I am certain that you have heard a few urban myths and legends before—the gal who picked up a Chihuahua in Mexico but it was actually a rat, or the innocent old woman in the back seat of the car that turned out to be a man with a hatchet. In addition to those, there are also some myths associated with the distressed property market and short sales in Escondido, San Marcos and beyond. This post will review a few of these myths. While I’m not sure whether you will be able to verify them on Snopes, I know that if you call a qualified Escondido short sale agent, this individual will definitely verify their validity.
Myth #1 – The Bank Would Rather Foreclose than Bother with a Short Sale
This is a very common misconception. Many people think that the banks (because they are often difficult to deal with) would rather foreclose on your property. The truth is that banks really do not want to foreclose on your property. That’s because the foreclosure process in very costly. If a ready, willing and able buyer makes a reasonable offer on the property and the Escondido short sale agent has processed the paperwork properly, then the bank will likely accept the offer. Foreclosure costs frequently include legal fees, taxes, Homeowner’s Association fees, repairs, and utilities among other things. So, any opportunity to avoid paying for some of these things will result in a better return on the bank’s investment.
Myth #2 – You Must Be Behind on Your Mortgage to Negotiate a Short Sale
While this may have been the case several years ago, currently lenders and servicers are looking for verifiable hardship in order to process the short sale. In fact, the new forms mandated by the Federal Trade Commission (FTC) require that agents disclose that there may be adverse consequences if you stop making mortgage payments.
Myth #3 – There Is not Enough Time to Negotiate a Short Sale Before my Foreclosure
Many people in Escondido, San Marcos and beyond are unfamiliar with the California foreclosure process and the time frames. Although it is best to be proactive in order to avoid foreclosure of your property, the foreclosure process generally takes more than three months—so there is plenty of time to procure a suitable buyer for your Escondido short sale.
There are a few other common legends about Escondido short sales. The bottom line is that if you want to make sure that your Chihuahua is not a rat then you should contact a qualified Realtor® to help you short sale your home.
Photo: flickr creative commons by apdk
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