Reason why a Short Sale may be rejected or denied by the Lender(s)
- Lack of evidence of a hardship for borrower
- Mortgage is current on the property, even though the value is than amount owed
- Property could be a second home or investment property. We have successfully completed many short sales for investors who have true hardships. See Why Banks agree to Short Sales.
- Seller filed for bankruptcy during the short sale process
- Lack of time to complete short sale prior to foreclosure
- Short Sale package is incomplete and disregarded at lender’s loss mitigation department
- Liens keeping the net proceeds to the lender below the minimum acceptable
- Home is no longer code compliant
- Seller has access to funds making it possible to settle the debt
- Seller has a recent Home Equity Line of Credit loan
- The mortgage is less than a year old
- Clouds on the title preventing it from being transferred to a new purchaser.
- Time frame for the short sale process too long, and the buyer has given up and cancelled the purchase agreement.
- Sellers get cold feet and cancel the purchase agreement
- Multiple offers submitted
- The Broker Price Opinion (BPO) assesses a higher value than the buyer’s offer.
- Multiple loans on the property, Junior lien holders don’t agree to release notes.
We Get The Job Done!
