7471 LITTLE RIVER TPKE #201, ANNANDALE, VA 22003
Bank of America approved short sale at 140K. They have already done their appraisal! Bright top floor condo in great location! Hardwood flooring throughout. crown molding, open living room & dining room leads to large balcony. Master bedroom has walk in closet. Condo fee includes gas, water, sewer & pool. Walk to shopping, Near Van Dorn Metro, public bus service. Don’t miss all this one
This property went under contract yesterday. It really helps the process that this has already been pre-approved and the bank has even done their appraisal. We are expecting this closing to go smoothly! We are excited that our clients will be able to move on from this very soon.
What does Pre-approved Short Sale Really Mean?
When you are looking through properties to add to your “favorites” list online, you may notice that some short sale properties are marketed as “pre-approved” while others are not. What does this really mean? When you put an offer in, does it cut down on wait time to hear back from the bank since it is already pre-approved?
Pre-approved Short Sale Process
All short sales require the bank’s approval before they can be closed on. Normally, when you write an offer on a short sale, you have to wait, sometimes for months, to hear back whether the bank accepts your offer. If there are multiple mortgages on the property, each lender involved must approve the price before moving forward with the sale.
The most common way a short sale gets “pre-approved” is when a buyer placed an offer, the bank approved the offer but then the buyer backs out of the contract. Though this deal isn’t going forward we now know what price the bank will approve and that approval is usually good for up to 90 days.
The exceptions are the government’s HAFA program for Fannie and Freddie mac backed loans, FHA backed loans that have an appraisal done upfront, and Bank of America’s ‘co-op’ short sale program that also will pre-approve the seller and set a price upfront.
Does a Pre-approved Short Sale Take Less Time?
In a pre-approved short sale, once you put an offer in, the lender just has to review you as the new buyer and go over the offer. As long as it has not been more than a couple months since the approval, they most likely will not ask for another market price comparison. Theoretically, the process should only take a few weeks. There is still the risk of a denial but much less risk since the price was pre-approved by the lender.
Best case scenario, you will be on your way to closing in 30-45 days. Worst case scenario, they ask for another price comparison if it has been too long, or they deny your offer for other reasons. They could deny it if they do not feel your financial status is strong enough, or if they had another stronger offer, among other reasons.
Although there is still some risk, it is a definite benefit to have a pre-approval on your short sale whether you are the one selling or buying it.
If you are looking to buy a short sale or sell your home as a short sale in the Northern Virginia area, please give our team a call. We have sold over 300 short sales and have much experience dealing with many different lenders and loan situations. Call today for more information!!
Jennifer Young Homes
Keller Williams Realty
