Forum

Pre-approved Short Sale

Posted by Kevin Vitali on September 27, 2011 at 2:39am in Short Sale Discussions

What do others feel about the "pre-approved short sale" where the lender determines the price prior to ever receiving an offer?

My experience has been the lender way overprices the property, dragging out the time and the amount of work to be done to get the bank to realize where reality lies.

You need to be a member of Short Sale Superstars to add comments!

Join Short Sale Superstars

Email me when people reply –
Follow

Replies

  • Kimberley Kelly September 29, 2011 at 1:40am

    I agree with Kirsten..I don't do the "Pre-approved Lender Price"..always way off.  They don't know zip about my Palm Springs, CA market!

    Smitty:  I too, am always calling to check when I see "Pre-approved" in the listing.  I have never actually had an Agent show me the Approval Letter, and even if they had one..it would be for the previous deal.  Could be completely different next time around.  My interpretation of Pre-approved Price=available for offer. 

  • Napua Lucas September 28, 2011 at 9:05am
    I have seen too many agents struggle to try and sell a property that had a listing price approved by the lender because the price was ultimately too high. Then the agents have struggled to get the price reduced and have been told NO. Therefore, right or wrong, I never submit to the lender for an approved price, I list it first and submit when I have an offer.
    • Kimberley Kelly > Napua Lucas September 29, 2011 at 1:40am
      100% my experience too.  Thanks Napua.
  • Michael Schneider September 28, 2011 at 4:22am

    Assuming a bona fide sales process, the best offer is the lowest variance, unbiased estimator of fair market value. QED

  • Smitty September 27, 2011 at 4:48am

    It's not a "pre-approved" short sale.  It's a pre-approved list price.  If it was a pre-approved short sale you would have an approval with a buyer and seller already.  I cant STAND when agent write "pre-approved" short sale.  I've called before and asked them to show me the approval and they were speechless.  It cracks me up.

     

    Anything "pre-approved" by the lender is for the lender's benefit, not the seller, so it will always be high.

  • Jeff Payne September 27, 2011 at 3:46am
    Kevin, I have only experienced this a few times.  Big problem for me is that we are in a declining market.  The price today can be much different than the price 4 months from now.  If it takes a while to get an offer, the pre approved price could be outside of the range of values for that property and cause problems.
This reply was deleted.
********************************** like buttons ************************