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Short Sale Myths
A short sale can be an excellent solution for homeowners who must sell and owe more on their homes than they are worth. Unfortunately, a number of myths about short sales have developed, and it is important to understand the reality of this process should you find it meets your current needs.
Myth #1 - The Bank Would Rather Foreclose than Bother with a Short Sale
Huge misconception, the reality is that banks do not want to foreclose on your home because the foreclosure process is incredibly costly. There are new programs now where the lender actually iniates a Short Sale and will pay the homeowner for relocating.
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.
Myth #3 - There is Not Enough Time to Negotiate a Short Sale Before My Foreclosure
This myth hurts homeowners the most. Foreclosure is a process and there is time to make decisions and in many cases we can have the auction date delayed.
Myth #4 - Listing My Home as a Short Sale is an Embarrassment
It is understandable to have those reservations but according to recent estimates 1 out of 7 homeowners is in the same situation. With recent estimates showing that 65% of U.S. sales will be short sales or foreclosures, you are not alone.
Myth #5 - Short Sales are impossible and Never Get Approved
Falsehood, Banks are now more eager to approve short Sales more than ever before. Some approvals come as soon as 7 days. Banks understand that Foreclosures cost them more money. Are short sales easy? No, but they are worth executing for both parties involved when you look at the alternative.
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