As the housing crisis continues, several myths have developed concerning short sales. It is important to understand that a short sale can be an excellent solution for a homeowner stuck in a stressful, no-way-out situation. Learn your options and don’t become another statistic….
Myth #1 – The Bank Would Rather Foreclose than Bother with a Short Sale
This is one of the most common misconceptions. The reality is that banks do not want to foreclose on your property because the foreclosure process is incredibly costly. Banks, investors, and even the federal government have all publicly stated that if a person is qualified for a short sale, the deal needs to be considered. Overwhelmingly, banks receive more on their investment through a short sale than a foreclosure.
The qualifications for a short sale include:
Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
Monthly Income Shortfall – “You have more month than money.” A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.*
If you or someone you know are facing this situation, call today to get a free, confidential consultation. Karen Ross 925-998-5902, Clare LeForce 209-814-0800.
Tune into tomorrow for myth #2…..