#1 Seller Myth In Short Sales – It’s Easy to Get Approval From Your Bank to Conduct a Short Sale.

Perhaps the biggest misconception about short sales is that it is easy to get the bank to agree to a reduced payoff on the loan. Many homeowners figure that as long as they are in a situation where their property is worth less than they owe, they are a candidate for a short sale – with the hopes of ‘breaking even’, at the very least.

The truth is, it’s not that easy to get approved for a short sale. The thing to be remembered is that banks are always looking out for their best interest. Nobody is more tuned into current property values than banks, and they generally do what’s best for their bottom line. Whether they foreclose or go to a short sale, they are taking a hit financially. So if it makes more sense for them to foreclose on your property for any number of reasons, there is a good chance they will pursue that option. Rarely can the bank be swayed emotionally by your financial situation. Most times it comes down to this; if they freely they can save additional time and costs by approving a short sale, then they will be more willing to work it out with you.

The first thing to do is consult with a real estate agent who understands short sales and has a strong grasp of the subtle intricacies of the banking approval processes. A knowledgeable agent can offer you guidance throughout the short sale approval process. Once you have a good understanding with your agent of what you are asking for, contact your lender as soon as possible to discuss your situation, research your options, and ultimately, ask for a short sale approval on your property.

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