There are millions of homeowners who are looking for answers and don’t know what to do. They are not alone and there are people with resources that can lead them in the right direction. As a Certified Distressed Property Expert, I have training and experience in providing solutions to homeowners facing financial hardship. There’s an overwhelming amount of misinformation about the options available, especially short sales. To give you a better idea of the short sale option, and to set straight some of the myths you may have heard, I’ve decided to post this blog to clear up some misconceptions. Hopefully this post will clarify the following myths:

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 your property because the foreclosure process is incredibly costly. 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. Overwhelmingly, banks receive more on their investment through a short sale than a foreclosure.
The qualifications for a short sale include:
• 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.

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 [click to continue…]

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