There are many misconceptions when it comes to a Chester County short sale. It is always important to examine every aspect of a Chester County short sale and understanding these common myths may help you decide whether you will make use of the short sale market.
One popular myth is that sellers think that they will be automatically responsible for all of the money that is owed on the loan in the Chester County short sale. The truth is that deficiency, or the money that is still owed after closing, may or may not be pursued. It depends greatly on the bank, the contract, and the amount of deficiency left. Before signing any approval agreement with a Chester County short sale, have the contract examined by a real estate attorney so that your rights can be protected.
Another common myth is that people think they can’t get a Chester County short sale when they are buying the home as an investment property or a second home. This varies greatly among different banks. Before you make an offer on a home, you should always make sure that you meet the lender’s eligibility requirements for a Chester County short sale.
One of the most common Chester County short sale myths is that you have to be behind on mortgage payments to be eligible for a short sale. The truth is that the bank is looking more at your debt to income ratio rather than your poor credit. If your debt to income ratio is over 55 percent, you may be able to list your home as a short sale without getting behind on payments.
If you have questions regarding a Chester County short sale, talking to a specialized short sale agent can be a good decision. They are seasoned in the short sale process and can help you clear up any myths that you may have heard.