When the time comes near to close on an existing approval letter, the terms of the new offer must correspond with the offer that was approved already, and the buyer must close by the date in the short sale approval letter or an extension may be mandatory. The short sale approval process may perplex some people but with the help of an experienced agent, the short sale process should be somewhat of a smooth process.
A lot of people become bewildered when they see the phrase “approved short sale”. The short sale process can be challenging so it is easy to not understand the entire lingo that can be involved. Banks usually do not approve a short sale until an offer from a buyer has been received to the bank. The typical way a short sale can be approved is for the buyer to give an offer and get the offer approved.
The way the short sale approval process works is that the agent will list the short sale, the seller will give the agent the documents required that the lender has asked for, the buyer will then submit an offer. The listing agent will send in the short sale package, the accepted offer and a HUD to the lender, while the buyer waits a possible four months. Once the short sale approval letter is received by the agent, the agent will contact the buyer’s agent to present the news. Then the buyer’s agent informs the listing agent that the buyer has bought something else, which results in a cancelation. The buyer then cancels the transactions while the listing agent is not happy with the buyer’s agent, but will then put the home back on the market as an approved short sale.
Reasons that a buyer might cancel an approved short sale may be that the home may need too many repairs, or the appraisal came in to low, or the buyer does not qualify for the loan. When a new buyer is brought into the picture, they will generally have to match the exact terms of the short sale approval letter.

NEW JERSEY SHORT SALE AGENT