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:

1. Financial Hardship – You have unforeseen circumstance that has made your mortgage unaffordable.
2. Monthly Income Shortage– You are not making enough to afford the mortgage
3. Insolvency – You do not have significant liquid assets that would allow you to pay down your mortgage. Read more…

Hey this is Aubrey Kipp, and I want to personally thank you for visiting my blog. So, here’s the bottom line. The country is in economic turmoil, the financial markets are in a frenzy, millions of homeowners are facing foreclosure and you and I have 2 choices.

What are they…?

Choice #1. Do Nothing.
We can take the low road and make excuses, point fingers and ultimately do nothing. If this is you mantra this blog may not be for you. Most Realtors have already made this decision.

Choice #2. Become the Solution.
We can take the high road and become apart of the solution that will turn the nation back around, restore order to the credit markets, and most importantly save every possible homeowner out of foreclosure that we possibly can.

Read more…