Main Street ROI Reveals Top 3 Online Marketing Mistakes to Avoid …

Internet marketing is often faster, easier, and more affordable to implement and test than other media. It is recommended that small businesses invest in online marketing and make it a key component of their marketing. Unfortunately, it’s also really easy to lose money, too. Online marketing expert Pete Kennedy, managing partner of Main Street ROI, has outlined the three biggest mistakes made by local businesses:

Mistake #1: Relying Too Much on SEO

Perhaps the biggest mistake business owners make is relying too much on search engine optimization (SEO) ? helping a website show up in search engines like Google when people are searching for the services offered.

Any business will be in an unstable position where Google controls its destiny if SEO is the main internet marketing strategy. It is possible to be ranked on the 1st page of Google and still lose money. According to Kennedy, a business needs more than rankings in order for an SEO campaign to be profitable:

‘You need your prospective customer to do the following:
1) She sees your website in the search results
2) She clicks to visit your website
3) She contacts you
4) She becomes your customer’

One way to limit this risk is to ‘pre-test’ an SEO campaign with PPC advertising for desired keywords. This will help project how much money can be made from SEO before investing months and thousands of dollars in achieving rankings.

Mistake #2: Not Tracking Advertising Properly

For business owners, it’s really easy to lose a lot of money quickly with PPC. One reason is because the clicks are getting more expensive all the time. Businesses waste money because of investment in keywords that don’t turn into prospects and customers.

Tracking involves knowing whether the people who visit the website from advertising end up contacting the business and becoming paying customers. Tracking these sales back to specific keywords determines which ones to keep investing in.

Mistake #3: Not Building a System

Creating a marketing system that can run independently and attract new customers every month will result in full benefits from online marketing.? According to Kennedy, one of the key components of a profitable small business online marketing system is email marketing:

‘Used the right way, email marketing can help you turn more website visitors into prospects and customers, turn one-time customers into repeat customer and stimulate referrals. If you organize all the pieces of your online marketing (SEO, PPC, email, social media, and tracking/analytics) in just the right way, you’ll not only minimize your risk, you’ll create a system that generates reliable results for you month after month.’

About Main Street ROI

Main Street ROI provides online marketing training and tools for small businesses, including?The Local SEO Formula,?AdWords Success Formula, and?Main Street Inner Circle. Since 2010, Main Street ROI has helped hundreds of small businesses create profitable online marketing campaigns. To learn more about Main Street ROI, visit?http://www.mainstreetroi.com.

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Man found alive in bushes week after car accident

By msnbc.com

A California man whose car overturned on the highway last week has been found alive, but unconscious, in a wooded area near an off-ramp, a week after his family last heard from him.

Authorities found Michael Sanchez Jr.,?a 25-year-old San Jose resident,?lying in thick bushes off the side of Highway 101 in South San Jose?on Tuesday. He was?unresponsive, reported NBCBayArea.com, and was taken to San Jose Regional Medical Center, where he remains hospitalized, police said. Authorities aren’t releasing any additional details about his condition, but his sister, Pricilla Sanchez, told KGO-TV that he was still unconscious Wednesday night.

“Right now, Michael’s on life support,” she told KGO.

While Pricilla waits to see if her brother will survive, she’s also waiting for answers from the police on why they didn’t find him sooner.

Read Michael Sanchez’s story on NBCBayArea.com

Sanchez’s family last heard from him around 1 a.m. Tuesday, May 8, according to San Jose police, but didn’t become concerned about his wherabouts until two days later, when he failed to show up for a funeral service for a relative. After the service, the Sanchez family called San Jose police to report him missing.

Detectives had little information to go on, until Monday, when they learned California Highway Patrol had towed an overturned?tan 1991 Ford Ranger pickup?early?on the day of the crash?on Highway 101 in South San Jose, reported The San Jose?Mercury News. Witnesses told officers they saw a man climb out of the pickup and leave the area, which is next to a county park.

Authorities from the Santa Clara County Sheriff’s Office searched for him for about an hour, California Highway Patrol Lt. Les Bishop told The Mercury News, but they came up empty-handed.

