 |
| |
 |
| |
 |
| |
 |
| |
 |
The information you obtain at this site is not, nor is it intended to be, legal advice.
You should consult an attorney for advice regarding your individual situation.
Contacting an attorney does not create an attorney-client relationship. Do not send,
e-mail, or provide confidential information or information you do not wish to be
publicly disseminated until such time as an attorney-client relationship has been
established and requested to do so by an attorney.
Copyright 2009 Law Office of Craig W. Little, P.A. All rights reserved. You may
reproduce portions of this site or materials available at this site for personal and
non-commercial use. All copies of portions of this site or materials available at this
site must include this copyright statement.
You should consult an attorney for advice regarding your individual situation.
Contacting an attorney does not create an attorney-client relationship. Do not send,
e-mail, or provide confidential information or information you do not wish to be
publicly disseminated until such time as an attorney-client relationship has been
established and requested to do so by an attorney.
Copyright 2009 Law Office of Craig W. Little, P.A. All rights reserved. You may
reproduce portions of this site or materials available at this site for personal and
non-commercial use. All copies of portions of this site or materials available at this
site must include this copyright statement.
Web Articles
Analysis of Short Sales of
Residential or Commercial Property
Seller's Considerations
Why Lenders Reject Short Sale Offers
As sellers negotiate short sale deals and compile the submittal
package, they should be cognizant of the principle reasons that
lenders reject offers for short sales and the seller should
address each of these potential problems as completely as
possible.
Probably the main reason short sale offers are rejected is
because the sale price is too low. The lower the sales price, the
less the lender receives from the short sale, the smaller the pay
down of the outstanding principle on the loan, and the more
principle the lender must forgive. Of course the seller can not
control the amount that buyers will offer for the short sale
property so the seller must try to show the lender will not receive
more by foreclosing on the loan and reselling the property at a
later date. Obviously this begins by showing the lender
comparable sales that are most in line with the proposed offer,
but the sales must be truly comparable. The properties should
be comparable and, if possible, the sales should be short
sales. The seller can also argue that necessary repairs and
maintenance lower the market value of the property.
Lenders will also often delay or outright reject offers for short
sales if the seller’s submittal package is incomplete. Therefore
the seller or the seller’s agent or attorney should contact the
lender early in the short sale process and try to get a definitive
list of documents and information the lender will require before
reviewing a short sale offer. And the seller should gather all the
information that the lender wants, that is available. Gaps in the
submittal package or missing documentation could lead to
rejection of the offer.
The seller must also qualify for a short sale. If they are not
approved by the lender then the entire sale will be rejected.
The seller must be able to show that their circumstances justify
the lender forgiving a portion of the debt. A complete and
detailed hardship letter and financial statements that show that
the seller is unable to pay off the loan will be vital in convincing
the lender that the offer for the short sale should be approved.
Return to Seller's Short Sale Considerations
Residential or Commercial Property
Seller's Considerations
Why Lenders Reject Short Sale Offers
As sellers negotiate short sale deals and compile the submittal
package, they should be cognizant of the principle reasons that
lenders reject offers for short sales and the seller should
address each of these potential problems as completely as
possible.
Probably the main reason short sale offers are rejected is
because the sale price is too low. The lower the sales price, the
less the lender receives from the short sale, the smaller the pay
down of the outstanding principle on the loan, and the more
principle the lender must forgive. Of course the seller can not
control the amount that buyers will offer for the short sale
property so the seller must try to show the lender will not receive
more by foreclosing on the loan and reselling the property at a
later date. Obviously this begins by showing the lender
comparable sales that are most in line with the proposed offer,
but the sales must be truly comparable. The properties should
be comparable and, if possible, the sales should be short
sales. The seller can also argue that necessary repairs and
maintenance lower the market value of the property.
Lenders will also often delay or outright reject offers for short
sales if the seller’s submittal package is incomplete. Therefore
the seller or the seller’s agent or attorney should contact the
lender early in the short sale process and try to get a definitive
list of documents and information the lender will require before
reviewing a short sale offer. And the seller should gather all the
information that the lender wants, that is available. Gaps in the
submittal package or missing documentation could lead to
rejection of the offer.
The seller must also qualify for a short sale. If they are not
approved by the lender then the entire sale will be rejected.
The seller must be able to show that their circumstances justify
the lender forgiving a portion of the debt. A complete and
detailed hardship letter and financial statements that show that
the seller is unable to pay off the loan will be vital in convincing
the lender that the offer for the short sale should be approved.
Return to Seller's Short Sale Considerations
Law Office of
Craig W. Little, P.A.