There are over 50 reasons that Short Sales fail, therefore it is imperative that a homeowner choose a Realtor that can GET THE JOB DONE! Nationally the success rate for short sales is under 30% !! The Newman Group boasts an 82% success rate in closing short sales and this is due to our process, education and team approach.
Training
a) No seller negotiation training
b) No lender negotiation training
c) No training to deal with buyer’s agents
Buyer Never Found
a) Priced too high
b) Agent letting bank dictate pricing

Offer Too Low
a) Lender BPO/Appraisal came in too high
i) Lender wants certain percentage of that BPO
ii) Offer is below this number
b) Appraisal does not meet guidelines (loss too high)
Preliminary HUD-1
a) Purchase price on HUD-1 does not match buy/sell agreement
b) Seller/Buyer names do not match buy/sell agreement
c) HUD-1 shows proceeds going to seller
d) HUD-1 has too many or unapproved fees on the seller side
e) Seller closing costs are excessive
f) Commissions are excessive
g) Seller Concessions Are Excessive
h) Too Much Going To Junior Liens
i) Closing date too far away
Purchase Contract
a) Certain language unacceptable to lender
b) Certain language needs to be added for lender
c) Buyer must by arms-length (unrelated third party)
d) Buyer must be individual vs. company (for some lenders/investors)
Short Sale Package
a) Incomplete
b) Out of Order
c) Missing Loan Number on Each Page
d) Uses “Generic” forms vs. lender-specific forms
Junior Liens
a) Will not discount to amount required by senior lien holder
b) Want contribution prior to closing to meet senior lien holder’s requirement
c) IRS liens can be difficult & time consuming to remove
Unsecured Note / Deficiency / 1099-C / Seller Contribution
a) Note: Lender may require seller to pay back all of the loss
b) Deficiency: Lender may not agree to settle account
c) 1099-C: Lender may issue 1099-C; Seller may (or may not) be liable for paying taxes on this phantom income (see H.R. 3648, Mortgage Forgiveness Debt Relief Act of 2007)
d) Seller Contribution: If show assets or cash flow
Bankruptcy
a) Seller files bankruptcy in middle of listing
b) Lender refuse to discuss file during bankruptcy
c) Bankruptcy adds 3-4 months to the short sale process
Miscommunication
a) Seller does not cooperate with showings
b) Agent does not communicate with seller
c) Agent over promised and under delivered
FHA Specific Loan Issues
a) Appraisal comes in too low
b) Appraisal shows too many repairs
c) Property must be owner-occupied
d) Seller must be at least 30 days late
e) Seller must attend counseling
f) Seller must apply for short sale program
Seller Frustrations
a) Seller backs out and decides to pursue other options due lack of communication with agent
b) Seller backs out because process takes too long

In addition to these reasons, banks now have several different types of Short Sales, depending on whom the investor is.  So now more than ever, it is imperative that you use a Realtor that is a specialist in Short Sales.  If you would like to discuss your situation in more detail, give me a call today at 301-343-7671.