A short sale can be an excellent solution for a homeowner who no longer can afford their home, owes more on their home than what it is worth and is in a situation where they must sell. Unfortunately misinformation as well as a number of myths has developed about short sales, causing some homeowners to throw their hands up and just walk away. We at Waugh and Associates urge you to get educated, invest some time in understanding your options and explore selling your home through a Short Sell as a possible solution to your current situation.
Nothing could be further from the truth! Are short sales more difficult? Yes. Does your agent need to understand the process? Yes. But are they impossible? No, No, No! Waugh and Associates Agents have undergone extensive training in helping homeowners in distress and processing short sales. We receive numerous short sale approvals on a monthly basis. While there are no guarantees in any transaction, the trend is more positive and short sales are being approved.
Really? The reality is that banks (and the government) are trying to do anything they can, within reason, to avoid foreclosing on property. To think that they would deny a Short Sale in hopes that some future legislation will pass and pay them for their loss is preposterous. The reality is that more banks are figuring it out and aggressively pursuing Short Sales and agents who understand how to process them. Freddie Mac recently hosted a national training webinar for real estate agents where they expressly stated the organizational goal of "eliminating distressed assets through modification or short sale".
While it is true that initially some lenders wanted you to be in default (missed a payment) before they were willing to consider a short sale – this trend has almost reversed. Today lenders are more proactive looking for verifiable hardship, monthly cash flow shortfall or pending shortfall and insolvency to stay off a potentially larger problem. If you meet these three requirements and are in a position where you will soon not be able to afford your mortgage, act now! Don’t wait until the countdown clock to foreclosure has started and you have even less time left.
This is a myth that potential sellers hear all the time – thankfully in reality it is not accurate. In fact, many agents are getting calls from buyers who say "I only want to look at foreclosures and Short Sales!" Short Sales and foreclosures have become synonymous – not with issues – but with GOOD DEALS.
It is understandable that you may have some reservations about people knowing about your situation, however you are not alone. According to recent estimates, 1 out of 4 homeowners in the US owe more than their home is worth - in Nevada it is over 70%. You are to be congratulated for admitting you need help, taking action, and finding a professional who can work with you towards a solution.
We know you have heard this; you may have even heard it from an overzealous collections agent working for a lender. The reality is that banks do not want to foreclose on your property. Banks and their investors as well as the federal government have all publicly said that if a person is qualified for a short sale, you will be considered.
It is never too late. This is a myth that probably hurts homeowners the most. Many don’t realize that foreclosure is a process and there is always time. However, the sooner you act the more likely it will be for a positive outcome. The foreclosing party can stall a foreclosure up to the final day of the process. These days, some lenders will stall a foreclosure with as little as a phone call from you letting them know that you are trying to sell your home. And, most will stall a foreclosure with a legitimate contract. In our view there is time until the foreclosure process is complete.
