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Short Sale Facts - true or false

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Real Estate Agent with Equity Oregon 200604036

Short sale facts - True or False ???

A Short Sale is where you sell you home the bank agrees to take less for it than you owe - (the bank is getting shorted!)

•1.       Almost all homes for sale today are short sales.

False  Canby there are  174  homes for sale, 29 are short sales (16%)

          Molalla there are  143  homes for sale,  32 are short sales (23%)

        Woodburn there are   223  homes for sale, 23 are short sales (10%)

       Aurora there are 51  homes for sale,  5 are short sales (10%)

•2.       Short sales are fast sales.

False - short sales usually take anywhere from 3 months to 12.  So there are good deals they just can take awhile.  So patience patience patience.

•3.        Banks, not home owners, pay realtor fees to sell the home.

True- Realtor fees come out of the banks bottom line.

•4.       Bank owned properties are also short sales.

False- Bank owned properties means that the home has been foreclosed on and the bank has taken it back.  This happens if the short sale failed or if the homeowners opted not to do a short sale and just let it go back to the bank.

•5.       Short sales hurt your credit more than a foreclosure.

False - a foreclosure is much worse on your credit in many ways

•6.       If you are "upside down" you can do a short sale to get out of your house. 

False - Banks don't just let you do a short sale, you must qualify with some sort of a hardship, such as divorce, job loss, death...

•7.       Banks hate short sales they prefer to take them back so they can have control.

False - It is not that banks hate them, it is more that they are just over whelmed by all of them, which is why it takes so long and it costs banks thousands of dollars to take back a home. 

•8.       Nationwide 1 in 10 homes is in some sort of financial distress with their home.

True - whether its 30 days late or days away from the auction, probably someone you know needs help. 

•9.       If you list your home for sale as a short sale, you need to move out.

False - almost all banks want the home owner to stay in the house until it closes and it may have an impact on whether or not the bank will come after you for a deviancy.

•10.   All realtors do short sales.

false

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Jay Schmitt
Keller Williams Keystone Realty - Gettysburg, PA
Gettysburg Real Estate Agent

Very good post with some interesting and informative information. Thanks for posting.

Mar 15, 2010 06:13 AM