Can A Short Sale Offer Be Rejected?

This is a familiar process: The mortgage lender receives the short sale BPO from the agent. It’s higher than the offered sales price, so the loss mitigator requests that the contract price be increased. If this happens we:

  • send back a “counter-to-the-counter” with the original offer price; we send additional comparable property information to prove why the mortgage lender should accept the original offer
  • send pictures of the neighborhood
  • send copies of newspaper articles with “bad housing news”
  • send a bid for repair estimates

We ask the following questions regarding the short sale BPO if the mortgage lender still thinks the short sale property is worth more:

  1. Are the comps an acceptable distance from the short sale property?
  2. Are the comps of comparable size?
  3. Does the square footage of the BPO match the original appraisal?
  4. What is the interior condition?
  5. How much allowance is given for the deferred maintenance?
  6. How high is the crime rate in the area?

These questions can help figure out if the agent did a good or bad short sale BPO. Then we can submit more information to the mortgage lender to prove their BPO is incorrect. As a last resort, we can ask the mortgage lender if they will accept an independent FULL APPRAISAL for review.

Remember that the mortgage lender wants to avoid the process of the buyer filing bankruptcy. They also desire to unload unwanted property without taking a huge loss. We will always keep trying to help the short sale.

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