11 Most Common Reasons Short Sales Fail to Close Escrow

By Raymond Stoklosa · February 14th, 2010

11 Common Reasons San Mateo Short Sales Fail to Close Escrow

San Mateo Short Sale Reality – Can Take 3-9 Months to Complete IF they Close

Short sales occur when the homeowner sells a San Mateo home for less than the mortgage balance owed with the lender’s approval and their agreement to accept a short payoff. A short sale may be the right solution – but not the only solution – for homeowners who are unable to make their mortgage payment due to a personal hardship, such as, job loss, divorce, serious illness or medical expenses and involuntary employment relocation that significantly depletes the borrower’s assets. However, many home owners and home buyers are not prepared for the challenges or the process which can take 3-9 months to complete.

One Common Factor in All Successful San Mateo Short Sales

One factor is common to all successful short sales: Hardship. Without a documented hardship, the homeowner has no chance of getting the short sale application approved by the lender. There are other reasons why short sales fail.

11 Most Common Reasons Short Sales Fail to Close Escrow

Here are some of the common reasons why so many San Mateo short sales do not close escrow.

Ill-prepared or inexperienced real estate agents
Required documents missing or incomplete
Parties don’t follow offer-to-close time-line
Purchase Contract does not meet investor’s guidelines
Mortgage Insurer requires seller sign promissory note
Junior lien holders will not approve the short sale
Appraisal issues
Processing delays
Foreclosure process too far along
Purchase price too low
Seller not engaged or responsive

Reputable Resources for San Mateo Homeowners Facing Foreclosure

Today, it is illegal for any person or company to charge money in advance to do a loan modification or promise the homeowner to avoid foreclosure. There are several reputable resources to help homeowners understand their options when they can no longer make their mortgage payments. If you find yourself in need of a loan modification for your San Mateo home, I suggest contacting the Neighborhood Assistance Corporation of America (NACA) to discuss their Home Save Program which is nationally recognized as the most effective solution for homeowners with an unaffordable mortgage. For more information, visit www.NACA.com or call their office at (510) 652-6622.

Need to Sell Your San Mateo Home for Less than You Owe?

We go into much more detail during our How to Sell a San Mateo Home You Can’t Afford Webinar. For the date of our next webinar, check out our San Mateo Home Seller Education Schedule page or click on the Sign Up button below to be taken to the sign up page of our next webinar.

What’s Your San Mateo Home Worth?

The best way to find out how much your San Mateo home is worth is to compare your home to recent homes sold in your neighborhood. With some basic information about your home and your email, we can send you a detailed market report for your neighborhood that includes selling prices of your neighbor’s homes. To sign up, click the “Your Home’s Value” button below. View a sample market report here.

Your Home’s Value

Looking to Buy a San Mateo Short Sale?

Check out our San Mateo Buyer Representation page to learn a little bit about how we work and how our Buyer Representation Program is All About You! Then call us at (650) 655-2500 or email us at info@LivingWellinSanMateo.com to schedule a no obligation consultation. We’ll help you come up with a game plan to get your San Mateo short sale purchase approved.

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Raymond Stoklosa, Chela Stoklosa and Rebecca Williamson are Realtors with The RayChel Realty Group specializing in Santa Clara and San Mateo Real Estate.

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