Preapproval key for short-sale buyers

REThink Real Estate

Q: On Sept. 28, we made an offer on a short-sale property where a previous buyer "walked out," but it says "approved short sale." My question is why is it taking so long for our approval? We have been prequalified already and we even made a much higher offer than the previous buyer that walked out. Is my agent not as aggressive? –Maria

A: There’s no such thing as a listing that is a truly approved short sale. I generally see this description on homes that were previously in contract to be sold as a short sale, when the bank approved the previous contract and the seller’s short-sale application, but the deal later deal fell out of escrow. Often, what happens is that the previous buyer makes an offer, the seller submits the short-sale application and then the bank takes months and months and months to respond to the application. During that delay, the buyer gets frustrated or finds another home and cancels the contract.