Trying to navigate your way through a short sale can be tough. Knowing how short sales work and how to make the sale happen is important in surviving the short sale process. Along the way there will be a lot of myths to dispel about short sales. Here are just a few short sale myths:
Sellers think that a short sale is worse for their credit score than a foreclosure. When determining your FICO, the Fair Isaac Corporation treats a short sale and a foreclosure the same.
Buyers think a short sale is a deal. In fact, short sales tend to sell for more than foreclosed homes.
A short sale is difficult. If you use an experienced agent you should be able to survive a short sale. Most short sales are denied because of a misunderstanding of the process. If the short sale process is not followed correctly, there is a good chance of getting denied.
If I short sale my house I won’t be able to buy another home. This will depend on your credit, restrictions can vary from 2-3 years. Some FHA programs allow for a purchase sooner than that, however the guidelines are fairly strict.
A house that is already in foreclosure cannot be sold as a short sale. Not true, a foreclosure notice or notice of default does not mean that you do not have time to perform a short sale. Banks will sometimes even postpone a foreclosure for the short sale option.
These are just a few of the common myths surrounding short sales. As always, use a professional real estate agent to help you navigate your way through a short sale.