That question is asked and answered (to some extent) in a blog post at AgentGenius, which is primarily an agent-to-agent site.
Koenig & Strey agent Greg Viti contends that “there’s no such thing as a ‘short’ sale,” – referring to the often lengthy process of acquiring approvals from lenders and other lien holders.
I’m genuinely at a loss to understand why – except in the case of a truly unique piece of property – a home buyer would actively pursue a short sale. Short-sale buyers are typically entering into an extended, highly uncertain scenario, the outcome of which is that they will have paid a fair market price while incurring far more risk than is involved when the seller is not underwater on his mortgage.
Shouldn’t agents go well beyond what’s suggested in the linked article and require sellers to lock in approvals for a short sale prior to placing the property on the market?