Home Buying in Winter Park>Question Details

Angela, Home Buyer in Orlando, FL

What does it mean when a short sale list price has been "previously approved by a short sale lender" and what are my chances of closing on?

Asked by Angela, Orlando, FL Fri Jan 6, 2012

a short sale when bidding the list price?

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6
The property has been listed for a year now. Could this be a problem?
1 vote Thank Flag Link Fri Jan 6, 2012
Hi Angela,
The lender has already reviewed the short sale documents and had a property valuation done and has determined a price they are willing to let the home be sold for. As long as you are working with a Realtor® that really understands the short sale process the chances of it closing are extremely high. Feel free to contact me if you have any other questions or need put in touch with an experienced short sale Realtor® in Orlando.
Terry McCarley, Realtor®, CDPE
Jones & Co Realty
1 vote Thank Flag Link Fri Jan 6, 2012
Angel,

What the term “Short Sale Price Previously Approved By Lender” means is a contract was placed on the property, and fell thorugh. As a part of the process the lender order and a “BPO” “Brokers Price Opinion” and based on the BPO value, and how much of a lose (closing cost, etc) the lender established a value the lender was willing to accept to release the lien and remove the loan from its books.

When buying a short sale if the lender has already established a price/value it’s willing to accept, and a lender loss mitigator has been assigned to the loan it cuts the short sale process tremendously.


Michael D. Bellamy, P.A.,
REALTOR®, SFR, BPOR
Charles Rutenberg Realty, Inc
933 Lee Rd, Suite 300
Orlando, FL 32810


407.536.MIKE(6453) (direct)
407.622.2122 (office)
866.659.1822 (fax)
michael@michaelbellamy.net
http://www.bellamymovesflorida.com
"The Standard of Excellence"
0 votes Thank Flag Link Mon Apr 30, 2012
what that means is, at one time, this property had a fully executed contract. The contract along with the short sale package had been submitted to the bank/investor for approval. The negotiator ordered and had received their BPO (Buyer's Public Opinion) to determine his/her final short sale price. If the BPO came back with a higher value, most likely, the negotiator will make a counter-offer for a higher offering price. If the buyer refuses, then the property will be re-listed as "active" listing. Normally, the listing agent will re-list the property at the approved price.

If you plan to make an offer at the asking price, the process for the negotiator to approve your offer will be much faster. For sure, your transaction will close. If the BPO findings are still current, the negotiator can avoid from ordering another one. However, if your offer is below the approved short sale price, the process is starting all over again subject to the bank/investor's approval.

Please make sure that you will find a short sale specialist. It is a long process but if you have a competent agent, he/she will try to make the process more enjoyable.

Good Luck.
0 votes Thank Flag Link Fri Jan 6, 2012
Hi Angela,
Talk to your buyers agent, but it is VERY possible given they have an 'approved' price that this home was under agreement and it fell through. Because short sale properties take anywhere from 4-12+ months to close, that may be the reason the home has been on the market for so long.

Talk to your buyers agent, but make sure he/she is knowledgeable in the short sale process.
0 votes Thank Flag Link Fri Jan 6, 2012
It's possible the property had a deal that fell apart; consult with your agent for any additional and necessary information.
0 votes Thank Flag Link Fri Jan 6, 2012
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