Wellington Short Sales- Facts vs Fiction- Myth #2 Busted!

Read Short Sales Myth #1 Busted first before you read myth #2.

The next myth that we are going to bust is that you have to be broke to do a short sale. I get this one all the time. A seller will call me and say that they need to do a short sale but that their attorney, their real estate agent or one of their well meaning friends told them they would not be able to do a short sale because they have a pension plan, they have a 401k or they have money in their savings account.

Since we already know from busting myth #1 that the only constant thing is change- the rules change constantly and that each lender and investor does things differently. There is no such thing as one way to do a short sale.

Three addages that come to mind in this scenario are:

• There are exceptions to all the rules.

• Rules were made to be broken.

• The rules are always changing.

You can be approved for a short sale even if you are not living on your very last penny. You do not have to be totally down and out to be approved for a short sale. You also don't have to have a financial hardship. The words, financial hardship are relative at best. What that means to one person and one lender may mean something else to another lender and situation.

We have been getting short sales approved for both those who are more than broke and others who have enough money to get by to those who are just trying to soften the blow.

The worse the hardship is of course the more you are going to be relieved of the obligation to pay back a deficiency and other matters that are involved in the short sale approval process. But the myth busting is about the statement that you can do a short sale if you have money and that is simply not true.

The more financially stable you are the more you will be asked to contribute to the short fall. We have negotiated down those deficiencies to as low as 10% of the deficiency.

We are working with a older couple who have well over 1 million in their retirement accounts and savings accounts that they need to live the rest of their lives with as they are in their early 80's. In our negotiations with the bank is not that they have this money it is rather that at their age they may have to stop working tomorrow. Anthing can happen and they need that money to help them in their twilight years. So instead of a pay off deficiency of $120,000 we are able to negotiate with their lender to accept the buyers offer along with a sellers contribution of $20,000 in cash at closing to make the deficiency go away.

So blanket statements like you have to be penniless to get a short sale approved is false and does a disservice to your clients if clients are allowing foreclosures to take place without even trying to do a short sale first.

Look out for Myth #3 Busted

Read Short Sales Florida Myth #1 Busted here.

For more information about short sales read our series at Short Sales Florida.

Contact Nestor Gasset and Katerina Gasset, CIPS, Realtors®, International Properties and Investments, Inc. Licensed Realtors® in Florida at 561-753-0135 to list your property for sale or to purchase a property in Wellington, Royal Palm Beach, Loxahatchee, Lake Worth, Hypoluxo Island, Lantana, West Palm Beach and the rest of Palm Beach County Florida and Port St Lucie Florida. We are accepting referrals.

To view all the Wellington Florida Homes For Sale Click here and then click on Search For Homes We know Palm Beach County and will help you get your home Sold if you need to Sell your home and help you buy your Short Sale in Palm Beach County Florida : Call us today.

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Copyright © 2009 By Katerina Gasset, All Rights Reserved.*Short Sales- Palm Beach County- Facts vs Fiction- Myth #2 Busted!*

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