Myth #1—The bank would rather foreclose than deal with a short sale.                                                                     

Reality—Banks do not want to foreclose on your property because the foreclosure process is incredibly costly.

Myth #2—You must be behind on your mortgage to negotiate a short sale.                                                                   

Reality—While this may have previously been the case, today lenders are looking for verifiable hardship, monthly cash flow shortfall, or pending shortfall.

Myth #3—There is not enough time to negotiate a short sale before my foreclosure.                                                   

Reality—This is  a myth that probably hurts homeowners the most.  Foreclosure is a process, and there is time to make decisions that may result in a better outcome.

Myth #4—Listing my home as a short sale is an embarrassment.                                                                                  

Reality—This is an understandable concern, however, according to recent estimates, more than 1 out of 8 homeowners in the U.S. is in the same situation , and you are to be congratulated for admitting you need help, taking action, and finding a professional who can work with you toward a solution.

Myth #5--Short sales are impossible and never get approved.                                                                                             

Reality—This is a complete falsehood.  Short sales may be more difficult to execute, but certainly not impossible.

Myth #6—Banks are waiting on a bailout and not accepting short sales.                                                                               

Reality—Banks are trying to do anything they can to avoid foreclosing on properties.

Myth #7—Buyers are not interested in short sales.                

Reality—For many buyers, short sale and foreclosure have become synonymous with “good deals” and listing with an experienced agent who is educated in the short sale process will provide  you with a good chance of seeing a contract on your property.