an acceptable amount for the asset. Some banks are now using appraisals, but others still rely exclusively on a Broker Price Opinion (BPO) or multiple BPOs. If the valuation is not accurate, it could take additional time to convince the bank otherwise. That additional time could amount to a significant delay in processing the short sale.
4) The Buyer. The buyer backs out because they got tired of waiting. This is a very common occurrence. Short sale approvals are often issued to one particular buyer. It is not unusual for the bank to do some investigation as to whether the buyer is an arm’s length buyer, i.e., not your cousin or your business partner. If the buyer backs out, you have to begin the short sale process over again.
5) The Seller. Sellers in distress can be their own worst enemy. They are often slow to provide the necessary documents for the short sale. Some documents have to be requested from third parties and take time to receive. Other documents must be compiled by the seller, like current profit and loss statements (if self employed), the financial statement, and the hardship letter. Often short sale sellers are so overwrought about their financial situation that compiling the necessary paperwork is very difficult for them. This can also add to delays.
If you are considering a short sale of your Santa Maria, Orcutt, Nipomo, or Arroyo Grande home, you should seek out an experienced Short Sale Agent to guide you through this process. If you would like a short sale consultation, please call my office to schedule a meeting or a telephone consultation at (805) 938-9950.Tni LeBlanc is an independent Real Estate Broker, Attorney, and Short Sale Agent. She is a Certified Distressed Property Expert (CDPE) and Certified HAFA Specialist (CHS) serving the Santa Maria, Orcutt and Five Cities area of the Central Coast of California.* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice.
Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement. Mint Properties is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.
Copyright© 2011 Tni LeBlanc *5 Reasons Why Short Sales Aren’t Always Short*