When You Know Your Short Sale Deal is Dead

One of the worst parts about working Short Sale deals is dealing with agents who don't have a clue about Short Sales.The other disturbing part is working on deals and wasting valuable time on deals that have already been given their last rights by the lenders.The trouble is, no one bothered to tell me about it.

This article will deal with a question I get all the time: "How do I know when the deal is dead?"

I have fallen into the trap of beating dead deals myself and I get terribly grumpy when I realize I have wasted my valuable time.I get mad at the bank for stringing me along, but I also get ticked off for not seeing the warning signs earlier.

Here are a few of the more obvious signs the Short Sale deal is DEAD!

-Promised response dates have come and gone without an answer from the lender
- No positive movement or requests from the lender for additional information from the borrower
-When the counter offers from the lenders are greater than the BPO amount
-When the Short Sale package keeps getting "lost" or we are told it was never received despite having confirmation it was in fact received
-If the foreclosure is to the point that a Summary Final Judgment has been issued

I'm sure there are a few more that have slipped my mind.Either I forgot them or they were so painful that I can't bring myself to think about them.

If you can think of any more, I would be glad to hear them.

The good news is that the more Short Sales you work and the more lenders you get to deal with on a consistent basis, the better feel you will get for when the deal has died.I always keep in mind that the people at these banks and mortgage companies are literally buried by the volume of foreclosures right now.

As I have mentioned in previous articles; the lenders will always work on the files that have the greatest chance of success of being approved by the supervisors in their departments.They know the guidelines and will work on the files they think will fly.

Just be alert when the Short sale deal you are working on is simply not getting the attention it should be getting and simply move on.It's not like there are not more deals out there to work on either.

Clyde R. Goulet is the author of "the Survival Guide To Foreclosure" and has written a must read manual for real estate investors and professionals called "The Short Sale Manifesto". It is available at: http://www.nobsshortsales.com

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