WHY SHORT SALE DENIED, PLEASE HELP?

Asked by reneemoraes, 60051 Thu Nov 1, 2012

just heard back from our lawyer that the short sale we had an offer on has been denied. No reason was given. They asked if we wanted to try again since today 11/1/2012 a new law is going into place for short sales. Why would it be denied, and why will i get a different answer now that this law is in place. I tried to read up on it but it just says they will move faster now. PLEASE HELP

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Laura Karamb…, Agent, Downers Grove, IL
Thu Nov 8, 2012
Have your agent or attorney contact the seller's side as the lender usually gives an explanation of why the file was denied...no hardship exists, seller's ability to pay, assets, etc..

I just had an instance where the 2nd lien was approved for a Short Sale but not the 1st lien.

If you get an explanation of the denial you can then decide on whether or not it's worth it to submit your offer again.

Good luck!
Web Reference:  http://laurakarambelas.com
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Peter Kedzior, Agent, Elk Grove Village, IL
Sun Nov 4, 2012
If the short sale was denied because the seller is not eligible (no hardship exists, too much assets, etc.), there is not much the buyer can do. Please ask your attorney to contact the seller's attorney. If the sale was denied because of the seller, perhaps there are new circumstances that can be presented in order for the file to be reconsidered by the lender.
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