Short Sale Facts & Myths
Myth: If I short sale my house, it will hurt the neighborhood and bring down my neighbor’s home values.
Fact: Banks lose, on average, 20 percent more if a property is foreclosed on versus completing a successful short-sale. They now understand that short-sales are one of the most important ways to help distressed homeowners and neighborhoods.
Myth: I get no money back from the bank when I close on a short sale.
Fact: As banks become more willing to participate in short selling property, they are also offering exciting incentives, which could include up to $5,000 in relocation assistance for home sellers who complete a successful short sale.
Myth: Banks rarely agree to a short sale because they will lose money.
Fact: With more properties on the market, banks have become more flexible and agreeable with short-sales. Recently, Bank of America implemented a state-of-the-art portal system that keeps track of all short sale paperwork electronically.
Myth: I need to sell my house right away and I don’t have time to go through a long and drawn out short sale process.
Fact: Before the new communications portal, Realtors and sellers were forced to fax their paperwork and documents, which would sometimes get lost or misplaced. Now, all of the information is housed in one location thus allowing the process to become increasingly more efficient.
To fast track the once sluggish short-sale process, some banks are also now utilizing independent home inspectors. Representatives will meet with home owners on-site at the property and determine on behalf of the bank if a house is qualified to be listed as a short-sale. The revamped and streamlined process will take as little as 10 days for approval, compared to the tedious process that could take up to two years for approval. Once a property is listed as a short-sale, sellers could close on a property within 45 days.
Myth: Luxury homes won’t be approved for a short sale, only distressed properties are eligible.
Fact: Banks don’t ever want to foreclose, to have your short sale approved by the bank and to attract a buyer, price is the only thing that attracts buyers, and that price has to be competitive. The condition of the property as a luxury home is not as important as it was in an up market. We have determined that banks will approve short sales, and buyers will buy short sales, based on price and nothing more.
