I OFFERED FULL PRICE ON A SHORT SALE, DOES THAT MEAN MY SALE WILL BE APPROVED?

This mornings top question is: I offered full price on a short sale, will that mean it will get approved?

Before making an offer on a short sale there are several things you need to know and consider. First a short sale is not guaranteed to ever get approved and can take 3-6 months on average to complete, so you need to have time and patience before making an offer. Second the most common killer of a short sale is price, you want to make sure that asking price was at or near current market value, some agents will cut the price in half to attract more buyers, the bank will have an appraisal completed and will only approve a short sale at or near market value, so if your price is to low, despite what the asking price was, it could be denied.

The next problem is the type of mortgage you are getting. If you are going FHA, you need to make sure the house can get a fha mortgage, there are checklists you can get online or from your loan officer. If the house needs work, it may not pass a fha appraisal and being a short sale the seller wont want to pay to fix anything. Lastly fha takes 45 days to close on average, the bank usually wont give more than 30 to close a short sale after approving, so you need to get all your financials  to your LO so when you do get approval, you are good to go, there are some costs and there is a gamble if it doesnt get approved so make sure you are updated by you or your buyer agent keeping in constant contact with the listing agent or negotiator for the seller for updates.

Blog Written by:
Scott Godzyk
Godzyk Realty Group
  • August 27 2010 - Manchester
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Answers (4)

In some market areas there are two kinds of short sales.  Those where the priced HAS been approved the lender, or third party, and those where the priced HAS NOT been approved by the lender.

Which is yours?  If it the priced has not been approved the the lender, then it is only a estimate of what the seller might accept.  In my marketplace, it is not unusual to see short sales being sold at higher than list price.

  • August 27 2010
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No,
  • August 27 2010
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no - I have seen short sales sell above market to stupid people. I have seen areas where as short sales were always the lowest comp out there. The lender will do stupid things and this is always never predictable.  If you make short sale offers, make many. Do not commit cash to any before lender approval. 
  • November 28 2013
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if you were submitting an offer at list on my fully bank approved short sales and you were qualified to proceed with the purchase and at the terms of the sellers lender(s) 
  • November 29 2013
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