“We were looking all over for this gentleman,” said CHP Lt. Les Bishop. “We not only searched the immediate area and the brush, but we checked the shoulders on the freeway, the neighborhoods and the adjacent park.”

Patrol officers say they ran the registration on the truck and the address tied to it was in Visalia, nearly 200 miles away in California’s Central Valley?–a cold lead, reported KGO.

But this week, after learning more details about Sanchez through his?missing persons report, San Jose police returned to the crash site.

Detectives hiked into the wooded area and found Sanchez “in a location where he was not visible from the roadway or to passing motorists,” according to San Jose police.

It’s unclear what happened to Sanchez after he got out of his overturned truck, and at what point he lost consciousness. His sister told KGO that despite the vehicle registration confusion, she doesn’t understand why California Highway Patrol stopped searching.

“If they did their search, they should have found my brother’s body,” Pricilla Sanchez said. “If I report it, my brother missing on that Thursday, they should have traced that truck. If CHP picked up his truck on the 8th, why didn’t they report, ‘I found a truck, there’s a person missing.’ You know, why wasn’t I informed?”

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Violence Against Women Act in limbo (CNN)

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Extraordinary Business – Aepiphanni Business Consulting

Outsourcing?Maintaining | Extraordinary Business

How to maintain highly profitable relationships with your outsourcing partners

Buyer's RemorseAnyone who has purchased anything in the past probably has experienced buyer?s remorse ? the sense of regret after making a purchase.? When working with your outsourcing partner, that is the last thing you want.? Therefore, you must set and manage expectations, and like you would with your employees, review their work, praise them for their accomplishments or take the appropriate action for not meeting your expectations.

Keep in mind ? your outsourced partners are to bring their expertise to your business to enable your businesses to achieve some success or factors of success that you could not achieve otherwise.? Therefore, it is your responsibility to ensure that they live up to it.? Here are five ways to ensure you are managing your partners appropriately.

  1. Managing Expectations ? you set your expectations before hiring your outsourced partner.? When you begin to ?let things slide? or have to make their problems your problems, you are beginning to lose hold of your outsourced partners.? Good outsourced partners won?t make their problems yours, and will ensure that whatever needs to be done is done consistently.? The more vague your expectations are, the more leeway there will be with your outsourcing partner.
  2. Regular review ? your outsourcing partner should be very interested in getting feedback from you.? If you provide them with feedback, and do so using the expectations list you?ve created, there will be no surprises.? By scheduling them regularly, perhaps quarterly, you will ensure that the regular reviews are done, and that your outsourcing partner is well engrained into your company and company culture.
  3. ?Praise and Pinch!? ? Like you and your company, companies benefit from recognition of great service.? It typically encourages more of the same or higher level of work or service.? At the same time, you need to be very clear about the areas that aren?t meeting your expectations and what you intend to do about it.? If you feel that the relationship must be terminated, do so.? You will probably find that avoiding ending the relationship will cause you greater stress and your business greater harm.
  4. Financial Review ? Your outsourced partner is a firm whose goal should be to help your business achieve some success or factors of success.? Therefore, you have to look at the return on your investment.? Certainly, some efforts take longer to present themselves financially, such as marketing or sweeping the parking lot.? However, part of the review would be to work out what the alternative might look like.? How NOT having that partner would impact your business, or how having a different partner would impact your business.
  5. Strategic Review ? Consider how long or what indicators exist that tell you how long the partner should be involved in your company.? Is it for a short term?project?? IOs it managing through growth stages?? Is it until your company has enough volume to hire your own person or team to take over for that outsourcing partner?? Understand where your company is in that dynamic and don?t end up so ?needy? that you cannot make the right decision at the right time.

Maintaining a strong relationship with an outsourcing partner should be taken no less lightly than you would take that of an employee.? As the company leadership, it is your responsibility to set your expectations, manage them and take the appropriate response as necessary.? When you don?t, you could ultimately hurt the entire company and all of its stakeholders.

