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8 Tips to Get a Bank to Approve a Short Sale in Charlotte NC

Real Estate Broker/Owner with Showcase Realty LLC 183393

Homeowners often use short sales so they can avoid going through foreclosure. It can lessen the impact on the homeowner’s credit report, making it an attractive tactic when faced with foreclosure.

Short sales are considered pre-foreclosure transactions, where lenders should issue their approval first. A foreclosure is a legal way where lenders enforce a mortgage loan, typically resulting in the homeowner losing ownership of the house. Since a short sale is the pre-foreclosure, it’s a better chance for the homeowner than foreclosure.

Once the short sale is approved, the lender cancels the remaining debt. 

Many homeowners are worried that their banks will potentially reject their short sale. Good news: most times, this isn’t the case! If the seller and their property qualify, banks will approve the short sale. However, you should still be ready for some exceptions and changes to the rules.

Why Would a Bank Deny a Short Sale?

There are times when banks will deny a short sale. Either they have unreasonable demands or unbelievable requests to approve the short sale. Most of these are based on the investors’ requirements. But you may find that these don’t make any sense at times.

There are a few rules that are easy to understand. Some are associated with the Home Affordable Foreclosure Alternatives program (HAFA). However, these can be interpreted in their ways. Does this mean you might have fewer chances of getting an approved short sale? Not at all!

There are still a few strategies and tactics to take advantage of as a buyer. Some of these are known to work almost 90% of the time, but others might not work as well. But remember that since a short sale is a pre-foreclosure transaction, approval is still the first thing you need to obtain.

There are specific ways that banks or lenders may intervene in the event of a short sale. Here are a few examples:

  • Demanding higher sales prices than any appraisal would meet.

An example is when bank negotiators would claim a higher price than suggested, like putting a house for sale up at $250,000, but the original suggested selling price was only $200,000. 

This situation is debatable because there are instances where the original price would not be able to cover the losses of investors in comparison to what a foreclosure would bring to the table.

  • Demanding that the seller should occupy the property.

Negotiators may request the sellers to occupy or move back into the home nearing foreclosure because there could be clauses stating that owner-occupied properties are liable for short sale approval.

Negotiators may ask for this even if the seller has moved across countries, especially when they expect that the seller is not willing to move back or if they can’t. This means that the short sale cannot be approved nor rejected due to the seller refusing to move back in.

  • Demanding a certain amount as a seller contribution that might be unpayable.

This is typical, as banks sometimes ask sellers for additional contributions. At times, this may be even margins above the sales price itself.

In these situations, banks want the money from the sellers, not their agents or buyers. The bank won’t be able to approve the short sale if the seller cannot pay the seller contribution stated by the bank.

Of course, there are many valid reasons why some banks reject short sale approvals. Most of the time, this is because of either of the following:

  • the seller doesn’t qualify
  • the buyer doesn’t qualify
  • incomplete documents or applications

To learn more insights, you can check our blog post

You can’t be entirely sure that a short sale is either accepted or rejected by lenders. Some approve short sales upfront, but the chances of that happening is rare. Ultimately, the odds for short sale approval vary but avoiding common mistakes gives you higher chances of approval.

How Long Does it Take for A Bank to Accept a Short Sale Offer?

There are several cases where time plays a significant role in the short sale. For one, the buyer might get tired of waiting for approval. Sometimes, they might back out if the approval doesn’t arrive in a certain period.

In making a short sale, make sure you aren’t becoming impatient. No short sale is ultimately the same due to many dependent factors. Some depend on the lender, and some on the listing agent. All in all, delays may come from different parties, which can extend the short sale duration.

Short sales take up to six months, with the shortest time being weeks. Waiting is unideal, but patience is everything that you need. With patience and dedication, you’ll be free from struggle soon enough.

The estimated time a short sale can be fully done is about 60 to 90 days. But circumstances do matter, which can affect the length of the sale. A good short-sale agent will help you minimize the duration as much as possible.

Although you might be perfectly qualified for the approval, don’t expect it to be a quick process. Some short sales take as long as months, but the period varies depending on the short sale’s steps. Some banks take a long time to receive the paper you send in, and final approval will take weeks.

There are a lot of situations where the process may be lengthened unexpectedly. This is common in short-sale applications that encounter a few hiccups along the way. This is why a Realtor specializing in short sales can come in handy. If you aren’t aware of what you might be doing wrong, they’re there to guide you through it.

It helps to be aware of each step of the way, too. If you have the time to research short sales, do it! With short sales, the banks receive proceeds, the buyer gets the property, and you become entirely mortgage-free.

Showcase Realty offers the best options to help you in the facilitation of a short sale. Nancy Braun and her team are filled with licensed short sale agents, making it easy to sell your Charlotte, NC property without worrying about a foreclosure.

How Do I Convince My Bank to Agree to a Short Sale?


Banks are always headed towards making money, as that is their business. Most of the time, banks will be able to receive more money from foreclosures compared to short sales. This is why they prefer the former to cover the latter. In some instances, though, banks will aim to minimize their losses, leading to an approved short sale.

Before venturing into the process, here are a few tips that can help you get an approved short sale:

1. Pairing up with a trusted Charlotte, NC short sale agent.

Although you might be nervous about knowing if your short sale might be approved or not, you need to have a little confidence. Especially if you think your home might qualify for a short sale. In that case, strongly consider contacting a real estate agent specializing in short sales.

Many short-sale agents can do more than what is expected. They can help verify if your candidacy for the short sale is likely approved. Some agents can handle the communication with lenders! While most of all, they can help you prepare your property for the short sale and guide you throughout the process.

