I was talking with a homeowner last week about potentially listing his property and he asked me a great question.  Why do Short Sales Fail?  From my experience, here are the top 5 Reasons

1. Listing agent is inexperienced and has not closed many Short Sales
2. The lenders BPO/Appraisal comes in too high.
3. The seller has not been educated about their options prior to engaging in a short sales and pursues bankruptcy, loan modification or deed-in-lieu during short sale process.
4. The seller does not provide documentation needed to process short sale.
5. The buyers agent is not property educated with the short sale process and does not properly advise the prospective buyer.

While there are many other reasons that a short sale may fail, I continually run into these situations.

If you are a Maryland homeowner and are considering a short sale as an option to avoid foreclosure.  Contact me today at 301-343-7671 or sign up for my weekly newsletter for more information.