In a short sale process, there are many things that can derail a transaction. First and foremost, you need to be sure that all of the liens on the property have been identified and are negotiated. If there are multiple lien holders, the short sale negotiations are much more difficult.
Secondly even once everyone is on board with the short sale value, including the banks, the sellers could file for bankruptcy. This kills the short sale process. If you have already done buyer inspections and spent money on appraisals and loan apps, you could be out that money.
Lastly, the seller can also decide last minute to try for another loan modification. Even if you have an approved short sale, that kills the deal and, if the loan modification is denied, the process begins all over again if the sellers don't decide to file for bankruptcy.
Not only are you dealing with the vagaries of the various lenders that have liens on the property and trying to satisfy all of them, but you are dealing with the real lives of the sellers.
Prudential Fox & Roach
Delaware and PA Agent