Home Selling in Los Angeles>Question Details

Short Sale S…, Home Seller in Los Angeles, CA

if lender does not approve a short sale, what are the options?

Asked by Short Sale Seller, Los Angeles, CA Thu Jan 12, 2012

Help the community by answering this question:


Some options:
1. Harp program
2. Loan modification
3. Deed in lieu
3. Selling it by you paying the short fall, (bad option)

A short sale approval would depend upon your financial hardship and property being upside down in value.

Douglas Perez
(213) 375-8741

0 votes Thank Flag Link Wed Jun 13, 2012
Hello Short Sale Seller,

Go to this website: http://WWW.KeepYourHOmeCalifornia.Org

Keep your home California is a federally funded stae run foreclosure prevention program. They may be able to assist you.

Best Of Luck To You!!!

Kawain Payne, Realtor
0 votes Thank Flag Link Wed Jun 13, 2012
Hello Short Sale Seller,

I hope by now, that your property has successfully closed, via your short sale!

It's been my experience, that a diligent agent will have to do a lot of back and forth with most lenders to get a short sale closed. If the lender does not approve a SOLID and smart short sale, your agent should press on, in an effort to prove to your lender why this is a great deal for all involved.

All the best,
Kieran Jackson, CA DRE # 01903647
Keller Williams Hollywood Hills
213.632.8484 Direct

Short Sale Specialist (SFR)
Web Reference: http://KieranTheRealtor.com
0 votes Thank Flag Link Tue Jun 5, 2012
With the limited information you have offered, the first step is to consult your bank about a modification and inquire about the various programs being offered this year to distressed property owners. After talking to the representative you will learn a great deal about where you stand financially with the bank and your individual mortgage. If you don't qualify for a modification the bank representative will explain if a short sale option will be to your benefit or not.

Skipping this important step and jumping blindly in to a short sale option has negatively impact thousands of home owners. If your bank suggests pursuing a short sale option then you will need to obtain a fully executed buyer contract that makes sense to gain bank approval, and in some cases offers are never approved. You will not be able to do a short sale and modification at the same time. The element of time is very important and the clock starts ticking after you missed your first mortgage payment.
0 votes Thank Flag Link Mon Jan 16, 2012
Have your attorney right a letter to the Short Sale department of the bank - if you cannot afford an attorney use a service like Legal Shield or even Legal Aid. You can also call 211 and ask for legal services that are free or subsidized.
By the way - send a copy of your lawyer's letter to your congressman and state senator - they should be looking to impress voters right now - they may do something to help you also.
0 votes Thank Flag Link Sun Jan 15, 2012
Hi Home Seller:

That is a loaded questions. It all depends on where you are in the foreclosure process...if your even there. Has the bank filed a Notice of Default or Notice of Trustee's Sale on your property? Have you attempted to do a loan modification? Have you spoken with the bank regarding turning the property into them via a Deed in Lieu of Foreclosure? Is there any way possible to bring your mortgage current if you are behind? Are you behind in your mortgage payments and if so, how far? Is there equity in your property? Do you have a financial hardship? Is the property priced at current market value and is the offer at current market value or close to it? Has the Foreclosure Sale been postponed more than 4 times...i'm finding that some banks, such as Wells Fargo, and investor portfolios who owns the mortgages, have written guidelines stating that unless they have an offer at least 10 days before a foreclosure sale, that they will not guarantee that the foreclosure sale will be postponed again, nor the short sale approved. They are getting stricter on time lines of foreclosure.

With the answers to these questions, I can give you a more specific picture of what would happen and what your options are.

Feel free to contact me directly to discuss.

All the best and Good Luck!

Kat Becker, Realtor
Prudential California Realty
0 votes Thank Flag Link Fri Jan 13, 2012
Since here we are not informed about the details, at this point I am not even sure that a short sale has not been approved to you, or if you just want to find out what if they do not approve it.....

Different lenders, different rules, different circumstances, different lender decisions.....

If you are thinking about short selling, have a really good short sale attorney on your side, some local
Realtors may be able to recommend attorneys that they or their client have worked with on short sales..

