Short Sales or Foreclosure: Top 3 Common Misconceptions

What Is A Short Sale

Distressed homeowners are under big pressure. They’re underwater, and they feel trapped. Desperation can lead to all kinds of bad decisions. Luckily, we’re here to help clear up some common misconceptions about your options.

Misconception #1: Foreclosure is the only option

Foreclosure is rarely the only option. The best case scenario is refinancing, for homeowners who can’t afford their loans, and the government has put various incentives in place to encourage banks to allow people to refinance. But if you can’t refinance or you need to move, short sales become an option. Foreclosure is definitely the option of last resort.

Misconception #2: Short sales are hard to get approved

In truth, your lender is often willing to work with you for a short sale, because the burdens of foreclosure can be quite high. However, you do only get one shot at a short sale, so you should definitely seek out a realtor who has experience in these matters.

Misconception #3: Lenders prefer foreclosures to short sales

Not in this economic climate. A foreclosure is an expensive legal undertaking. In addition, a property deteriorates rapidly when it’s uninhabited and the utilities are turned off, so unless the lender expects to be able to sell or rent it immediately, they can expect it to lose a great deal of value.

A short sale, on the other hand, is only discounted by about 30% over the value of the home, so if a short sale is successful, the lender gets at least some money in hand, whereas with a foreclosure they’re just as likely to get a white elephant.

If you’re in financial straits, you do have options. To discuss them with an experienced professional, call us today at 703-485-HOME or by email [email protected]

About Ashley Leigh

Ashley Leigh is one of the most successful real estate agents in the United States and founder of Linton Hall, Realtors®, the premier real estate company in Prince William County, Virginia. In his book Billion Dollar Agents, Steve Kantor featured Ashley for individually producing well over $2 Billion in career sales selling thousands of homes. Ashley Leigh's innovative marketing programs have been have been written about in Fortune magazine. Additionally, Ashley has been profiled in RISMedia’s Real Estate Magazine and Power Team Report and has been recognized by REALTOR Magazine as one of the Top Sales Agents in the U.S. The Wall Street Journal ranked Ashley as one of America’s Top 20 Realtors in the Nation for his sales production for several years. Connect with Ashley on Google+

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