Myths About Short Sales

Myth #1

THE BANK WOULD RATHER FORECLOSE ON YOU 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 your property because the foreclosure process is incredibly costly for banks, investors, and even the federal government. The qualifications for a short sale include:

  1. Financial Hardship - There is a situation causing you to have trouble affording your mortgage.
  2. Monthly Income Shortfall – “You have more month than money.” A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.

Myth #2

YOU MUST BE BEHIND ON YOUR MORTGAGE IN ORDER 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. Do not wait until the countdown clock to foreclosure has started.

Myth #3

THERE IS NOT ENOUGH TIME TO NEGOTIATE A SHORT SALE BEFORE MY FORECLOSURE

The foreclosing party—in most cases a lender—can stall a foreclosure up to 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.

Myth #4

SHORT SALES ARE IMPOSSIBLE AND NEVER GET APPROVED

This is a complete falsehood. Are short sales more difficult to execute? Yes. Do you, as a homeowner, need to learn about a new process? Yes. Are they impossible? Absolutely not. For example, agents with the Certified Distressed Property Expert® (CDPE) Designation receive thousands of short sale approvals on a monthly basis. These professionals have undergone extensive training in methods to help homeowners in distress and process short sales.

Myth #5

LISTING A HOME AS A SHORT SALE IS NOT COMMON AND EVEN AN EMBARRASSMENT

With recent estimates showing 40-60% of U.S. sales will be short sales or foreclosures, you are not alone. According to recent estimates, more than one out of eight homeowners in the U.S. is in the same situation. You are to be congratulated for admitting you need help, and for taking action!

The Short Sale Process is “FREE” to the Home Owner

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    The Realtor handles communication with the lender

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    The home owner will be given time to relocate

  • The property is typically sold in “as-is” condition (no repairs)

  • The sale process is similar to a traditional sale

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    The seller may typically purchase a home again in 2-3 years

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    The bank typically pays for all costs associated with the sale

Call Josh to schedule an absolutely free appointment and learn more about what many other owners have done to break free of negative equity.

Items covered in a 20 minute meeting with Josh:

  • Tax, recourse, and credit questions,& when they exist
  • What the process looks like…from start to finish
  • How to do a short sale, the right way, and star
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Contact Josh

Josh Barker
Info@reddinghomes.com
530-222-3800

Josh’s Recently Closed Short Sales