It is not easy to have your short sale accepted. In fact, there is more likely a chance that it could be rejected. Even if things were carefully planned before the application was started, there is still a possibility that one thing could go wrong and lead to rejection. However, this does not happen most of the time.

The point is short sale involves a loss in the part of the lender. That is why before they accept any request for it, your package, the reasons and all details of your short sale needs to be evaluated properly. Lenders are being strict about this and as much as possible, they would want a loss to its minimum. They would even compare it to the loss they would incur in foreclosure. If the loss is greater, chances are they would rather go with foreclosure. 

Reasons for Rejection 

Aside from comparison of losses, bank may reject offers for the following reasons: 

1. Banks require heaps of documents before a short sale could be accepted. Believe it or not, with so many applications on file, your package could end up missing one or more document. If this happens, your request may be rejected even if it not your fault. 

2. The offer was too low. Banks use brokers price opinion to determine if your offer is just right. Remember, offering way below the outstanding balance of their loan would normally mean bigger losses in the part of the bank. 

3. Your reason for having a short sale is not justifiable. In short, you are unqualified.

These are just some of the reasons that could lead to short sale rejections. When this happens, there are two things you can do. It is either you just allow the foreclosure to go through or you can still try the second time around. 

Counteroffer for Rejected Short Sale Offer 

You can always make a counteroffer if your request was rejected. However, bear in mind that the waiting could bring you closer to foreclosure. If you think, you have time, why not. First things first, you need to do the following things: 

1. Learn the reasons for rejections.

2. If it was about the price, keep your offer near to the brokers price opinion. However, if you get a BPO for your property, the best thing to do is to use comparative market analysis to keep it close to that value.

3. Your reason for short sale should be hardships. And you must know what kind of hardships is accepted. It should not be about break ups and shallow problems. It should be anything that has lead to financial crisis. However, there should be enough evidence to back it up. So always, have documents on hand to prove such state. 

As you can see, these things do not guarantee you that your short sale will be accepted for the second time around. However, it increases your chances of not being rejected. Lastly, just be diligent in making follow-ups so that if problems are encountered along the way, you can do something about immediately.

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