Venice short sales can be difficult to work with. In fact, neither the buyers nor the sellers even know if the Venice short sales offer will be accepted or denied, but understanding the mindset behind these denials can help to get accepted offers more often.
First, you have to understand that the listing price of Venice short sales really has no bearing on the offer that the bank will actually accept. That price point is set by the seller and their agent as a way to give a ballpark figure for the price of the home. If you use the listing price of the home, you could easily be rejected.
Another reason that Venice short sales are denied by the bank is because there are multiple lenders that do not accept the offer. On the outside, Venice short sales may look like they are a good deal that is well below market value, but when you consider all the liens against the house it may not be such a great deal. Working with a title officer is one of the best ways to know the debt that accompanies Venice short sales so there are no surprises when you make the offer.
Many banks are already losing money on Venice short sales, and so they choose to work with buyers that have approved funding in place before the offer comes to them. Many times, a buyer isn’t prepared with a cash offer or a loan preapproval letter so the bank will reject the offer. You should never submit an offer than you cannot meet, and proving to the bank you can afford the house is a great step toward getting an offer approval.
Even when you do everything you can to ensure an approved offer, you still may get a rejection. The good news is that you can leave the deal knowing that you did everything in your power to secure the deal.