There are millions of homeowners just like you who are looking for answers and don’t know what to do. You’re not alone and you’re in the right place.
As a Certified Distressed Property Expert, I have training and experience in providing solutions to homeowners facing financial hardship. Despite my best efforts, there’s still an overwhelming amount of misinformation about the options available, especially short sales.
To give you a better idea of the short sale option, and to set straight some of the myths you may have heard, I’ve prepared a free report just for you – please fill out the information below to receive your free report. This report will clarify the following myths:
- The Bank Would Rather Foreclose Than Bother With A Short Sale
- You Must Be Behind On Your Mortgage To Negotiate A Short Sale
- There Is Not Enough Time To Negotiate A Short Sale Before My Foreclosure
- Listing My Home As A Short Sale Is An Embarrassment
- Short Sales Are Impossible And Never Get Approved
- Banks Are Waiting On A Bailout And Not Accepting Short Sales
- Buyers Are Not Interested In Short Sale Properties
These ideas are potentially harmful to homeowners seeking real solutions. I hope you’ll review this information for yourself or share it with a homeowner in need.
A short sale can be a excellent solution for homeowners who must sell and owe more on their homes than they are worth in today’s real estate market. Unfortunately, a number of myths about short sales have developed, and it is important to understand the reality of this process should you find it meets your current needs.
Myth 1 – The Bank Would Rather Foreclose than Bother with a Short Sale
This is one of the most common misconceptions. The reality is that banks do not want to foreclose on your property because the foreclosure process is incredibly costly. Banks, Investors, and even the Federal Government have all publicly stated that if a person is qualified for a short sale, the deal needs to be considered. Overwhelmingly, banks receive more on their investment through a short sale than a foreclosure.
The Qualifications for a short sale include:
1. Finacial Hardship – There is a situation causing you to have trouble affording you mortgage.
2. Monthly Income Shortfall – “You have more month than money” A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
-.Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.
Myth 2 – You Must Be Behind on Your Mortgage to Negotiate a Short Sale
While this may have previously been the case, todays lenders are looking for verifiable hardship. monthly cash flow shortfall, or pending shortfall and insolvency.
If you meet these three requirements and believe that you soon may be unable to afford your mortgage, act imediately. Any delay could limit your options. Do not wait until the countdown clock to foreclosure has started and you have even less time than that.
Myth 3 – There is Not Enough Time to Negotaite a Short Sale Before My Foreclosure
This is a myth that probably hurts homeowners the most. Many do not realize that foreclosure is a process, and that there is time to make a decisions that may result in better outcomes.
The foreclosure party–in most cases a lender–can stall a foreclosure up to the final day of the process. Today, many lenders will stall a foreclosure with s little as a phone cal from you explaining that you are trying to sell, and almost all lenders will stall a foreclosure with a legitimate contract. For real estate professionals who understand foreclosures and short sales, there is time available until the foreclosure process is complete.
Myth 4 – Listing My Home as a Short Sale is an Embarrassment
It is understandable to have reservations about letting the wold know that you owe more on your home than it is worth. However, according to recent estimates, more than one in eight homeownes in the U.S. is in the same situation as You. You are to be congratulated for admitting you need help, taking action, and finding professionl who can work with you toward a soulution.
With recent estimates showing 40-60% of the U.S. sales will be a short sale or foreclosures, you re not alone.
Myth 5 – Short Sales are Impossible and Never Get Approved
This is a complete falsehood. Are short sales more difficult to execute? Yes. Do you, as a homeowner, need to learn about a process? Yes. Are they impossible? Absolutely not. For Example, real estate agents with a Certified Distressed Property Expert(CDPE) Designation receive thousands of short sale approvals on monthly basis. These professionals have undergone extensive training in methods to help homeowners in distress and process short sales. While there are no guarantees in any transaction, moe aand more short sales are being approved regularly. This is far from an impossible process.
Myth 6 – Banks are Waiting on a Bailout and Not Accepting Sort Sales
You may not have heard this, but the reality is that banks( and the Us Govenment) are trying to do anything they can, within reason, to avoid foreclosing on properties. It is preposterous to believe they would deny a short sale in hopes that some future legislation would pass and pay for losses.
Today, more banks are aggressively pursuing short sales and working with real estate agents who understand how to process them. Freddie Mac recently hosted a national training webinar for real estate agents where they expressed stated the organizational goal of ‘ Eliminating distressed assets though modification o short sale’
Myth 7 – Buyers are Not Interested in Shot Sale Properties
This is also a myth that potential sellers hear all the time. Thankfully, this is just not true. In fact, many real estate agents are getting calls from buyers who say they only want to look at foreclosures and short sales.
For buyers, short sales and foreclosures have become synonymous with good deals. More specifically, international buyers are targeting these properties. Listing with an experienced real estate agent who is educated in the short sale process will provide you with a great chance of quickly seeing a contract on your property.
In these times, we all need to know the truth to know how to get back on track.
If you have any additional concerns about this issue, or your circumstances are urgent, please give me a call.
Richard McDeid
763 – 443 – 6680
Possibly Related:
