As we approach 2017 we decided it was time to again reveal the common misunderstandings surrounding pre-foreclosure property sales and Santa Clarita Short Sale Myths for 2017. Several years ago when the economy went to hell in a hand basket, the Santa Clarita real estate market consisted mostly of short sales and foreclosures. Thank the heavens, this is no longer the case but as we move toward 2017 we thought it would be a good time to review our old post series titled, Santa Clarita Top Ten List | Short Sale Myths.
Looking Back at the Real Estate Market in Santa Clarita
Before we get started reviewing the Top Ten List of Santa Clarita Short Sale Myths, it’s important to understand what distressed homeowners were thinking and feeling a few years back. There were many highly trained and successful people without jobs. They had been laid off, not because of anything they did wrong, but because business took a huge downturn. Employers were suffering and had little choice except to cut back by letting some of their best employees go.
In the couple of years preceding horrible economic disaster, people were buying homes at higher values. When business went bad so did the real estate market, and prices dropped significantly. This situation left distressed homeowners and lenders in a horrible situation, because many consumers were completely upside down with their mortgage! The timing couldn’t have been worse!
The next thing you know homeowner’s couldn’t pay their monthly mortgage payments and their homes were worth less than they owed their lender! Many of these homeowners had never been in this situation, never faced the possibility of foreclosure, and in fact some had never even been behind on their payments. Most real estate consumers, at least in Santa Clarita, didn’t even know what a short sale was. There was rampant fraud occurring, few people understood their options, and homeowner’s really didn’t know who they could trust. It was for these reasons we published our Santa Clarita top ten short sale myths. Our friends, clients and consumers everywhere needed accurate information and they needed it from a source they could trust. Our Gregory Real Estate Group team got together and we delivered the information consumers needed! Part of that information included our blog post series titled, Santa Clarita Short Sale Myths. See the original post publications here!
Review and Comments About Our Old List of Short Sale Myths
Upon our current review of our old list of short sale myths below, we still find them to be relevant and useful. Today real estate consumers are much more familiar with short sales and we know most people have a good general understanding of what a short sale is, there are still some who might find the list helpful. See the green text next to each myth, representing our comments as we approach 2017!
- Short Sale Myth #1 – Buyers don’t want Short Sales – False! The truth is, given a choice, home buyers would prefer a standard sale transaction. It’s just faster and easier, but determined buyers can in fact enjoy a big savings when buying the right short sale property! First, you need a highly experienced short sale agent! It’s partly a matter of luck though, because it will depend on the lenders current financial situation, which changes regularly.
- Short Sale Myth #2 – You must be behind in your payments to short sale your home – Not True! You do not necessarily have to be behind to short sale your home. Yes, in 2017 we still agree this is NOT true!
- Short Sale Myth #3 – There’s not enough time to short sale your home – Not true! Others have received extensions even one day before the sale date! Still, that’s very risky and the longer you put it off, the harder it is to short sale your home. It’s best to start the short sale process sooner rather than later!
- Short Sale Myth #4 – Short Sales never get approved – This is false! Many Santa Clarita short sales transactions are approved and closing everyday. Of course short sales get approved all the time, but it does take much longer than a standard sale transaction.
- Short Sale Myth #5 – The bank would rather foreclose on your property than agree to a short sale – This is not true and in almost all cases, it costs the lender more to foreclose than to allow the Short Sale. In most cases the lender would prefer to approve a short sale.
- Short Sale Myth #6 – Banks are no longer accepting short sales – False! This was a rumor floating around at the time, possibly started by loan modification companies.
- Short Sale Myth #7 – A Short Sale is embarrassing! False! Yes, this can be embarrassing but there’s no reason to feel such. Think of all the others homeowner’s that have come before you!
- Short Sale Myth #8 – Any Real Estate Agent can work a short sale. Absolutely false! Be very careful of this one. It’s critical you use an agent such an agent highly experienced in short sales. Watch for our future post in our Santa Clarita Short Sale Myths series for detailed information. Even today, we are still adamant about advising homeowner’s to enlist the services of a Certified Distressed Property Expert when short selling their homes!
- Short Sale Myth #9 – It’s smarter to walk away from your home than attempt a short sale – This is very wrong for a bunch of reasons. If you are a homeowner and thinking about this option at this time, you need to come see us immediately. We will schedule an emergency, confidential and free meeting ASAP. A short sale costs nothing! Call now! 661-713-4799. Please don’t walk away and don’t wait! Call us today and we will help.
- Short Sale Myth #10 – A short sale is not worth the effort – False! There is little extra effort by the home seller. As Certified Distressed Property experts, we handle everything! We use professional negotiators to deal with the lender on your behalf. We do it all so our clients can walk away with a fresh, clean start!
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Matt and Meray Gregory
We hope you found useful our review of the old short sale myths and look forward to your comments about Santa Clarita Short Sale Myths for 2017.