Short Sales Process

**HighStakes** · 03-22-2011, 08:27 AM

I am currently looking to buy a a short sale property. The real estate agent says that i will loose the appraisal fee if the bank rejects my offer. My question is, would the bank allow me to bring up my offer? or is it a done deal after they reject it?
Also, shouldn't the bank approve the sale before the appraiser sees the property? I am a total Newbie.

thanks

**Greg** · 03-23-2011, 06:47 AM

Get another agent. This one does not know what they are doing.

When you make an offer on a short sale you DO NOT get an appraisal done until after the seller's lender (short sale bank) has approved the sale and you have a contract with the short sale bank's signatures and you are applying for your loan. The contract you have with the seller is worthless if the short sale bank does not approve it. You will know the short sale bank has approved the sale when you see their signatures on the appropriate paperwork.

Do not apply for the loan or spend any money until the short sale bank has approved the sale. Do not have a home inspection done until you have approval (signed contract) from the short sale bank

Most short sales fail because the banks do not cooperate so hold onto your money.

**MikeAustin** · 03-23-2011, 08:57 PM

I agree with the previous post. Protect your interest by looking for other agents that can give you the best deal.

Fhil F.
Social Media Manager
on behalf of Mike Austin

**LVrealestateHELP** · 03-24-2011, 12:27 PM

Originally Posted by Greg

Get another agent. This one does not know what they are doing.

When you make an offer on a short sale you DO NOT get an appraisal done until after the seller's lender (short sale bank) has approved the sale and you have a contract with the short sale bank's signatures and you are applying for your loan. The contract you have with the seller is worthless if the short sale bank does not approve it. You will know the short sale bank has approved the sale when you see their signatures on the appropriate paperwork.

Do not apply for the loan or spend any money until the short sale bank has approved the sale. Do not have a home inspection done until you have approval (signed contract) from the short sale bank

Most short sales fail because the banks do not cooperate so hold onto your money.

The fact that your current agent would allow you to possibly throw away money on an appraisal for a home you do not have locked up yet (meaning to have written lender approval) shows they have no idea what they are doing. This is a very simple aspect of the short sale process and I would be greatly concerned what else is not being handled properly for your best interest.