31 Reasons Why a Mortgage Lender May Deny a Short Sale on a Kansas City Home
The Kansas City homeowner has determined that they qualify for a short sale because they have a Financial Hardship, a Monthly Shortfall and they’re Insolvent.
Now with the help of a Loss Mitigation Short Sale Specialist, the Kansas City homeowner has listed their Kansas City home for sale and now have a sales contract.
The 31 reasons why a Kansas City homeowners request for a short sale may be denied are:
1) Incomplete Paperwork - The paperwork submitted to the mortgage lender to request a short sale was incomplete. In addition, the mortgage lender may send request for additional paperwork. This paperwork needs to be completed in its entirety before it is sent to the mortgage lender. Mortgage lenders may deny a request for a short sale if the paperwork is incomplete.
2) Unsupported Financials - The financials submitted to the mortgage lender are to demonstrate that the Kansas City homeowner has a financial hardship, a monthly shortfall and that they’re insolvent. If the financials don’t show this, the mortgage lender may deny the short sale request.
3) Optimistic Home Value - The mortgage lender hires an appraiser to determine the home value. If the appraiser submits an appraisal that is to high, the mortgage lender may counter the offer submitted or deny the request for a short sale.
4) Deferred Maintenance - If the Kansas City homeowner has been having problems paying the mortgage, they may have also neglected repair issues around the home. If the repair issues are costly, the mortgage lender may decide to deny the request for a short sale. They may decide to foreclose the Kansas City home and make the necessary repairs then sell the Kansas City home as a REO property.
5) Deny the Appraiser - The mortgage lender will send an appraiser to the Kansas City home to help determine the value. If the Kansas City homeowner denies the appraiser from entering the home, the mortgage lender may deny the request for a short sale.
6) Not Enough Time - The mortgage lender may deny the request for a short sale if there is not sufficient time allowed to process the short sale in the real estate contract.
7) Sales Contract Not Complete - The mortgage lender will review the sales contract. If the sales contract is not completed correctly with the proper addendums, the mortgage lender may deny the request for a short sale.
8) Incomplete HUD/Settlement Statement - When the real estate contract is submitted, the mortgage lender will want to review a HUD/Settlement statement. If the HUD settlement statement is missing or incomplete, the mortgage lender may deny the request for a short sale.
9) Not an Arms Length Transaction - If the offer submitted is from a family member or friend, the mortgage lender may deny the request for a short sale. The mortgage lender wants a sales contract from a non-relative. They also don’t want to review a sales contract that has the homeowner planning on renting the home.
10) Not Completing Paperwork in a Timely Matter - The paperwork needs to be completed in a timely matter. If the homeowner does not submit the paperwork in a timely matter, the mortgage lender may deny the request for a short sale.
11) Timing - The mortgage lender may deny the request for a short sale if the foreclosure date has already been scheduled.
12) Homeowner Filed Bankruptcy - If the Kansas City homeowner filed bankruptcy, the mortgage lender may deny the request for a short sale.
13) Low Ball Offer - The mortgage lender may deny the request for a short sale if the initial review of the sales contract reveals that the sales price is to low.
14) Inspections - The mortgage lender may deny the request for a short sale if the inspections have not been completed within 15 days of the acceptance of the sales contract. Most buyers want to wait until the offer has been accepted by the mortgage lender. Mortgage lenders want ALL contingencies completed. In addition, the negotiator assigned by the mortgage lender maybe thinking that if the buyer is concerned about $400-$500, then they may not be the most qualified buyer for the Kansas City home.
15) Cancellation - The mortgage lender may deny the request for a short sale if the buyer has canceled the sales contract prior to the mortgage lenders approval.
16) Unrealistic Closing Date - The mortgage lender may deny the request for a short sale if the closing date is to quick. For a pre-approved short sale, the mortgage lender is looking 30-45 days to close. For a short sale that has not been pre-approved, the mortgage lender is looking for closing dates to be 60-90 days.
