"BANK APPROVED SHORT SALE"??? WHAT DOES THAT MEAN??? A RANT!

"BANK APPROVED SHORT SALE"???  WHAT DOES THAT MEAN???  A RANT!

How often do we read that phrase in MLS listing reports for Short Sale listings??  WHAT DOES IT MEAN??

Often that particular Short Sale listing will have had one or more prior offers/contracts.  So why didn't it close???  HA!  Oh, the buyer walked???  WHY DID THE BUYER WALK? 

WHAT DOES "BANK APPROVED PRICE" mean??   Because there was a previous "bank approved" short sale contract, future buyers are now LOCKED INTO THE PRICE, TERMS AND CONDITIONS OF THE PREVIOUS CONTRACT???

ARE THE BANKS ATTEMPTING TO TURN REAL ESTATE BROKERAGE INTO A RETAIL SHOP FOR SHORT SALE RESALE PROPERTIES???? 

*So the price was approved by the bank.  So what??? 
*Did it appraise??? 
*Did the bank approve it before the prospective buyers turned 55 years old and moved into a retirement village??
*Did the bank continue a foreclosure action concurrently with the Short Sale review??  Is the property now closer to foreclosure than before?
*Did the prior contract fail because the second wanted more than the first would pay??  Did the second try to extrot more money from the buyer? 
*Did the prior contract fail because the bank refused to cancel the seller's note?
*Did the prior contract fail because the electricity is now disconnected and the basement has flooded from the sump pump well??
*Did the prior contract fail because the BANK APPROVED SALE PRICE was a counter and the buyers walked??

SO THE SHORT SALE WAS APPROVED WITH A PREVIOUS BUYER, SO WHAT??  There is absolutely no assurance that a short sale on the same property for sale will be approved with the buyer at hand.  Absolutely none. 

BANK APPROVED LIST PRICE OF $429,990.  So what??  Just what does that mean???  Will the bank not even entertain an offer of $420,000???  Is the listing agent now relieved of presenting any offers of less than the BANK APPROVED PRICE??? 

IS THE PRICE OF REAL ESTATE NO LONGER NEGOTIABLE???? 

The previous "BANK APPROVED PRICE" may represent a bank approval of for a Short Sale offer from a buyer with 20% down.  What if a new buyer is making an offer with FHA or VA or 5% down conventional financing.  What if the offer is for financing includes a GRANT or FIRST TIME HOME BUYER financing that will require another level of review???  Will the bank approve any offer at the "BANK APPROVED PRICE"??

JUST WHAT KIND OF SMOKE AND MIRRORS IS THAT PHRASE "BANK APPROVED PRICE"??   

To me, "Bank Approved Short Sale" means NOTHING. . .  ABSOLUTELY NOTHING!   Once a Short Sale contract falls apart, the process for that Short Sale listings goes BACK TO GO!

 

                                    

BUYERS:  "This listing says the Short Sale price is 'BANK APPROVED'.  Does that mean we can't make an offer?? "

AGENT:  "That's what the bank wants."

BUYERS:  "Why didn't it sell before?"

AGENT:  "We'll never know."

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Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988.

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