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Several Problems Can Arise When Completing Venice Short Sales

Any time we are dealing with a financial situation, we have to understand things can go wrong and won’t go as smoothly as planned. That’s just the way life goes. Completing a Venice short sale is no exception. One of the most common problems that comes up with a Venice short sale is when the seller does not have a legitimate hardship. Most homeowners who decide to complete a Venice short sale on their home are underwater or behind on their mortgage payments. It is impossible to complete a short sale on a property that would be able to sell for the amount that would pay off the loan; it’s just not possible and doesn’t make sense. When there is not enough equity in a property and the homeowner is trying to pay the amount owed to the bank, the home will sell short of that amount. This is where the name short sale came from. Just because a homeowner would come up short on the sale, it’s not enough to qualify for a short sale. The bank or lender is going to look for a hardship letter explaining why the seller is in trouble, what the seller has done to repair the problems and why nothing has worked so far. If the homeowner’s situation is the same as it was the day they purchased the home and took out the mortgage, the lender will most likely reject the short sale. Most banks or lenders will expect a financial hardship.

Another problem that could come up during a Venice short sale is the first or second lender could cause problems. The first lender might not want to pay the second lender more than $3,000 for example. The second might fight this and then the Venice short sale cannot be complete.