Menifee CA, Here is a great question a client once asked me. 'Why Do Short Sales Fail? The client further went on to state that they heard that over 70% of short sales fail and wanted to know if this was a true statistic.
It is true that alot of short sales fail, however those statistics are for individual short sale offers submitted to lenders. If the first offer on a short sale is turned down then either the first offer is negotiated to reach an agreement or another offer (called a back up offer) replaces that first offer.
The failure rate is much lower on the individual sale of a home. There could be several reasons why short sales still do fail. Here are some reasons I have found throughout my short sale career:
- Is there a tennant in the home? Tennants are not particularly motivated to help a seller sell. Afterall, they will have to move when all is said and done! So tennants may be uncooperative in assisting the seller in showing the home. Albiet not impossible to sell while I tennant is residing in the property, I have found it really is not the best scenario when listing a short sale. A vacant home is much easier to sell.
- If you have a buyer willing to pay 'X' amount for the property, but the lender believes it is worth more it can stahl the process and ultimately the bank could decide not to move forward with the short sale. The valuations that banks are getting on properties are not always accurate...in my opinion. This is because banks hire out of area BPO evaluators that don't know the local market. So the lenders aren't necessarily getting good information. In the meantime, the buyer could walk and the property goes back on the market at an inflated price. No offers come in and the bank forecloses.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail: team@sherrykhomes.com I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 951-315-3201
Sherry 'K' Kotvis, MS
Menifee Short Sale Specialist
WWW.MyForeclosureRepair.com
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