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Northern Virginia Short Sale Quiz: Question #8

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Real Estate Agent with Long and Foster Real Estate VA License # 0225089470

Northern Virginia Short Sale Quiz:  Question #8

Working with Northern Virginia Short Sales since 2007, I have certainly learned more from the Short Sales I've closed than I could ever hope to learn in a Short Sale designation class.  Experience is a phenomenal teacher.  The problem with classes is that they often perpetuate misunderstandings of what REALLY happens in a Short Sale.  That's why I developed this series of questions....to find a new way to get some of the urban legends in the Short Sale world out of the heads of buyers, sellers and real estate agents.

If you've missed any of the previous questions, you can start backtracking by hitting question #7.  Form there, you'll find links to the other previous questions.  Right now, let's dive into question #8.

In order to be approved for a Short Sale, home owners must miss mortgage payments.

TRUE or FALSE?

The answer will be in the comments section tomorrow, so check back.

And if you are ready for Northern Virginia Short Sale Quiz:  Question #9, click the link and head on over.

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Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

The answer is FALSE.

I have had Short Sales approved with no missed mortgage payments.  Not every investor will approve a Short Sale without missed mortgage payments, however, so my advice to clients is to give it a shot without missing payments.  If the bank insists on one or two missed payments, do it then.  That way the impact to your credit score will be minimal.

Mar 07, 2012 05:45 AM
Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

Another way is to wait till after the grace period, such as the 15th of the month, to initiate the short sale (assuming you don't have contacts) and once the short sale package is in the system, pay your payment before the end of the month.

 

Mar 07, 2012 06:57 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Satar:  Some banks spell out exactly how late you have to be to be considered deficient.  Regardless, I never tell my clients to miss payments until they have been told to do so by the bank.  More and more Short Sales are getting approved without missing one payment.

Mar 08, 2012 01:02 AM
Pamela Stangler
eXp Realty - The Stangler Group - Cudjoe Key, FL
Florida Keys

Ok, I was thinking "it depends on the bank", so I guess I was pretty well on track.  Off to question #7.  This is fun.

Mar 09, 2012 03:24 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Pam:  You were definitley on the right track.  I guess the concept here is really, why miss any until the bank says you have to?

Mar 09, 2012 10:52 PM
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