by Lori Mode
Debunking Short Sale Myths
November 2, 2009 in Short Sales by Lori Mode
Elk Grove Short Sales
There are a number of myths surrounding short sales. It is important that you understand the reality of the process should you find yourself in a situation where you might be considering a short sale on your home.
#1 – Buyers are not interested in Short Sale properties –
This simply is not true. We have very low inventories currently and our short sale listings are receiving multiple offers within the first few days on the market. For buyers, short sales and foreclosures have become synomymous with “good deals”. Many buyers asked agents to target these properties.
#2 – The bank would rather foreclose than bother with the Short Sale process –
The truth is that banks do not want to foreclose on your property because the foreclosure process is quite costly and time consuming. Banks actually receive more on their investment through a short sale than if they have to go through the foreclosure process. Most banks now have large departments set up to handle the number of short sales they are receiving. Both banks and the federal government have all publicly stated that if a person is qualified for a short sale, the deal needs to be considered.
For more information on if you qualify for a short sale, make sure to read –
#3 – There is not enough time to negotiate a short sale because my bank has started a foreclosure – Many homeowners do not understand that foreclosure is a process. In California this process takes a minimum of 111 days and during this time there is ample time to make decisions that may result in a better outcome. We can actually stop a foreclosure up until the final day of the 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 postpone a foreclosure with a legitimate contract for the sale of your home.
#4 – Short Sales are impossible and never get approved – We are successfully negotiating short sales every day. Yes, short sales are difficult to execute; however we have undergone extensive training in methods to help homeowners in distress and process short sales. While there are no guarantees in any transaction, if you work with a real estate professional with training in short sale negotiations, your chances of receiving an approval for your short sale are much better.
#5 – You must be behind on your monthly payments to negotiate a short sale –
While this may have previously been true, today most lenders are looking for verifiable hardship, monthly cash flow shortfall, or pending shortfall and insolvency. If you meet these requirements and believe you may soon not be able to afford your mortgage, you should act immediately. Any delay could limit your options.
Other posts I have written on Short Sales -
Many Reasons To Avoid Foreclosure
Who Is Eligible for a Short Sale
Are there any Credit Consequences to a Short Sale?
Your Monthly Payments and a Short Sale
Short Sales – How Long Does the Process Take?
Short Sale Terms to be Familiar With
What can a short sale do for you?
Help preserve your credit standing
Allow you to sell your home with no out of pocket expenses
May help reduce tax liability
Help to releive your financial and emotional stress
Avoid potential foreclosure
If you are facing difficulties with your mortgage, you need to KNOW YOUR OPTIONS! Call The Mode & DurhaM Team today for a private no-obligation consultation at (916) 230-0371 or visit our website at www.SaveMySacramentoHome.com
Check out our short video on how we can help you.
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Lori Mode and Bruce Durham, Keller Williams Realty in Elk Grove, CA
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