Is it possible to get a pre-approved short sale price from the bank prior to finding a buyer?
Most lenders will not disclose what amount they’ll accept prior to finding a buyer. In some cases, the lender may specify the minimum net payoff amount that they’ll accept, but we’ve found that many of these “pre-approvals” cannot always be counted on, because the bank may come back after a buyer is procured and require more money even if the pre-approval was in writing. However, we have found that pre-approved prices set by HUD on FHA loans tend to be more reliable. In fact, HUD will often times accept less than the pre-approved amount for FHA loans. See our blog post, The Pre-Approved Short Sale Fallacy, for more information.
Related Questions
- Why would a bank agree to a short sale and hold off on filing foreclosure when it may take months or even a year to find a buyer and the bank losses money (interest) during that time?
- Ive heard that a buyer can buy the home directly from a bank and do a short sale. How does that work?
- Does a buyer have to inspection a home prior to short sale approval?
