What's a Short Sale Approval

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:

• We list 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.
• We send the seller's package, the accepted offer and a HUD1 to the short sale bank.
• Buyer waits anxiously, 2-5 months on average.
• Short sale approval letter is received by agent.
• Agent calls the seller and buyer's agent to deliver the news.
• Escrow is opened
• Buyer proceeds with inspections and we move towards closing.
• Seller moves out 15 days prior to closing.

And that is typically how you get short sale approval.