6 Reasons Why Short Sales Fail

6 Reasons Why Short Sales Fail

In today's housing crisis, there are 2 words that alot of real estate agents cringe when they hear-"short sale". A Short Sale occurs when a Lender agrees to accept less than the amount owed to pay off a loan. The Short Sale negotiation process is anything but short...it is a lengthy one and it may take several weeks or months to gain an approval.

The "Short Sale" process has gotten a bad rap for NEVER CLOSING.

How Can You Make Sure That Your Short Sale Closes?

6 Reasons Why Short Sales Fail

1. Incomplete Short Sale Package-the most common reason why short sales fail.If the package is not complete, many of the lenders will not call and tell you what is missing.

2.Package Not Submitted Properly-Every lender has different procedures for how they want the package submitted.

3.Offer Too Low-Each Lender has its own formula for what price they wil accept on a short sale.

4.Buyer Not Strong Enough-A pre-approved buyer has a much better chance of getting their contract approved by the lender than one who is ony pre-qualified.

5.Lender Took Too Long and Buyer Backed Out-So many foreclosure/short sale procedures-too litle manpower.

6.Inaccurate BPO's(Broker Price Opinion)-If the BPO and/or appraisal of the property was inaccurate and the lender has a distorted picture of what the fair market value, this could influence the lender's approval.

Although short sales and foreclosures are not new trends in real estate, current economic conditions,rising rates of umemployment, and depressed home values in many markets point to continued increases in mortgage defaults, short sales and sales of foreclosed and bank owned properties.

Avoid these 6 Reasons and perhaps your for sale sign will read SOLD: