A lot of homeowners having been hearing false information about short sales. We hope we can debunk some myths and show how a short sale can prove to be a wonderful option for many homeowners!
Myth #1- The bank would rather foreclose than bother with a short sale.We'd say that this is by far the most common myth. It is VERY costly for banks to take back a property through the foreclosure process! Short sale properties can sell for more money than foreclosed properties and if a homeowner is qualified for a short sale, the deal will be considered.
Myth #2- An owner must be behind on a mortgage to negotiate a short sale. In the past this may have been true. But, now banks are looking to verify hardship, insolvency, pending shortfall, and/or monthly cash flow shortfall. Did you know you can even purchase a property after a short sale? Contact us for more info!
Myth #3- There is not enough time to negotiate a short sale before my foreclosure.This is the most hurtful and damaging myth to homeowners! Most don't realize that foreclosure is not instant and that it is a process that takes time. A short sale can be done and the foreclosure can be halted!
Myth #4- Listing my home as a short sale is an embarrassment. The most recent statistics reveal that 1 out of 5 homeowners is in the same situation in the U.S. Homeowners who admit they need help, take action and find a qualified professional to help them should be congratulated.
Myth #5- Short sales are impossible and never get approved.This could not be farther from the truth! They are more difficult to execute than a normal sale and homeowners need to learn about this process. But, this does not make them impossible. A seller just needs to be committed to the process to work with us!
Myth #6- Banks are not accepting short sales. Banks are not in the business of owning real estate! They want to work with you and your real estate professional on a short sale so that they do not have to foreclose! It would make no sense to assume that they would want to foreclose, they lose money!
Myth #7- Buyers are not interested in short sales.This is totally false. If a short sale is priced at market value, buyers are more than willing to purchase a short sale! Short sales do require a little more patience than a normal sale, but buyers are definitely purchasing short sale properties!
We hope this helps with some of the lies being spread about short sales out there :)
-The Twins