You may also consider after short sale when you can buy again, or if foreclosure is another solution,
you really need to sit down with the appropriate professionals, a good local lender, a good short sale
attorney and a trusted local Realtor who can produce the right comparables of recently sold properties
similar to yours, to figure out together what your best approach may be.... and always consider what
your next step after this home will be...... Renting, Buying and when.....

Make sure you get all the details cleared up and you fully understand all your options, and any plans you
may qualify for.

Good Luck to you....
Edith YourRealtor4Life! and Chicago and Northern Illinois/North Shore Expert
Working always in the very BEST interest of her clients, buyers, sellers and investors alike!
Edith Always goes the X-tra Mile with a Smile for her clients.....
Referrals are always highly appreciated :)

To get to know Edith a little better, and to find out how the Expertise, Experience and various services
of a Realtor can make the purchase or sale of a property a more pleasant and successful experience go to

Have a happy and healthy 2012
0 votes Thank Flag Link Fri Jan 13, 2012
You might consider bankruptcey or you must be prepared to pay the shortage. I would highly recommend before you do anything that you sit down with an attorney and if you have one a financial adviser or your accountant to review your situation and explore your options and the ramifications of any specific action before you do anything.
0 votes Thank Flag Link Fri Jan 13, 2012
Short sale,

It would be curious to know where you were in the shart sale process? In addition to the factors outlined by my colleagues, the presentation of of your paperwork should always include documentation that supports your purchase price offer. The lender will certainly request their own BPO's or appraisals but your position would be improved considerable by giving them comparison information that they could use.

Additionally, we find that shrot sales go much smoother when you have an attorney supporting your case. Banks tend to listen to and respond better to attorneys than most RE professionals.

Good luck,

0 votes Thank Flag Link Fri Jan 13, 2012
A couple of reasons the bank will deny a short sale:
1. There has to be economic hardship
2. The listed price has to be close enough to the BPO "Broker Price Opinion Value" and not severely under priced for the local market
3. And there are a few others depending on the circumstances

What did the bank tell you the reason for denial of the short sale was? This information will help us all greatly.
Here's a Great short sale blog:
0 votes Thank Flag Link Fri Jan 13, 2012
Lender would deny it based on your financial situation or the property having enough equity to liquidate.

Doug Perez
0 votes Thank Flag Link Thu Jan 12, 2012
You have some good answers here. I would also speak to a qualified attorney that specializes in real estate foreclosures.
0 votes Thank Flag Link Thu Jan 12, 2012
It depends on why it was denied.price,hardship etc..your options are get a new buyer,deed in lieu or foreclosure. If you wish to find out all of your options go to http://www.katherinejohnsonhomes.com all of your options as a distressed homeowner are listed...good luck. By the way contact me if you want honest answer
0 votes Thank Flag Link Thu Jan 12, 2012
Hello Short Sale Seller,

Your best option depends on why they denied it. If it was price you need a higher price. If it's a reason that can be satisfied with the current buyer then make it work.


Monique Carrabba
The Carrabba Group
KW Hollywood Hills
(323) 899-2900
0 votes Thank Flag Link Thu Jan 12, 2012
Hi Short Sale Seller,

First, I would suggest that you speak with a short sale specialist like myself to discuss your situation. If you have a hardship, a reason for the lender to accept the short sale of your property or why you are not able to make your mortgage payments, then that helps. Also, it is important to work with a short sale agent --someone who is experienced. Their knowledge may be helpful to have the lender approve your short sale. I have had some difficult short sales but have been able get them closed *knock on wood* If the short sale is not a success for some reason, then unfortunately the lender will foreclose. Bankruptcy is not going to take away the foreclosure in most situations. Feel free to contact me directly at 818-903-2040 so that we may discuss your situation. Thanks so much.

Sara Mehrpouyan CDPE
Short Sale & Foreclosure Specialist
Direct: 818-903-2040
Rodeo Realty
Dre license #01712757

0 votes Thank Flag Link Thu Jan 12, 2012
Did the lender give a reason for not approving the short sale? Contact me directly and we can explore your options.

Dot Chance, Realtor®
Certified Distressed Property Expert – CDPE®
DRE License #01494182
Keller Williams Realty World Media Center

WHEN YOU THINK OF REAL ESTATE...Think DotChance.com! My business thrives from your referrals!
Web Reference: http://www.DotChance.com
0 votes Thank Flag Link Thu Jan 12, 2012
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