A short sale is a form of sales that helps homeowners who owe more than the house’s worth. This means that they get to sell their properties due to financial distress and the inability to pay in cash. Several statements have been flying around on different platforms, which are not true. We will consider the myths about short sales below:
SELLERS MUST BE IN DEFAULT BEFORE SHORT SALES CAN BE APPROVED
This statement has caused several intending home sellers not to consider the option of short sales. The statement is wrong. A seller does not have to fall behind on their payment before they qualify for short sales of their properties.
Although defaulting sellers are usually given more attention, the approval of short sales by banks depends on the value of the home and the seller’s level of hardship. This means that a seller can be paying the mortgage payment every month and still qualify for short sale approval.
SALES TAKE SO LONG TO BE APPROVED
Short sales do not take as long as most people think; it is possible to get the whole process completed within a month or less. Some agents might tell you that approval might take a year or more, but this is not true as the average short sales with loans from a commercial bank only take one to two months.
The lender can acknowledge receiving all the necessary documents from the seller within a week. A negotiator can be assigned within two or three weeks, and the management can approve in another week.
BUYERS GET TO PAY TOO MUCH
Short sale listings by agents are usually lower to be able to attract several buyers. This means that the statement about buyers having to pay too much is wrong. The listing prices usually vary, depending on the market value and condition of the home. More so, until the offer has been submitted, you will not know how much the bank will want to collect. Hence, most listed houses are usually cheap and affordable for several buyers, so there can be several people that will show interest at once.
SHORT SALES IS AN EMBARRASSMENT
It is amazing how people think listing their houses as short sales is a form of embarrassment, when according to statistics, one out of every five houses listed is on short sales. This means that you are not the only one who owes more than the value of your home. If you think of the greater good that this will offer, you will reconsider the embarrassing feeling.
AGENTS DO NOT GET HIGH COMMISSION
This statement was probably true a decade ago, but this is not the case anymore. There are standard payments for agents now that are being controlled by different regulatory bodies.
With all the myths listed above, it is evident that Short sales are not as bad as most people think it to be. This means that if you were considering giving up on it because of these statements above, you should begin to reconsider. Short sales can help you get out of your financial crisis.