The offer is submitted to the short sale lender (ssl).
The sellerâ€™s financial information package is submitted to the ssl.
The ssl evaluates the offer:
Is the offer price market correct as determined by a valuation put on the property by a broker or appraiser hired by the ssl.
Is the buyer and legitimate as determined by a review of the offer price, down payment, loan type, preapproval letter, etc.
Does the seller have a hardship as determined by their financial information, credit, and hardship letter?
Ssl grants approval or denial of short sale transaction.
If approval is granted, normal escrow period begins and buyer does inspections. Buyerâ€™s loan â€“ if not a cash purchase â€“ is processed including appraisal by buyerâ€™s lender. Buyerâ€™s loan is approved. Seller and buyer sign all documents, escrow closes and buyer takes ownership of the property.
This is, as I mentioned, a brief summary. Much can go wrong. Many possible problems and delays can arise due to FHA rules, HAFA evaluation, sellerâ€™s actions, lost paperwork by the ssl, sellerâ€™s delay in providing needed paperwork to ssl, requirements from the holder of the actual loan (in most cases the ssl is not the lender but is a servicer who does all the paperwork and then seeks approval from the holder of the loan) and other crazy things.
Have patience. Be ready for delays. Keep your fingers crossed for success.
The SELLERS (homeowner) acceptance is really meaningless.
You will not be under CONTRACT until the Bank accepts your offer.
You shouldn't spend a penny on inspections until you are under Contract.
Isn't this what you were told?