San Diego Real Estate Short Sale Expert, Gary Kent, gives his expert advice on short selling your home. In this video, Gary explains the reasons why your Short Sale can be denied. Gary has closed over 200 short sales and has compiled this list of reasons why your short sale may not get approved.
Keep in mind that each San Diego short sale is different, but these are some common problems:
#1. Choosing an inexperienced agent; Successful short sales agents know that the landscape of short sales is always changing. Things to look for in an agent is short sale experience, Certified Distressed Property Expert (CDPE) status and an team who can always be working on your file.
#2. Starting too late; Some distressed homeowners just wait TOO LONG. Short sales have a lot of moving parts. When the lender has started foreclosure, it is often tough to get them to stop. If you are considering a short sale and are wondering just how far “under water” is my home? Gary Kent has launched his new website to help with this tough decision.
#3. Owners are slow on documentation (income/expense/bank statements/tax returns, etc.; An experienced short sale team can help you identify the documents the bank will require. And, while the bank might take a long time, they will want you to deliver your documents in a hurry when they ask for them.
#4. Seller is not qualified; Some lenders will not allow some homeowners to walk from their debt. Some lenders require a hardship and limited money in the bank.
#5. Bank’s appraisal comes in too high; The bank wants to minimize their loss, so they may order an appraisal and/or a Broker Price Opinion (BPO). If that value comes in too high compared to your contract price, they may not approve the deal. Remember, banks are in the business of losing money!
#6. Problems with Junior Liens; Typically, when the Gary Kent Team negotiates a short sale, we start with the First Trust Deed and outline the plan and how much they can expect to get. Most lenders will allow $3,000 to $6,000 to pay to junior liens (for example, 2nd or 3rd Trust Deeds, General Liens, Income Tax Liens, HOA Liens and much more). Sometimes, the junior lien will not accept the offered amount. Sometimes, if it is a “recourse note,” they want the foreclosure to go through and then they will go after the seller.
#7. The buyer bails out; San Diego short sales can take a long time. Sometimes the buyer is unable or unwilling to close. If this happens, the bank may not want to delay the foreclosure to wait for another buyer.
#8. The bank makes a bad decision; Sometimes it happens. With the complicated world of mortgages, even if the loan servicer wants it to go through, the “investor” may decide against it. Generally, this happens when based on #2 and #3, starting too late.
If you own a San Diego home or other San Diego real estate and owe more than it is worth, Call Gary Kent at 858-535-7435. For more information and tips about short sales please visit www.shortorstaysandiego.com
By Gary Kent
By Gary Kent
San Diego short sale expert Gary Kent has written the book on short sales. Gary would like to offer the San Diego Short Sale Guide to you for free – Short Sale Guide.
To find out how much your San Diego home is worth compared to owe much you owe, go to www.ShortOrStaySanDiego.com
The Gary Kent Teamof Keller Williams is a California Real Estate Broker, License 00862878. We are not licensed to provide legal or tax advice and we encourage our clients to seek legal and/or tax advice early in the short sale process.
by Gary Kent. Gary has successfully helped well over 200 clients and their families sell their homes or other real estate via a short sale. In 1991, he closed his first short sale for a young family, and since has been helping clients get out of stressful financial situations, escape from “under water” mortgages, avoid foreclosure (and the accompanying stigma), save their credit, and maintain their pride through a short sale. You can find Gary on Facebook, Twitter and Google+.
Gary Kent Team - Keller Williams
8813 Villa La Jolla Drive #2001
La Jolla, CA 92037