17) Deny Banks Acceptance - Once the mortgage lender makes an offer, they will expect the Kansas City homeowner to accept the terms. If the terms are not accepted in a timely matter, the mortgage lender will deny the short sale.
18) Additional Liens - The mortgage lender may deny the short sale if there are additional liens. The additional liens may affect the ability to close the sales contract.
19) Uncooperative 2nd Mortgage - The 2nd mortgage lender typically gets pennies on the dollar to nothing. Because of this they may become uncooperative. If the 2nd mortgage becomes uncooperative, the mortgage lender may deny the short sale.
20) AS-IS - The mortgage lender and Kansas City homeowner will not be paying for repairs. The mortgage lender may deny the short sale if there is a request for repairs.
21) Complicated Contract - The mortgage lender may deny the short sale if the sales contract is complicated with additional addendums and amendments. Mortgage lenders like to see clean simple contracts.
22) Fraudulent Request - The mortgage lender may deny the short sale if they believe the financials submitted or additional paperwork has been fraudulently submitted.
23) Not a Strong Buyer - The mortgage lender may deny the short sale if they believe the buyer is not qualified or a strong enough buyer to purchase the home. The mortgage lender will not start working on the file if the buyer does not appear strong enough to buy the home.
24) Inaccurate Appraisal or Broker Price Opinion (BPO) - The mortgage lender may deny the short sale if the appraisal and/or BPO ordered by the mortgage lender does not support the value on the real estate contract. Typically this means that the analysis is much higher than the sales price.
25) Insufficient Hardship - The mortgage lender may deny the short sale if the homeowner has not shown a valid hardship.
26) Incompetent or No Short Sale Agent - The mortgage lender may deny the short sale if there is no short sale agent or the short sale agent has demonstrated an inability to handle the short sale for the homeowner.
27) Short Sale Addendum Missing - The mortgage lender may deny the short sale if a short sale addendum that clearly states that the real estate offer is contingent upon the mortgage lenders is missing from the real estate contract.
28) Unqualified Homeowner - The mortgage lender may deny the short sale if the lender does not think the seller is qualified for the short sale. Reasons for being unqualified are not behind on mortgage payments or haven’t shown an “imminent danger of foreclosure”.
29) Unlawful Request - The mortgage lender may deny the short sale if they make a demand that breaks state law. Banks are governed by Federal law and believe they are not subject to state law. Many times they will make demands that are against state law. Most of these demands are directed toward title interest of the property.
30) Information Does Not Match - The mortgage lender may deny the short sale if the information on the request does not match the information on their files. The address and mortgage holders name(s) need to match exactly what is on file with the mortgage lender.
31) Bad Behavior - The mortgage lender may deny the short sale if the short sale specialist who is working on behalf of the mortgage holder exhibits bad behavior. Although it is understandable why a short sale specialist may get upset on the phone when they’re asked to send a document for the tenth time or receiving no follow-up for 6 months, the short sale specialist must stay calm on the phone with the mortgage lender.
If you have been denied a short sale and you think the mortgage lender is wrong or maybe in error, request a review or an appeal.
Have a Kansas City short sale related question, lets talk. I can be reached at 913.712.9313
If you need help with a short sale, hire the professionals. The Kansas City Real Estate Network works with homeowners preventing real estate foreclosures. The Kansas City Real Estate Network helps struggling homeowners avoid foreclosures in Kansas City. We have negotiated short sales in Gardner, Olathe, Overland Park, Leawood, Lenexa, Shawnee, Mission, Merriam, Prairie Villlage, Basehor, Tonganoxie, Lansing, Gladstone, Liberty, Lee’s Summit, Independence, Belton, Raymore, Pleasant Hill, Grandview and Kansas City.
Written by:
Chris Dowell
Dowell Taggart Team www.DowellTaggart.com
Kansas City Real Estate Network of RE/MAX Premier Realty
The Kansas City homeowner has determined that they qualify for a short sale because they have a Financial Hardship, a Monthly Shortfall and they’re Insolvent.
