In the short term, this will delay the sales of these kinds of distressed properties. In the long term, it will be good, however, as potential home buyers won't have to waste their time on properties that are not approved.
And not all short sales do get approved, or get approved at market price. I just had a (different) short sale deal die because the bank would not approve the appraised price and wanted more money. My buyers, and the seller too, have been waiting on the approval SINCE EARLY DECEMBER. The bank was