Below are some of the common misconceptions that get passed around about short sales.

Ø  I must be behind on my payments to do a short sale.
This is FALSE! You don’t have to be behind on your payments to qualify for a short sale. A few years ago this used to be the recommended suggestion but, times are different now. It’s not to say that some lenders aren't still stuck in their old ways but, with increasing pressure from the Obama Administration more and more sales are being approved each day.

Ø  Owner can only have a 1st mortgage

This is FALSE! Yes it is true that getting an approval is a lot easier with only one loan but, a lot of second liens are cooperating and approving the release of their lien with a minimal contribution from the 1^st mortgage or in some cases the buyer.

Ø  Lenders don’t want to help

This is not the case. A few years ago, yes lenders weren’t in a position to help. There were so many of these foreclosures, they didn’t have the staff nor the expertise  to handle all of these distressed properties. Today is a different story, with all of the government assistance money, more and more lenders have established procedures and departments to process their distressed properties.

Ø  Short Sales Take FOREVER!

Not anymore. I am seeing approvals starting to happen within 30 days of an acceptance, some lenders give them in 10 days. A new Treasury law is requiring that lenders no longer delay an approval. You can read more here

Ø  Short Sale Won’t Work If I’m In or Near A Foreclosure

Wrong! Lenders place homes that have a trustee sale date scheduled at the top of the processing queue.