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Don’t Fall for Common Myths About Your Coral Springs Short Sale!

By Joy Carter & Jeff Booker Brother and Sister Team

Real Estate Agent with Keller Williams Parkland/Coral Springs Realty-GreatFloridaHomes Team BK-0450270

May 18, 2012 02:25 AM

The current state of the Coral Springs real estate market and economy has made the short sale process more a part of the public’s consciousness. While this is not a new process, this common alternative to foreclosure was never very well-known by people until recent years. As a Coral Springs real estate agent, I have had experience in working with those who are interested in purchasing short sale properties, or who have needed to go through the process themselves in order to avoid the pain surrounding foreclosures.

What happens when processes like these become more popular and common is that inaccurate information starts flying around. Many have heard of a short sale, but don’t know what it is and the steps involved in completing one successfully. As your Coral Springs real estate resource, I thought that I’d bust a few of the common misconceptions surrounding short sales and foreclosures.

First things first- in order to qualify for a short sale, you need the following:

1. Your house must be worth less than the amount owed on it.
2. You must be able to prove that you are suffering from financial hardship for a legitimate reason, such as pay cuts, job loss, health issues or divorce.

If you fit the criterion listed above, then you qualify for a Coral Springs short sale. Now it’s time to meet with your agent and go through the process. You may hear many myths about short sales vs. foreclosures, but take them for what they are: fiction. Here are a few of the most common tall tales told about this type of transaction:

•    If you let your home go in to foreclosure, then once the transaction is over you are done. This isn’t always true. The foreclosure process is painful and long enough, but when all is said and done, you could still end up owing the bank money. Whether it is from IRS tax liability or to make up the difference for what your property sold for at auction, you could still be held accountable for some fees.
•    There are no options to avoid foreclosure. This isn’t true, either. More homeowners than ever can qualify for a short sale, and you could always apply for a loan modification or deed in lieu of foreclosure. You should consult your Coral Springs real estate agent and discuss your options before proceeding with a foreclosure.
•    It’s too difficult to qualify and go through a short sale transaction. Now more than ever, banks would rather do a short sale than a foreclosure. They save both time and money, and they are looking to unload the looming shadow inventory. Now is the time to go through a short sale if you are in a position to qualify for one.
•    They’re uncommon. In today’s market, short sales make up between 10-50% of all transactions in some areas. Many people are going through hardship in this economy, and these types of sales are becoming more common than ever.
•    If I go through a short sale, I can’t buy a house again for a long time. The time to buy a house after going through a Coral Springs short sale depends on your entire credit picture. Typically, you can start buying again between 12-24 months if you work hard to rebuild your credit and financial standing. Some FHA loans will even allow you to buy sooner than that.

These myths are just the tip of the iceberg when it comes to the inaccurate information that flies around about foreclosures and short sales. As a Coral Springs real estate agent who has had experience in this market, I thought that I’d shed some light on the reality of this aspect of the industry. If you have any more questions about short sales, don’t hesitate to contact me. I’d be happy to help you in any way that I can. I hope to hear from you soon!