MYTH #1: Legislature which Helps Minimize my Tax Liability will Always Remain the Same
False. The Mortgage Forgiveness Debt Relief Act that was signed into law in 2007 has been extended until December 31, 2012. However, it is set to expire on December 31, 2012 which will have a HUGE impact on the housing market and the people who are considering a short sale. This will cause many people who would have qualified under the provisions of the Mortgage Forgiveness Debt Relief Act, to go from a place where they would have had little to no tax liability, to now have a large tax bill. Unless this piece of legislature is extended by our federal government, it would be wise for someone considering a short sale to act sooner than later in order to minimize their potential tax liability.
MYTH #2: Short Sales are Impossible and Never Get Approved
Nothing could be further from the truth!
- Are short sales more difficult? Yes.
- Is it a newer process to learn and familiarize yourself with? Yes.
- Are they difficult to complete? ABSOLUTELY NOT!!!
You have arrived at a website of the Kelly Cook Real Estate Group, Phoenix Metro Area SHORT SALE EXPERTS who have closed 250+ short sales since 2006 and have seen arguably every loan structure situation with every lender and/or servicer. Our team is trained and certified to give you the best opportunity to get your short sale completed successfully.
MYTH #3: Banks are Not Accepting Short Sales
The reality is that banks (and the government) are trying to do anything they can, within reason, to avoid foreclosing on property. The government as now gotten in on the act, and have arrived at the conclusion that transacting Short Sales are the best means to turn around the housing market. Thus, the reason they have came out with the HAMP and HAFA programs to incentivize banks and servicers to cooperate fully with the short sale process.
The reality is that more banks are aggressively pursuing Short Sale transactions and Short Sale agents who understand how to process them. Freddie Mac recently hosted a national training webinar for real estate agents where they expressly stated the organizational goal of eliminating distressed assets through short sale.
MYTH #4: Listing my Home as a Short Sale is an Embarrassment
It is understandable that you may have reservations about letting the world know that you owe more on your home than it is worth however, understand that according to recent estimates, 1 out of 5 homeowners in the US is in your exact situation and that number is growing quickly. You are to be congratulated for admitting you need help, taking action, and finding a professional who can work with you towards a solution.
With 40 to 60% of the sales in the US predicted to be Short Sales or foreclosures you are not alone! And number is north of 60% in certain markets across the country, one being right here in the Greater Phoenix, AZ area.
Myth #5: You Must be Behind in on your Mortgage in Order to Negotiate a Short Sale
While it is true that initially some lenders wanted you to be in default (missed a payment) before they were willing to consider a short sale - this trend has almost all together reversed. Today lenders are looking for verifiable hardship, monthly cash flow shortfall or pending shortfall and insolvency. Kelly Cook Real Estate Group works short sale for clients that are both current on their payments, and delinquent. We have been successful in negotiating short payoffs either way and would love to assist you in your short sale today.
If you meet these three requirements and are in a position where you will soon not be able to afford your mortgage, act now! Don't wait until the countdown clock to foreclosure has started and you have even less time left.
MYTH #6: Buyers are Not Interested in Short Sales and Avoid Them
This is a myth that potential sellers hear all the time - thankfully the reality is that today it is not. In fact many agents are getting calls from buyers who say "I only want to look at foreclosures and Short Sales”, due to their aggressive pricing.
Short Sales and Foreclosures have become synonymous - not with issues - but with GOOD DEALS. International buyers specifically are interested in these properties. If you list with one of our educated Short Sale agents, you will have our years of experience and all of our resources at your disposal to ensure the highest level of success.
MYTH #7: There is not Enough Time to Negotiate a Short Sale Before My Foreclosure
This is a myth that probably hurts homeowners the most. Many don't realize that foreclosure is a process and there is time. We have successfully closed short sales that we started with a foreclosure sale date scheduled just weeks away. We go to work immediately and get the decision makers on the phone to make sure sale date gets postponed and they receive the necessary documents.
The foreclosing party (in most cases a lender) can stall a foreclosure up to the final day of the process. These days many lenders will stall a foreclosure with as little as a phone call from you letting them know that you are trying to sell. Almost all lenders will stall a foreclosure with a legitimate contract, in our view there is always time until the foreclosure process is complete and final.