Short Sale Myths
Myth #1 – The Bank Would Rather Foreclose Than Bother With A Short Sale
A Big Misconception! The process is costly and they would rather avoid it, which is why banks, investors, and even the federal government have all publicly stated that if a person is qualified for a short sale, the deal needs to be considered.
Qualifications for a short sale:
- Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
- 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.
- Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.
Today, more banks are aggressively pursuing short sales and working with agents who understand how to process them. Freddie Mac recently hosted a national training Webinar for real estate agents where they expressly stated the organizational goal of “eliminating distressed assets through modification or short sale.”
Myth #2 – You Must Be Behind On Your 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.
If you meet these three requirements and believe that you soon may be unable to afford your mortgage, act immediately. Any delay could limit your options. Do not wait until the countdown clock to foreclosure has started and you have even less time left.
Myth #3 – There Is Not Enough Time To Negotiate A Short Sale Before My Foreclosure
Foreclosure is a process, and there is time to make decisions that may result in better outcomes … the process can be stalled.
Myth #4 – Listing My Home As A Short Sale Is An Embarrassment
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, taking action, and finding a professional who can work with you toward a solution.
Recent estimates show that 40-60% of U.S. sales will be short sales or foreclosures – You are not alone.
Myth #5 – Short Sales Are Impossible And Never Get Approved
They are more difficult, but there is nothing impossible about them!
Myth #7 – Buyers Are Not Interested In Short Sale Properties
Many agents are getting calls from buyers who say they only want to look at foreclosure and short sales. Some see the words synonymous with “good deals.” Many of these buyers are international investors.
In conclusion, Agents with the CDPE Designation have been trained in all aspects of the short sale process, and know how to deal with the parties involved in foreclosures. Finding a CDPE can explain what options you have, and get you on the path to recovery.
~Kirill Gorbounov, MBA, REALTOR®, CDPE, SRES, GREEN, e-PRO.
cell: (571) 276-0986; mailto: KirillRealtor@Yahoo.com
~Elena Gorbounova, LL.M., REALTOR®, Associate BROKER, GRI, ABR, ASP.
cell: (703) 625-7888; mailto: ElenaDeibes@aol.com
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RE/MAX Allegiance; 6226 Old Dominion Dr., Mclean, VA 22101
Office: 703-237-9500; E-Fax: 1866-821-0782
MBA – Masters in Business Administration
CDPE – Certified Distressed Property Expert (short sales)
SRES – Senior Real Estate Specialist
GREEN – Green Real Estate Principles
e-PRO – Certified Internet/Tech.
ABR – Accredited Buyer Representative
ASP – Accredited Staging Professional ™
GRI – Graduate Realtor Institute
LLM – Legal Law in Masters
Selling & buying in Northern Virginia: Fairfax, Arlington, Alexandria, Falls Church, Annandale, Springfield, Burke, McLean, Skyline Square, Skyline House, Skyline Plaza.