5 Reasons Banks reject short sales – Your OC Short Sale Specialist

Why Banks Reject Short Sales

Banks demand a plethora of documentation before approving a short sale. Contrary to popular belief, sellers do not need to be in foreclosure or have fallen behind in making mortgage payments, for a short sale to occur. Here are reasons that banks turn down short sale requests:

• Short Sale Offer Price is Too Low

Banks will request an appraisal, sometimes several appraisals, and may also order a BPO. When the listing agent submits the short sale offer, the agent should also include a comparative market analysis that justifies the price in the short sale offer. If the bank believes it can make more money by taking the property through foreclosure proceedings, the bank will reject the offer.

• The Short Sale Package is Incomplete

Ask any short sale specialist and you'll hear horror stories of how banks lose documentation. In some cases, it doesn't matter how many times the package is expressed overnight or faxed, the bank might misplace it. Worse, an important document might not be in the file, and without every single required document, the sale will not be granted.

• The Seller Does Not Qualify

If the seller is asking for debt forgiveness, the bank will want to see a hardship letter from the seller that explains why the seller cannot afford to pay back the shortfall difference. Sellers who have large amount of liquid assets are at a disadvantage if the sellers are unwilling to work out a repayment plan with the bank.

• The Buyer Does Not Qualify

A desire to buy a home and the financial means to afford a mortgage payment does not mean a buyer qualifies to buy a home. A buyer's lender will examine credit history, length of time on the job, debt ratios, and a host of other criteria to determine a borrower's qualifications. To gain credibility with the seller's bank, buyers need to submit a loan pre-qualification letter along with the offer, but a loan approval letter carries more weight.

• The Bank Sold the Loan

Sometimes, the bank won't realize it no longer holds the mortgage on the property until many months have passed by during short sale negotiations. If the bank has sold the mortgage to another lender, the bank has no authority to approve a short sale because it has released the asset. Although the seller may continue to receive statements from the bank, the bank might be servicing the loan but not own it.

We have assisted over 400 home owners avoid foreclosure!! You will not be disappointed. 99% success rate on short sale lender approvals

www.ReMaxAnn.com

Orange County Short Sale Queen

Ann Urias (714) 588-7676

short sale services located in Aliso Viejo, Anaheim, Anaheim Hills, Brea, Corona Del Mar, Costa Mesa, Coto De Caza, Dana Point, Fullerton, Foothill Ranch, Fountain Valley, Garden Grove, Huntington Beach, Irvine, Ladera Ranch, Laguna Beach, Laguna Hills, Laguna Niguel, Lake Forest, Mission Viejo, Newport Beach, Newport Coast, Orange, Orange hills, Rancho Santa Margarita, San Clemente, San Juan Capistrano, Santa Ana, Tustin, Tustin Ranch, Westminster, or any of the surrounding real estate areas.