Short Sales Done Easy - The Steve Horn Team

MYTH: Stop Making Payments

Webmaster — Fri, 16 Jul 2010 23:34:48 +0000

MYTH: I must stop making my mortgage payments before the bank will approve a short sale.

TRUTH: You do not have to stop making payments on your home in order for the bank to approve a short sale. What the bank needs to see is a solid reason why you are unable to continue making your monthly payments and/or must sell (loss of job, relocation, divorce, etc.). Due to the current market conditions the banks generally understand why the short payoff is being requested – whether you have missed payments or not.

MYTH: Foreclosure Anytime!

Webmaster — Thu, 15 Jul 2010 23:36:15 +0000

MYTH: In doing a short sale, I’m at risk of a foreclosure at anytime.

TRUTH: This is simply not true. Its all based on the process of foreclosure, or in Arizona, the NON-judicial process of a trustee sale. If you are delinquent, the process of filing foreclosure happens through a notice of trustee sale. This generally happens when a homeowner is 90 days delinquent on their payments. So, what happens at that point, the lender will file a NOTICE OF TRUSTEE Sale, and then there is a 90 day clock that counts down to the actual trustee sale, which is consider foreclosure. The homeowner will know clearly when the sale date is set, if its set, and does not have to be concerned about any surprises.

MYTH: HELOC Equals No-Go

Webmaster — Wed, 14 Jul 2010 23:38:05 +0000

MYTH: If I have a 2nd loan or HELOC, I can NOT short sale my home.

TRUTH: The short sale team negotiating with the banks on your behalf will handle the 2nd mortgage, or HELOC, just as if it was a 1st mortgage. In most states, the 2nd lender and any junior or subordinate liens will always get less than what is owed, generally speaking about 5-10% of the original balance. This amount will be paid by the 1st lender who is approving the short sale. The amount paid to the junior liens may vary, but is negotiable and the ShortSalesDoneEasy.Com and Steve Horn team will make this happen for you.

MYTH: Show Me the Money!

Webmaster — Tue, 13 Jul 2010 23:39:16 +0000

MYTH: I can receive money back at closing from the bank when doing a short sale.

TRUTH: The truth is that there are only special, exceptional circumstances in which a bank will approve giving money back to the homeowner at closing of a short sale. For the most part, the bank is taking a significant short, therefore they are NOT inclined to give the homeowners any benefit beyond the releasing of the debt.
Recently, new government programs have come out that are offering this as an option, or parameter in the short sale. DO NOT BE DECIEVED. This is not incentive for the bank, but actually a slap in the face for most of them, and they will NOT do more of these types of short sales just because of a new government program.

MYTH: I Pay Commissions

Webmaster — Mon, 12 Jul 2010 23:40:30 +0000

MYTH: I will have to pay commissions and closing costs at closing in order to do a short sale.

TRUTH: Very seldom does a homeowner have to pay any costs associated with a short sale. Most of the time, more than 95% of the time, the bank being shorted and that is approving the short sale has to pay the commissions to the real estate agents, as well as associated costs of the short sale, including in many cases HOA fees and taxes.

This can be a tremendous benefit to a seller that is financially or emotionally distressed.

MYTH: Short Sales Hurt the Community

Webmaster — Sun, 11 Jul 2010 23:41:25 +0000

MYTH: If I short sale my home, then I’m doing a disservice to the community and its going to make my neighborhood go down, and my neighbors will not like me.

TRUTH: Short sales sell for more, about 99 percent of the time, than a foreclosure, and the bank valuates the property, and determines whether our offer is in line with the value or not. Short sales actually hold the market strong compared to the alternative of letting go in foreclosure.

MYTH: Foreclosure Date Stops a Short Sale

Webmaster — Sat, 10 Jul 2010 23:53:01 +0000

MYTH: I have a trustee sale already scheduled on my home, therefore I can NOT sell my home.

TRUTH: The trustee sale can be postponed about 80 percent of the time or better, and this percentage can be increased by having an offer to submit to the bank, along with a financial package.
In many cases, the bank will extend the sale at least 1 time automatically, and we have had huge success in getting sale dates extend regularly when an offer is submitted.

MYTH: Only Non-Luxury or Non-Jumbo Homes Can Be Short Sold

Webmaster — Fri, 09 Jul 2010 23:54:39 +0000

QUESTION: Can I do a short sale if I have a luxury home or a jumbo mortgage?

MYTH # 1 for LUXURY HOMES: The bank will not short sale my home since there is so much debt, or need to discount.

TRUTH: Banks do NOT want to foreclose, EVER! They make their decisions based on todays value, not based on the amount of the loss

MYTH # 2 for LUXURY HOMES: The luxury market is not as strong for short sales as there is for lessor valued homes.

TRUTH: There are many many investors and buyers out there currently, and they are very capable and hungry to buy higher priced homes. Our experience has been that they buy the luxury homes as often and quickly as lessor priced homes.

MYTH # 3 for LUXURY HOMES: I need to spend money on my luxury home in order to short sale. Like staging and fix-up, etc.

TRUTH: This is not true. PRICE is the only thing that sells a short sale, and that price has to be competitive. Therefore, the condition or perception 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.