The 7 Most Dangerous Short Sale Myths
PANTONE 540 C
6. Bank Would Rather Foreclose than Bother with a Short Sale The average foreclosure on a $200,000 property can cost a bank as much as $30 to $80,000! This is before we take into account the affect on the bank on their reserve rates, lending abilities, staff and REO resources or more. If your seller is qualified, rest assured that lenders are more than ready to work with you on your short sale now. Doesn’t it make sense that in a declining market you would want to sell an asset that is losing money right now rather tomorrow? It makes more sense to lenders as well.
7. There is not Enough Time to Negotiate a Short Sale Before Foreclosure This is a myth that probably hurts homeowners the most. Many don’t realize that foreclosure is a process and there is time. Be aware of the timeframe in your state and be ready to explain it to your potential clients. These days many lenders will stall a foreclosure with as little as a phone call form the borrower letting them know that they are trying to sell. Almost all lenders will stall a foreclosure with a legitimate contract, in our view there is time up to the day the ‘gavel falls’ and the property is lost.
© Distressed Property Institute, LLC 2009 | 800-402-0335 | www.cdpe.com
Page