Many homeowners need to sell their St. Tammany homes, but are underwater on their home – meaning they owe more than what the home is worth. They may be behind on their mortgage payments and facing foreclosure. These homeowners may have heard about doing a “short sale”, but don’t know what that entails. It’s important to know myth from reality when it comes to the short sale process. Here are the 9 most common myths we hear at Turner Real Estate Group surrounding short sales:
Myth #1 – The Bank Does Not Want to Help Me and Would Rather Foreclose than to be Hassled with a Short Sale. This is probably the most common misconception about foreclosures. The fact is that your bank truly does not want to foreclose on your property because process is expensive and takes a long time. Through the HAFA (Home Affordable Foreclosure Alternatives Program) the banks, investors and the federal government have all expressed their willingness to consider a short sale deal if the person qualifies.
Short Sale Qualifications Include:
1. Financial Hardship – This is a situation causing you difficulties in affording your mortgage. A hardship can include, but is not limited to: job loss or an out of area transfer, divorce, illness affecting you or someone in your immediate family, being called to active duty in a military unit.
2. Monthly Income Shortfall – “More Month than Money”. You must show you lender that you currently cannot, or soon will not be able to afford your mortgage.
3. Insolvency – You do not have significant liquid assets that could be used towards paying your mortgage down.
Myth #2 – You Must Have Missed a Mortgage Payment to Qualify For a Short Sale.
This may have been true in the past but is not longer the case. Lenders today want to see a verifiable hardship, current monthly cash flow shortfalls, or approaching shortfalls and insolvency. If you meet these three requirements and you think you will become unable to pay your mortgage before long, it is important for you to act immediately. Once the foreclosure stopwatch starts your options become more limited.
Myth #3 – I Do Not Have Enough Time Before My Foreclosure Date to Negotiate a Short Sale.
This is probably the most damaging myth to the homeowner. Foreclosure is a process, and you do have time to make key decisions that could produce a better ending for you and your family.
Most all lenders will stall a foreclosure on a property if there is a legitimate executed sales agreement. Some lenders may even stall a foreclosure by simply providing information showing you are earnestly trying to sell the property. Hiring a real estate professional who is educated and experienced in the short sale and foreclosure process is key. We are the top, best and most productive Realtor for short selling a home.
Myth #4 – Listing My Property as a Short Sale is Embarrassing.
Your short sale will be 100% discrete. No one has to know. We don’t even have to place a sign in the yard. Recent study shows that 1 out of 10 homeowners in the United States are currently 30 days or more behind in their mortgage. Over 70% never contact a real estate professional for help before losing their property to foreclosure.
Myth #5 – Short Sales Drag on Endlessly and Never Get Approved
In actuality, since the federal government passed HAFA guidelines, Turner Real Estate Group has been averaging a time frame of approximately 60 days from accepted contract to close. We employ a full time licensed staff member who handles the closing process, so your transaction runs smoothly.
Myth #6 – Banks are Not Accepting Short Sales and are Waiting for Another Bailout
Today, the reality is that the US government and lenders are willing to do anything they can to avoid foreclosing on properties. More banks are actively and aggressively pursuing short sales and they want to work with Realtors who understand them. Freddie Mac recently stated their organizational goal of “eliminating distressed assets through modification or short sale”. Furthermore, banks are working hard to improve the short sale process internally, making it easier for the local short sale expert and homeowners to work with them and to navigate through the short sale process.
Myth #7 – Buyers and Buyers-Agents are Avoiding Short Sale Properties
In today’s real estate market, “short sales” are synonymous with “good deals”. Modern buyers are eager to get the best deal available to them today. Short Sales are the “Shiny Penny” being priced even better than foreclosures, and buyers are taking note. Listing your property with a Realtor such as Wayne Turner who is educated and experienced in the short sale process will increase your chances of successfully avoiding foreclosure.
Myth #8 – Once the Lender Forecloses on My Property All My Troubles will be Over
Through many short sales, Turner Real Estate Group has successfully negotiated with lenders to forgive, or waive their right of redemption, on any deficient amount owed on the property. We can negotiate this for you too!
Myth #9 – I Don’t Have Enough Money to Pay Broker Commissions and Fees to Sell My House
Turner Real Estate Group does not charge the homeowner commissions or fees when we sell your home through a short sale. Real Estate Brokerage fees are paid by your lender. Remember, they want you to list and short sale your home rather than it go through the foreclosure process. It will cost you nothing to short sell your Slidell, Mandeville, or Covington home.
Short Sales are new to many people, including many Realtors, but our team of professionals have taken a proactive approach through our education and experience to help homeowners who may be facing foreclosure. If you, or someone you know, can benefit from a meeting with us, we can be reached 24 hours a day, 7 days a week at… 985-626-1313.
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