The seller needs to accept an offer from a buyer to start the process with the bank. The offer is then sent to the bank, along with a packet from the seller on their financial situation.
- If the lender participates, they will only accept a market value offer, which is most likely higher than the listed price.
- The list price is meaningless. Short sales are often listed lower than the real value. This is done in order to entice a buyer to submit an offer that is doomed to fail. A seller needs an offer to begin the process with the bank – any offer.
- The bank might be okay with the offered price, but could reject the seller as not qualifying for a short sale.
- As for the lender, they are proceeding simultaneously with foreclosure steps.