Most people would rather share the intimate details of their sex life than reveal the embarrassing fact that they are facing foreclosure! Then they hope and pray and make themselves physically sick over their secret. When a miracle doesn’t arrive to save their home, they face foreclosure alone and ashamed. Sadly, this is all too common.
Never fear, there is hope. Below are a few of the common short sale myths:
Myth #1 – I Am All Alone. If you are in this situation right now, let me assure you that you are not alone. Our country has just gone through one of the worst housing crisis in history. And while the housing market has recently improved, there are many homes so significantly underwater that it will take decades to recover.
Myth #2 – I Don’t Know How to Handle My Finances. Poor lending practices and the recent housing bubble forced many homes “under water.” For example, if you purchased in 2005 (during the height of the bubble) it’s unlikely you can recover in the next ten years. The same if true if you refinanced at 125%. If you are in either of these situations, crunch the numbers. It is better to short sale now and start again with a fresh clean slate. You are NOT a bad provider. You are NOT a poor financial manager.
Myth #3 – I Will Be Forced to File Bankruptcy If I do a short sale. Not true. In MOST cases the banks are willing to forgive the deficiency (the difference between the net sold price and the amount owed) when you short sale your home. However, if you let your house go to foreclosure, you may very well be liable for the deficiency once your home is auctioned off.
Myth #4 – Everyone Will Know! “Short Sale!” will not be posted on the sign in your yard and I will handle the sale very discreetly. It will be listed in the Denver Metrolist as a short sale, but only for the purposes of finding buyers. Most of your friends and neighbors will only know if you tell them.
Myth #5 – I’ll Never Be Able to Buy Again! After a short sale, with recovered credit, most are able to buy in 2-3 years. Even more good news is that the Federal Housing Administration is working on reducing the amount of time a buyer must wait past foreclosure and/or bankruptcy. In some cases, with recovered credit, buyers are able to secure a loan 12 months past a financial event.
There is more to a short sale than signing a stack of papers and negotiating with the bank. I will help guide you through the process as you emotionally distance yourself from your home. I will treat you with respect as you discuss the financial aspects of your sale and will be discreet in dealing with buyers and other Realtors ®. I can’t make it painless, but I promise help you make the transition as smoothly as possible.
Call me today for a confidential consultation.
Jan Parrish 303-807-3289