What is a Pre-Approved Short Sale?
What is a pre-approved short sale? We see this increasingly in our local MLS. If you've been searching short sale listings then you've seen it... "PRE-APPROVED SHORT SALE!" Most of us know that short sales take some time to get that lender approval. And, agents will actually deter buyers from putting offers on short sales because they can be time consuming and statics show that 70% of short sales NEVER close.
Times are changing and there are two things going on right now with short sales that you need to know if you're in the market to buy a short sale property.
Pre-Approved Short Sale could mean two things:
#1- There are so many short sales on the market, there's a good chance that the one you're looking at has been under contract before. Which means, an offer has already been sent to the bank and the process was started before. This is a good chance to step in, submit your offer, and possibly close quickly.
#2- Banks are wising up. When a borrower starts to default on their mortgage, the lender will contact them to see if they qualify for a loan modification. If they don't qualify, the lender will assess the value of the property by various means i.e. BPO (Brokers Price Opinion - an agent visits the property and pulls comparable sales from MLS). Once the bank comes up with a value, they estimate all other closing costs a seller would have to pay and calculate what they want to net. The homeowner calls a short sale agent to handle the short sale or the lender will refer a local short sale specialists like myself. I receive the information about what the bank wants to net and list the house with a price close to this number.
If you are thinking about selling your home short or you are interested in purchasing a short sale, I would love to help. Please feel free to call or email me, my adivce is always free!
Tara Stone, Realtor
Horse Property Specialist
Certified REO and BPO Specialist
