Approved short sale might not be the most true wording in a listing. In fact, with some exceptions (Suntrust Short Sales) the “approval letter” has the name of the buyer. Which means at the very least you’ll have to get a new letter with a new name on it. In addition, most banks will send the offer (even if it’s the same as the last one) back to review.
When you see Approved Short Sale, if it’s true, it’ll be an FHA Short Sale or it’s really just “Approved of.”
A lot of people are really confused about the process of a short sale. The short sale process is hard work, long but not necessarily complicated. Once you realize that it is all a bank compliance issue, it’s really understandable why short sales are so frustrating. The short sale process can be broken down into these steps:
Collecting the paperwork
Presenting the paperwork
Bank “acknowledging” the paperwork
Bank assigns the file
Bank does pre-mitigation work
Bank orders Broker Price Opinion to determine value
Bank assigns negotiator
Negotiation
Bank counter offers, or approves
Approval in writing, but with conditions.
This process can take from 60 days to 6 months depending on the situation and bank.
