Short Sale CONFUSION

**wheels15** · 08-14-2010, 05:29 PM

hi, i am a paraplegic and have been living in a condo for 11 years that is going through a short sale. my mother made an offer that was pre approved but the sellers agent said she wont even submit it even though it is a higher offer than the other interested party. her reason is that she doesnt think the bank will approve my moms loan once they send an appraiser out to and sees that the condo needs some work.. i have read on the internet that a pre approved loan is as good as an all cash offer, which is what the other offer is. does she have the right to make decision on what she thinks the bank may or may not decide

**maui** · 08-14-2010, 08:27 PM

Wheels, welcome to the forum. Just to clarify something, is your mother pre-approved or pre-qualified? There is a HUGE difference between those two.

**wheels15** · 08-15-2010, 03:33 AM

Originally Posted by maui

Wheels, welcome to the forum. Just to clarify something, is your mother pre-approved or pre-qualified? There is a HUGE difference between those two.

first of all thank you for answering , my mother is prequalified and the other offer is supposedly all cash but my moms is a higher offer.

**Greg** · 08-16-2010, 06:48 AM

Condo loans are becoming increasingly harder to come by every day. This might be one of the condos that won't qualify for financing so your moms higher offer does not really mean anything in the final analysis.

The decision on which offer to submit to the bank is up to the seller and if they are taking their agents advice so be it. It is not a good idea for the seller to submit more than one offer to the bank at the same time.

**clemy** · 08-20-2010, 07:25 AM

Originally Posted by wheels15

i have read on the internet that a pre approved loan is as good as an all cash offer, which is what the other offer is.

Pre-approved just means the bank is pretty sure that they will give your mother a loan up to that amount, but they have all kinds of rules that could prevent them from actually giving the mortgage. If the property is not in good shape, that may lead to an appraisal that is lower than the price and the bank would only lend the amount of the appraisal. Your mother or you would have to come up with the cash to cover the difference.

Has your mother told her bank which condo community your condo is in? Banks have all kinds of rules for lending on condos. Too many for sale and/or too many rented out in your community and they will not give your mother a mortgage for your condo.

The bank will also do a more thorough analysis of your mother's financial condition and the condo purchase agreement before loaning the money. They could find any number of things they don't like and not provide the mortgage.

Pre-approved is not like cash, there are many things that could still go wrong.

**lvagent** · 08-20-2010, 03:07 PM

The other thing not mentioned above is that the bank, in many cases, may not allow the sale of the property to people that are related as they consider it a "bail out" of sorts. I've had banks tell the seller to find a family member also.
Condition of the property may effect the loan, and constantly changing conditions will also change it such as half of the home owners associations in Las Vegas in litigation.