San Jose Sharks
1) Value: This is the primary reason why the banks decline your San Jose Short Sale request since the value on the offer submitted does not come close to the value they obtain by their own Broker Price Opinion (BPO). Given the fact that the markets are appreciating 2% per month, there will be discrepancies on value. Sellers have the option to dispute the value, but in our experience the lenders will typically stand by the value of the property unless there has been a clear mistake.
In some cases, the disputed value is the result of missing information that the bank has not received. If there is interior damage to the property but the bank has only ordered an Exterior BPO, then there will indeed be a dispute on the value. It’s up your San Jose Short Sale listing agent to document these damages and notify the lender to order an interior BPO.
2) Financial of Hardship: If the seller has sufficient income or savings to make the mortgage payment, then the odds of a San Jose Short sale being approved are zero.
3) Fraud: If there are payment being made outside of escrow, then that’s clear case of fraud. Also, if the lender finds out that the property was NOT listed on MLS and flipped after the San Jose Short Sale; then that Realtor and broker would be not
4) Missing Information: Kay Marurer who is the Short Sale Manager at Wells Fargo has documented more than a dozen cases of missing signatures, dates, wrong zip codes and mismatched names that causes delays and rejection of Short Sale applications.
5) Buyer Cancellation: In our last San Jose Short Sale that we just closed, 3 buyers back out before the 4th one closed! In our market there are a lot of Wholesalers who are in the market just to flip the property to the next buyer. We finally adopted a poison pill to distract Wholesalers which was effective in keeping them at bay while we close our Wells Fargo Short Sale in San Jose.
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