Why Lenders Reject Florida Short Sales
It can be discouraging when a lender rejects a short sale, however, knowing what to watch for may decrease the likelihood this could happen to you. The team at Short Sale Facilitators in Casselberry, FL works with homeowners to increase the chances the lender will approve the short sale package.
A short sale requires a lot of work on the part of the seller, the agent and the short sale facilitator. The seller provides an extensive amount of documentation in order to support their claim of a financial hardship. The realtor works hard to price and market the house for their client. The short sale facilitator works tirelessly to negotiate the short sale with the lender. After putting so much work into the process, no one wants to see the lender reject the short sale offer.
Why Lenders Reject Short Sales
1) Market Values Change
Short sales take a long time to close. Sometimes buyers walk away or cannot close for some reason. During an extended period in an improving housing market, it is possible the market value on your home could change. An offer the lender may have accepted several months earlier may no longer be adequate months later.
2) Loan Modification Reconsidered
Federal programs and lender policies change frequently. It is possible a lender could offer a loan modification rather than approving a short sale even though the request for a loan modification was rejected months earlier.
3) Short Sale Package Incomplete
Remember that a short sale is a financial and legal transaction, so it is critical that you finalize the paperwork and documentation according to stated deadlines. If the short sale package is not complete, the lender will reject the short sale.
An offer that is too low may be rejected by the lender because it would mean too much of a loss for the lender. On the other hand, an offer that is too high resulting in the seller making money may mean they no longer qualify for a financial hardship.
5) Multiple Lenders
If you have a second mortgage on your home, remember that each lender must agree to the terms of the short sale. If they do not, the short sale will not close.
6) Buyer Not Qualified
The buyer may not have the necessary credit or financing to complete the sale.
7) Seller’s Finances Change
Sometimes a seller may have the good fortune of finding a job if they were unemployed. While this is good news, it may mean the seller no longer qualifies for the hardship they originally used to justify the short sale.
Will My Lender Approve My Short Sale?
A short sale handled in an organized and efficient manner will go more smoothly than one that is not organized. Asking Short Sale Facilitators of Casselberry, Florida to negotiate your short sale is a good first step. The negotiation of a short sale takes a great deal of knowledge and experience to attain a positive outcome. Alma Korshak and her team have over seven years of short sale negotiation under their belt, so experience is on your side.
It is important to work closely with your realtor so that fluctuations in the market don’t jeopardize your short sale. Your realtor should also work closely with the seller’s agent to insure the offer is a good one with strong financial backing.
There are no guarantees in a short sale, but having an experienced team on your side can minimize the chances the lender will reject the short sale offer. Alma works closely with the seller and encourages them to be upfront if anything changes that impacts their financial profile. It is better to address issues and concerns upfront rather than submit a short sale package the lender is likely to reject.
If you have questions about short sales, call Short Sale Facilitators. They will schedule an appointment for you to come into their office in Casselberry Florida to meet with Alma Korshak and her team. Alma will explain the process and give you a detailed checklist of all the documentation you must include in the short sale packages submitted to your lender. A strong negotiator anticipates hurdles and prepares for them in advance.
Short Sale Facilitators. The Power of Negotiating.