Ventura County CA – Banks do not accept a potential short sale for a number of different reasons. Here is the biggest reason they did not approve your short sales.They think the property is worth more than the price the buyer is offering. For example, the buyer is willing to pay $319,000 for a short sale.
Click here to discover how other sellers successfully did a short sale and avoided foreclosure.
The bank wants to check and make sure the home is not worth more than $319,000 before approving the sale. They order an appraisal.
The appraiser stats that the home is worth $350,000. The bank is already losing money on the sale.
They don't want to lose an extra $31,000 on the sale.
If this happens the bank usually asks the buyer to raise their offer to the appraised value. Often times the buyer will agree to pay the higher price.
Reason #2: The lender doesn't have a complete short sale package. Maybe the seller's last 2 bank statements are missing.
Or, a page is missing from the sales contract. In that case, the necessary paperwork will be sent to the lender.
Reason #3: The offer doesn't meet the short sale guidelines. Every lender has different guidelines for whether they will accept or reject a short sale.
For example, the owner of the loan might be Fannie Mae. Fannie Mae has specific short sale guidelines. Unless the short sale offer meets those guidelines, it will be rejected.
Reason #4: Unrealistic expectations from the lender. Every lender has a specific employee who negotiates and processes the short sales. That employee is called a short sale negotiator.
This employee has a lot of discretion over what they will and will not approve. We have seen those employees make up their own guidelines.
They decide that Fannie Mae's short sale guidelines aren't good enough. So they demand more money from the buyer. Or they want the seller to give up their entire life's savings.
If the seller or buyer do not agree, then they will turn down the short sale offer. Never mind that they do not own the loan. If the short sale is turned down then the owner of the loan, Fannie Mae, risks losing even more money.
Most short sales that are foreclosed upon end up selling as a bank owned property. The Boston Consulting Group recently did a study on short sales. They studied what a lender would net when selling a home either as a short sale or a bank owned property.
They discovered that banks lose twice as much money on bank owned sales versus what they lose on short sales. What should your agent do with a short sale negotiator at the bank who doesn't follow the short sale guidelines?
We gently remind them of the loan owner's guidelines. They usually approve the file. If that doesn't work, then we will notify their supervisor or someone higher up at the bank.
That solves the problem most of the time. But, if it doesn't, then we contact the owner of the loan directly and let them know what is happening. That is the basis of what we do to get your short sale approved and help you move on with your life.
Thinking about a short sale?
I can help you short sale your property and get back on your feet. Send me an e-mail at cjohnson@prucalhomes.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 805-208-0823.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Ventura County loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.
Thanks for reading this,
Chris B Johnson, Realtor
Chris is a Real Estate Agent at Prudential California Realty.
Phone: 805-208-0823. cjohnson@prucalhomes.com.
Certified HAFA Specialist, Certified Short Sale Specialist, Certified Distressed Property Expert
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Chris B Johnson provides HAFA Loan Modification and short sales help, Short Sales in Moorpark, Short Sales in Thousand Oaks, Short Sales in Westlake Village, Short Sales in Newbury Park, Short Sales in Camarillo, Short Sales in Santa Rosa Valley, Short Sales in Somis, Short Sales in Lake Sherwood, and Short Sales in Simi Valley California. Moorpark Loan Modification Help, Thousand Oaks Loan Modification Help, Westlake Village Loan Modification Help , Newbury Park Loan Modification Help, Camarillo Loan Modification Help, Santa Rosa Valley Loan Modification Help, Somis Loan Modification Help, Lake Sherwood Loan Modification Help, and Simi Valley Loan Modification Help, Moorpark short sales , Thousand Oaks short sales, Westlake Village short sales, Newbury Park short sales , Camarillo short sales, Santa Rosa Valley short sales, Somis short sales, Lake Sherwood short sales, and Simi Valley short sales. Moorpark Short Sale Specialist , Realtor, Moorpark Short Sale Specialist , Realtor, Short Sale Specialist , Realtor, Ventura County CA Short Sales. Stop Foreclosure in Ventura County, Certified HAFA Specialist, Moorpark Short Sale Specialist, Thousand Oaks Short Sale Specialist, Westlake Village Short Sale Specialist , Newbury Park Short Sale Specialist, Camarillo Short Sale Specialist , Simi Valley Short Sale Specialist, Moorpark CA Short Sales, Thousand Oaks CA Short Sales, Westlake Village CA Short Sales, Newbury Park CA Short Sales, Camarillo CA Short Sales, Simi Valley CA Short Sales, Ventura County Foreclosure Help, Moorpark Foreclosure Help, Certified Home Affordable Foreclosure Alternative Specialist, HAFA, HAMP. CA. DRE 10501699.You can find Ventura County Short Sale Specialist, Realtor, at 587 W. Los Angeles Avenue, Moorpark, CA. 93021Chris also specializes in loan modification assistance and short sales in Ventura County California. Ventura County Loan Modification Help, Ventura County Short Sales.
Ventura County Short Sale Specialist, Realtor, Short Sale Specialist, Realtor, Ventura County CA Short Sales. Ventura County Specialist, Realtor, www.theshortsaleguide.com ,
Certified Home Affordable Foreclosure Alternative Specialist . Always check with a good real estate attorney to find out the laws in your state. There are also legal aid non profits that can give you advice on what to do to stop a garnishment or bank account seizure.
You should also look at California SB458. With the passage of SB458, the Expanded Anti-Deficiency Law May Have Unintended Consequences on Ventura County Short Sales. So Please read http://venturacountyshortsalerealtor.com/?p=948.
For Disclosure, and more information on Mortgage Assistance Relief Services, please see Code 16 of Federal Regulations (FTC), Part 322, or , http://www.ftc.gov/opa/2010/11/mars.shtm and always consult your CPA, Accountant, Financial Advisor and Attorney before you any financial or legal decisions. Also seehttp://venturacountyshortsalerealtor.com/?p=1066.
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