There are typically 2 main reasons why a bank may deny you for a short sale. The first would be considered your hardship factor and in that instance, the bank looks at your finances or they look at the situation and many times if you’re current on your payments, there’s a very high probability that the banks may deny you if they don’t see the hardship there and the payments are current. That is the first thing that we will have to overcome to be able to work with the banks. I can assess your situation on the phone and tell you whether or not the bank would approve your hardship.
The second reason a bank may deny you a short sale is for what’s called ‘Valuation’ issues. What that means is, when you are going to do a short sale and in order to do one, first we have to find a buyer who’s willing to offer a certain price. From there, the bank is going to send out a representative on their behalf to do an appraisal or valuation on the property so that they can determine what the property is worth today so that they can weight it against the offer that is being brought to them. And many times those numbers are not in alignment, they may say no to the short sale. However in those situations, what may happen is the bank may value a property at $300,000 and we have an offer for $250,000 the bank may deny it but many times they will give us a counter offer at which point we have to negotiate with the bank and the buyer in order to get them to the agreed upon price, sometimes in the middle, sometimes at one end or the other.
Understand that I have a significant amount of experience when it comes to dealing with short sales and we have numerous amounts of tactics and tricks and relationships established with these banks and many times get the bank to agree to the offer that were given to them. This is really where the expertise comes in when it comes to dealing with an agent handling your short sale for you. Many times the bank may simply say no and the agents give up and tell you you’re going to foreclosure. That’s typically not the case with us; we usually do not give up until we get the bank to agree to something that the buyer is willing to pay. With my success rate being to extremely high this is because of the fact that we do have a lot of experience, tricks, techniques and tactics in order to negotiate with the bank and get them to accept the value. Sometimes it’s simply based on the relationships that we have with the bank. They may have a representative that’s telling them the property is worth a certain value but we have worked with them hundreds and hundreds of times and they know who I am and they know that I’m not trying to pull the wall over their eyes and will accept my valuation or I can get them to come out and do another valuation on the property and get a second opinion.
In any event, there are typically only two reasons why I think the bank may deny you as far as a short sale is concerned. Hardship and Valuation and I know how to work through each of those issues and I can talk to you over the phone about whether or not those would be issues for you choose to do a short sale.
Thank You very much for listening to my presentation: What Happens If My Short Sale Is Not Approved?.