Hi Cindy,

This is a tough question to answer quickly, but I will give you an idea. Each short sale is very different. And no, there is no guarantee the bank will approve the offer. It depends on their bottom line. The bank is only concerned with getting back as close to the owed amount as possible. There are risks associated with short sales to consider. For example, even if the bank approves the short sale, there is often a second lienholder involved who has to also agree to accept less than they are due and in most cases, that means they have to agree to accept nothing. I can give you more detailed info if you would like to send me an email at LDevnew@cbmove.com

Lisa Devnew
Coldwell Banker
LDevnew@cbmove.com
410-615-0990

It is fine to buy a short sale if you have lots of time to wait - as in months to wait. If you are under any time constraints - lease is up, sold your house, having a change in your personal life, then a short sale may not be for you. I have had buyers succeed and I have had buyers fail, but they all take a lot of time and patience.

In addition, tHere is no guarantee that the bank will accept the contract price (even if you offered over the listing price) because most banks give no guidance to the listing agent as to what price they will accept until there is an offer on the table and the bank has received its own appraisal. While you are waiting for the bank to approve your offer you may very well miss another house that is just as good or even better that is being sold in the traditional way.

Short sales are affecting the overall market and putting pressure on sellers to recognized that prices have come down. I am now telling my buyers to concentrate on traditional sales wherever possible, but it is not always easy to find those. In many neighborhoods, it seems there are more short sales and bank owned properties than traditional sales, so then you should focus on properties that have had a negotiator appointed, or an appraisal done, so the process has already begun before you enter the picture. Good luck, and I would be delighted to talk with you in person. ALso, let me know if you want a list of short sales and bank foreclosures in any particular neighborhood!
Lise 240-401-5577