When the seller has filled out all paperwork to short sale and the negotiations have begun with the bank, what can go wrong that would derail the process?
When I did short sales in the past the thing that killed more short sales was the BPO. You want to make sure the value of the property is where you want it to be. Many real estate agents, brokers and investors were upset at the fact that the BPO came back so high. Make sure the person doing the BPO has the information they need to value that property. If not, you may be in for a suprise!
"Negotiations" with the bank don't start until they counter your contract price, don't pay money toward others fees/liens, etc.
@Gerald Harris What is BPO?
a BPO stands for (Broker Price Opinion). This is an estimation of value for a property. Kind of like a mini appraisal but not as involved or complex as an appraisal. Google the term (BPO) to understand it more
- Bank could require new documents
- Bank could decline the seller for short sale and/or recommend loan modification
- Bank could request a promissory note and the seller declines.
- 2nd Lien or Judgement Lien could require more than they are allowed by the 1st.
- Appraisal can come in too high
- Appraisal can become too old and bank require new
.. the list goes on and on. Too much of an open ended question for a straight answer.
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