What to do if Ihave been approved for a short sale but now my financial position has changed?

I was approved for a short sale 6 months ago based upon my then current financial situation. The short sale should close in a month. I will inherit money in about 1 month that will change my financial situation. Do I need to give the bank an updated financial statement even though they have not requested one. Is it a criminal or civil law violation not to update my financial statement, even though the bank has not requested an update?

Asked on December 11, 2011 under Real Estate Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

The answer to your question can be found in your communications and agreements with the bank, in relation to their approviing a short sale. If the correpondence, documentation, agreements, etc. require you to update your financials at any point prior to closing, or to inform the bank as to any change in your financial situation, then you must do this; but if the bank did not put any such obligation on you, you would not have to affirmatively provide this information...though if the bank specifically reaches out to you to ask if there has been a change in your financial situation, you would need to answer truthfully or potentially be committing fraud.


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