Yes, a lender can reject a short sale, but it usually happens for a few predictable reasons — most of which can be avoided with the right preparation and documentation.

Common Reasons for Rejection

1. Offer Too Low:
   The buyer’s offer doesn’t meet the lender’s minimum acceptable value based on their internal valuation or broker price opinion (BPO).

2. Incomplete Package:
   Missing documents — such as the hardship letter, recent pay stubs, or tax returns — can delay or stop approval completely.

3. Unverified Hardship:
   If the lender doesn’t believe there’s a genuine financial hardship, they may deny the request. A strong hardship letter is essential.

4. Mortgage Insurance or Investor Requirements:
   Loans backed by mortgage insurance or investors (like Fannie Mae or Freddie Mac) require an extra layer of approval, which can complicate things.

5. Multiple Liens or Second Mortgages:
   If there are other lienholders involved, all parties must agree to the short sale terms — and that can slow or block the process.

How to Improve Your Chances

• Submit a complete and organized short sale package right from the start.

• Work with an experienced short sale agent who understands lender timelines and communication channels.

• Make sure the offer reflects true market value, supported by comparable sales.

Bottom Line

Most short sale rejections come down to paperwork issues, unrealistic pricing, or missing proof of hardship.
With clear documentation and professional guidance, many short sales that start off uncertain can still reach the closing table successfully.

Christopher Scott Realty Group
Professional Real Estate & REO Services — Central Florida
www.ChristopherScottRealtyGroup.com