Aepiphanni Business Consulting: The Business Strategy People?is an Atlanta, Georgia based Operations Management and Business Strategy Consulting Firm dedicated to serving the needs of small to medium sized business leaders. We help business leaders DESIGN| CREATE | BUILD extraordinary businesses.? We support our clients with financial management, product and service production and delivery, outsourced services management, sales & marketing and business growth.? We provide them with a number of flexible solutions to help them reach their goals.

Join us for a 30-minute complimentary Coffee & a Consult, to learn more about Aepiphanni and how we might help you move your company from existing to extraordinary.

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Romney denounces idea of Obama-Wright campaign ads

FILE – In this March 25, 2012 file photo, Rev. Jeremiah Wright speaks in Jackson, Miss. A super PAC working to defeat President Barack Obama is preparing an ad campaign highlighting Obama’s ties to his former pastor. (AP Photo/Rogelio V. Solis, File)

FILE – In this March 25, 2012 file photo, Rev. Jeremiah Wright speaks in Jackson, Miss. A super PAC working to defeat President Barack Obama is preparing an ad campaign highlighting Obama’s ties to his former pastor. (AP Photo/Rogelio V. Solis, File)

FILE – In this Feb. 16, 2005 file photo, Ameritrade chairman and founder Joe Ricketts talks to shareholders in Omaha, Neb. Republican presidential hopeful Mitt Romney sought to distance himself Thursday from a GOP-leaning independent group’s plan for a $10 million TV ad campaign renewing attention to President Barack Obama’s ties to his controversial former pastor. Obama’s campaign accused Romney of failing to show “moral leadership in standing up to the very extreme wing of his own party.” (AP Photo/Dave Weaver, File )

Republican presidential candidate, former Massachusetts Gov. Mitt Romney gestures as he speaks to reporters while boarding a charter flight in Miami, Fla., Thursday, May 17, 2012. (AP Photo/Mary Altaffer)

JACKSONVILLE, Fla. (AP) ? Mitt Romney swiftly and firmly distanced himself Thursday from a group exploring plans to target President Barack Obama’s relationship with a controversial former pastor. But the revival of the Rev. Jeremiah Wright as a campaign issue momentarily placed race at the center of the presidential contest and showcased the independent groups playing a new role this year with big-money TV ads.

Republican Romney pushed back against a proposal being weighed by a conservative super PAC, Ending Spending Action Fund, to run a $10 million ad campaign drawing attention to racially provocative sermons Wright delivered at a church Obama attended in Chicago. But with super PACS operating under significantly looser campaign finance restrictions than in past presidential contests, there was no guarantee Romney’s words would be heeded by other groups eager to make Wright ? and, by extension, race ? a factor in the campaign.

“I want to make it very clear: I repudiate that effort,” Romney told reporters after a campaign stop in Florida. “I think it’s the wrong course for a PAC or a campaign. I hope that our campaigns can be respectively about the future and about issues and about vision for America.”

Romney indicated he was eager to shift the discussion back to jobs and the economy ? bedrock issues on which he contends Obama is vulnerable.

Joe Ricketts, the billionaire benefactor of the super PAC, also distanced himself from the plan and announced he, too, would reject a racially focused approach.

“Not only was this plan merely a proposal ? one of several submitted to the Ending Spending Action Fund by third-party vendors ? but it reflects an approach to politics that Mr. Ricketts rejects and it was never a plan to be accepted but only a suggestion for a direction to take,” the group’s president, Brian Baker, said in a statement.

The New York Times first reported the group had commissioned a blueprint devised by Republican strategist Fred Davis and others titled “The Defeat of Barack Hussein Obama: the Ricketts Plan to End His Spending For Good.” The Associated Press also obtained a copy of the 54-page blueprint, which outlined a TV, print and social media campaign casting new light on Obama and his “misguided mentor,” Wright.

“Super PACs” have played a major role in this year’s campaign already, spending many millions of dollars on ads assailing candidates in the Republican primaries ? though with no legal connection to the rival contenders they aimed to help. Huge additional sums are expected to be spent before November by groups partial to Obama and Romney but barred from coordinating efforts with the candidates’ campaigns.

Reaction from the Obama team was swift to the “Ending Spending” proposal.

