Lenders aren’t under any obligation to approve a short sale—and often, they don’t.
So what’s the deal? Don’t the banks want to sell these houses to avoid a bigger loss?
There’s no simple answer to this question; sometimes they do, and sometimes they’re willing to take a gamble.
Why Do Lenders Sometimes Reject Short Sales?
There are plenty of reasons a lender would reject a short sale, including:
- The offer price is too low. Banks typically request an appraisal, and the listing agent should include a comparative market analysis to show why the offer price is justified. The lender doesn’t have to agree.
- The seller doesn’t qualify for a short sale. The seller needs to create a hardship letter to explain why they’re asking for debt forgiveness, but the lender doesn’t have to accept it.
- The buyer doesn’t qualify for the purchase. Like any other home purchase, the buyer must qualify under their own lender’s conditions.
- The bank sold the loan. Sometimes the bank that originally held the mortgage sells it; in that case, the lender doesn’t have the authority to approve the short sale.
Are You Looking for Short Sales in Tampa’s Suburbs?
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Call us at 727-584-8480 or 813-961-6000. If it’s easier, get in touch with us online. We’ll begin searching for your new home right away.