Many mortgages have mortgage insurance and the company that is insuring the mortgage wants to do everything it can to not pay out on claims.
Banks are so buried by these that they are too understaffed to handle the load.
The sellers sometimes don't have a good reason to ask for a short sale, which can make banks hesitant to negotiate.
Many of these mortgages were repackaged and sold on the stock market, which means 10-20 investors may need to sign off of the short sale to get approval.
Some agents do not know how to do short sales successfully.
There are more, but this is a large portion of the reasons.
See what your options are instead of foreclosure. Here is a website that you can find a test in the upper right hand corner to see which government program you are eligible for.
Home Affordable Foreclosure Alternatives (HAFA)
â€¢Is your mortgage currently unaffordable, or will it be in the near future?
â€¢Even with adjusted payment plans?
Home Affordable Modification Program (HAMP)
â€¢Are you struggling to make mortgage payments?
â€¢Could lowered mortgage interest rates possibly make your mortgage affordable?
Home Affordable Refinance Program (HARP)
â€¢Are you making your mortgage payments on time?
â€¢Still trying to refinance your mortgage to a more affordable level?
Second Lien Modification Program (2MP)
â€¢Has your first mortgage been modified under the Home Affordable Modification Program (HAMP)?
â€¢Are you still struggling with payments due to a second lien?