Short Sale Myths

Short Sales Are Difficult To Get Approved

A short sale is more complicated, yes.  But with the help of an experienced professional a short sale can be accomplished.  While there are no guarantees with any transaction, it is a much better alternative to pursue than letting your home be foreclosed on.

Banks Would Rather Foreclose Than Agree To A Short Sale

This is false.  The foreclosure process is incredibly costly for the bank.  As long as a financial hardship and insolvency can be shown, the bank would rather work on a short sale than foreclose on a home.

In Order to Negotiate a Short Sale you Must be Behind on Your Mortgage

This was true at one time but times have changed.  Banks at this point are looking for financial hardship whether current or pending, monthly cash flow loss, and insolvency.

My Home is Already in Foreclosure and I have no time to Negotiate a Short Sale

The foreclosure process is a long one.  Most banks will work with the homeowner if a simple phone call is made to let them know of the intent to sell.

Short Sale Properties are Hard to Sell

Short sales are often considered good deals to buyers and investors.  An experienced real estate professional often has no problem getting contracts on short sale properties as they have many buyers seeking “short sales” only.

Short Sales are as Financially Damaging as Foreclosures

This is false.  Short sales are not reported on your credit history.  At most what is reported is any late payments and the fact that the account has been settled.  This may lower your credit score a little, but a foreclosure will lower your credit score by 200 to 300 or more points.