If you are currently in a situation where you must sell your home and you owe more on your home than what it is worth to sell, a short sale can be a very good solution to your problem. Many myths have evolved over time, but understanding today’s reality is a way to help your family. Seven short sale myths are:

1. Short sales are impossible and never get approved. It is true that short sales are more difficult but they are not impossible. Bonnie Mullinax is a Bartow & Cobb County area Certified Distressed Property Expert who has extensive training to help area homeowners who may be in distress.
2. Banks Don’t Accept Short Sales. In reality, banks are doing whatever they can to avoid foreclosure proceedings.
3. You must be behind on your mortgage to negotiate a short sale. Many lenders today focus on verifiable hardship, monthly cash flow shortfall and insolvency – not just people in default.
4. Buyers Avoid Short Sales. Many of our fellow agents report that buyers call them looking for short sales every day. Short sales are becoming synonymous with a “good deal”.
5. Listing your home as a short sale is embarrassing. Recent estimates state that 1 out of 5 homeowners in the U.S. are in this situation. The state of Georgia has one of the highest foreclosure rates in the nation!
6. Banks prefer to foreclose. Banks do NOT want to foreclose. Banks, investors and the federal government have all publicly stated that if a person qualifies for a short sale, then the deal needs to be considered.
7. There is not enough time to negotiate a short sale before my foreclosure. Many lenders in todays market will stall a foreclosure up to the final day of the process, with a legitimate contract.

For more updated information please visit our website at www.avoidbankforeclosurenow.com or call The Mullinax Team today at 770.606.0054.

Considering a short sale can be a daunting task if you are not armed with all of the necessary information regarding this type of transaction. Following are additional mistakes or problems that can be avoided if you know what to look for.

• Time: There never seems to be enough of it when conducting a short sale. Bonnie Mullinax, your local Bartow County Keller Williams Realty agent, understands local foreclosure laws and will be able to provide you with an estimated timeline on the possible sale of your home. Also, be sure that you or Bonnie Mullinax communicate effectively with your lender so that they begin to stall a foreclosure by getting more time to negotiate a short sale. Always provide Bonnie with accurate information as to how many payments you may have missed and any correspondence you have from your lender.
• You must submit the deal properly: Following the directions that you receive for submission is imperative. If you are asked to fax your file, then fax the file and send a hard copy in the mail. If they ask for two copies, send two, and so on. If you have a contract and have gathered all of your information, the last thing you want is for no one to see it and the deal falls apart.
• The buyer’s offer is too low: A short sale is not a fire sale! A lender still will only approve a deal that is more attractive to them than a foreclosure. Make sure you present only the most properly negotiated offers.
• The buyer’s contract is not strong enough: You may find yourself with offers from unqualified buyers. Don’t forget to ask for verification from a buyer that they have been pre approved for financing.

Considering a short sale can be a daunting task because it is a bit more complicated than a traditional home sale. Knowing what some of the common short sale mistakes are and their solutions can be very helpful for a successful outcome. Here are some of the most common mistakes made with this type of transaction, and their solutions:

• The property is not priced correctly: Be sure that your agent takes you through a detailed listing price strategy so you know exactly where your home should be priced due to its current condition, the other current sales in your area, and how much time you have left to sell.

Today many people in the Bartow County and surrounding areas are interested in Short Sales as a way to avoid Foreclosure. The definition of the short sale process is when the lender of a residential property allows the property to be sold for less than the amount due on the mortgage loan.

The benefit of the short sale process is to allow the seller to avoid credit report damage associated with a foreclosure. A foreclosure can stay on your credit report for up to 10 years and can take an emotional and financial toll on you and your family.

If you are interested in knowing more about a somewhat complicated short sale transaction, here are the three very uncomplicated things lenders look for when qualifying a short sale:

• Financial Hardship:  This is defined as a verifiable reason that has or will cause you to miss a payment. Examples that qualify are mortgage payment adjustment, a job loss, too much debt or a business failure.
• Monthly Shortfall: Lenders want to see that you cannot afford to pay your mortgage. You will be required to provide your agent a financial worksheet that demonstrates this. The shortfall equation is simple. Total Monthly Income – Total Monthly Expense = Monthly Shortfall.
• Insolvency: You must be able to prove to the lender that you owe more than you have in cash. Insolvency can be proven in many cases, even though you may still have some money for living expenses.

Because of the documents required, the short sale process can be lengthy. But if done correctly, it can benefit all parties involved. The lender avoids the uncertainty of the foreclosure process, the seller avoids a foreclosure on his or her credit report, and the buyer hopefully got a good deal on a property.For more information about Short Sales see About.com.

Bonnie Mullinax of Keller Williams Northwest

launches website and marketing plan specific to homeowners facing

foreclosure hardship in the Bartow/Cobb real estate market

Cartersville, GA— Bonnie Mullinax of Keller Williams Northwest, a Cobb/Bartow County real estate specialist, has developed a marketing strategy and website that is focused on assisting distressed homeowners find information and investigate options to avoid the foreclosure process. As an expert in foreclosures and short sales, a real estate transaction option that banks will consider instead of foreclosure with specific guidelines, Mullinax is determined to provide essential knowledge to homeowners in Bartow and Cobb County facing this unfortunate circumstance. Read the rest of this entry »

How the Banks Approve A Short Sale. Short sales happen when a lender agrees to accept less than the amount owed against the home because there may not be enough equity to sell and pay all costs of real estate sale.

It is impossible to just one day decide you’re going to sell your home by asking for a short sale. Some lenders may not even consider a short sale if your payments are current, but that has changed. However, understand that lenders will be more willing to negotiate with you if your payments are in arrears. Plus, if you have cash assets, the lender might try to tap those accounts.

Some descriptions for short sale listings might be described with the phrases ”subject to bank approval” or “subject to lien-holder approval” or “as-is”. Rarely will you see “short sale”, so it’s best to be armed with some crucial information about short sales before considering buying one.

• In this type of transaction there is an additional party involved besides the buyer and the seller; the bank. The bank must approve the sale, and this can make the time to close much longer than usual. Expect it to take anywhere from four to six weeks, if not longer. And once the bank’s approval is granted, they will expect you to be ready to close as soon as possible.
• You will need to pay for your own inspection, and since the sale is “as-is”, this means that no repairs will be done and there will be no closing cost credits for repairs.
• You will also need to pay for your own appraisal. The bank will do their own as well, and have been known to reject the sale based on their appraisal. Also, they may ask the buyer to raise their offer before approving the sale.
• These things are obvious risks to the potential buyer, as you could end up out of your inspection costs.
• Deferred maintenance on the home is a potential risk for the buyer. Consider that since the mortgage payments were not being made, it’s highly likely that the homeowner was not able to afford regular home maintenance.

For more information about short sales go to About.com.