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
This is one of the most common misconceptions. The reality is that banks do not want
to foreclose on your property because the foreclosure process is incredibly costly.
Banks, investors, and even the federal government have all publicly stated that if a
person is qualified for a short sale, the deal needs to be considered. Overwhelmingly,
banks receive more on their investment through a short sale than a foreclosure.
The qualifications for a short sale include:
1. Financial Hardship - There is a situation causing you to have trouble affording
your mortgage.
2. Monthly Income Shortfall - "You have more month than money." A lender will
want to see that you cannot afford, or soon will not be able to afford your
mortgage.
3. Insolvency - The lender will want to see that you do not have significant liquid
assets that would allow you to pay down your mortgage.
In case you hadn't guessed this will be a 7 part series. Stay tuned for part 2 coming soon to a blog near you!
If you are in financial distress, help is just a phone call away.
Donn Rasch
Real Estate Broker
CDPE (Certified Distressed Property Expert)
RE/MAX Equity Group, Inc.
9200 SE Sunnybrook Blvd., Suite 100
Clackamas, Oregon 97015
503-658-5000
http://www.equitygroup.com/drasch
Donn's Real Estate Blog
Clackamas River Front Home Tour Link
Myths courtesy of the CDPE orginization.
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