Why Your Short Sale Is Stuck in “Under Review” (And How to Fix It Fast)

You submitted the full package.

The buyer is ready.

The seller is calling daily.

And the lender portal still says: “Under Review.”

Days turn into weeks. Weeks turn into silence. The buyer starts to panic. The agent starts to lose confidence. And the seller starts wondering if this whole short sale thing was a mistake.

Here’s the truth: “Under Review” does not mean what most people think it means. And in many cases, it’s completely fixable.

What “Under Review” Actually Means Inside the Bank

When a file hits “under review,” it usually means one of three things:

1. The file is incomplete (even if no one told you).

2. The negotiator hasn’t actually been assigned yet.

3. It’s sitting in a queue waiting for an internal valuation.

Most lenders won’t proactively tell you which one it is.

That’s where professional short sale processing makes a difference. A strong short sale negotiator knows how to pull status details that aren’t visible in the online portal. They know which departments to call and what questions to ask.

Because “under review” is often code for “no one is actively working this file.”

The #1 Hidden Problem: Silent Document Gaps

Banks rarely reject a file immediately. Instead, they mark it incomplete and let it sit.

Common missing items include:

- Expired bank statements

- Outdated hardship letters

- Incorrectly signed authorization forms

- Settlement statements missing prorations

- HOA estoppel not uploaded correctly

- Insurance declaration pages not included

And here’s the frustrating part: the system won’t always notify you.

If you don’t have someone overseeing short sale document prep and reviewing every upload like a checklist-driven machine, you can lose 30 days without realizing it.

This is exactly why many agents rely on a dedicated short sale processor instead of trying to manage lender portals while juggling listings and buyers.

Valuation Delays: The Other Silent Killer

Even if your file is technically complete, it may be waiting for a BPO (Broker Price Opinion) or internal appraisal review.

Here’s what most agents don’t realize:

- The valuation may already be completed but not uploaded to the negotiator’s system.

- The negotiator might be waiting on an internal second review.

- If the value comes in high, it can stall without explanation.

A proactive short sale coordinator doesn’t wait for portal updates. They call the valuation department. They confirm completion. They escalate internally when needed.

That’s how you close a short sale fast — not by waiting politely.

When the Negotiator Isn’t Really Assigned

Some lenders batch-assign negotiators only after a file hits a certain milestone.

So your file may technically exist in the system but not be on anyone’s desk.

If you don’t follow up consistently, it can sit untouched.

This is one of the biggest differences between passive and active short sale processing. Following up every 7–10 days is not enough at some banks. Sometimes it requires multiple department calls in a single week to get real movement.

It’s not aggressive. It’s strategic.

What Agents Should Check Immediately

If your short sale has been “under review” for more than 14 days, here’s what to verify:

1. Confirm negotiator assignment (get a name and extension).

2. Confirm the complete document list in writing.

3. Verify expiration dates on all financial documents.

4. Confirm valuation status and expected completion date.

5. Confirm there are no internal flags or second-lien holds.

If you’re unsure how to navigate those calls, this is where professional support makes the difference. We outline exactly how we manage these checkpoints inside our process here:

→ short sale support and oversight at /how-we-help

Why DIY Short Sales Stall

Short sales don’t fail because they’re impossible.

They stall because:

- No one is driving the file daily.

- Portals aren’t monitored properly.

- Internal bank notes aren’t reviewed.

- Escalation paths aren’t used.

Most agents are excellent at marketing, negotiating contracts, and serving clients.

But lender negotiation is a completely different skill set.

That’s why we focus exclusively on helping real estate agents close short sales faster — not replacing them, but supporting them behind the scenes. (You can see exactly who we partner with here: /who-we-serve.)

How to Restart a Stalled Short Sale

If your file has been stuck for 30+ days:

- Re-submit a clean, updated package.

- Refresh all financial documents.

- Request a supervisor review if valuation is complete.

- Confirm investor guidelines if it’s FHA, VA, or conventional.

- Ask whether the file needs to be re-escalated internally.

In many cases, a stalled short sale can regain traction within 7–10 days once the right department is engaged.

And if you’re feeling stuck, it may be time to bring in professional short sale assistance to push it across the finish line.

If you want to start the short sale process correctly from day one, here’s where that begins:

→ /start-short-sale

The Bottom Line

“Under Review” is not a death sentence.

It’s usually a communication gap.

The difference between a 30-day approval and a 6-month nightmare often comes down to:

- Precision document prep

- Relentless follow-up

- Strategic escalation

- Experience inside lender systems

Short sales don’t reward patience.

They reward persistence and process.

And when that process is handled properly, approvals move.