San Jose Sharks Home
During our monthly meetings with Wells Fargo Short Sale team, they shared a list of more than 16 items that cause Short Sales to be denied. Ironically, majority of these items can be easily managed if your San Jose Short Sale agent pays close attention to details. Below are the Top 6 reasons that San Jose Short Sales are denied:
1) Hardship: Home owners need to have a legitimate Hardship or their Short Sale request will be denied. Loss of job, medical and unforeseen expenses are the main reasons home owners are unable to make their mortgage payments which should be simple to document and prove to your lender.
2) Value: Banks utilize Broker Price Opinions (BPO) to determine the value of your home. If there is disagreement on value of the BPO and the offer price submitted for your San Jose Short Sale, you will have an option to dispute this value. However, in our experience most lenders will typically stand by their BPO value of the property unless there has been a clear mistake.
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. Arms Length Transactions are what lender are fraud cases that jeopardize the approval of Short Sale where the home buyer and sellers are related by family, marriage or commercial enterprise.
4)Missing Information: Kay Mauer who is the Short Sale Manager at Wells Fargo has shared more than dozen cases of missing signatures, dates, wrong zip codes and mismatched names that causes delays and rejection of Short Sale applications. It’s the the responsibility of your San Jose Short Sale agent to submit a clean file in the 1st place to prevent any unnecessary delays.
5) Buyer Cancellation: Our last San Jose Short Sale sold more than 4 times where 3 buyers backed out the transaction!! Sellers should be aware of Wholesalers who are out to just tied up your property and flip it to the next buyer. We know these wholesalers in Silicon Valley and rarely will accept offers from them.
Contact Us if you want us to help you with your Short Sale.
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