If We Put an Offer on a Short Sale & It Doesn't Get Approved What Happens Next?
- First, buyers must depend on their realtor to help them through the process. The realtor can submit offers through a short sale system and may be able to contact a representative to find out more information. Many banks do not reveal much information about their short sales, but a persistent agent is usually able to at least pick up a few clues. Sometimes lenders will reveal that they will not consider selling until an offer reaches a certain amount, or have no interest in offers based on certain additions, like payment of closing costs.
- Buyers can counter on a short sale just like they can counter on a normal transaction. Unfortunately, short sale countering can take much, much longer to receive a response, which means buyers must be prepared to wait. But countering at a higher amount or taking off some of the caveats can make it much more likely that a lender will accept an offer. Sometimes helpful lenders will even provide information on what type of counter they will accept or make a formal counteroffer.
- If buyers cannot raise the amount of money they are willing to pay but still really want the short sale home, they can try providing additional information through their realtor. For instance, a buyer can try ordering an appraisal of her own and submitting it to the representative to show her offer is a better example of local prices. This may or may not work, depending on how willing the lender is to negotiate. Buyers can also try to write letters explaining their difficulties and sending them to lenders themselves.
- In some cases, the best thing that borrowers can do is wait before making another offer. Buyers may find another house in the area that they like more and can afford -- a common end to short sale difficulties. At other times, if a house is on the market for a long period of time, the lender will begin accepting lower offers, even for a short sale, which can increase the chances of an accepted offer further down the line.