I'm not sure what you mean by 'hold up'. If you mean why does it take time, there are several steps the bank has to take before approving a short sale. They have to make sure the seller has a qualifying hardship, they have to ascertain the current market value of the property (either by ordering a BPO or a full appraisal), etc.
Short Sales require patience....by all parties.
--Maybe the cash offer isn't high enough. If the bank thinks a property is worth $200,000 and you offer $100,000 cash, the bank won't accept.
--There's still a lot of behind-the-scenes stuff to be done, even with a cash offer. In fact, about 99% of the work that has to be done with a financed offer has to be done with a cash offer.
--Banks just don't do short sales well. Cash, financing, whatever . . . that's not the issue. Banks--unbelievably after 6 or so years--still are lousy at handling short sales.
So, a cash offer may help slightly. But most of the factors in a short sale remain unchanged.
Hope that helps.
The guys in charge at the bank work a 9 to 5 like most everyone else. They are working on Hundreds of files so it can take quite a while for them to review the file. It is a major problem in our system put it is what it is, we are at the banks mercy no matter if the buyer has financing or not :(
Before you are granted an approval on your purchase by the short sale lender, they want make sure that the seller qualifies for a short sale. If it is a HAFA short sale, more time is required. The short sale lender also wants to evaluate the property to see if the dollar amount of your offer makes sense to them. Cash is good but not enough cash is still not enough cash.
Short sales take patience. But I bet that you think that you are getting a good deal or you would not have made the offer you did. Right?