Add to Google

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:

  1. Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
  2. 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.
  3. 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 have questions or feel you may qualify for a short sale and live in Broward County, please contact me for a free consultation.

Understanding your options now could mean all the difference in the world.

Next up is Short Sale Myth # 2 You Must Be Behind on Your Mortgage to Negotiate a Short Sale

Tom Day, CDPE
Remax in Motion
www.TomDayProperties.com