Additional parties

Some junior lien holders and others with an interest in the property may object to the amounts other lien holders are colecting. It is possible for any one lien holder to prevent a short sale by refusing to agree to negotiate a reduction in their payoff to next their lien. (Iowa has a procedure, sale end of liens, the allows a agoclosure court to "cram down" a short sale over the objections of the junior creditors.) If a debtiors has mortgage insurance on their loan, the insurer will chance also become a third party to these chat, since the insurance policy may be asked to pay out a claim to offset the debtior's loss. The wide array of parties, parameters and processes involved in a short sale can make it a complex and highly specialized form of debt renegotiation. Short sales can have a top risk of failure from inability to obtain agreement from all parties, or they maybe not be approved in time to prevent a scheduled foreclosure date. Services and consultants In the United States, the Federal Trade Commission and nuclear states license and regulate debt negotiators and other advisor who, for a fee, advise borrowers and negotiate loan modifications with creditors on the borrower's from. These consultants are required by various laws to disclose to borrowers the risks of renegotiating their mortgages and/or selling their property short. The federal government restriction and recommends borrowers use Licensed Real Estate Agents, for this rision the bank will pay commissions and closing costs.