Why a Short Sale May Not Be Right for You!

A Short Sale May Not Be the Right Choice For You!
My First Short Sale:  I listed a nice house for a friend who was going through a divorce and no longer able to make their payments.
The process was stressful for all parties. It worked out, and we are still friends -- which will always be more important to me than a commission.
Short sales are more common than ever, and I think that is a shame. Many short-sale attempts end in foreclosure.
And even if successful, a short sale hurts the credit rating almost as much as a foreclosure does. As agents we need short sales and they can be good for business. There are classes real estate professionals can take to become more skilled in working with short sales.
Sellers can go through a lot of drama and pain over a short sale, and after months of waiting they may discover that banks can foreclose on a loan much faster than they can approve a short sale.
Short sales can be tough on buyers, too. And buyers seeking bargains may be better off buying a bank-owned home -- they could even choose to wait to buy from an investor who purchases, fixes and flips bank-owned homes.
Some of my buyers have ended up with beautiful homes that are almost like new but were less expensive than new construction.
Perhaps it seems more honorable to some owners to give the bank some of what is owed than to give them the house and walk away. Either way, their credit rating is harmed.
A short sale may not be the best path to avoid foreclosure -- as that may be the outcome for the owner.
I get calls and notes from homeowners asking about short sales. There are some who think that if they are upside down on a mortgage they can complete a short sale.
In some cases, they can afford the payments but they just don't want to make them anymore. It is important to understand that banks may be more likely to approve a short sale if there is a hardship, such as a job loss or a serious illness.
There are sellers who believe that they can get approval for a short sale, sell the home, and then turn around and borrow money to buy another. More than half of the sellers who contact me are looking to sell a home that they have owned for less than five years -- they can afford the payments but they just don't want to.
Homeownership does not come with any guarantees of wealth or happiness, and having purchased a home that is dropping in value should not be considered a hardship.
For more info. contact Tami Winbury Keller Williams Realty DRE# 01878369
http://www.venturacountyhomesforsale.net/
http://www.liveojai.com/