Some Listed Short Sales Are Not Closeable

If you are a home buyer who is considering purchasing a short sale listing, you understand that the process may take several months before you get solid answers. You should know up front that some short sales that are currently listed for sale in the San Diego MLS are not closeable. They may not be closeable for several reasons. It may have to do with the homeowner. The homeowner may have assets other than the home for sale and also may be unwilling to make a contribution to help the short sale close. The homeowner may have listed the property for sale but has since changed his/her mind and be unwilling to cooperate in the short sale process. Another reason could deal with the property itself. The property may back up to a freeway or a railroad (or have power lines running through the backyard). Most logical people understand that these elements have the potential of lowering the value of the property. However, if the agents who completed the BPO for the short sale lender(s) were not aware of those factors and those agents looked at the sales of homes across the street or a few blocks down from the property, the short sale lenders may think the property is worth more than it is truly worth. Another factor that could make a listed short sale uncloseable would be liens. What if the property has an HOA lien, or a tax lien, or a child support lien? These have the potential of rendering a listed short sale uncloseable.

Of course, there could be even more reasons, but the point of this article is to remind buyers that just because a property is listed as a short sale does not mean it is approved by all parties to sell as a short sale. As a serious buyer you should work closely with your exclusive buyer agent to determine whether or not a short sale is closeable (and find out as early in the process as possible). It is possible that months could go by until anyone finds out that a short sale is uncloseable. Be sure to look at your time frame, your motivation, and your level of patience before you make the decision to consider short sales as a viable option for your home purchase.