What are the reasons the mortgage lender would reject an offer?
Offer price is too low. Lenders would normally set minimum net proceeds from a short sale of the property. Buyers can make a strong case for their offers if they show comparable sales that support their price offer. • Short sale package submitted by the seller is incomplete. An experienced listing agent would prevent this. • Seller is not eligible for a short sale. • Buyer is not eligible. • Indication that the short sale may not be an “arms length” transaction. The buyer must be unrelated and unaffiliated with the seller. • A short sale is not evaluated as the best financial option for the property. Note that it is not uncommon for the lender to respond with a counteroffer. As with any real estate transaction, buyers will need to know beforehand what their limits are so they can either accept the counteroffer or walk away.
