If you are a buyer, know this – there is nothing wrong with buying a short sale, aka “pre-foreclosure”. However, if you are on a compressed time frame and need to purchase more sooner than later, short sales might be something you needn’t tie up with. There are some Short Sales that can be closed in a shorter amount of time, those would be the “approved” short sales.
“Approved” as it relates to Short Sale Real Estate has to do with the bank that holds the “note” on the property. They have had an offer that was submitted back in the beginning of the “short sale” listing by the listing agent. They have been working on the Short Sale for months. The agent and sellers have gone through lots of ups and downs. It is a very emotional draining experience.
Months later, the bank communicates that they have “approved” the short sale. The Seller, Seller’s Agent and Buyer…… Buyer? Where is the buyer? The Buyer bought another home? The buyer decided they don’t want to buy a home at this time? The buyer doesn’t want to live in the Santa Clarita Valley? OMG, after 8 months of diligent work, we just received approval and now there is no buyer…
Those types of Short Sales are “approved”. There is a small window where another buyer can slip into the process. Usually there is only a 72 hour window. Some short sales that are being advertised by agents as “approved” are not. Some use that word “approved” to obtain new leads and get new clients. 🙁
Baring those truly “approved” short sales, if you are on a crunch to buy a home, you might want to focus on Foreclosures and Regular Sales. We have built the map below to reflect all of the real estate in Southern California that only shows the foreclosures and Regular Sales.