1. The property may go into foreclosure before the short sale is completed. The banks “short sale” department does not communicate with the foreclosure department, so while you are waiting for a response on the short sale, the property is being auctioned off as a foreclosure at the courthouse steps.
2. The seller may file bankruptcy which may put a stop to any foreclosure procedure and seller may decide they want to continue living in a home they have stopped paying for…so they procrastinate when the bank requests more documentation.
3. While the buyer waits, the Seller disappears. It is not pleasant to go through the personal scrutiny of filling out and updating more paperwork that will not result in a penny in sellers pocket and then wait endlessly… so sometimes the seller just moves out and begins a new life.
4. The bank never responds…the voice mail is always full; no human answers the phone…no one responds to e-mail…not even 6 months later.
5. The bank responds but wants $25,000 more than the property is worth…banks do not need to operate on common sense; they can do anything they want. They can even verbally agree to price or terms and then change their mind three more times.
6. There may be more than one mortgage against the property and the different lien holders might not agree on how to split the proceeds, or one may not agree to take a short payoff at all.
7. The property may not qualify for financing due to the seller stripping out even the bare necessities: No kitchen, no appliances, no bathrooms, no light fixtures, no air conditioner, no pool pump, no carpet, no wood floors, no doors and like I just saw last week;no electric wires either…all the wiring was pulled from the walls into the attic…seriously. Banks will not finance “stripped” homes.
Copyright @ Buyers Broker of Florida “7 Deadly Sins of Orlando Short Sales”