What Are The Main Reasons Short Sales Fail?

By
Real Estate Agent with Keller Williams Realty Louisville East (502) 664-7827

What Are The Main Reasons Short Sales Fail?

A skilled short sale expert Realtor can close a high percentage of short sales. However, some short sales will not close. Here are the main reasons short sales fail:

  1. The second mortgage companies dictate terms that are impossible to meet.
  2. The foreclosing lender gets unreasonably high opinion of value from an appraiser, regardless of actual lower market value. The foreclosing lender insists on getting a price that is higher than reality.
  3. The foreclosing lender says they will get reimbursed more by the insurer or backer of the loan if the house goes to foreclosure. The lender gets more but the backer ultimately loses more than they would in a short sale.
  4. The seller stops cooperating, usually because of other overwhelming life events. If the seller disappears or stops being engaged in the process, even the best Realtor cannot help.
  5. The buyers back out at the last minute. The house is too close to the foreclosure date and the foreclosing lender refuses to wait for a new buyer.
  6. The listing agent is not knowledgeable enough, or is inexperienced, or is not efficient enough to handle the short sale.

It is absolutely critical that a seller facing default bring in a short sale expert Realtor who knows how to handle these problems.

If in Louisville, Call Dave Halpern (502) 664-7827, Broker/Realtor, LouisvilleShortSaleExpert.com

Posted by

 

 

Dave Halpern, Realtor

The Dave Halpern Real Estate Group

Keller Williams Realty Louisville East

Website David.DavidHalpernRealtor.com

(502) 664-7827

 

 

View Dave Halpern's profile on LinkedIndave_halpern twitterhalperndave_facebookDave Halpern QR CodeLouisville Foreclosure Realtors Dave Halpern

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Rainmaker
1,816,979
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in Southern RI and beyond

David, this is a short list of most of those unfortunate bumps that are experienced with short sales now...they should be getting easier but the investors just make it tougher to get them done ...keeping the seller engaged is so important as well as the cooperating agent who gets it & communicates well with their client...thanks

May 02, 2011 11:53 PM #1
Rainer
535,624
David Burrows
Classic Realty - Fairfax, VA
No Pressure, Just Seriously Devoted to Real Estate

David, I have experienced all of what you've written. Good post! Thanks, David

May 02, 2011 11:56 PM #2
Rainmaker
90,505
Goran Utvic
606 Homes LLC | Chicagoland Brokers Inc, Chicago IL 60656 - Chicago, IL
We Buy & Sell Chicago Houses Fast

David - Great post! You are absolutely right, the best chances of having short sale success is buy working with a realtor that is experienced and able to avoid the mistakes that you mentioned.

Realtors also should be working with attorneys that understand the process as well.

May 03, 2011 04:04 AM #3
Rainmaker
1,128,157
Al Raymondi
Ocean View Realty Group in Ormond By The Sea Florida - Ormond Beach, FL
Ormond By The Sea Florida - Home and Condo Sales

Nice summary of the issues Dave.  Many combinations of your list help cause the long delays that make buyers walk away.

May 03, 2011 10:08 AM #4
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Dave Halpern

Louisville Short Sale Expert
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