What is an Approved Short Sale?

Banks generally do not approve a short sale until the bank receives an offer from a buyer. So, the usual way a short sale can be approved is for a buyer to submit an offer and get that offer approved. This is how a typical short sale goes:

• Agent lists the short sale.
• Seller delivers lender's required documents to the agent.
• Buyer submits an offer subject to lender approval.
• Seller signs the buyer's offer.
• Listing agent sends the seller's package, the accepted offer and a HUD to the short sale bank.
• Buyer waits anxiously, maybe for months.
• Short sale approval letter is finally received by agent.
• Agent calls the buyer's agent to deliver the news.
• Buyer's agent informs listing agent that the buyer bought something else.
• Buyer cancels the transaction.
• Listing agent chokes the buyer's agent and puts the home back on the market as an approved short sale.