Now with the help of a Loss Mitigation Short Sale Specialist, the Kansas City homeowner has listed their Kansas City home for sale and now have a sales contract.
The 31 reasons why a Kansas City homeowners request for a short sale may be denied are:
1) Incomplete Paperwork - The paperwork submitted to the mortgage lender to request a short sale was incomplete. In addition, the mortgage lender may send request for additional paperwork. This paperwork needs to be completed in its entirety before it is sent to the mortgage lender. Mortgage lenders may deny a request for a short sale if the paperwork is incomplete.
2) Unsupported Financials - The financials submitted to the mortgage lender are to demonstrate that the Kansas City homeowner has a financial hardship, a monthly shortfall and that they’re insolvent. If the financials don’t show this, the mortgage lender may deny the short sale request.
3) Optimistic Home Value - The mortgage lender hires an appraiser to determine the home value. If the appraiser submits an appraisal that is to high, the mortgage lender may counter the offer submitted or deny the request for a short sale.
4) Deferred Maintenance - If the Kansas City homeowner has been having problems paying the mortgage, they may have also neglected repair issues around the home. If the repair issues are costly, the mortgage lender may decide to deny the request for a short sale. They may decide to foreclose the Kansas City home and make the necessary repairs then sell the Kansas City home as a REO property.
5) Deny the Appraiser - The mortgage lender will send an appraiser to the Kansas City home to help determine the value. If the Kansas City homeowner denies the appraiser from entering the home, the mortgage lender may deny the request for a short sale.
6) Not Enough Time - The mortgage lender may deny the request for a short sale if there is not sufficient time allowed to process the short sale in the real estate contract.
7) Sales Contract Not Complete - The mortgage lender will review the sales contract. If the sales contract is not completed correctly with the proper addendums, the mortgage lender may deny the request for a short sale.
8) Incomplete HUD/Settlement Statement - When the real estate contract is submitted, the mortgage lender will want to review a HUD/Settlement statement. If the HUD settlement statement is missing or incomplete, the mortgage lender may deny the request for a short sale.
9) Not an Arms Length Transaction - If the offer submitted is from a family member or friend, the mortgage lender may deny the request for a short sale. The mortgage lender wants a sales contract from a non-relative. They also don’t want to review a sales contract that has the homeowner planning on renting the home.
10) Not Completing Paperwork in a Timely Matter - The paperwork needs to be completed in a timely matter. If the homeowner does not submit the paperwork in a timely matter, the mortgage lender may deny the request for a short sale.
11) Timing - The mortgage lender may deny the request for a short sale if the foreclosure date has already been scheduled.
12) Homeowner Filed Bankruptcy - If the Kansas City homeowner filed bankruptcy, the mortgage lender may deny the request for a short sale.
13) Low Ball Offer - The mortgage lender may deny the request for a short sale if the initial review of the sales contract reveals that the sales price is to low.
14) Inspections - The mortgage lender may deny the request for a short sale if the inspections have not been completed within 15 days of the acceptance of the sales contract. Most buyers want to wait until the offer has been accepted by the mortgage lender. Mortgage lenders want ALL contingencies completed. In addition, the negotiator assigned by the mortgage lender maybe thinking that if the buyer is concerned about $400-$500, then they may not be the most qualified buyer for the Kansas City home.
15) Cancellation - The mortgage lender may deny the request for a short sale if the buyer has canceled the sales contract prior to the mortgage lenders approval.
16) Unrealistic Closing Date - The mortgage lender may deny the request for a short sale if the closing date is to quick. For a pre-approved short sale, the mortgage lender is looking 30-45 days to close. For a short sale that has not been pre-approved, the mortgage lender is looking for closing dates to be 60-90 days.
