In order for the bank to approve a short sale, a few things need to happen. The most important one for you is that it needs to be listed to the public at the lower price. The bank wont to a backdoor short, menaing that you and only you have the opportunity to bid at the lower price.
If they do a short, then a BPO (somewhat of an appraisal) is done, a price is determined, it gets listed, offers come in, the highest net offer is selected and then maybe they will take it. But backdoor shorts are somewhat forbidden, if they weren’t, people would sell short to each other or to their friends or just play, let’s trade houses for half price. It would be the swingers equivalent of real estate, except swapping houses instead of wives, actually I think I’m onto something, what if the wife stays with the house, I think I’ve got the next hit reality tv show “the desperate short sale housewives,” It could work, I’ve seen worse.
