Wisconsin Short Sale Myths-Part One

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Real Estate Agent with eXp Realty 52564-090

Short Sale Myths - Part One

January 30, 2014
by David Tal

When a property is sold for less than the balance remaining on the mortgage loan, that is called a short sale. A short sale can benefit homeowners in many ways, by helping them get out of an upside-down loan, avoid foreclosure and eliminate their mortgage debt.  Short sales today are also, on average, taking less time to process than before - thanks to tighter regulations and better practices in the industry. However, there are still a lot of misconceptions about short sales floating around out there, and we are tackling eight of them to help homeowners in the market to short sell know what the real deal is!

 

Myth Number One: I will still be responsible for paying off the total amount of the mortgage after a short sale.

 

Wrong! If your short sale is handled correctly, and you only hold one mortgage on the home, your agent should be able to negotiate a short sale that leaves you free and clear of the debt as far as the lien-holder is concerned. The whole goal of the short sale process is to get the bank to agree to accepting a lesser amount than the total mortgage due and calling it a day!

 

Myth Number Two: I can’t qualify an investment property or second home for a short sale.

 

Wrong! As long as you meet eligibility requirements, your second or investment home could still be eligible for a short sale. This is why you need a short sale agent - so you can be better informed about what is and is not possible with short sales!

 

Myth Number Three: I’m not behind on my mortgage payments, so I’m not eligible for a short sale.

 

Wrong! Whether or not you are behind on your payments isn’t the criteria for determining if you qualify. The main factors in the decision are your basic eligibility, whether the home is your principal residence, and your debt to income ratio (which must be greater than 55 percent).

 

Myth Number Four:  I won’t qualify because my lien holder has ultra-strict guidelines on short sales.

 

Wrong! EVERY borrower is eligible to be considered for a short sale - as long as they meet eligibility requirements. More and more loan servicers are able to make independent decisions without having to seek a lengthy separate review from the mortgage insurance companies. This freedom and increased authority on the part of mortgage holders is resulting in more short sales being approved than ever before, especially for people undergoing financial hardship!

Posted by

I would like to take some time to introduce myself. I am a Full-time Realtor and I work hard to keep my clients & customers satisfied by providing the highest level of services. This has proven to be a welcome quality in my business.

When dealing with future Sellers, Buyers & Investors, making them feel comfortable with their agent is the most important factor in securing them as not only a valuable clients but inviting them to remain loyal to me for any future dealings.

 

RE/MAX Realty Center has a great Sphere of contacts and can reach Buyers in ways other Real Estate companies do not. We have a very aggressive marketing plan as well as aggressive agents helping our Sellers, Buyers & Investors reach their goals. I have been a Realtor since 2002 and embrace the challenges of a changing market.

 

 

Best regards,

Amber Castonguay
Broker Associate/CDPE
RE/Max Realty Center
920.988.0048
www.AmbersHomeFinder.com
AmberCastonguay@gmail.com

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Topic:
Home Selling
Location:
Wisconsin Waukesha County Oconomowoc Oconomowoc Wisconsin
Tags:
short sales
wi short sales
wisconsin short sales
buy a short sale
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Amber Castonguay

Servicing: Waukesha, Jefferson, Dodge County WI
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