Continuing from the article I wrote last week about the 7 Most Dangerous Short Sale Myths, here’s the last 3 for your education. I am here to assist you in helping you prevent a short sale of your property. But if it is necessary to go that route, let a CDPE expert help you.
5. Listing my Home as a Short Sale is an Embarrassment
It is understandable that you may have reservations about letting the world know that you owe more on your home that it is worth however, understand that according to recent estimates, 1 out 5 homeowners in the US is in this situation.
With 40 to 60% of the sales in the US predicted to be Short Sales or Foreclosures you are not alone.
6. The Banks Would Rather Foreclose than Bother with a Short Sale
We know you have heard this; you may have even heard it from an overzealous collection agent working for a lender. The reality is that banks do not want to foreclose on your property. Banks, investors and even the federal government have all publicly said that if a person is qualified for a Short Sale the deal needs to be considered.
The qualifications are:
A. Financial Hardship – There is a situation that is causing you to have trouble affording your mortgage.
B. Monthly Income Shortfall – You have more month than money! A lender will want to see that you cannot afford or will not be able to afford your mortgage soon.
C. Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.
7. There is not Enough Time to Negotiate a Short Sale before My Foreclosure
This is a myth that probably hurts homeowners the most. Many don’t realize that foreclosure is a process and there is time.
The foreclosing party (in most cases a lender) can stall a foreclosure up to the final day of the process. These days many lenders will stall a foreclosure with as little as a phone call from you letting them know that you are trying to sell. Almost all lenders will stall a foreclosure with a legitimate sales contract, in our view there is time until the foreclosure process is complete.
If you need more information, call or e-mail me today for an appointment to see what options you have and get on the path to recovery, there are options and I can help!
Come back next week for more information on Short Sales and Distressed properties or simply subscribe to our Blog.