There are several reasons why short sales fail and here are some of the most common ones.
The House is Vacant
If a property is vacant, there is a higher chance of vandalism and property destruction, which causes a change in the value of the property.
There is more than One Mortgage on the Property
All lenders must be considered in a short sale regardless of how many mortgage liens there are. The first lender must meet an agreement with all the other lenders, because everyone will be taking a short payoff.
Additional Liens and Judgments on the Property
It is important to know about all the liens on the property, including property taxes, IRS, and city liens, because it can hinder the closing. Some liens require a payment before the short sale can close, so all liens should be known about from the start.
Listing Price is Too High
The price of the home is very important. The lender will want a full payoff but the home has to be sold short, because of the market and condition of the house. It is important to have an approved price from the lender that will sell.
Closing Fees are Not Covered
The lender may not want to cover the closing costs in the short sale agreement. Homeowners in a short sale are facing financial hardships, so they are not able to pay the closing costs.
Give us a call to speak will a short sale expert for a successful short sale. We have experience to overcome all these obstacles and more.