Short Sale approval FAQ

[Sandy Reddy]

Hello Everyone,

Can a bank approve a short sale LESS THAN offered price?

Is it mandatory, for the listing agent or seller negotiator to submit the purchase agreement to the lien holder bank? In other words, does bank need to have a fully executed contract (offer) on the property before they make a decision on the short sale?

Appreciate any inputs.

[Joe Norman]

Can a bank approve a short sale LESS THAN offered price? - Yes

Is it mandatory, for the listing agent or seller negotiator to submit the purchase agreement to the lien holder bank? - I don't know that its "mandatory", but why wouldn't they?

In other words, does bank need to have a fully executed contract (offer) on the property before they make a decision on the short sale? - Yes