When it comes to advertising and marketing - the term "Approved Short Sale" has gone way past "worn out".
That is because, the term, "Approved Short Sale" means that the bank or banks involved in the short sale have given their Green lights to let the sale continue and close escrow.
Therefore - in some cases it is a "SCAM". Contact your realtor to check on the true status of the "short sale" that you are seeing advertised on the WWW.
However, the only way that most banks can do this is by the Real estate agent having submitted a "full package" for their review and approval.
What a Full Short Sale Package constitutes in a Short Sale Situation:
- The Listing agreement and various addenda that provide the listing is a short sale.
- The Paper Work from the "human component" the seller. Letters of hardship, financial documents and other items that the Short Sale bank requires to start the process.
- An Offer - Yes, the third part is having someone that wants to buy the short sale enough that they put it in writing with a real estate agent, qualify with a lender and put down earnest money(deposit).
After those three are received by the agent handling the short sale - they are submitted to the lender in the first position, the one that owns a larger chunk of the debt.
I say this because today, there are a lot of loans, and our short sale sellers, that have multiple loans on the properties. 80/20's - with a 1st and a 2nd - etc...
Sometimes, during the process - the short sale buyer gives up with regard to waiting. Sometimes, they lose their job's or have their hours cut.
Sometimes the bank denies the short sale. There are also times when the Short Sale Seller is able to make a mends with their mortgage holder and recovers from their situation.
When the buyer leaves the transaction -the short sale - after the bank has approved the Short Sale - you have a case where the Short Sale has been Approved. BE safe - let us know if we can help you and thanks for reading.