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Permalink Reply by Bryant Tutas on February 12, 2010 at 12:42pm

Rhonda, In most cases a "pre-approved" short sale is a myth. The lender may have told the seller that they are qualified for a short sale or there may have been an approval where the buyer walked and now you have an approved price. Or it could be an FHA pre-foreclosure sale.

Most of the big lenders will not give you a pre-approved price. That's why it;s so important that we price the property right from the get go and do our best to get a good strong buyer at a reasonable and justifiable price.

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Permalink Reply by Nicole Borsey on February 16, 2010 at 3:49pm

yes, it's usually where they buyer walked. they never (IMHO) give a "pre-approved" number. they are too busy working with ACTUAL short sales waiting to close to have enough time to deal with a pre-approval. They used to exist when an INVESTOR would get an approval then resell the home at another amount higher than the approval. (all completely legal... when done correctly.)

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Permalink Reply by Emily S. Knell on February 17, 2010 at 6:17am

The bank will rarely tell you what the appraisal came in for or what the "investor" wants. Try calling in to the main line and keep calling in until you can get a low level inputter to spill the beans for you. Put on the schmooze to find out what the magic # is, they won't specifically tell you either, but I bet you could get it within a $5-10k range, then have the buyer change their offer price & submit a new HUD stating "I know this will work and be the best Net your investor will get in this market!"

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Permalink Reply by Ben Benita on February 17, 2010 at 9:42pm

If your Seller has an FHA loan, you can get your hands on HUD Form 90045 to learn of the pre-approved price. Otherwise, you have to know of the the higher ups at the bank to get those numbers (the loss mit. persons are trained NOT to reveal this number so they can get as much money as possible for the Investor on the note)

A few thoughts, in a good way -- "pre-approved" could mean the short sale WAS approved at teh list price and no more non-sense or waiting is required. Bad way -- "pre-approved" could also mean the listing agnet called in and simply asked if the bank will ALLOW a short sale.....this is tragic and shows you re dealing with a TOTAL newbie short sale agent....I would STRONGLY caution you to stay clear of these, or, get a professional negotiator involved.

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Permalink Reply by Carol Pease on February 20, 2010 at 4:39pm

On an FHA loan you get a form 90045 which shows what the HUD-1 has to net for the short sale to be approved. When I get one of those forms I advertise that the short sale is "pre-approved"

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