Biggest Short Sale Myths Busted: Truth for Tennessee Homeowners

by Michael Szakos

🚫 What Are The Biggest Short Sale Housing Myths? Nashville Homeowners, Don’t Be Misled

For Nashville homeowners facing financial stress, a short sale can be a smart and dignified alternative to foreclosure. But too often, myths and misinformation prevent people from exploring this valuable option.

At Your Home Sold Guaranteed Realty – Michael Szakos, we’ve helped hundreds of families avoid foreclosure through strategic short sales. In this guide, we’ll break down the most common short selling a house myths—and what the truth really is.

📌 Key Takeaways

✅ Banks usually prefer short sales over foreclosures
✅ You don’t have to be behind on your mortgage to qualify
✅ Short sales are frequently approved when done right
✅ Investment and rental properties can qualify too

❌ Myth 1: Banks Prefer Foreclosure Over Short Sales

Reality: Most banks prefer short sales because foreclosures are expensive, risky, and time-consuming. They don’t want to maintain, market, or pay for a home they repossess.

“Short sales let banks recoup more with less risk and effort. They absolutely prefer them over foreclosures.” – Michael Szakos

❌ Myth 2: You Must Be Behind On Your Mortgage To Qualify

Reality: Being current on your mortgage does not disqualify you. Lenders care about future hardship and whether continuing to pay is unsustainable.

Falling behind on purpose could hurt your credit unnecessarily. Let us help you present your hardship without damaging your score first.

❌ Myth 3: Short Sales Are Rarely Approved

Reality: Short sales are commonly approved when handled by experts who understand lender procedures. Our team has closed hundreds successfully in Nashville alone.

“With the right documentation and relationships, approvals are the norm—not the exception.” – Michael Szakos

❌ Myth 4: No One Wants to Buy Short Sales

Reality: In today’s market, buyers and investors actively seek short sale opportunities for potential value. The key is pricing correctly and setting proper timeline expectations.

❌ Myth 5: Short Sales Are Only for Owner-Occupied Homes

Reality: You can short sale rental or investment properties if you show financial hardship. It’s a common exit strategy for struggling landlords.