A Short Sale is when a lender is willing to accept less than what is owed on the loan. Even then, short sales continue to be very misunderstood.
Here are some of the most common myths regarding short sales.
1) Myth: A short sale is not possible on a second home or investment property.
Fact: If the homeowner has a financial hardship and the property is worth less than the mortgage owned, a short sale is possible.
At Oyezz Real Estate, our sales team can help you determine if a short sale can help you. Contact us at 972-342-0011.
2) Myth: Future mortgage eligibility will be affected by a short sale.
Fact: A short sale will affect your eligibility for a new mortgage; however the waiting period is shorter after a short sale versus a foreclosure. You should speak with a credit counseling specialist or loan officer to review your personal situation.
3) Myth: The lender has strict guidelines about short sales; therefore it may be impossible to qualify for a short sale.
Fact: If you qualify for a short sale, a good negotiator can work with your lender to approve the short sale within the lender’s guidelines. You need to have a real estate agent who has success with negotiating short sales with your lender.
The key is to have negotiators that understand the process and have experience working with different lenders. Our team of negotiators at Oyezz works only with short sales, so they have over 7 years of experience with over 50 different lenders in the DFW area.
4) A short sale is not possible if there is a second mortgage on the house.
Fact: A short sale is possible even with a second or third mortgage. The short sale negotiator will work with all lenders involved and establish a mutual agreement.