Short Sale Questions!

Bryan,
I will answer some of your questions:
1. what all is in a "Short Sale Packett"?
Here is a link with a basic checklist http://www.realestateradiousa.com/freedocuments/short_sale_check_list.pd...

If you are dealing with a government insured loan, you will have a lot more paperwork involved.

2. after the bank accepts your offer is it like a normal contract where you have 30 days to close (I would like time to find a buyer so I could close simultaniously) or how does that work and do you sign a contract with the bank?

It depends on the offer you submit and what the bank accepts....they might change your days to close. You have the right to accept, counter, or reject their modification to your original agreement. I highly recommend having your buyers list first and then going after properties that meet their criteria.
The key thing when dealing with banks, you can not do a traditional assignment of contract with them, they will rejject your offer. You will need a csh buyer for this approach, but what you can do is submit an offer to the bank with a Trust or other Entity listed as buyer and then sell that entity to your buyer.

3. if you do sign a contract to close in "X" days is there a way to put an escape clause in so that if you need t walk you can?

It depends on what the bank will accept. soem banks allow for inspection clauses which could be used to get out of the contract, where as others do not offer much of a window of time like 10 days max. It depends on whether they are selling the property as is too. You might be able to have a financing clause, but in almost all cases today, you will need to provide a proof of funds prior to them even considering your offer, so you may not have this as an option to get out of the deal too. There are additional clauses such as title issues and such thatyou might be able to get out of the deal with those if the others do not work.

4. if you do have 30 das to close and say you fid a buyer for the property can you close ssimultaniously with the new buyer and the bank? and how would you do that?

Yes!!! You must have your own funds to fund your side of the deal first and then the buyer must provide their own funding. You must find a title company, escrow agent, or attorney (depdning on the area) who will do simo closes.

would you close with the new buyer first eventhough you dont have control of the propery (or do you have control since you have a contract with the ban) - It depends on the person closing - overall the documents recorded must show that your purchase took place first and the sale took place after or else it is an illegal transaction.

, and then you would close with the bank? or would you need to close with the bank first to get control of the property (which means you would have to have the cash money to buy the property in hand), and then close with your buyer?

Either way you still have to fund your part of the deal.....you can no longer use the buyers funds to fund your part of the deal. Nobody I know will do it that way any more.....they will get in deep water with their local commission and fined if they do.

I hope this helps.