Let’s Separate the rumors from the facts and establish the truth. The bottom-line on short sales is this: Short sales represent the most powerful foreclosure alternative for homeowners who absolutely need to sell but owe more on their homes than what they are worth. As with anything powerful though, myths, rumors and lies develop that can cloud an otherwise clear and concise process.
Rumor #1 – Banks Would Rather Foreclose Than Do A Short Sale
This is a very common myth that is very far from the truth. The bank does not want your property as it represents a liability to them. Banks are in the business of loaning money, not holding property. Foreclosing on a property represents a huge financial loss for a bank and contributes to the bank’s insolvency (a term used to describe an institutions liabilities vs. its assets) and cripples their ability to lend money. Furthermore banks net substantially more money through a short sale a suppose to foreclosure.
To qualify for a short sale you must demonstrate the following:
Financial Hardship – You have unforeseen circumstance that has made your mortgage unaffordable.
Monthly Income Shortage– You are not making enough to afford the mortgage
Insolvency – You do not have significant liquid assets that would allow you to pay down your mortgage. Read more…
The Traditional Way of Getting Short sales of Done is Broken
If you have not downloaded my latest report on the 7 Deadly Sins of Short Sales, stop right now and make sure you download immediately and READ it in its entirety! I will save your short sale life.
So, an article published by ABC Channel 7 News in Denver dated 7/31/2009 headlined:
“Few Homowners Seeking Short Sales Realtor: Frustration, Confusion Clouding the Foreclosure Alternative.”
The article cites (4) VEY STRONG points that I will address in this blog:
“Only 3 percent of homeowners sold their property through a short sale in the second quarter of 2009.”
“Homeowners are unaware of a foreclosure alternative that could save their credit and their piece of mind”
“The vast majority of owners are just walking away”
“Agents need to do a better job in the process as well to alleviate the frustration”
While the article shines a light on the Denver CO market, the same low statistics and overall negative view of short sales remains constant throughout the country. Let’s take a look at some of the factors that shape the negative view that dominates the short sale market today, and most importantly how to overcome them. Read more…
Negativity Equity not Subprime loans has caused the Foreclosure Crisis! Don't be deceived
If you have not downloaded my latest report on the 7 Deadly Sins of Short Sales, stop right now and make sure you download immediately and READ it in its entirety! I will save your short sale life.
You know that I will always give you the straight up truth right? Well here is the latest revelation of the foreclosure crisis. We have been told by the main stream media for months going on years that the cause of the mortgage meltdown and real estate market collapse was sub-prime loans. Well some new studies by the good folks at the Wall Street Journal have proven this notion false. Data from the Mortgage Bankers Association (MBA) reveals that foreclosures resulting from PRIME loans grew 488% as compared to a growth rate of 200% from SUBPRIME loans. Did you understand what you just read? That means all of the commentary from the main stream media has been wrong.
The report further reveals that 51% of all foreclosed homes had PRIME not SUBPRIME loans, but wait it gets worst!
The BPO is the Gate to a Successful Closing or the Homeowner Getting Foreclosed On.
If you have not downloaded my latest report on the 7 Deadly Sins of Short Sales, stop right now and make sure you download immediately and READ it in its entirety! I will save your short sale life.
This post is an excerpt from my report and identifies the sin that is the no.1 killer of short sales in the nation: Not managing the BPO/Appraisal appointment. This is a huge and grossly neglected area in the vast majority of short sales, and I can’t begin to stress how critically important it is that you DO NOT COMMIT THIS SIN. If you commit all of the other sins you may get by for a while. But this one will take your deals out in a hurry. This short sale SIN is the leading cause of death for 77% of the nation’s short sales, (according to the Huffington Post 77% of the nations short sales are failing), so listen up good.
So who is this deal killing, file losing, savage beast lurking on the otherside of your your 45 minute wait on hold? Surprisingly not who or what most realtors think!
So before I go any further, i want you to get every Friday the 13th nightmare story that realtors have told you about loss mitigators out of your mind and hear the gospel truth.
If you know the truth about your loss mitigator you will understand how they operate, why they operate they operate the way they do, and most importantly, use this understanding close a higher percentage of your deals. So lets get to work!
1st things 1st: The Real Demographic of a Loss Mitigator
I am about to reveal the true demographic of your average loss mitigator hired by the bank.
Aubrey is an active real estate investor, broker, and short sale mentor whose focus is to save every family possible from foreclosure. Over the last year, he has become one of the nation’s premier authorities in the short sale business and continues to buy and sell short sale and pre-foreclosure properties throughout the greater Orlando and Central Florida...read more »
