What Does An Approved Short Sale Mean?
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.