Foreclosure is Not The Only Answer!
Do You Feel Like Your House is Fading Away?
Do You Feel Like Your House Is Fading Away?
December 3rd, 2009Myth#7 Buyers are Not Interested in Buying Short Sale Properties
February 1st, 2010Thankfully, this is just not true. In fact, many agents are getting calls from buyers who say they only want to look at foreclosure and short sales because they are usually priced lower than other homes.
For buyers, short sales and foreclosures have become what we call “good deals.” More specifically, first time home buyers are interested in these properties. Listing with an experienced Short sale Specialist/ Agent who is educated in the short sale process will provide you with a great chance of quickly seeing a buyer for your property.
Myth#6 Short Sales are Impossible and Never Get Approved
January 11th, 2010This is Absolutely not true.
Are short sales more difficult to execute? Yes.
Do you, as a homeowner, need to learn about a new process? Yes.
Are they impossible? Absolutely not. For example, Agents with Short Sale Specialist training receive thousands of short sale approvals on a monthly basis. These professionals have undergone extensive training in methods to help homeowners who are in distress process short sales. While there are no guarantees in any transaction, more and more short sales are being approved every day.
Myth#5 Listing My Home as a Short Sale Might be Embarassing
January 4th, 2010It is understandable to have reservations about letting the world know that you owe more on your home than it is worth.
However, according to recent estimates, more than one out of eight homeowners in the U.S. is in the same situation. You are to be congratulated for admitting you need help, taking action, and finding a professional who can work with you toward a solution. With recent estimates showing 40-60% of U.S. sales will be short sales or foreclosures, you are not alone. Most of your neighbors are in the same situation.
Myth#4 Banks are Waiting on a Bailout and Not Accepting Short Sales
December 30th, 2009You may have heard this, but the reality is that banks are trying to do anything they can, within reason, to avoid foreclosing on properties.
It is hard to believe they would deny a short sale in hopes that some future legislation would pass and pay them for losses. Today, more banks are aggressively pursuing short sales and working with Short Sale Specialist /Agents who understand how to process them. Freddie Mac recently hosted a national training Webinar for real estate agents where they expressly stated the organizational goal of “eliminating distressed assets through modification or short sale.”
Myth#3 You Must Be Behind on Your Mortgage to Negotiate a Short Sale
December 20th, 2009While this may have previously been the case, today lenders are looking for verifiable hardship, monthly cash flow shortfall, or pending shortfall and insolvency.
A nicely written hardship letter and proof of the hard ship is usually all it takes. A hardship can be anything from a cut in pay, illness, divorce, adjusting mortgage etc…. If you meet these three requirements and believe that you soon may be unable to afford your mortgage, act immediately. Any delay could limit your options. Do not wait until the foreclosure process has started and you have even less time left to go through a short sale.
Myth#2 There is Not Enough Time to Negotiate a Short Sale Before My House Forecloses
December 15th, 2009This 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 decisions that may result in better outcomes. The foreclosing party, in most cases a lender, has the power to stall a foreclosure up to the final day of the foreclosure process. Today, many lenders will stall a foreclosure with as little as a phone call 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#1 The Bank Would Rather Foreclose on Your House than Allow a Short Sale
December 11th, 2009
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, Lenders and 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. Most of the time, banks receive more on their investment through a short sale than a foreclosure.
The qualifications for a short sale include:
- Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
- 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.