Why Some Short Sales Stall — And How to Keep Yours Moving

If you’ve ever been involved in a short sale, you know it’s not a straight shot to closing. In fact, a short sale can feel more like a winding road with a dozen stop signs — and a few unexpected detours. Why? Because there are so many moving parts, and so many different parties and stakeholders, that if just one person slows down, the whole transaction can come to a crawl.

That’s where an experienced short sale processor steps in. Think of a good processor as a transaction air-traffic controller — keeping all the planes (lenders, sellers, buyers, title companies, agents) from colliding or circling endlessly in a holding pattern. Without someone coordinating all of those moving pieces, it’s far too easy for one delay to snowball into a stalled deal.

The Usual Suspects: Why Short Sales Get Stuck

While every file is different, here are some of the most common reasons a short sale grinds to a halt:

Too Many Hands, Not Enough Coordination

You’ve got the listing agent, buyer’s agent, title company, lender, negotiator, and sometimes multiple lien holders. If no one is proactively managing the communication, files get buried and deadlines get missed.

Lender Delays

Banks are notorious for long response times. Your file could sit for weeks unless someone is calling, emailing, and escalating it up the chain. Without regular follow-up, the lender’s “inbox” can feel like a black hole.

Incomplete or Outdated Documentation

Missing pay stubs, expired bank statements, unsigned forms — any gap in paperwork can stop the approval process cold. Lenders won’t move forward without every box checked.

Special Program Rules (Looking at You, FHA)

FHA loans come with their own “waterfall” process for loss mitigation. Homeowners must first be evaluated for modification or other retention options before the bank will even look at a short sale offer. Skip that first step, and you’re in for weeks — or months — of delays while the bank “completes” the required process.

How to Keep a Short Sale Moving

The good news? Most stalls can be avoided — if you know what to watch for.

Assign a Dedicated Short Sale Processor

A short sale processor acts as the glue holding the transaction together. They coordinate between all parties, keep everyone updated, and push for next steps before bottlenecks appear.

Stay in the Lender’s Ear

If you’re not following up regularly, you’re leaving the timeline to chance. Persistent (and polite) calls, emails, and documented escalations keep your file on the radar — and often get it moved up the pile.

Front-Load Documentation

Gather, review, and submit all required documents upfront — and keep them updated. Expired paperwork is a surprisingly common reason for delays.

Understand the Rules Before You Start

If the loan is FHA, VA, or another program with special requirements, start by mapping out the exact steps the bank will require. Work the process instead of fighting it.

The Bottom Line

Short sales are complex. They have a lot of moving parts, and there are plenty of opportunities for things to get stuck along the way. But with an experienced short sale processor coordinating the process, staying on top of the lender, and making sure all the required steps are followed — even tricky ones like FHA’s waterfall — you can avoid the most common roadblocks and keep your deal moving forward.

In other words: don’t let your short sale stall out. Keep the momentum, and you’ll keep the closing date on track.

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