Joe 's Blog

head_left_image

3 Common Myths About Real Estate Short Sales

3 Common Myths About Real Estate Short Sales

 

short saleThere is a lot of misleading and incorrect information about Montgomery County real estate short sales.

Many people don't have a clear understanding of the purpose of short sales or how they actually work.

Essentially, a short sale is when one sells their home for less than the balance remaining on the mortgage attached to the property.

The proceeds from the sale are used to repay a pre-negotiated portion of the balance to settle the debt.

A short sale can be a solution for homeowners who really need to sell their home but owe more on the mortgage than the home is worth.

Understanding the short sale process can help make the most out of a real estate sale.

Here are some common myths and why they are false:

A short sale damages one's credit record as much as foreclosure

In many cases a short sale is less damaging to your credit record than a foreclosure. Some lenders may think that the short seller acted in a more responsible manner than simply walking away from the property.

Although the amount paid may have been less than the mortgage balance outstanding, the loan was settled with the lender. Opting for foreclosure is often seen as a lack of responsibility.

To qualify for a short sale one must be behind on payments

This might have been true in the past, but it’s not anymore.

You just need to be able to prove that you are in financial hardship, which could be due to death in the family, divorce, job loss, mortgage rate hike or even loss of property value.

After a short sale you can’t buy again for five to seven years

This may be true in some cases, but not all. In certain situations the waiting period can be reduced as low as two or three years before you are allowed to purchase another home.

It would be wise to speak with licensed real estate professional or home financing specialist to get the most current options in the marketplace.

Pass it on

These are just a few examples of commonly believed short sale myths. A clear understanding of the short sale and the benefits it  can provide is important for financially strapped homeowners.

Feel free to pass this important information on to someone that you feel would benefit from it.

For help or questions contact:

Joe Gonzalez

Senior Loan Consultant -  NMLS #126036
GMH Mortgage Services, LLC
625 W. Ridge Pike, Building C, Suite 100 | Conshohocken, PA  19428 | Direct: 610-355-8039 |  Cell: 610-739-6563

FHA Jumbo Loan, Mortgage King Of Prussia   FHA Jumbo Loan, Mortgage King Of Prussia   FHA Jumbo Loan, Mortgage King Of Prussia

This material is non-exclusively licensed to Joe Gonzalez and may not be copied, reproduced, or sold in any form whatsoever. Copyright ©2006-2014, Bring the Blog. All rights reserved. Terms of Service.
Comment balloon 3 commentsJoe Gonzalez • March 06 2013 07:35AM
3 Common Myths About Real Estate Short Sales
share
3 Common Myths About Real Estate Short Sales There is a lot of misleading and incorrect information about Montgomery County real estate short sales. Many people don't have a clear understanding of the purpose of short sales or… more
Strong Builder Confidence May Signal Good Time To Buy New Homes
share
Strong Builder Confidence May Signal Good Time To Buy New Homes Many times real estate market experts point to the feelings of the nation's home builders as a bell-weather signalling the health of the housing sector. This month's… more
What's Ahead For Mortgage Rates This Week: March 4th, 2013
share
What's Ahead For Mortgage Rates This Week: March 4th, 2013 U. S. Budget Stalemate, Italian Elections Stir Concerns Mortgage rates were lower last week as investors sought safety in bonds in the wake of US legislators… more
Help Your Home Office Shine When Selling Your Property
share
Help Your Home Office Shine When Selling Your Property With telecommuting continuing to rise, and with more jobs requiring after-hours attention, showcasing your home's "home office" can help it show better with a prospective… more
Fed Considers Future of Quantitative Easing
share
Fed Considers Future of Quantitative Easing The Federal Open Market Committee (FOMC) released minutes from its January meeting last Wednesday, as it generally does three weeks following the most recent meeting. The FOMC is a… more
What's Ahead For Mortgage Rates This Week: February 25th, 2013
share
What's Ahead For Mortgage Rates This Week: February 25th, 2013 A quiet past week in economic news caused mortgage rates to worsen slightly. This week, however, will be packed with economic reports which may have an impact on… more
5 Power Saving Ideas That Can Lower Your Energy Bill
share
5 Power Saving Ideas That Can Lower Your Energy Bill How to Save Money on Energy Costs in Your Home Many communities in Pennsylvania and around the US are seeing their energy costs increase; sometimes dramatically. &… more
6 Tips For Buying An Older Home in Montgomery County
share
6 Tips For Buying An Older Home in Montgomery County Older Montgomery County homes sometimes offer more charm and character than the newer houses of today. They boast gabled roofs, crown moldings, hardwood floors and antique fixtures. &… more
When Can You Buy Real Estate After Foreclosure?
share
When Can You Buy Real Estate After Foreclosure? If you lost your Montgomery County home due to foreclosure, you probably haven't given up on the dream of owning a new home. The good news is that a number of guidelines have changed which… more
Clever Tips for Paying Off Your Home Mortgage Faster
share
Clever Tips for Paying Off Your Home Mortgage Faster Paying off the mortgage on your Montgomery County home faster not only means that you'll be able to enjoy the peace of mind that comes with completely owning your property sooner, but… more