The Top 3 Port St. Lucie Short Sale Myths Debunked

The Top 3 Port St. Lucie Short Sale Myths Debunked

If you're contemplating on doing a Port St. Lucie short sale, but you're not entirely sure if it's your best option, you need to find out if these short sale myths might be holding you back from making an informed decision.

Is doing a short sale going to do more harm than good, or is it the only means that can help you avoid foreclosure? Read on to find out as we debunk the top 3 Port St. Lucie short sale myths.

1. Before the bank approves a short sale, the seller must be in default.

Sellers in default will immediately catch the lenders' attention, but it's definitely not a requirement to be eligible for a short sale. As long as a seller submits a hardship letter, he or she can continue paying the monthly mortgage and still qualify for a short sale. There are situations that sellers, though they struggle with making the monthly mortgage payments, don't really fall behind.

2. Banks will never accept a discounted payoff.

You might be thinking, "Well, my home is now only worth roughly 50% of the price back when I bought it. The bank will never approve a short sale for that price." But the fact is, banks research the current value of your home and perform their own appraisal. The price acceptable for your home is not based on the mortgage price but instead, it's based on the selling price of comparable homes that has been recently sold in your area. This means that banks will accept the current value of short sale homes and not their mortgage value.

3. A short sale can be done in a short period of time.

The short sale process is one that is complex, much more so in comparison to traditional sales. Closing a short sale can take several weeks, and even months. The timeframe depends on several factors such as the short sale lender, how smooth the negotiation process will go, the ownership of the home, and the completion of required documents, among others.

Regarding the ownership of the home, the servicing bank might not be the lien holder. In this scenario, the investor's guidelines should be the one that must be followed. Since banks each have their own guidelines that they apply in the short sale process, this could be one particular cause of delay, most especially if there is more than one lien holder.

After debunking these Port St. Lucie short sale myths, we hope that we've enlightened you whether or not doing a short sale is your best option. If there are still some things that concern you when it comes to the short sale process, contact an experienced short sale agent in your area.

Call Nestor Gasset or Katerina Gasset at 561-753-0135 today and get your Port St. Lucie short sale questions answered!

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