When banks reject your short sale offer, do you just easily walk away? What should you be doing?
Bank Rejection is Possible
Even if you think everything is finally set, banks may still 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 outstanding loan in exchange for the forgiveness of debt. If the bank accepts, this would normally result to a loss in the part of the bank. That is why they are being meticulous 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 acceptable.
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. On the other hand, it could be because the property sold has a mortgage insurance that lenders would find it advantageous in their part to foreclose the property 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 note that this would mean 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 evaluate 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.
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