Hello Everyone! I’ve been seeing a lot of listings saying *approved short sale* like they have received a pre approved short sale amount from the bank. Has anyone seen this or have any information on obtaining such from the mortgage company? Or it is just they have been through the process with a contract and the bank gave them a “we won’t take less than” and then they relisted it? Every mortgage company I have called states they do not do this.
Most agents don't know much about short sales, so this term can be very misleading and you need clarification. At times they use this term when simply they are " pre approved for a review ". Other times they could meant he deal was "previously approved" and we know that means the terms may be subject to change. The only time IMO that a short sale is pre approved is on a FHA Short Sale ( pre foreclosure sale program ) when they have issued an approval to participate.
Out of my experience, this only happens when the bank gives their expectations after a BPO or appraisal has been received.
Likely was previously approved at that price or was given a counter previous buyer could not match. That in no way guarantees you that price and most agents tend to be misleading with that. I find most truly just don't understand how short sales work and don't do it on purpose.