Suzanne's response was accurate. In the Austin area, including Lakeway, banks generally expect that the improved market will eleminate the necessity for a short sale in many cases.
I have seen banks require that the list price of the home, that was not pre-approved for a short sale, be increased. In one case the increase was 10-15% and the Buyer paid up to get the property. The lesson here is that list prices on potential short slaes may not be approved by the lender if the lender believes the prices are set too low, particularly in a area where homes sales are relatively strong. Lenders realize that Austin area prices have improved significantly during the past 1-2 years in desireable areas, such as Lakeway. Lack of supply is a significant contributung factor given the high current rate of population increase (and incoming potential buyers).
Short sales and foreclosures are not always the best buys in the market. Definitely find a Realtor who will properly represent you and analyze any potential purchase closely. Please contact me if I can assist you further. I live in the Lake Travis ISD area and active in the Lakeway market.
Thomas J. Cantalini
Broker Associate, REALTOR(R) GRI, CNE, SFR, MBA
Century 21 HSK and Associates Austin
9020-1 N. Capital of Texas Hwy., Suite 210
Austin, Texas 78759
Lynn911 Dallas Realtor & Consultant
Multimillion Dollar Sales Producer
http://www.lynn911.com 100's of Dallas homes listed for sale or lease
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I am pretty sure this is happening all over the country. And everything depends on which bank you are dealing with, the investor, and the appraisal. Find a good realtor, trained, experienced and educated in handling short sales and follow their advice.