The Offer on my Short Sale listing has been DENIED!

By
Real Estate Agent with Century 21 Cahill Associates

Today, I found out the offer my short sale listing in Lowell, MA has been denied!  I have to say that I was surprised since they had previously hinted to me that the offer amount on the offer that I had submitted was a "good one".  They did not even give me a counter-offer, either!

While it seems that banks these days are more willing to accept short sales and move on, they are not always getting accepted, at least initially.  I closed one last month that I had to really fight for because the BPO (broker price opinion) came back over $100,000 higher than our highest offer (there were three offers total).  I had to submit additional documentation and extra comps to show why it was worth no more than the offer I had submitted.  Luckily, there was a very good comparable sale that closed right after the BPO was submitted that really helped my cause and they ended up accepting my offer.

Nice try!

 

With this bank, they didn't even give me a counter-offer (or a number that they needed to "net").  For some reason, they're not even letting me speak to the negotiator in charge of the case.  They're sending their messages through customer service reps that cannot even answer any of my basic questions.  VERY frustrating!

Last week, I got an approval on another short sale I am working on in Mattapan, MA where I was able to speak directly with the person in charge of approving the short sale and he even gave me his direct line and email address.  Not only that, he was able to approve my short sale by himself, right away!  There must not have been an investor involved.  That always seems to muddle things.

With this one I just heard about today, only time will tell if they will finally some to their senses.  The offer I have submitted is for full price and the place has been on the market for a while now.  There has been a total of three offers and this one is obviously the best.  I was told that I would hear back in 24-48 hours about the actual reason it was denied and what I could do.  Then they said maybe 72 hours...  Unbelievable!!!

Posted by

Thanks for reading!

David Cahill
Century 21 Cahill Associates
cell 781-910-6506
www.DavidCahillHomes.com

 

 

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Comments (7)

Judd Reynolds
Exit Team Realty - Savannah, GA
Savannah, GA

Judd ReynoldsGetting lender approval on shortsales and foreclosure properties is challenging and takes time. As you mentioned communications with as high up as possible in the decision channels is important. When I get stuck with the "middleman" and they won't let you communicate with anyone higher, I ask them a question I'm pretty sure they cannot answer, so they at least have to turn around and talk to that person themselves. Even "forced" communications in this way has helped with some of these deals. Best of luck and let us know how it turns out.

Jan 18, 2010 02:54 PM
Rob Muller
ReMax Town & Country - Canton, GA
Cherokee County Real Estate

Not just challenging but sometimes I feel like it's a complete waste of time, on a few that I have dealt with they just seem to keep stringing along with no interest in actually accepting any offer no matter how good it is

Jan 18, 2010 03:19 PM
Song San
Coldwell Banker Dynasty - Rosemead, CA
Broker, MBA

  David, thanks for the information. I picked up a short sale last week and am co-listing with another agent on another short sale. The agent was very worried that it won't go through that is why he believes it helps to have another agent to help increase the odds. It is still true that at the end, it would be all up to the banks. Very frustrating indeed but helps to have another agent to lift you up.

Jan 18, 2010 03:25 PM
Melinda (Mel) Peterson
Grants Pass, OR - Bend, OR
The Blessed Realtor - ABR, CRS

David ~ Sorry to hear that!  It's too bad that the short sale process isn't regulated.

Jan 18, 2010 03:35 PM
David Cahill
Century 21 Cahill Associates - Boston, MA

There was one thing I forgot to add about this short sale!  There had been an auction scheduled last month for this home and I was able to get it postponed TEN MINUTES before it was supposed to be auctioned off.  I thought I was on the right track at that point.  Guess not!

David

Jan 18, 2010 03:40 PM
Jeffrey Smith
Author of 'Realtors Guide To Short Sale Success - Eustis, FL
Short Sale Education

Maybe the bank thinks the seller has some money they can get with a deficiency judgement

Jan 19, 2010 03:36 AM
Michael Bergin
Coldwell Banker Residential Brokerage - ABR - SRES - Alexandria, VA
Northern Virginia Real Estate

I have now been through 4 processors, four appraisals, a complete denial and have just submitted the second contract for the same person.  Its nuts.

Michael

Jan 19, 2010 12:33 PM

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