The 7 Most Dangerous Short Sale Myths
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3. A Borrower Must be Behind in Their Mortgage in Order to Negotiate a Short Sale While it is true that initially some lenders wanted a borrower to be in default before they were willing to consider a short sale—this trend has almost all together reversed. Today lenders are looking for verifiable hardship, monthly cash flow shortfall or pending shortfall and insolvency. If your client meets these three requirements and is running out of money to continue paying their mortgage—list the property immediately! Don’t wait until the countdown clock to foreclosure has started and you have even less time left.
4. Buyers are Not Interested in Short Sales and Avoid Them Again, if we continue to perpetuate this myth it may become true—thankfully the reality is that today it is not. In fact you may not have yet however you will soon get a call from a buyer who says “I only want to look at foreclosures and Short Sales!” Short Sales and Foreclosures have become synonymous—not with issues—but with GOOD DEALS. International buyers specifically are interested in these properties.
5. Agents Can’t Make Money with Short Sales This is another one of those myths that we feel are perpetuated by agents who aren’t making money—not by those who are listing and selling short sales. The reality here is that not only will you get paid on short sale, the real issue is how will you get paid without them? With 40 to 60% of the sales in the US predicted to be Short Sales or foreclosures can you afford not to be in this business?
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