Kathy A. Torline-Nordstrom
ERA Herman Group Real Estate
Serving Colorado Springs
13 Reasons Colorado Springs Short Sales don’t close
Search for Colorado Springs Homes
As I get prepared for a short sale closing this Friday, I thought it was appropriate to share a list of all of the reasons that short sales don’t close. I’m sure I could expand on this list and make it into 113 reasons, but these are some of the top reasons they don’t close.
But, it’s important to note that with the right team of people helping a buyer or a seller, short sales can and do close!
(2) The Seller doesn’t qualify a short sale (maybe the seller doesn’t really have any hardship.)
(3) The Listing Agent does not know how to negotiate a short sale and to gather all of the info required by the short sale lender.
(4) The Buyer’s Agent didn’t explain the short sale process to the buyer, so the buyer gives up.
(5) The Buyer thinks that Short Sale stands for a quick close, not realistic about the time involved for approval.
(6) The Buyer’s Lender didn’t cooperate with the short sale lender; as the short sale lender really calls the shots on the transaction and requires all final closing numbers many days in advance.
(7) There are multiple liens on the property, and one lien holder doesn’t agree to the short sale and won’t agree to take a short pay off.
(8) The Seller gives up, decides to just let the property foreclose.
(9) The Buyer thinks they can steal the property. Short sale lenders won’t give the property away.
(10) The Seller negotiates a deed in lieu vs. a short sale.
(11) The Seller is able to make the past due payments current and no longer needs to do a short sale; or maybe they no longer face a hardship.
(12) The BPO (Brokers Price Opinion) comes in too high for the market condition. Essentially the amount that the bank wants for the property doesn’t reflect the market value.
(13) If the property is vacant, the property condition continues to deteriorate and the house may no longer qualify for FHA or VA financing; which can make it harder to sell. Vacant properties can get vandalized.
Short sales can close, but it takes a good team effort between everyone involves in the transactions; and an experienced Listing Agent and an Experience Buyer’s agent can make all the difference
- Short Sale Addendum help answer questions
- Are Colorado Springs short sale disclosed?
- BPO’s can kill a short sale
- The 2nd can blow the deal