There’s a lot of misinformation floating around about short sales. Whether you are buying or selling, you should know the truth about each topic. This short sale information helps debunk some of the most common and persistent short sale myths!
Short Sale Myth One:
Banks do not wish to do short sales. FALSE! While short sales are not ideal for the original lender, banks would much rather do a short than a foreclosure. Foreclosures are lengthy, expensive processes and often require nastiness such as eviction and added costs for repairs and maintenance and before the tedious business of putting the house on the market and trying to get anywhere near the original price for the home.
Short Sale Myth Two:
Short sales are extremely rare and hard to qualify for. FALSE! Between 2000 and 2011, short sales jumped from 10% to nearly 40% of real estate sales being made, and the numbers have only kept increasing over the past few years. Government incentives have helped this happen, by offering programs that actually benefit consumers to participate in short sales.
Short Sale Myth Three:
You can do a short sale by yourself. MOSTLY FALSE! You could probably fly an airplane, too, if you decided to – for about two minutes and very badly, ending in disaster. The short sale process is complex and time consuming, and most that fall through do so because of a misunderstanding of the process. An experienced short sale specialist has a special skill set that greatly increases your chances of success.
Short Sale Myth Four:
Short sales require a huge down payment. FALSE! in fact, many short sales have a lower than usual down payment, and in some cases government subsidies can pay the down payment for you and even give you extra incentives. In fact, you could come out of a short sale purchase much further ahead than you ever expected!
Don’t be fooled by short sale myths! Ask for short sale information from a trusted short sale specialist, and ensure you have all the correct information before deciding whether or not a short sale is right for you.