{"id":2265,"date":"2007-11-26T10:05:47","date_gmt":"2007-11-26T17:05:47","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=2265"},"modified":"2007-11-26T10:40:46","modified_gmt":"2007-11-26T17:40:46","slug":"examining-myths-crummy-markets-mean-a-short-sale-extravaganza","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2265\/examining-myths-crummy-markets-mean-a-short-sale-extravaganza\/","title":{"rendered":"Examining Myths: Crummy Markets Mean a Short Sale Extravaganza!"},"content":{"rendered":"

With the recent events in the mortgage industry & in most of the markets around the country, many homeowners are left upside down on their homes, and unable to sell.\u00a0 This is one of the real dangers of homeownership.\u00a0 While we (real estate professionals) all tout the many advantages of owning a home, and primarily that “real estate historically appreciates,” getting stuck upside down on a home is a scary proposition\u2026because you’re stuck in your home.\n<\/p>\n

In markets like these, real estate agents & brokers also get a little scared.\u00a0 Fewer homes are selling, and fewer commissions are earned.\u00a0 Many get out of the business, and many begin marketing “creative solutions,” & “creative opportunities,” which includes the short sale.\u00a0 Short sales as a subject really started popping up a few months ago, and it’s really increased \u2013 it looks like we’re on the left hand side of the bell curve.<\/p>\n

<\/p>\n

Everyone knows that some Realtors love to puff the advantages of anything<\/em> that will help them earn \u2013 let’s analyze some of the myths that are now being touted, and that we’ll see more of in the future.<\/p>\n

Myth #1<\/strong>\n<\/p>\n

“Short Sales Are a Great Investment<\/a>“<\/strong><\/p>\n

A short sale, by definition, is a situation where the bank is cutting their losses in order to avoid the costly foreclosure process.\u00a0 The bank is getting screwed, and they will try to cut their losses as close as possible \u2013 which means they ask for multiple BPO’s before they’ll agree to a sales price.\u00a0 Multiple agents\/brokers, who are all vying for listings from the bank, have given their expert valuation of the property.\u00a0 The chance that the listing price will come in 20% below market or lower (which is the minimum to make a decent profit) is pretty slim.<\/p>\n

Myth #2<\/strong><\/p>\n

“The Bank Will Cooperate With My Short Sale”<\/strong><\/p>\n

When trying to work out a short sale, you’re dealing with the bank’s loss mitigation department.\u00a0 Loss mitigation will typically not talk to you unless you’re 60 days past due or more.\u00a0 After you’ve crossed this bridge, they will discuss a short sale, but you’ll sit on hold for hours before getting anywhere.\u00a0 Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

With the recent events in the mortgage industry & in most of the markets around the country, many homeowners are left upside down on their homes, and unable to sell.\u00a0 This is one of the real dangers of homeownership.\u00a0 While we (real estate professionals) all tout the many advantages of owning a home, and primarily […]<\/p>\n","protected":false},"author":29,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-2265","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-real-estate","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":3363,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3363\/dont-learn-all-the-wrong-lessons-about-creative-mortgages\/","url_meta":{"origin":2265,"position":0},"title":"Don’t learn all the wrong lessons about creative mortgages","author":"Greg Swann","date":"July 15, 2008","format":false,"excerpt":"This is my column for last week from the Arizona Republic (permanent link). \u00a0Don't learn all the wrong lessons about creative mortgages Arguably, the Phoenix real estate market is in a state of incipient recovery. Will there be more bad news? Certainly. There are still thousands of homes stuck in\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3033,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3033\/save-a-house-ride-a-realtor%c2%ae\/","url_meta":{"origin":2265,"position":1},"title":"Save a House, Ride a REALTOR\u00ae","author":"Dave Phillips","date":"April 28, 2008","format":false,"excerpt":"(If you are not a country music fan, you may have a serious character flaw, but that is the subject of another post on another Blog.\u00a0 For now, here is a video that will help you \u201cget\u201d the title of this post.) Save a Horse, Ride a Cowboy Across the\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"reduction","src":"https:\/\/i0.wp.com\/www.towerhobbies.com\/images\/towirlogo_175.gif?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1788,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1788\/thomas-sowell-housing-woes-caused-by-land-use-restrictions-and-federal-micro-management-of-lenders\/","url_meta":{"origin":2265,"position":2},"title":"Thomas Sowell: Housing woes caused by land-use restrictions and federal micro-management of lenders","author":"Greg Swann","date":"August 11, 2007","format":false,"excerpt":"Hoover Institute Economist Thomas Sowell:Amid all the hand-wringing and finger-pointing as housing markets collapse, mortgage foreclosures skyrocket, and financial markets panic, there is very little attention being paid to the fundamental economic and political decisions that led to this mess. The growth in risky \"sub-prime\" mortgage loans by people buying\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":9809,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9809\/whats-the-downside-to-investing-today\/","url_meta":{"origin":2265,"position":3},"title":"Whats the Downside to Investing Today?","author":"Cooksquared","date":"September 21, 2009","format":false,"excerpt":"My previous article suggesting today was the right time to start getting back to real estate investing was met with expected cynicism. Investors make money by going against the crowd, not with it, right? By the time everyone agrees that you should be getting back into real estate, you really\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4431,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4431\/so-what-does-this-mean-to-the-real-estate-markets-and-real-estate-professionals\/","url_meta":{"origin":2265,"position":4},"title":"So what does this mean to the real estate markets and real estate professionals?","author":"Tom Vanderwell","date":"September 15, 2008","format":false,"excerpt":"Since I've already had almost a dozen e-mails, phone calls and tweets asking me, \"So how does the financial meltdown on Wall Street impact me as a Realtor?\"\u00a0\u00a0 I thought I'd take a few minutes this morning and throw out some observations and thoughts of what it might look like.\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":14552,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/14552\/brett-arends-from-the-wall-street-journal-on-zillows-morning-gloom-report-all-this-bearish-news-makes-me-bullish\/","url_meta":{"origin":2265,"position":5},"title":"Brett Arends from the Wall Street Journal on Zillow’s morning gloom report: “All this bearish news makes me bullish.”","author":"Greg Swann","date":"May 9, 2011","format":false,"excerpt":"Our friends at Zillow.com have figured out the secret to getting news coverage: Bad news:Home values in the United States fell faster in the first quarter of 2011 than they have in any quarter since 2008, when the housing market experienced its worst performance, according to Zillow's first quarter Real\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/2265","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/29"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=2265"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/2265\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=2265"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=2265"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=2265"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}