San Jose Sharks Home
Below are some of the main reasons that Short Sales fail to complete:
1) Value: If your net proceeds from the Purchase contract that you have submitted is not within 10-20% of the BPO value obtained by the bank, the odds are that the bank will indeed reject your San Jose Short Sale. Banks obtain a Broker Price Opinion (BPO) to predict the net proceed that they expect to receive from the sale. If there is disagreement on value, San Jose Homeowner/Seller 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.
For instance, if there was interior damage to the property, but the bank only ordered an exterior BPO, the you need to have the bank revisit with an interior BPO. Once again, it’s the responsibly of your San Jose Short Sale agent to communicate this information to the your lender in the 1st place to avoid the mismatch of values.
2) 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. Obvious justifications for hardship are medical and unemployment or overseas deployment of a military spouse which creates loss of income that can be documented.
3) Fraud: Payment made outside of escrow to homeowners/sellers are 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; the broker and listing agents could be subject to fraud investigation.
4)Arms Length Transaction: The buyer and homeowner/seller can not be related by family or marriage or commercial enterprise. If the lender suspects anything unsavory, your San Jose Short Sale would be rejected.
5) Missing Information: Short Sale Manager at Wells Fargo, Kay Mauer 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. Once again, it’s the responsibility of your San Jose Short Sale agent to submit a clean file in the 1st place to prevent any unnecessary delays.
6) Buyer Cancellation: 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.
Bottom line is that we were able to get a Wells Fargo Short Sale approved 12 days from the time the bank’s appraiser visited the property!! So, it can be done if you are working qualified Short Sale Agents.
Contact Us if you want us to help you with your Short Sale.
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