“To launch a multimillion dollar divisive attack campaign is not what the American people want,” White House Spokesman Jay Carney said. “There are moments when you have to stand up and say that’s not the right way to go.”

Obama campaign manager Jim Messina, commenting before Romney denounced the plan in an interview with Townhall.com, accused the Republican of “reacting tepidly in a moment that required moral leadership in standing up to the very extreme wing of his own party.”

Messina noted that Republican Sen. John McCain, Obama’s opponent in the 2008 presidential race, had rejected using Wright and Wright’s sermons in that campaign. But Davis, a colorful Hollywood consultant, clearly wanted another chance to use the strategy against Obama.

“Our plan is to do exactly what John McCain would not let us do: show the world how Barack Obama’s opinions of America and the world were formed,” Davis’ proposal said.

Davis’ firm said in a statement Thursday that the document ? which called for “hitting Barack right between the eyes” ? was only a proposal and did not win Ricketts’ approval.

Wright first emerged as an issue for Obama in the 2008 campaign when the pastor’s sermons surfaced on television and online. In a 2003 sermon, Wright said black people should condemn the United States.

“The government gives them the drugs, builds bigger prisons, passes a three-strike law and then wants us to sing ‘God Bless America.’ No, no, no, God damn America, that’s in the Bible for killing innocent people,” Wright said at the time. “God damn America for treating our citizens as less than human. God damn America for as long as she acts like she is God and she is supreme.”

Obama has credited Wright with leading him to Christianity, and Wright performed Obama’s 1994 wedding to Michelle Obama and baptized the couple’s two daughters. Obama took the name for his best-selling memoir, “The Audacity of Hope,” from one of Wright’s sermons.

The Wright controversy became a campaign problem for Obama, pushing him to deliver a major speech on race relations. He eventually severed his ties to Wright.

The AP left several messages for Wright on Thursday through his executive secretary at Trinity United Church of Christ in Chicago as well as through other intermediaries. There was no immediate reply.

For his part, Arizona Sen. McCain said Thursday he felt he had done the right thing on the Wright issue.

“I remain proud of our campaign and proud of what we were able to accomplish, and I would do it over again,” McCain said at the Capitol. He said the matter seemed dead after Romney repudiated the proposal.

He shrugged when asked whether independent groups should take up matters such as Wright’s remarks.

“It’s a way for political operatives to continue to make money,” McCain said.

Another top Republican, House Speaker John Boehner, of Ohio, declined to be drawn into the debate.

“This election is going to be about the economy,” he said when reporters asked him to react to the proposed ad campaign. “I don’t know what these other people do or why they do it.”

Unease with Obama’s history with Wright has percolated among many Republicans for years, providing fodder for conservative television and talk radio.

But Republican strategists generally said they were put off by the Davis group’s approach, reasoning it would meet resistance from independent voters likely to decide the outcome of the election. A majority of those voters approve of Obama personally even as they remain skeptical of his performance as president.

“Among those folks the personal incendiary stuff will backfire badly and will be seen as mean, personal and angry,” Republican pollster Adam Geller said.

The story cast new attention on Ricketts, the founder of Nebraska-based TD Ameritrade Securities and patriarch of the family that bought the Chicago Cubs baseball team in 2009. Ricketts has been active in conservative politics for years, most recently helping Republican Deb Fischer win an upset victory this week in the Republican Senate primary in Nebraska.

The fallout from the Wright story appeared to rattle Ricketts’ family.

Tom Ricketts, one of the elder Ricketts’ four children and Cubs chairman, joined his father in rejecting what he called a “return to racially divisive issues” in the campaign.

“Our team and every other Major League Baseball team are great examples of people of diverse backgrounds working together toward a common goal,” Tom Ricketts said.

His sister Laura Ricketts, an Obama contribution bundler and gay rights activist, released a statement saying, “The love of country was instilled in us by my father. We have different political views on how to achieve what is best for the future of American, but we agree that each of us is entitled to our own views.”

___

Online:

http://apne.ws/JTyAnc

Fouhy reported from New York. Associated Press writers Jim Kuhnhenn and Charles Babington in Washington, Joshua Funk and Margery Beck in Nebraska and Thomas Beaumont in Des Moines, Iowa, contributed to this report.

