Four Common Myths about Short Sales In Richmond VA

There are a lot of myths about the Short Sales and lenders attitudes towards them. Here you will find out what four of the biggest misconceptions about short sales are and why these are not in fact correct.

Myth One: Banks Prefer To Foreclose

The truth is that banks do not want to have to foreclose on a property. Banks are in the business of lending money not in home ownership. They will only foreclose when they believe that they have no other way of recouping the money that they have loaned out. Also in the current political environment banks do not want to be seen as throwing people out in the street when there are other alternatives. If a bank forecloses on a property they will be responsible for the majority of the closing costs of the property and they may need to hold the property for months before it sells. If the short sale offer put before them is reasonable then they will accept it.

Myth Two: Short Sales Are Impossible to Get Approved

This is far from the truth, short sales go through everyday, although the process can take some time especially when you are new to short sale investing. One of the reasons that some investors believe that it is difficult to get short sales approved is because they are not used to the lack of control over the pacing of the process. The lender is the primary determinant of how long an offer will take to be accepted and this can take some time to work its way through the system. As a short sale investor you need to be patient and understand how the short sale process works.

Myth Three: Banks Won’t Accept a Low Offer

There is some truth to the fact that banks are not just going to take whatever offer is put before them. They still have the option of foreclosure and they will consider taking this option if they believe this will see them recoup the maximum from their loan. However they also know that there will be costs and uncertainty involved if they proceed with foreclosure. Banks will accept offers that are as low as 15% below the Brokers Price Opinion (BPO) and so you shouldn’t think that your low ball offer won’t be accepted.

Myth Four: Owners Don’t Like Short Sales

While there will be the occasional owner with their head in the sand who just wants to hold onto their house for as long as possible, most owners see a short sale as their best chance to get out of a bad situation. They know that the money that they may have invested in their home is gone and it isn’t coming back. Getting out from under their mortgage payments is their best opportunity at a fresh start. Short sale investing is a win / win situation for you in the owner in that you get a bargain and they can start over without the financial pressures of their mortgage.

Call me today and let’s get started solving your real estate challenges.

Wayne Hare, Broker
Five Star Force e-PRO Realtor®, RDCPro, A-REO

Investors Realty Of Virginia
Phone:  (804) 212-8932   Fax:  (888) 557-2123

174 Urbanna Road Saluda VA 23149
3061 Walmsley Blvd  Richmond VA 23234

** Richmond Metro Area MLS – AHomeInRichmond.com
** Chesapeake Bay And Rivers MLS – AHomeAtTheRiver.com
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** REO Foreclosure Specialist
** Short Sales and Home Retention Expert