Home Buying in Pelham>Question Details

Tara, Home Buyer in Hudson, NH

Does an approved short sale mean that the bank will accept the listing price?

Asked by Tara, Hudson, NH Thu Mar 28, 2013

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No. Actually an "approved short sale" would usually mean you are under contract. That a buyer submitted an offer, the seller accepted, and the bank approved the contract.

What they probably mean is that the seller has submitted their hardship package and the bank has acknowledged their situation and is aware of the short sale, but has not necessarily approved the asking price.

This can be good or bad as the bank may not approve the listing price, but could also accept less than the listing price if they like the terms.
0 votes Thank Flag Link Fri Mar 29, 2013
Unfortunately no; much will depend on the broker's price opinion, recently sold similar properties in the immediate area, etc.
0 votes Thank Flag Link Fri Mar 29, 2013
No, It means the bank has given the seller a price that they will accept. The bank will then have to look ove the sellers package, sales contract, buyer qualifications, and most import..the appraisal/broker price opinion. The good thing is all Fannie Mae and Freddie Mac shortsales have new rules in place that require them to make a decision within 60 days of receiving a complete package.

Chris
0 votes Thank Flag Link Fri Mar 29, 2013
Tara there is NO such things as an approved short sale without having a buyer and a signed contract. There is such thing as an approved sales price meaning the sellers bank will accept a specified price, The buyers offer and terms still needs to be approved and the seller has to agree with what happens with the shorted amount. A short sale is never approved until it is in writing and signed by the sellers bank.
0 votes Thank Flag Link Fri Mar 29, 2013
Not necessarily--it typically means the homeowner's lender has determined that they qualify for a short sale. Once an offer is on the table the lender will determine if the priced offered is reasonable based on the market comps--often they will order a BPO (Broker Price Opinion) to use in making their decision.
0 votes Thank Flag Link Thu Mar 28, 2013
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