Did you know that less than half of all listed short sales actually end up successfully closing?
As most Florida short sellers are highly motivated to sell, it is unlikely so many of these sellers simply change their mind, yet over half of all short sales fail to sell at all and simply expire, or fail to get approved and to closing.
Our short sale approval rate is near 100%….and our short sales close, so why is the industry average so low?
TOP 4 REASONS MOST SHORT SALES NEVER CLOSE:
4. OVERPRICED HOME: Price and condition are the two reasons homes do not sell, and both can be addressed with a price reduction. Remember that what you owe on the mortgage is irrelevant in a short sale situation.
3. SHORT SALE DIDN'T GET APPROVED: This is common also, and can almost always be overcome! Maybe paperwork was incomplete, or there wasn't enough follow up. Perhaps the short selling lenders valuation came in higher than market value and the parties involved did not know how to handle the situation. Maybe a pending foreclosure date was not addressed and the clock ran out. There are many ways to bungle a short sale, but almost all are ultimately preventable or remediable with the right help.
2. TERMS OF SHORT SALE APPROVAL WERE NOT ACCEPTABLE: Sometimes short selling lenders make unreasonable demands. This also happens, but more often than not is also resolvable, if you know how to ask.
1.SELLERS AGENT AND/OR ATTORNEY DIDN'T TRULY UNDERSTAND THE SHORT SALE PROCESS: This is generally the #1 reason short sales fail. When those in charge of getting the short sale approved don't have enough knowledge or experience with the short sale process – things rarely end well for the seller. Short sales are complex specialty transactions and require expert assistance!
So things didn’t go as planned and your short sale expired…so now what? Well the good news is…most of the time you can simply try again. Sometimes it takes a try or two (or three!) but with the right help, almost any Florida short sale can be successful!
Last Updated on January 14, 2021 by Minna Reid