Let’s Dispel 10 SS Myths

But first you need to know this: A Mortgage Lender does not like to take a loss, likes even less, to foreclose on any property. Why? Because a Lender would rather participate in a SS “Short Sale” through a Realtor® than have a default, have a home vacant, go through an expensive foreclosure or worst yet, find out that a barrower did a “Strategic Abandonment” and walked.

  Now for those myths:

 Before a home can be listed as a “Short Sale” the bank must approve the listing on the MLS.

1. It’s not possible for the seller to get $3,000 At CLose of Escrow.
2. You cannot be current in your mortgage payments and still do a “Short Sale”.
3. It is mandatory to try for a mortgage modification before you do a “Short Sale”.
4. A “Short Sale” cannot be canceled once it begins.
5. It is not possible to complete a “Short Sale” and have the bank report it as “Paid in Full” (Most real estate agents do not know banks can give a favorable report for your credit or how to do this.)
6. A foreclosure will hit a credit rating about the same as a “Short Sale” 250-300 points. (A foreclosure could be on a record for as long as a bankruptcy – 7 years! And could hit a credit report greater than 300 points.)
7. The average time to foreclose is 90 days. (Ave. time is 240 days.)
8. A renter MUST BE GIVEN 30 days notice before they must move. (It varies on the situation, could be 90 or more days and be would be required by law.)
9. It is not possible to do a “Short Sale”, get cash at closing, purchase a different home the next day with the government’s blessing via the HAMP or the HAFA SSA.

  Anyone who is 90 days or more behind on their payments, if they do nothing will be foreclosed on.

  Suggest to them that they contact an experienced team of REALTORS® for more information on which option would be in their best interest. While they still have time, to explore some ideas to stop a possible foreclosure for them and their family. Please, for their peace of mind, text, email, or call a REALTOR® to get some questions answered.

  Whatever happens, advise them not to do a “Strategic Abandonment” and walk away from such a state of affairs. There are far better ways to settle these situations, besides the Federal government has informed lenders and has indicated that a “Short Sale” is better for all concerned.