If you’re facing a short sale you are probably looking for all the advice and help you can get. An obvious place for information would be with Realtors. I would suggest that you speak with several Realtors before you make any concrete decisions about how to handle your short sale. You will most likely find that not all of them have the same answers. Scary, I know, but that’s why it’s truly important to do your research.
One common myth that the Girls have come across when interviewing with Sellers who are contemplating a short sale is:
“We were told to stop making our mortgage payments. The bank won’t even deal with us unless we are delinquent.”
The Girls say “NOOOO!!!!” Please do not listen to this advice.
Do you know that after 60 days of non-payment a bank can foreclose on your property? Yes! This is true, even if you already have a short sale in the works.
Do you know that most banks have a separate department for short sales and another for foreclosures? Often times, one department has no idea what the other department is working on. We have heard more than one story of a buyer ready to close on a short sale only to find out the week before settlement that the bank foreclosed on the property and their deal is no longer viable. Can you imagine getting ready to move into the house you’ve been waiting months for, only to now have no where to go? Scary, but it happens.
Do you know that a short sale causes less damage to your credit than a foreclosure? Often, Sellers who sell short are able to purchase another home within 1-2 years (Foreclosure is a minimum of 3 years.) This does depend on the overall credit before the short sale. Continuing to pay on your mortgage during the short sale process is key to a faster credit recovery.
Moral of the story:
This is most likely your largest financial investment. Please be careful who you hire to help short sale your home. Two of the Girls are Certified Distressed Property Experts (CDPE), and have experience on both sides of the short sale transaction.