Follow Beth Fouhy on Twitter at www.twitter.com/bfouhy

Follow Philip Elliott on Twitter at www.twitter.com/Philip_Elliott

Associated Press

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The Nepali way of doing things | white girl in a sari

Since coming back to Australia after my wonderful trip to Nepal, I?ve noticed I?m doing a few things the NEPALI way.

I have not consciously made these changes, they?ve just happened!!!!

They are not big things but still it?s interesting how easy it is to pick up another culture?s little idiosyncrasies when you spend a lot of time with Nepali people.

It?s common in most relationships for a husband/wife to pick up certain ways of doing things that they?ve never done before and unconsciously inherit it from their partner?s behaviour.

But these things I?m doing ?are really cultural behaviours that most Nepalis do, not just Rabindra?s way of doing things.

Here?s a quick list of my new Nepali habits:

  • Making tea/coffee the Nepali way on the stove with milk/water. (Not by boiling a kettle then adding milk ? the way I have made tea my whole life).
  • Wearing chappals around the house ?oh my gosh!
  • Washing up dishes the Nepali way which means not letting plates drip-dry with dishwashing detergent on them!
  • Changed the way I speak to people older than me- give them more respect (this is an especially nice one).
  • Occasionally eating dinner with my hands!! Yes, oh my gosh again!!
  • Turning upside-down shoes over in the right position facing upwards. I don?t like the thought that it could bring bad luck.
  • Not touching things with my feet.
  • AND THE BIG ONE- nodding/swinging my head to the side to indicate yes/OK!! What is with that?? I did this at work the other day and I thought to myself- Casey- you are not Nepali!!

Are you in a cross-cultural relationship where you have picked up parts of your other half?s culture? What type of new behaviours have you picked up?

If you?re not in a cross-cultural relationship, what little things have you picked up from your partner?s behaviour that you now do yourself? (For me, one of these things is tapping my feet in bed, Rabindra does it all the time and now I do it).

I?d be interested to know how little things in your daily life have been influenced by your partner!

Please share your experiences here.

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Tied in Wisconsin (TIME)

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Baron Cohen’s Dictator storms Cannes, camel in tow

[ [ [['A picture is worth a thousand words', 5]], ‘http://news.yahoo.com/why-facebook-bought-instagram-4-theories-160400376.html’, ‘[Related: Why Facebook bought Instagram: 4 theories]‘, ‘ ‘, ’630′, ‘ ‘, ‘ ‘, ], [ [['He was in shock and still strapped to his seat', 9]], ‘http://contributor.yahoo.com/join/yahoonews_virginiabeach’, ‘[Did you witness the jet crash? Share your story with Yahoo! News]‘, ‘ ‘, ’630′, ‘ ‘, ‘ ‘, ], [ [['A JetBlue flight from New York to Las Vegas', 3]], ‘http://yhoo.it/GV9zpj’, ‘[Related: View photos of the JetBlue plane in Amarillo]‘, ‘ ‘, ’630′, ‘ ‘, ‘ ‘, ], [ [['Dick Clark', 11]], ‘http://news.yahoo.com/photos/dick-clark-dies-at-82-slideshow/’, ‘Click image to see more photos’, ‘http://l.yimg.com/a/p/us/news/editorial/c/21/c217c61aa2d5872244c08caa13c16ec5.jpeg’, ’500′, ‘ ‘, ‘Reuters’, ], [ [['the 28-year-old neighborhood watchman who shot and killed', 15]], ‘http://news.yahoo.com/photos/white-house-stays-out-of-teen-s-killing-slideshow/’, ‘Click image to see more photos’, ‘http://l.yimg.com/cv/ip/ap/default/120411/martinzimmermen.jpg’, ’630′, ‘ ‘, ‘AP’, ], [ [['Titanic', 7]], ‘http://news.yahoo.com/titanic-anniversary/’, ‘ ‘, ‘http://l.yimg.com/a/p/us/news/editorial/b/4e/b4e5ad9f00b5dfeeec2226d53e173569.jpeg’, ’550′, ‘ ‘, ‘ ‘, ], [ [['He was in shock and still strapped to his seat', 6]], ‘http://news.yahoo.com/photos/navy-jet-crashes-in-virginia-slideshow/’, ‘Click image to see more photos’, ‘http://l.yimg.com/cv/ip/ap/default/120406/jet_ap.jpg’, ’630′, ‘ ‘, ‘AP’, ], [ [['xxxxxxxxxxxx', 11]], ‘http://news.yahoo.com/photos/russian-grannies-win-bid-to-sing-at-eurovision-1331223625-slideshow/’, ‘Click image to see more photos’, ‘http://l.yimg.com/a/p/us/news/editorial/1/56/156d92f2760dcd3e75bcd649a8b85fcf.jpeg’, ’500′, ‘ ‘, ‘AP’, ] ]

