Gainesville Short Sales – Gainesville Short Sale Myths Gainesville short sale myths are finally clarified! It is a frustrating experience for a homeowner who is facing foreclosure and cannot find the correct information necessary to find alternative options to foreclosure, such as a short sale. To clear up some of the confusion we have compiled a list of most common short sale myths. An important thing to keep in mind is that every short sale is different, and each seller has their own unique circumstances.
Gainesville Short Sale Myth 1- I must stop making payments before the bank will approve a short sale there have been cases where a seller’s short sale was denied because they were current on their payments. I have only seen this to be true with Freddie Mac and in one Gainesville homeowners specific case where they had only $80 left each month after all bills were paid, because they had a loss of income. However, it is not necessary to stop making payments for the bank to take you seriously and have a successful short sale.
Gainesville Short Sales – Gainesville Short Sale Myths Gainesville Short Sale Myth 2 – I should never accept a payment plan from the bank…they should forgive all my debt.
In some instances if there is still debt and the bank gives you a payment plan and you decline or ignore it the bank may seek a judgment against you for that amount. This is a big difference between possible out of pocket costs, not to mention how your credit will be affected and wages may be garnished.
Gainesville Short Sale Myth 3 – Pricing the home very low will get an offer quickly
Yes, pricing a home very low may get an offer quickly, however at a cost to the seller and buyer. Banks do their homework. You can get a great price on a short sale; however the bank will not give the home away. For the sellers the clock is ticking if they are facing foreclosure and to waste the banks time on an unrealistic offer could cost them the home.
Gainesville Short Sale Myth 4 – The bank will not pay the commission for my Real Estate Agent and or the costs of listing the property and the expense will be passed on to me
A real estate agent’s professional fee is taken out of the banks proceeds at close of escrow. The bank will dictate how much the agent(s) will receive. Most banks will not pay an agent’s commission if they are representing themselves as the buyer. Now I do have an issue with this since technically in Florida the Agent is paid by the Broker and not paid directly from the bank. This means the bank is denying paying the brokerage firm.
Gainesville Short Sale Myth 5 – I cannot short sale with 2 mortgages
When the short sale process started many people could not short sale because they had a second mortgage. After the first wave of foreclosures, lien holders in second position realized that if they did not participate in the short sale they would receive $0. Now instead of foreclosing on a property, they have started to accept pennies on the dollar…which is better than getting nothing.
Gainesville Short Sale Myth 6 – A Short Sale is embarrassing
A Short Sale has become common place in today’s market that the stigma has been reduced. Short Sales can happen to anyone. This is simply a situation where you must sell and do not have the means to make up the difference. You should never feel embarrassed about the situation, it is much better than a foreclosure and you have the ability to buy a home again in 2-3 years depending upon your credit.
Gainesville Short Sale Myth 7 – Any agent can list a short sale
Not any agent can do a short sale. Many agents that do understand how to complete a short sale and may cause harm to the seller. Our agents have established partnerships with attorneys, loss mitigation and title companies to provide the service that is appropriate for you. Not every short sale will be a success and for anyone to tell you otherwise they are mistaken.
Other Articles to Read:
Call Stephanie Anson today at 352-260-0153 for a confidential phone interview regarding your options.
Please seek legal advice. This information is for informational purposes only.