Short Sales Myths

Even though short sales make popular selling options within unsound economies, you still need to have your questions and concerns answered before you tackle this type of selling process. Once you have comprehensive information about selling your home with the short sale method, moving confidently forward with this type of selling process is easy. The following guide dispels the myths of short sales, and helps you to have greater understanding of the process. Once you comprehend these myths and issues, the odds of you selling your home with this method increases.

Myth 1 I can only do a short sale if my home is facing foreclosure.

Many persons within unstable economy can get behind on their mortgage, but that is not the only reason why you should consider a short sale. You may simply need to move to a new location, or perhaps you have a new job offer in a totally different region of the country from where you currently live. Both of these situations can be viable reasons to consider a short sale, especially in times when your home value has gone down and your mortgage payment no longer matches your homes worth. So, short sale options can be a great solution for any homeowner who has to move quickly or needs to sell their home for any number of personal reasons.

Myth 2 I won't owe any debt after a short sale.

In some cases, you can walk away from a short sale without owing any further mortgage payments. However, there may be times when, you will need to pay off a small portion of your debt, like from a second mortgage holder who request such payment. These payments that they require are usually considerably lower than your original mortgage note. Furthermore, you may be able to negotiate the percentage and total amount of these payments. Fortunately, if you are made an offer to accept a small debt owed to complete your short sale, it is a good thing. It is always better to go through the process of a short sale, and it is a wise decision on your part to avoid foreclosure and the large ding it will leave on your credit.

Myth 3 Most agents do not have training in short sales.

Certified Distressed Property Experts or CDPEs professionally train in real estate to help consumers face issues such as selling their home in tight situations. In many cases, short sales are their specialty and they help homeowners quickly sell their home without extra emotional devastation and further financial debt. This usually means assisting the homeowners to avoid the process of foreclosures, when it seems they are heading in this direction.

Myth 4 I won't be able to buy another home with a short sale on my credit.

Some homeowners avoid trying to sell their home via short sales, because they feel it will be a total devastation to their credit history. However, the words "short sale" will not appear anywhere on your personal credit history within any of the major credit bureaus. At the most, your statement of credit may say that your home was sold, or it may make a reference to any current negotiated debt for which you are making payments. Therefore, like many homeowners have done, you can take advantage of future opportunities to purchase a new home, if you wish to do so.

Myth 5 Buyers Ignore Short Sale Properties.

Within uncertain economies, many buyers are hunting for unconventional home purchase options, and that could mean buying your short sale. Although banks have stringent lending policies during times of economic instability, they do understand that it is better to sell properties, like short sales, to regain or recover some financial loss. Furthermore, many buyers are becoming aware of the option of short sales in unexpected ways. In fact, consumers may not realize that the home they are viewing may be available through short sale purchasing, until they make further inquiries. Therefore, many prospective homeowners find themselves purchasing short sales when they did not consider it before. So, even if consumers have turned down a short sale in the past, if yours is on the market, it may be just the one they will consider.

Myth 6 Foreclosure is my only option because I don't have time for a short sale.

The foreclosure process usually takes longer than short sales. Yet, many homeowners avoid short sales, because they feel that the foreclosure process is set in stone. In fact, short sales can be completed in 2 to 3 months, including the time lenders acknowledge and review the short sale package, the time negotiators go through the BPO or appraisal process, and the two to three week review period for the approval short sale by management and investors.

Myth 7 I have to be out of work with no money to do a short sale.

Homeowners that have lost their jobs, and become aware of short sales, consider it as a workable solution to sell their home. However, you don't have to be broke or jobless to consider a short sale. In fact, you can still have a full monthly income, a great job, or a lucrative business when you negotiate a short sale. Therefore, it is an available option for anyone who considers it.

Myth 8 Short sales are only for those that have one-note mortgages.

Homeowners with one, two, or even three mortgage notes can consider a short sale to disperse of their home. In the end as long as you, the bank, and the buyer are satisfied with the agreement of a short sale, this process works smoothly to sale your home.

Myth 9 The embarrassment of short sales is not worth the time.

Most agents do not advertise a home sale as a short sale. Therefore, you will not have the embarrassment of seeing your home in newspapers or online as a short sale. If you are concerned with credit issues surrounding your short sale, you don't have to worry about this either. In fact, once you complete all negotiated items of debt, as agreed upon with the short sale contract, you will not see any negative reference to the short sale on your credit.

Myth 10 Banks won't accept a decreased payoff.

Banks understand that many homeowners have trouble during unstable economic spirals. Therefore, they would rather receive some monies back for a home, than face a nil amount for the property. Therefore, if banks can avoid foreclosures altogether, in some cases, they will accept a decrease in pay off which usually occurs in a short sale.

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