17) Deny Banks Acceptance - Once the mortgage lender makes an offer, they will expect the Kansas City homeowner to accept the terms. If the terms are not accepted in a timely matter, the mortgage lender will deny the short sale.
18) Additional Liens - The mortgage lender may deny the short sale if there are additional liens. The additional liens may affect the ability to close the sales contract.
19) Uncooperative 2nd Mortgage - The 2nd mortgage lender typically gets pennies on the dollar to nothing. Because of this they may become uncooperative. If the 2nd mortgage becomes uncooperative, the mortgage lender may deny the short sale.
20) AS-IS - The mortgage lender and Kansas City homeowner will not be paying for repairs. The mortgage lender may deny the short sale if there is a request for repairs.
21) Complicated Contract - The mortgage lender may deny the short sale if the sales contract is complicated with additional addendums and amendments. Mortgage lenders like to see clean simple contracts.
22) Fraudulent Request - The mortgage lender may deny the short sale if they believe the financials submitted or additional paperwork has been fraudulently submitted.
23) Not a Strong Buyer - The mortgage lender may deny the short sale if they believe the buyer is not qualified or a strong enough buyer to purchase the home. The mortgage lender will not start working on the file if the buyer does not appear strong enough to buy the home.
24) Inaccurate Appraisal or Broker Price Opinion (BPO) - The mortgage lender may deny the short sale if the appraisal and/or BPO ordered by the mortgage lender does not support the value on the real estate contract. Typically this means that the analysis is much higher than the sales price.
25) Insufficient Hardship - The mortgage lender may deny the short sale if the homeowner has not shown a valid hardship.
26) Incompetent or No Short Sale Agent - The mortgage lender may deny the short sale if there is no short sale agent or the short sale agent has demonstrated an inability to handle the short sale for the homeowner.
27) Short Sale Addendum Missing - The mortgage lender may deny the short sale if a short sale addendum that clearly states that the real estate offer is contingent upon the mortgage lenders is missing from the real estate contract.
28) Unqualified Homeowner - The mortgage lender may deny the short sale if the lender does not think the seller is qualified for the short sale. Reasons for being unqualified are not behind on mortgage payments or haven’t shown an “imminent danger of foreclosure”.
29) Unlawful Request - The mortgage lender may deny the short sale if they make a demand that breaks state law. Banks are governed by Federal law and believe they are not subject to state law. Many times they will make demands that are against state law. Most of these demands are directed toward title interest of the property.
30) Information Does Not Match - The mortgage lender may deny the short sale if the information on the request does not match the information on their files. The address and mortgage holders name(s) need to match exactly what is on file with the mortgage lender.
31) Bad Behavior - The mortgage lender may deny the short sale if the short sale specialist who is working on behalf of the mortgage holder exhibits bad behavior. Although it is understandable why a short sale specialist may get upset on the phone when they’re asked to send a document for the tenth time or receiving no follow-up for 6 months, the short sale specialist must stay calm on the phone with the mortgage lender.
If you have been denied a short sale and you think the mortgage lender is wrong or maybe in error, request a review or an appeal.
Have a Kansas City short sale related question, lets talk. I can be reached at 913.712.9313
If you need help with a short sale, hire the professionals. The Kansas City Real Estate Network works with homeowners preventing real estate foreclosures. The Kansas City Real Estate Network helps struggling homeowners avoid foreclosures in Kansas City. We have negotiated short sales in Gardner, Olathe, Overland Park, Leawood, Lenexa, Shawnee, Mission, Merriam, Prairie Villlage, Basehor, Tonganoxie, Lansing, Gladstone, Liberty, Lee’s Summit, Independence, Belton, Raymore, Pleasant Hill, Grandview and Kansas City.
Written by:
Chris Dowell
Dowell Taggart Team www.DowellTaggart.com
Kansas City Real Estate Network of RE/MAX Premier Realty
RE/MAX sells more homes than any other real estate company.
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Blog post written by the Dowell Taggart Team of RE/MAX Premier Realty
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