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Short Sale Myths –Selling short sale in Northern Virginia
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A short sale can be an excellent solution for home owners who must sell and owe more on their homes then they are worth. Unfortunately, a number of myths about short sales have developed, and it is important to understand the reality of this process.

 

Myth# 1 : The bank would rather foreclose than bother with a short sale.

This is one of the most common misconceptions. The reality is that banks do not want to foreclose on property because the foreclosure on property because of the process is incredibly costly. Banks, investors and even the federal govt. have all publicly stated that if a person is qualified for a short sale the deal needs to be considered.

 

Myth# 2:  An owner must be behind on a mortgage to negotiate a short sale.

While this may have previously been the case, today lenders are looking for verifiable hardship, monthly cash flow shortfall, or pending shortfall and insolvency.

 

Myth#3: There is not enough time to negotiate a short sale before my foreclosure

This myth probably hurts homeowners the most. Many do not realize that foreclosure is a process, and there is time to make decisions that may result in better outcomes. There are number of times I had foreclosure cancelled. This is doable it’s just needs bit more work and communication with the bank.

 

Myth#4: Listing my home as a short sale is an embarrassment

According to recent estimates, one out of five homeowners in the U.S> is in this situation. You are to be congratulated for admitting you need help taking action, and finding a professional who can work with you toward a situation.

 

 Myth#5: Short sales are impossible and never get approved


This is a complete falsehood. Are short sales more difficult to execute? Yes. Does a homeowner need to learn about a new process? Yes. Are they impossible? Absolutely not.

 

Myth#6: Banks are not accepting short sales

The reality is that banks and the U.S. govt. are trying to do anything they can within reason, to avoid foreclosing. It is preposterous to believe they would deny a short sale in homes that home future legislation would pass and pay them for losses.

Myth #6: Buyers are not interested in short sale properties

Potential sellers hear this but thank fully, it is not true. In fact, many agents are getting calls from buyers who say they only want to look at foreclosure and short sales.

 

 So if you are in financial distress talk to a short sale specialist.

 

 

Posted: Thursday, July 30, 2009 9:43 AM by Ritu Desai

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