Fairfax VA -One of the main reasons why a bank will reject a short sale offer is if they feel like the property is worth a certain amount and the offer is less than that.
Let’s say you have a buyer willing to pay $119,000 for a short sale.
After the bank orders an appraisal, they learn that the home is actually valued at $135,000.
The bank will generally turn down the offer in these situations.
Here is another reason short sale offers get turned down: The lender doesn’t have a complete short sale package. In that case, the necessary paperwork will be sent to the lender.
Reason #3: The offer doesn’t meet the short sale guidelines. Every lender has different guidelines for whether they will accept or reject a short sale.
Unless the short sale offer meets those guidelines, it will be rejected.
Reason #4: Unrealistic expectations from the lender. Every lender has a specific employee who negotiates and processes the short sales – known as a short sale negotiator.
If the seller or buyer do not agree, then they will turn down the short sale offer. Never mind that they do not own the loan.
Most short sales that are foreclosed upon end up selling as a bank owned property. The Boston Consulting Group recently did a study in which they discovered that banks lose twice as much money on bank owned sales than short sales.
If a short sale negotiator doesn’t follow the short sale guidelines, we gently remind them of the guidelines.
They usually approve the file. If that doesn’t work, then we will notify their supervisor.
That solves the problem most of the time. But, if it doesn’t, then we contact the owner of the loan directly and let them know what is happening.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny.
Thanks for reading this,
Thierry is a Real Estate Agent at RE/MAX Premier, and Host of Talk Radio’s, ‘Inside Real Estate’
Phone: (703) 322-0600.
Thierry is an advocate for Homeowners in Distress. Thierry has made it his personal mission to help as many people as possible avoid foreclosure and keep their home.
Thierry Roche specializes in loan modifications and short sales in Fairfax Virginia. Fairfax Loan Modification Help. Fairfax Short Sales. Fairfax Short Sale Realtor. Fairfax County Short Sale Realtor. Fairfax VA Short Sales. Fairfax Realtor.
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This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Roche’s personal views and do not reflect the views of RE/MAX Premier. This information is provided as a courtesy to our viewers to help them make informed decisions.