Approved short sale

[Ebony Rogers]

Is it good to go with a approved short sale home ? I know short sales in general take along time .

[Denise Evans]

Pre-approved short sales are generally for a price that is 95% of the recent bank-ordered appraisal. They are not a significant deal. If the property goes without an offer for 30 days, the acceptable price is generally dropped to 90% of appraisal, and then if it goes without an offer for 60 days, the acceptable price is generally dropped to 85% of appraisal.

If a prior short was approved but then the buyer failed to close for some reason (bought something else, loan commitment expired and would not be renewed, etc) then you can typically buy those properties at the same short sale approved-price. That might or might not be a real bargain.  Some people pay over market but less than loan payoff on a short sale, simply because they think the words "short sale eligible" signal a bargain price.