There are many qualified short-sale agents in Charlotte, NC. Most notably, Nancy Braun of Showcase Realty is a prominent real estate agent in the city. She has more than a decade of skills and expertise, which can help you significantly, especially if it’s your first time dealing with a short sale!

Getting someone like Nancy, especially Nancy herself, will guarantee you nothing but good results. 

2. Obtaining a Property Valuation

A property valuation, or property value analysis, evaluates comparable properties. This helps sellers determine specific pricing for the value of their homes. In planning a short sale, establishing the value of your property is crucial.

Lenders will be less likely to approve your short sale application if the equity of the pricing is unable to break even. They’ll prefer foreclosure instead. 

Let lenders know that documentary proof of the home value is vital. Short sale agents can help you prepare a comparative market analysis, or you can contact an expert appraiser. Working with an expert in the Charlotte, NC housing market will be your ideal option.

3. Documenting and observing the market.

They might have already done the math if you’ve already informed the bank of your planned short sale. This is why this tip and the previous one are essential. Showing the bank the losses and gains are sometimes very effective in short-sale transactions.

A Charlotte, NC short sale agent can show banks a comprehensive analysis of the direction where the market is moving forward. It could make them think that an offer is better accepted today than in the next few months. This is most applicable if the market value is deteriorating.

However, in most cases, banks won’t care about the agent’s input. Negotiators are most likely focused on how much they can gain today and do not know what they might be able to do in the long term.

4. Contacting lenders for the short sale application.

Before everything else, inform your lender about your plans for the short sale. Sometimes, lenders have specific qualifications that they want to be reached. This tip ensures that your house is eligible in the eyes of your lender.

Although it might be different with each lender, they all have one thing in common. Short sales are not something they like at all. Discuss with the lender what amount they’re willing to approve, and be consistent in follow-ups for your short sale application. 

You can check out our blog post here to find short sales.

5. Returning documents properly and ASAP.

Charlotte, NC short sale agents will likely have the paperwork you need to sign. However, other forms of paperwork might change your bank’s lawyers—papers like the short sale contract addendum, the listing addendum, or affidavits.

By the time you’re nearing the close, the one you got might already be outdated. Make sure you communicate and send all documents to your agent as soon as possible. This is especially if your bank requires updated bank statements or payrolls. 

Deadlines are important, even if they aren’t there. Negotiators may slow their approval if they don’t see urgency from you. Your request may also be closed if you miss a deadline or are too late in passing paperwork to lenders.

6. Making sure all documents are complete.

As crucial as urgency is, completion is also vital. If a bank asks you for a tax return, ensure all relevant pages are there. If they ask for bank statements, include all pages that you have.

Banks will never prefer a shortcut or summarization. They will always choose the whole page. Also, ensure that information on the pages you submit is complete.

7. Accepting a reasonable price from buyers.

You already have a proposed short sale listing price and a comprehensive analysis. The next step should be to ensure it’s close to the comparable sales similar to your property. Now, you have to make sure the price proposed by your potential buyer is reasonable.

Additionally, before a short sale gets approval, banks might ask for more. Such as asking for the buyer’s requirements. This includes proof of funds, a pre-approval letter, or if the buyers are planning to get loans. Paperwork must be sent to the bankers before proceeding with the short sale.

8. Negotiating the short sale properly.

Once a lender hands you their terms, that’s one step closer to closing the short sale and succeeding. The only thing you’ll have to worry about is the buyer. Will they or won’t they accept the terms that the lender provided?

Once all involved parties in the short sale hand in their approval - that’s it! The short sale will be closing in. Then, the property will be under the buyer’s name, and lenders will receive the sale proceeds. You, as the homeowner, will finally be off the mortgage loan.

Although short sales are complex, they give you a much better chance at control than foreclosure. Though not ideal, it’s the most beneficial for you in many ways.

Arranging a short sale is hard. But it can be easier with the help of a professional who knows Charlotte, NC, like the back of their hand. This is where Nancy Braun and her team of experts at Showcase Realty can help you.

As one of the most skilled and experienced real estate agents in the Charlotte, NC housing market, Showcase Realty helps with anything and everything. 

Whether you’re dealing with a short sale procedure, planning to buy a house listed as a short sale, and more, Nancy and her team can make it easier. With a licensed short-sale agent like Nancy Braun, your house can be sold faster than you’d think. 

Call Nancy Braun at 704-997-3794, so Nancy Braun and Showcase Realty can help make the short sale process easier and faster.

Posted by

Nancy Braun

Owner & Broker in Charge

Showcase Realty,LLC


1430 S Mint St Suite 106

Charlotte, NC 28203


704-625-2361 (f)

Sham Reddy CRS
Howard Hanna RE Services, Dayton, OH - Dayton, OH

Great information, Nancy, thanks for sharing!!!

A short sale is a good idea if you struggle to make mortgage payments. Plus, you want to avoid foreclosure. But it's important to note that a short sale will damage your credit score. If you're not in danger of foreclosure, consider other options. 

Aug 13, 2023 10:28 AM
Nancy Braun

Sham Reddy CRS Thank you for your feedback! I'm glad you found the information valuable. You've highlighted an important aspect of short sales – they can be a helpful solution for homeowners facing financial challenges and wanting to avoid foreclosure. It's crucial, as you mentioned, to weigh the benefits against potential credit score impacts. Exploring alternative options is indeed a wise step, especially if foreclosure isn't an immediate concern. If you have any further questions or need more insights, feel free to ask. Have a great day!

Aug 13, 2023 06:03 PM