Short Sale Myths & Tall Tales, What Your Bank & Lender Doesn't Want You To know
Frankly there's a misconception regarding short sales.
I wrote about Short Sale Q & A in Imperial County recently and believe Short Sales are the most effective and best way for an underwater, upside down, over indebted homeowner to avoid foreclosure and be ready to purchase another home in the least amount of time as compared to foreclosure.
Let's review. A short sale is nothing more than a regular sale of Imperial Valley residential real estate however instead of obtaining enough money in your property sale to payoff your mortgage(s), the bank will have to agree to accept less than what is owed. You may ask, why would they agree to such a thing? They're going to agree to accept less initially since the banks and lenders know if they take the property back through a foreclosure they will lose substantially more in the long run.
Your bank or lender will not encourage you to do a short sale and they may give excuses, or what I call are a list of short sale myths and tall tales. Here are some of the myths and tall tales perpetrating the market today.
Myths and Tall Tales Your Bank Will Talk About
1) Your bank or lender will tell you, we aren't doing short sales right now.
2) You MUST list your home for sale for 90 days before we'll consider a short sale.
3) Short sales take several months to complete, they're too complicated, we don't like them.
4) Your bank or lender will continue to make excuses regarding short sales
The facts are clear, short sales are the MOST effective way for a bank to cut its losses, however many who work at the banks are not experienced enough to understand the dynamics of how short sales work and how they are truly in everyones best interest.
The Truth regarding the Myths and Tall Tales.
Banks and lenders are always doing short sales, they cannot tell you they are not doing them. One of the biggest problems I see with the short sales is the short sale package and comps are usually incorrect or not properly put together. Banks and lenders have tremendous case loads, they do not deal with piecemail items effectivley, they want the complete package all together at one time.
Often times these packages are not put together well and the bank will not work on your sale if this is the case. Additionally banks will take your short sale package and hold onto it until your REALTOR(r) submits an offer. How long will it take to get an offer? It can take weeks or months, depending on how well and how realistically the property is priced. If the property is overpriced, the home will continue to sit on the market and may get looked over by qualified buyers.
There are literally dozens of reasons why short sales fail and both homeowners and banks are frustrated with them. Short sales take more care than the regular sale since you are dealing with a variety of documents, experience levels, and third parties to pull this type of sale together. Many times the parties involved are at opposite ends of the short sale side and have different ideas, or are inexperienced, therefore they're unable to deal with the short sale transaction effectively.
In my opinion the short sale is the best overall avenue for a distressed, hardship ridden Imperial County homeowner who needs to get out from under their home mortgage. A short sale transaction will, in most cases, allow the homeowner to ready to buy another home within a few years.
Again, each case is different and I cannot make any specific recommendations without reviewing your individual transaction specifically. However I can tell you this, if you have a home that needs to be sold, no matter if you have equity or not, I work with investors who have CASH to buy your home right now. Don't waste time, act now.
Do you need to sell your home in Imperial County California? Are facing foreclosure and want to protect your credit history as much as possible? Do you owe more on your home now than your home is worth in todays Imperial Valley real estate market?
Contact me today to get the facts regarding short sales and stop listening to the myths and tall tales that banks and lenders want you to believe.
This information is intended for entertainment purposes and is not meant to be legal, accounting, or tax advice. You should always seek to obtain advice from professionals who can offer specific advice regarding these matters.