and at the last minute has been denied by the bank that was processing his loan. He called to ask Robert Palmer what the turn around time is for RP Funding and what advice he has on getting an extension on the short sale contract?

Generally the average closing time is 30-60 days for a standard loan. This is seen pretty often where the big banks will drop the ball 1-2 weeks before closing giving the buyer little time to secure a new lender. Processing a loan is a lot of paperwork, but if everything is perfect and full cooperation is given then time is not an issue and a loan can be closed in 6-7 days. As far as the extension goes, most banks are willing to work with consumers and if you provide them with a conditional approval 9 out of 10 times they will extend the contract. In order to get a conditional approval it is very important that everything is disclosed from the beginning. Whatever the reason the other lender denied the loan needs to be communicated upfront because in the end it will be discovered and those are the kind of issues that are going to hold up the overall process.