Home Buying in 92544>Question Details

Cathy Gaines, Home Buyer in Hemet, CA

we signed a contract to purchase a short sale mobile. (cash). Now lender is denying short sale. Any ideas why?

Asked by Cathy Gaines, Hemet, CA Tue Sep 25, 2012

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Endre Barath,Jr.’s answer
Cathy sadly this happens more often, most people do not hear about it. Generally it is due to Price, Appraisal Value or the Seller did not satisfy the requirements for a short sale. Unfortunately many buyers find this out much too late or never. Have your agent try to find out. Ultimately time to continue your search for another property.

Endre Barath,JR
Prudential California Realty
Beverly Hills, CA
homes@endrebarath.com
310.486.1002
Web Reference: http://www.endrebarath.com
0 votes Thank Flag Link Sat Nov 3, 2012
First, remember that just because you signed a purchase contract between you and the home seller does not mean you where in an agreement with the short selling bank.

We have seen some short sales denied (we handle 20 to 30 short sales a month), but its hard to know why yours was. There are many factors and parties involved in a short sale.
0 votes Thank Flag Link Tue Sep 25, 2012
I have never had a Bank "deny" a Shortsale;
I'm wondering HOW they denied it?

I've had it drag out until the Buyers gave up,
I've had our Offer IGNORED for the longest time,
And I've received an ADDENDUM of some kind; indicating an acceptance:

But I've never heard a NO from the Bank.

Were you in the middle of an Escrow? I seriously doubt it.

And, NO, none of us could ever tell you WHY; what about your Realtor?
0 votes Thank Flag Link Tue Sep 25, 2012
Banks have the discretion at any time to cancel a short sale. Unfortunately, this is why they can be a headache for many. Best of luck.
0 votes Thank Flag Link Tue Sep 25, 2012
Its always up to the bank to approve the short sale. And they can cancel at any time no matter how far in to it you are. there isn't anything your agent can really do about it. and there are a lot of. different reasons why they don't approve them. You just have to hang in there this year has been really hard with short sales. But if you have questions I'd be more than happy to help you can call me (951)306-7501
0 votes Thank Flag Link Tue Sep 25, 2012
This is truly a case in which I have to ask: What does your agent say?

We have no idea of the circumstances of your transaction including what may have happened before and since you got into contract.

I will be cynical enough to suggest that cash buyers often believe that they are entitled to a substantial discount. If your offer was substantially below the market value of the property that could be the cause for the failure of your deal.
0 votes Thank Flag Link Tue Sep 25, 2012
Our offer was $5000 less than their asking price. My agent has NO idea why.
Flag Tue Sep 25, 2012
Sound like they are going to foreclose. Just guessing but the banks are known to ignore short sales and go directly to foreclosure. I am not sure why except they must think they can get more once they own it themselves.
0 votes Thank Flag Link Tue Sep 25, 2012
Agree with you Tim. We looked at a short sale in Fallbrook that really appeared to be worth over a million dollars. We were ready to offer cash, but our realtor found out there were 9 offers ahead of us, and when we heard the road noise, we opted out. BUT I watched it. It went up for auction about 4 months later, and it sold for a lot more than we were prepared to offer. Banks love the Auction bidding war process!
Flag Sun Dec 16, 2012
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