I hear this frequently from the sellers and surprisingly more from real estate agents that short sales are impossible and never get approved.  I can understand that short sale is not easy and it is different from regular sale. It has more paper work, hard negotiation with all the lien holders, you have to keep the buyers to wait until it gets approved from the lender and some banks take longer time to give the approval, so you really need to know what you are doing in order to close this short sale successfully. 

Now, question is “Is short sale impossible to close”, my answer would be “NO”, it’s not impossible to close.  You need to know what are the steps in short sale, how to approach the lenders, what documents you need to submit and negotiate professionally with lenders so that you can close the short sale successfully and avoid foreclosure from your credit history. If you are doing short sale then my recommendation is to work with an experienced short sale expert and if that realtor has any certification / training in short sale then that would be a plus for you.

The other part of the question is “It never get approved”, this is really a myth that short sale never get approval from the bank.  As I said earlier, you need an experienced short sale specialist who can help you to sell your house.  I have recently got approval for one of my seller client from Countrywide, another approval from Wells Fargo and one more with Citi within short period of time. 

According to our East Bay MLS information, just this month(August 2009) itself, 267 short sale homes sold successfully and out of that in tri-city(Fremont, Newark, Union City)  and Hayward, 51 short sale houses sold successfully.  So that means, in this month, 267 home owners avoided foreclosure from paragon mls area itself and I’m sure there are 1,000’s of families saved from foreclosure from other cities and states in this month.

So, it’s a just common myth that “Short Sales Are Impossible And Never Get Approved”, all you need an experienced and trained short sale realtor who can assist you in short sale.

If you are in bay area and need my service to sell your house then feel free to contact me at 510-366-9405 or email me, I would be happy to assist you.