Home Buying in 90045>Question Details

DebinCA, Home Owner in Westchester, CA

Does a bank approved price mean exactly what it says? I understand it is still a short sale, but wouldn't

Asked by DebinCA, Westchester, CA Tue Jan 1, 2008

the bank approval shorten the typical short sale approval period (which I've read on here is many months)? This is in the 90045 zip code (Westchester).

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It doesnt mean that that the property will selll at that price. The bank can order a new BPO (Brokers price opinion) and increase or possibly decrease price. If the comps have dcreased since the offer was submitted the property may not appraise at the approve price. Also a lein could pop up and the bank could ask the buyer to cover the lien. Depending on what bank and the negotiator approved price is not always the final selling price.
0 votes Thank Flag Link Tue Feb 1, 2011
Several things come into play with the time to approve a short sale. Bank approval should indeed shorten the turn around period, but keep in mind that some lenders are dealing with more short sales than others, which could lengthen the approval time. I had one lender who recently told me they were getting 3000+ new short sale packages each month. Hang in there...it's a great time to buy!
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Tue Jan 1, 2008
Cindi Hagley,…, Real Estate Pro in San Ramon, CA
MVP'08
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Deb, I have had 2 instances where my clients put in offiers on properties which were a bank approved price, and they went forward with the restriction that they must be closed within 30 days or less. The price we got them for was actually less than the price in the MLS. So in other words, yes, it did shorten the typical approval period. Whether this would be true in all cases, it may differ bank to bank. I'm not certain.

Good luck to you in the buying process!

Patti Phillips
800-680-9133
0 votes Thank Flag Link Tue Jan 1, 2008
A bank approved short sale doesn't necessarily mean that the price is approved, it just means that the bank has received a short sale "package" ie, the borrower has shown the necessary items to corroborate their petition for a short sale on the property. The bank might let the property go for less than what the published price is, but many different factors play into the final decision.
Web Reference: http://www.TerraBruns.com
0 votes Thank Flag Link Tue Jan 1, 2008
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