Don’t let one of these dangerous myths land you and your family in Foreclosure

A short sale can be an excellent solution for a homeowner who owes more on their home than what it is worth and has to sell. Unfortunately a number of myths about short sales have developed and is important you understand the reality of this process if this is a solution that you feel meets your current needs.

1. Short sales are Impossible and Never Get Approved

Nothing could be further from the truth!

Are short sales more difficult? YES

Do you need to learn a new process? YES

Are they impossible? NO, NO, NO

I am a Certified Distressed Property Expert (CDPE) who has undergone extensive training in helping homeowners in distress and processing short sales. The CDPE membership organization nationally is made up of agents who receive thousands of short sale approvals on a monthly basis – don’t think for one minute this is an impossible process. While there are no guarantees in any transaction, more and more short sales are being approved monthly.

2. Banks are Not Accepting Short Sales; They are Waiting on a Bailout

Really? You may have heard this; the reality is that banks (and the government) are trying to do anything they can, within reason, to avoid foreclosing on property. To think that they would deny a Short Sane in hopes that some future legislation will pass and pay them for their loss is preposterous.

The reality is that more banks are aggressively pursuing Short Sales and agent (like me) who understand how to process them. Freddie Mac recently hosted a national webinar for real estate agents where they expressly stated the organizational goal of “eliminating distressed assets through modification or short sale”

3. You Must be Behind in on your Mortgage in Order to Negotiate a Short Sale

While it is true that initially some lenders wanted you to be in default (missed a payment) before they were willing to consider a short sale – this trend has almost all together reversed. Today lenders are looking for verifiable hardship, monthly cash flow shortfall or pending shortfall and insolvency.

If you meet their three requirements and are in a position where you will soon not be able to afford your mortgage, act now! Don’t wait until the countdown clock to foreclosure has started and you have even less time left.

4. Buyers are Not Interested in Short Sales and Avoid Them

This is a myth that potential sellers here all the time – thankfully the reality is that today it is not. In fact many agents are getting calls from buyers who say “I only want to look at Foreclosures and Short Sales”

Short Sales and Foreclosures have become synonymous – not with issues – but with GOOD DEALS. International buyers specifically are interested in these properties. If you list with an educated CDPE agent such as me, you have a very good chance of seeing a contract on your property, soon.

Come back next week for Myths 5, 6 and 7 or subscribe to our Blog

Next week is Affordable Housing Week in San Mateo County and kicking it off is a free program on  foreclosure prevention presented by the Housing Leadership Council of San Mateo County.

Are you worried about foreclosure?  Do you need more information in order to consider whether you should to sell you home through a Short Sale?  What about modifying your current loan?  If these things are keeping you up at night, you should plan on attending the Townhall and Housing Resource Fair: Foreclosure Prevention Saturday.  It’s being held at Westmoor High School, 131 Westmoor Avenue, in Daly City and will take place between 9:30 AM and 3 PM.

Thanks the a generous grant from Wells Fargo Bank you can meet, all in one place, with the following experts:

• You can meet with HUD-Certified Counselors
• You can learn about your Homeowners & Renter’s Rights
• You can speak with Mortgage Experts
• You can receive Accurate Advice about your options

Bring all of your current loan documents with you so they can see what your special curcumstances might be and help you.

This event is being coordinated by the Housing Leadership Council along with the offices of Supervisor Adrienne Tissler, Assemblyman Jerry Hill, EPA CANDO, Housing and Economic Rights Advocates, and Wells Fargo and others.   Congresswoman Jackie Speier will present the opening remarks.

For more information about this event call 650-363-4526 or go to the Housing Leadership Council of San Mateo County’s web site.  The entire week is filled with events and it culminates on Saturday for four families when they receive the keys to the homes they, and Habitat for Humanity, built in the County.