4 MYTHS OF SHORT SALES

Other than the fact that you must be patient and hang on for the roller coaster, there are many positives to buying a short sale. But did you know there are also many positives to selling as a short sale? Don't think that it isn't possible for you, rather arm yourself with the facts and talk to your lender. 1) Banks don't want to participate -- Nothing could be farther from the truth. Banks know that they will save on average $50,000 per property, by selling short over the carrying costs of a bank owned listing. 2) No options to foreclosure -- Simply not true. Many homes have had 2 or 3 postponements of trustee sales in order to allow a short sale to close. There is also the "deed in lieu of foreclosure, that some banks will allow. 3) Short sales will cost me money out of pocket -- Definitely not true! Not only will you have no cost to close, after submitting the proper hardship package, but in some cases the seller receives $3,000 to $25,000 from the bank at the close of escrow. This is no guarantee, of course, as it depends on your lender and your type of loan. 4) If I go through a short sale, I cannot buy another house for a long time. -- Well, first of all, if a home is foreclosed on, the waiting period to buy again is approximately 7 years. So you can't do any worse with a short sale. If you have mitigating factors as to why you had to move and sell short, and you were not behind on your payments, in many cases, you can buy again, immediately. Most short sellers are looking at between 1 and 3 years to re-enter the housing market, again depending on how badly credit was bruised and how quickly it has been repaired.