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Busted!!! The Truth About Short Sales Vs. Foreclosures | Carlsbad …

This is a fantastic article busting the myths surrounding?short sales and foreclosures. We couldn?t have written it better ourselves!

by Brandon Brittingham on May 9, 2012

It?s likely you?ve heard the term ?short sale? thrown around quite a bit. But what, exactly, is a short sale?

A short sale is when a bank agrees to accept less than the total amount owed on a mortgage to avoid having to foreclose on the property. This is not a new practice; banks have been doing short sales for years. Only recently, due to the current state of the housing market and economy, has this process become a part of the public consciousness.

To be eligible for a short sale you first have to qualify!

To qualify for a short sale:

  • Your house must be worth less than you owe on it.
  • You must be able to prove that you are the victim of a true financial hardship, such as a decrease in wages, job loss, or medical condition that has altered your ability to make the same income as when the loan was originated. Divorce, estate situations, etc? also qualify.

Now that you have a basic understanding of what a short sale is, there are some huge misconceptions when it comes to a short sale vs. a foreclosure. We take the most common myths surrounding both short sales and foreclosures and give a brief explanation. LET?S BUST SOME MYTHS!!

1.) If you let your home go to foreclosure you are done with the situation and you can walk away with a clean slate. The reality is that this couldn?t be any farther from the truth in most situations. You could end up with an IRS tax liability and still owing the bank money. Let me explain. Please keep in mind that if your property does go into foreclosure you may be liable for the difference of what is owed on the property versus what is sells for at auction, in the form of a deficiency balance! Please note this is state specific and in most states you will be liable for the shortfall, but in some states the bank may not always be able to pursue the debt. Check your state law as it varies widely from state to state.

Here is an example of how a deficiency balance works

If you owe $200,000 on the property and it sells at auction for $150,000, you could be liable for the $50,000 difference if your state law allows it.

Not only could you be liable for the difference to the bank, but in some situations you could also be liable to the IRS! Although there are exemptions (mostly for principle residences) under the Mortgage Debt Forgiveness Act, there are times when you could be taxed on both a short sale and a foreclosure, even in a principle residence situation. Since the tax code on this is a little complicated and I am not a CPA, I advise always talking to a CPA when in this situation as you are weighing your options. Hard to believe? Well, believe it or not, the IRS counts the difference between the sale and the charged off debt as a ?gain? on your taxes. That?s right-you lost money and it?s counted as a gain! (I didn?t make that rule, that?s a wonderful brainchild of the IRS). Banks and the IRS can go as far as attaching your wages. Not to mention if you let your home go to foreclosure you will have that on your credit, as well.

Guess What? A short sale can alleviate your liability to the bank, in most situations. There are also exceptions to this, but in most cases banks are releasing homeowners from the deficiency balance on a short sale.

2.) There are no options to avoid foreclosure. Now more than ever, there are options to avoid foreclosure. Besides a short sale, loan modifications along with deed in lieu are also examples of the many options. In most cases (but not all) a short sale is the best option. Either way, there are more options today than there have ever been to avoid foreclosure.

3.) Banks do not want to participate in a short sale, or, it is too hard to qualify for a short sale. Banks would rather perform a short sale than a foreclosure any day. A foreclosure takes a long time and creates a huge expense for the banks; a short sale saves both time and money. Banks have more foreclosure inventory than ever before, and certainly do not want any more. Banks more than ever welcome short sales. Qualifying for a short sale is easier than you think, you need to have a true financial hardship, or a change in your finances and your house has to be worth less than what you owe on it. Not only do consumers, but banks also now have government incentive to participate in short sales.

