Pre-approved short sales: fact or fiction?

I heard on some radio advertisement that a camel can spit with extreme accuracy to a distance of 35 meters. 35 meters! That’s really far. I don’t think I could even throw a baseball thirty-five meters. So, the more I considered that fact, the more I wondered whether it was true. After attempting to verify that fact on the Internet, I’m still not exactly sure whether it is true.

Another alleged fact that I have seen all over the Internet is that banks are offering pre-approved short sales. I’ve seen ads and been invited to attend webinars about banks offering pre-approved short sales. Just like the radio ad about the camel’s habits, you have gotta wonder whether this is absolutely true.

Pre-Approved Short Sales

With regard to pre-approved short sales, there are actually several grains of truth in that fact. There are a number of programs (such as HAFA and the Bank of America Cooperative Short Sale Program) that will provide a pre-approved purchase price. And, if the listing agent obtains an offer at the pre-approved purchase price within a specific time frame, than the bank will agree to approve the short sale.

But, is that really a pre-approved short sale? My thinking on this is ‘no.’ In most cases, the bank issues a short sale approval letter. The short sale approval letter contains a specific buyer’s name. So, while the purchase price may be pre-approved, the bank would need to issue an approval letter that contains the buyer’s name and all of the pertinent information about the conditions of sale.

Yes, it’s true that there are many programs out there that facilitate a quicker, more efficient short sale than ever before. Personally, I’m grateful for anything that can make my life easier. But, just like the information about the camel’s amazing skill, there may only be grains of truth to the advertising.