If you thought that short sales were way back in the rearview mirror, you may want to think again....
Short Sale Denied – What Next?
- Tell your short sale specialist at the lending institution you are working with that you would like a reconsideration of the value.
- Ask your short sale specialist if he or she has a document that specifies all requirements for a successful value dispute.
- Fill out the form and attach any requested evidence. (Do not leave any blank lines.)
- Stay in touch with your short sale specialist for results.
- Usually, a value dispute takes about 10-12 business days to review once all required information has been received.
- Use a standard BPO form (or make a copy of one used by REO agents in your brokerage).
- Complete a Comparative Market Analysis, and focus your value on recently sold properties (within the last three months) in order to support your value.
- Send in the buyer’s appraisal—the one s/he is using to obtain the loan.
Provide comparables that are recent, proximate (nearby), and similar to the property in question.
- “Recent” means sold within 90 days of the actual value document date.
- “Proximate” varies by location. In a rural area, for example, a home five miles away could be considered proximate.
- You should also provide additional notes to highlight the characteristics of the comps.
- Provide two itemized estimates from a licensed contractor on the contractor’s letterhead.
- Provide photos to illustrate the repair, condition issue, or hazard you want to highlight.
- If the property will not qualify for financing due to condition or other circumstances, explain how that will impact the valuation.
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