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Short Sale Rejected and Payments No Longer Make Sense — What Are Your Options in Rochester, Buffalo, and Upstate NY?

When the Numbers Stop Working and the Bank Won’t Budge

This is a scenario we see across Rochester, Buffalo, and throughout Upstate New York more often than most homeowners realize:

You purchased a home with good intentions. Then something changed—income dropped, expenses increased, or your financial situation shifted.

You tried to sell the home responsibly. The property sat on the market with little or no activity. A short sale seemed like the logical next step.

A buyer came forward. The paperwork was submitted. And then the lender said no.

Now you’re stuck making a mortgage payment that no longer fits your financial reality—while also covering rent, relocation costs, or other obligations. The question becomes urgent:

What can you realistically do next?

Why Short Sales Break Down at the Finish Line

Many homeowners believe that once a short sale buyer is in place, approval is almost guaranteed. Unfortunately, banks don’t operate based on fairness—they operate based on risk models and internal valuations.

Short sales across Upstate NY often fail because:

  • The lender believes foreclosure may recover more
  • A Broker Price Opinion (BPO) comes in higher than expected
  • The bank refuses to negotiate small payoff gaps
  • The file stalls or times out internally

Even a $5,000–$10,000 difference can derail the deal, leaving the homeowner back at square one—only now with less time and more pressure.

Option 1: Revisit the Short Sale (If Time Still Exists)

If foreclosure is not yet scheduled, it may be possible to:

  • Challenge the lender’s valuation
  • Escalate the file to loss mitigation
  • Resubmit financial documentation

This approach requires patience and the ability to endure additional months of uncertainty. In some Rochester or Buffalo cases, this window still exists. In others, it has already closed.

Option 2: Relist the Property — With a Clear Strategy

Relisting without meaningful change often leads to the same outcome.

This option only makes sense if:

  • Market conditions have shifted
  • The price is adjusted significantly
  • Carrying costs are still manageable

If the underlying issue is affordability—not exposure—this path can cost you critical time.

Option 3: Deed-in-Lieu or Allowing Foreclosure to Proceed

Some homeowners consider handing the property back or letting foreclosure run its course.

While this may stop monthly payments, it often:

  • Severely impacts credit
  • Removes control over timing
  • Offers no transition assistance

For most homeowners in Upstate New York, this is a last-resort outcome—not a solution.

Option 4: Selling Before Foreclosure to a Local, Experienced Buyer

In certain situations, selling after a failed short sale is still possible—provided the buyer understands New York’s attorney-driven process and lender timelines.

A qualified local buyer may be able to:

  • Reopen lender conversations
  • Structure a direct payoff or alternative resolution
  • Close fast enough to interrupt foreclosure proceedings

This option depends entirely on experience, funding, and local knowledge—especially in markets like Rochester and Buffalo, where timelines matter.

What Happens If You Wait Too Long

Foreclosure rarely feels urgent—until it suddenly is.

Once key legal milestones pass:

  • Options shrink
  • Negotiation leverage disappears
  • Even experienced buyers may no longer be able to help

Across Upstate NY, early action consistently creates better outcomes.

How We Help Homeowners After Failed Short Sales

At Brett Buys Roc Houses LLC, we work with homeowners in Rochester, Buffalo, and surrounding Upstate New York communities who reach out after:

  • A short sale falls apart
  • Months of listing produce no result
  • Carrying the property is no longer realistic

Our role is not to pressure a sale—it’s to evaluate whether a real solution still exists and explain the options clearly.

Sometimes selling makes sense. Sometimes it doesn’t. Either way, clarity beats guessing.

Frequently Asked Questions

Can I still sell after a short sale is denied?
Often yes—if foreclosure has not finalized.

Does foreclosure start immediately after a short sale fails?
No, but timelines typically accelerate.

Can a buyer actually stop foreclosure in NY?
 n some cases, yes—if action is taken early and the buyer is qualified.

Final Thought: You’re Not Out of Options — But Time Matters

A rejected short sale is not the end of the road. It’s a signal that the approach needs to change.

If you’re unsure what your next move should be, a conversation can often reveal options you didn’t know were still available.

Visit brettbuysrochouses.com. No pressure. No sales tactics. Just honest guidance for homeowners in Rochester, Buffalo, and Upstate NY navigating difficult decisions.

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