4.) Short sales are not that common. At this present time, short sales range from 10-50 % of sales in various markets and it is predicted that in 2012 we will have more short sales than any other year, to date. Due to economic changes in the last few years, this is something that is affecting millions of Americans. Short sales are in every market, and are not just limited to any particular income class. This has affected everyone from all facets of life. A short sale should be looked at as a helpful tool, not a negative stigma. That is why the government is offering programs that actually pay consumers to participate in short sales. It is not just affecting one community; it is affecting communities and consumers across the nation.

5.) The short sale process is too difficult and they often get denied. Though the short sale process is time consuming; it is not as difficult as the media would have you believe. The problem is that most short sales are denied because of a misunderstanding of the process. It is true that if the short sale process is not followed correctly there is a good chance of getting denied. An experienced agent knows how to avoid this. Short sales require a lot of experience, and a special skill set. If you are looking to go the option of a short sale make sure your agent is skilled and experienced in this area.

6.) Short sales will cost me money out of pocket. A short sale should not cost you any out of pocket money. In fact, you could get between $3000-up to $30,000 to participate in a short sale. In many ways, a short sale may put you in a better financial position than prior to the short sale. Almost every short sale program now has some type of financial incentive for the home owner, as long as it is a principle residence, and we are even seeing relocation money being paid on some investment/second homes. As a seller of a property you should never have to pay for any short sale cost upfront to any professional service. Realtors charge a commission that is paid for by the bank. In most communities there are also non-profits and HUD counselors who can help you with foreclosure prevention options for free. The only potential cost you could incur is if the bank would not release you from a deficiency balance in the short sale, which is happening less and less now.

7.) If I am behind on my payments, I can perform a short sale any time. The farther you get behind on your payments, the harder it is to get a short sale approved. The closer a property gets to a foreclosure the harder it is to convince the bank to perform a short sale. As they get closer to a foreclosure sale more money is spent, thus deterring them from doing a short sale. If you think you need to perform a short sale, time is of the essence; the sooner you start the process, the better. Waiting too long can trigger the ramifications of a foreclosure, losing the ability to do a short sale as a viable option.

8.) I have already been sent a foreclosure notice so I can?t perform a short sale. For the most part just because you received a foreclosure notice or notice of default it does not mean that you do not have time to perform a short sale. The timeline and specifics do vary from state to state, but having done short sales all over the country, I have seen banks postpone a foreclosure to work a short sale option as close as 30 days prior to the scheduled foreclosure auction, but the longer you wait the less chance you have. If you have received a legal foreclosure notice, please reach out to a professional right away. The longer you wait, and the closer you get to foreclosure, the fewer options you have. If you have received a notice to foreclose this means the bank is filing paperwork and starting the process to take legal action to repossess the house. You still have time at this point to prevent foreclosure, but do not hesitate! The closer you get to the foreclosure date the harder it becomes to negotiate with the bank for whichever option you choose.

9.) I was denied for a loan modification, so I know I will get denied for a short sale. Short sales and loan modifications are handled by two separate departments at the bank. These processes are totally different in approval and denial. If you got denied for a modification you can still apply for a short sale; in some cases you can get a short sale approved faster than a loan modification, as some loan modifications are denied because they cannot reduce the loan low enough based on the consumers income.

10.) If I go through a short sale I cannot buy another house for a long time. The time to buy another house depends on your entire credit picture and can vary from 12-24 months. There are even a few FHA programs that allow for a purchase sooner than that. I have worked with clients who went through a short sale and bought another house in less than 12 months.

These are just a few of the common myths surrounding short sales and foreclosure. With the options available today, no homeowner should ever have to go through foreclosure, and hopefully this information can help a few more homeowners think twice before walking away from their home not realizing the possible long term ramifications a foreclosure can have.

For more information, read more of the article at KCM?s Blog.

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  • 14 May 2012
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