When edges Reject Your Offer on a Short Sale
When edges reject your short sale offer, do you just easily walk away? What should you be doing? Find out how…
Bank Rejection is Possible
already if you think everything is finally set, edges may nevertheless find reasons to reject your offers. They do this because they want to keep their loss at a minimum. People engaging in short sale would want to sell their houses less than their noticeable loan in exchange for the forgiveness of debt. If the bank accepts, this would typically consequence to a loss in the part of the bank. That is why they are being careful on whom to grant this opportunity.
If you are interested to know why they reject it, here are some of the reasons:
1. Your offer price is lower than the calculated BPO.
2. Your hardship letter is not convincing enough or it could be your reason for undergoing short sale is not permissible.
3. Your short sale package is incomplete or some of the requirements got lost.
4. It could be your loan was already sold to a third-party investor and they may have rejected your offer.
5. however, it could be because the character sold has a mortgage insurance that lenders would find it advantageous in their part to foreclose the character and collect money for no loss.
You can make a Counteroffer
In certain situations, you can have more reasons to just not give up trying. Depending on the reason for rejections you can always make a counteroffer to sweeten your proposal. This way lenders would be able to see the benefits of short sale on their part. However, take observe that this would average more additional days or weeks for waiting. So, if you do this be sure you do your best because sweetening the offer does not stop foreclosure from happening.
When you pursue this, the first step to making a counteroffer is knowing the exact reasons why your bank rejected the offer. This will allow you to estimate if you have to fight or fly from the situation. At the same time, this also saves you time on deciding which area of your offer that needs to be changed.
Here are some other tips you can use:
1. Try to make sure your asking price will be at the minimum equivalent to that of the brokers price opinion. You can try to use your Comps BPO as a basis. The brokers price opinion is the basis for edges to determine, whether the amount offered is appropriate or not.
2. You need to make follow-ups now and then. Doing this allows you to find the remedies for the problems related to your application.
3. Double check your packages and make sure it is complete this time.
There is no easy way to getting short sale offers accepted. However, people nevertheless try and try until they succeed because it is one of the best ways to avoid foreclosure and its detrimental effects on one’s credit.