What Happens If The Bank Does Not Approve The Short Sale?


A contract between the seller and the purchaser is going to have language in there that says, if the bank doesn’t approve the short sale in a certain period of time, then either party can terminate the deal and basically unwind the entire transaction.
The homeowner is going to be right back in the same position they were at the start of the transaction, and they can pursue other options like bankruptcy or foreclosure.