If a house becomes a short sale, is it guaranteed to sell?

Asked by Trulia Charlotte, Charlotte, NC Mon May 6, 2013

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Kawain Payne, Agent, Seal Beach, CA
Thu Sep 12, 2013

Kawain Payne, Realtor
1 vote
Maria Cipoll…, Agent, Coral Springs, FL
Tue May 21, 2013
A short sale means the seller's lender is accepting a discounted payoff to release an existing mortgage. Just because a property is listed with a short sale terms does not means the lender will accept your offer, even if the seller accepts it. Be aware that the seller need not to be in default- to have stopped making mortgage payments before a lender will consider a short sale. A lender may consider a short sale if the seller is current but the value has fallen. The seller may have over- encumbered, owed more than the house is worth, so a discounted price might bring the price in line with market value, not bellow it.

More banks are agreeing to sell properties for less than loan value to recoup some of their investment and assist homeowners in avowing foreclosure. The average foreclosure can cost a lender from 35 to 50% of the value of the property, so accepting a short sale is a good option for everyone. The process calls for a professional who knows the ins and outs of working not only with buyers and sellers, but also with banks, attorneys and mortgage companies that hold the loans.

The answer to your questions is No, because a house is on the market as a short sale it does not guaranteed to sell.

Best of Luck,

Maria Cipollone

1 vote
Rkolb47, Renter, New York, NY
Tue Dec 15, 2015
Does buyer have the right to inspect house before short sale closing
0 votes
Ryan Harlan-…, Agent, Charlotte, NC
Fri Mar 20, 2015
NO , NO , NO , Short Sales can be very tricky , please contact a pro to get more detailed information. Thanks Ryan 704-608-4767 C/T
0 votes
Melissa Polce, Agent, Cornelius, NC
Mon Dec 8, 2014
No, nothing is a guarantee...But, in this day and age and after all the banks have become more capable of dealing with short sales...it can be done, it depends on some very important questions...and it only happens when you choose an agent who does short sales...not 1 or 2 over the last few years...A LOT of them, I can easily give you over 50+ short sales I have completed as the list agent-both bank and agent need to be in-synch...as well have a willing seller.
Good Luck, feel free to reach out with questions
Melissa Polce, NC & SC Broker
Short Sale Specialist
Allen Tate Realtors
0 votes
Danielle Nic…, Agent, St Louis, MO
Wed Nov 26, 2014
Nothing is guaranteed to sell. Short sales can sometimes be considered difficult sales because buyers not only have to work with you, but also have to have the time to wait for the banks. Some buyers love short sales because they think they can get a deal from the bank, others avoid them because they worry about how a property has been maintained & how difficult the banks can be to work with.
0 votes
Blanca Dover, Agent, Camarillo, CA
Tue May 21, 2013
Unfortunately, not always. A short sale means the lender is accepting less than the total amount due. Not every property or seller qualifies for a short sale. A lawyer can usually determine whether your loan qualifies for a deficiency judgment. Another thing to keep in mind is that lenders have varying requirements for documentations.

Even if you take the appropriate steps, such as to get in contact with the lender, submit a letter of authorization, provide a net sheet including sales price and costs, write a hardship letter, present bank statements, CMA (comparative market analysis), a written listing agreement and a purchase agreement. The bank will look at all of your documentation and still decide that you do not qualify for a short sale and it may turn into a foreclosure. Otherwise, if they approve it, they will put you in contact talk with a bank negiator that usually attempts to negotiate the commission, termite and/or home protection plans. If your home needs repairs they will rarely fix any of them as they are already losing out on a big sum of money.

Blanca Dover, REALTOR

Century21 Hometown Realty
Cell: 805-427-5646

Website: http://www.blancadover.com
0 votes
Scott Godzyk, Agent, Manchester, NH
Tue May 21, 2013
ABSOLUTELY NOT, A short sake is where the lender reduces what the seller owes, they do not have to do this and many things need to be done including listing with an agent who is WELL experienced with listing and negotiating short sales/
0 votes
Daniel Fisher, Agent, Charlotte, NC
Tue May 7, 2013
The NC Short Sale Addendum, makes this clear:
Short Sale Approval Risks: Buyer and Seller understand and agree that:
• No Lienholder is required or obligated to approve a Short Sale
• Lienholders may require some terms of the Contract be amended in exchange for approval of a Short Sale, including acceleration of the Due Diligence Period and Settlement Date
• Buyer and Seller are not obligated to agree to any of Lienholders' proposed terms
• Seller may not be financially able to make any repairs to the Property that Buyer may request. The Seller’s inability to make repairs shall not affect any rights that Buyer may have to terminate the Contract
• The costs of Due Diligence and any Due Diligence Fee usually are not refundable to Buyer in the event the Short Sale is not approved.
• Lienholders’ approval may take several weeks or months to obtain, and neither the Seller nor any real estate agent representing Seller or Buyer can guarantee the timeliness of Lienholders’ review, approval or rejection.

While the approach to processing a short sale can be fairly standardized, the lienholder response can vary, many times in nonsensical, non-linear and illogical ways. For example, on different transactions, we have had both first and second lienholders sell servicing rights to the loan and withdraw short sale approval, including one notice received less than 24 hours prior to settlement/closing. I tell people that short sales can take 6 weeks to 6 months and that anything can happen; they are for the emotionally stout. That said, we also experience good success rates using an experienced attorney team and proven negotiation methods.

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0 votes
dave, Agent, Charlotte, NC
Tue May 7, 2013
If a home that is marketed for sale turns into a short sale there is no guarantee it will sell now or ever as a short sale. A short sale means that the owner of the home owes more than the home is worth. there is potentially issues with the amount of liens that are on the house. I have had short sale transactions with three liens on it close and others that there were four to five liens on a house and not close.

banks are wanting to close a transaction through a short sale; however the process and the amount of liens and what the secondary liens are willing to accept all play a role in the process. for reasons that I cannot understand a second lien can and has done to me on occassion refused to accept the dollar figure the first lien holder offered them on a house transaction. Thus stopping any chance of the house closing.

Today I say you have a 50/50 chance a short sale will close on time and with the bank. More than not it will end up being a foreclsoure and the bank will dispose of the property through an auction or put it on the market as a bank owned property. So, it will eventually sell...just not sure when or for how much.

Dave diCecco
Coldwell Banker United
0 votes
Edith Karoli…, Agent, Winnetka, IL
Mon May 6, 2013
Sooner or later potentially it will, guaranteed not really, a short sale can always turn into a foreclosure, it is all up to the bank after all to accept the loss in a short sale. Each case is different.

Sincerely yours,
Edith YourRealtor4Life & Chicago and Northern Illinois Expert

Working always in the very BEST interest of her clients, Buyers, Sellers and Investors alike....
And always with a SMILE 
Covering for @Properties the city of Chicago, all N and NW suburbs, the fine homes on the
North Shore, and many of the W and SW suburbs, and with her trusted Partner Agents all of
the US and worldwide properties. Edith speaks French, German, some Spanish and other.....
@Properties Brokerage, 30 Green Bay Road, Winnetka, Illinois 60093
Check out my website at htttp://tinyurl.com/YourRealtor4Life
0 votes
Steve Parsons, Agent, Salisbury, MD
Mon May 6, 2013
Unfortunately, no. Because the bank is the third party in the transaction, the buyer will have to be qualified by the bank before settlement can occur. This may deter some people into buying.
0 votes
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