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:
- The second mortgage companies dictate terms that are impossible to meet.
- 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.
- 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.
- 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.
- 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.
- 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