Banks generally do not approve a short sale until the bank receives an offer from a buyer. So, the usual way a short sale can be approved is for a buyer to submit an offer and get that offer approved. This is how a typical short sale goes:
* Agent lists the short sale.
* Seller delivers lender's required documents to the agent.
* Buyer submits an offer subject to lender approval.
* Seller signs the buyer's offer.
* Listing agent sends the seller's package, the accepted offer and a HUD to the short sale bank.
* Buyer waits anxiously, maybe for months.
* Short sale approval letter is finally received by agent.
* Agent calls the buyer's agent to deliver the news.
* Buyer's agent informs listing agent that the buyer bought something else.
* Buyer cancels the transaction.
* Listing agent chokes the buyer's agent and puts the home back on the market as an approved short sale.
And that is typically how you get short sale approval.
Here is a great article on short sales: http://homebuying.about.com/od/shortsale/f/081009_Approved-S
I hope this helps!
Joey Dodge, MBA
Riverside County Luxury Homes