Short Sale Myths
The lack of positive/correct information can be daunting for a homeowner facing the difficult decision of selling their home when they owe more than it is worth. We created a website (www.ShortSalePower.com) to help answer questions that you or someone you know may have regarding a short sale. Understanding in depth information on the short sale process and how you can give yourself the best odds of getting to the settlement table. Below are some myths about Short Sales.
Myth 1- I must stop making payments before bank will approve a short sale
You do not have to stop making payments on your home in order for the bank to approve a Short sale. What the bank need to see is a solid reason why you are unable to continue making your monthly payments and /or must sell (loss of job, relocation, divorce, etc.) Due to current market conditions the banks generally understand why the short payoff is being requested, whether you missed payments or not.
Myth 2- The bank will not pay the commission for my Real Estate Agent and/ or the costs of listing the property with a real estate agent will be passed on to me.
A real estate agent commission is taken out of the banks proceeds at close of escrow.
Myth 3 – I have two mortgages…there is no way I can do a Short Sale.
When the short sale process was just beginning, many people did not try a short sale if they had a second trust that was going to be shorted. After the huge wave of foreclosures, 2nd trust holders wised up. Now instead of foreclosing on a property and receiving $0, they have started to accept pennies on the dollar…which are better than getting nothing. In situations when the first is also going to be shorted, the 2nd will usually ask for a low dollar amount from the first or from the seller. Usually a repayment plan can be worked out that is very favorable to the seller.
If you need more information on Short Sales or you would like to a Short Sale assessment visit us at www.ShortSalePower.com.