Why Some Short Sales Get Denied — And How to Fix Them
If you’ve ever had a short sale fall apart, you know how frustrating it is. You do all the legwork—find a buyer, submit the offer, and wait weeks (or months)… just to hear the bank say no. But why does this actually happen? And more importantly—how can you avoid it?
At Crisp Short Sales, we’ve seen hundreds of these deals through to the finish line, and I can tell you—most short sale denials aren’t random. They’re preventable. Here are three of the most common reasons short sales get denied, and what you can do to fix them before it’s too late.
1. Bad Appraisals
This one kills more short sales than you’d think. The bank orders a BPO or appraisal, and it comes back too high. Suddenly, your deal gets denied—even though you know your offer was legit.
Here’s the fix: never let an appraiser go out to the home alone. Meet them there. Show them the home’s deficiencies—like a roof that’s shot, missing AC, or mold in the basement. Bring comps and walk them through your logic. Explain why the home was listed at that price and why you accepted that particular offer. When this context makes it into the appraisal report that goes to the bank, they’re far more likely to approve the deal.
2. Impatient Buyers
This one’s sneaky. You get a buyer, they submit an offer, and all seems good until week five rolls around and they start ghosting you. Next thing you know, they’re out, and your whole file goes cold. Most of the time, this isn’t the buyer’s fault—it’s ours. No one told them how this works.
Here’s the fix: educate your buyer before they go under contract. Make sure they understand that short sales can take 60–90 days (sometimes longer); just because their offer was accepted by the seller doesn’t mean the deal is done; and the bank may counter or request changes—this is normal. Buyers who are prepared for this process stick around. Those who aren’t will bail at the first sign of delay. Set the right expectations early and you’ll save yourself (and your seller) a lot of stress.
3. Unknown Title Issues
This is the silent killer. You do everything right—the bank approves the deal, the buyer’s ready to close—and then, boom, a last-minute lien shows up and derails the whole thing. Tax liens, code violations, old second mortgages… we’ve seen it all.
Here’s the fix: order title at the very beginning of the process—before you submit the offer to the lender. That way you can disclose known title issues in your initial package, the bank can bake those costs into the approval up front, and you avoid nasty surprises right before closing. Coordinate with the closing attorney or title company early—the sooner you know what’s lurking on title, the easier it is to build a deal the bank will actually approve.
The Bottom Line
Short sales don’t have to be a gamble. With the right prep, most of these deals can get approved—and closed. The key is anticipating problems before they happen.
If you’re an agent or investor dealing with a tricky short sale, I’m always happy to jump in, review the file, and help get it across the finish line. It’s what we do.
Let’s make sure your next short sale gets a yes.
Need help with a short sale right now? Call or text me at 404-300-9526 or visit www.crispshortsales.com