The sign says the short sale did not work. This happens. It probably happens more often than a successful short sale. The lie continues…a short sale helps a home owner facing foreclosure. How long will the “short sale” lie continue?
REGARDLESS OF THE OUTCOME OF A SHORT SALE…..THE FORMER OWNER (S) WILL BE IN THE SAME FINANCIAL STATUS……THEY HAD A HOME…THEY DID NOT PAY FOR A HOME…THEY LOST A HOME.
IN TENNIS…THEY SAY…GAME….SET………MATCH.
This site and most of the other sites used by real estate agents have entry after entry full of heart wrenching stories regarding our current market conditions. We share about the plight of people we meet that have run into hard times. We castigate those that we meet that have created their own suffering through greed. We apologize for those that we perceive have been taken advantage of in the past.
Then, we proudly pronounce that we are going to assist the homeowner and work to get the “monkey” off their back. We enter the twilight zone of “the short sale”.
The rules and regulations to handle the sale and reach the goal of getting the property sold vary from state to state. They also vary from lender to lender. It is not a place for the unorganized or impatient.
Our industry, for the most part, is made up of people that enjoy assisting people buy or sell homes. As with any profession, the motivation behind each individual varies. I make the assumption that most agents are committed to helping others because if you are just in real estate for the easy money, you won’t last through markets like this one.
You have been sold a bill of goods regarding short sales.
The primary benefactor of your efforts will be the financial institution that holds the mortgage. This fact is hidden behind the tears and fears of the clients we sit with. Selling the home is not going to resolve their problem. Selling the home may reduce the amount of money the financial institution loses but it will not make tommorrow any brighter for the folks relinquishing the deed.
The only other people benefiting from a successful short sale are the participants other than the seller. The lender may only agree to the sale if commissions are reduced. A reduced commission is certainly more than the seller will receive. The agents will earn some money.
The new lender, title company, home inspectors, termite killers, appraisors all stand to benefit from the transaction. Seems like all the usual suspects have their hand in the cookie jar again.
HMMMM….THE SAME PEOPLE THAT BENEFITED FROM THE ACTIONS THAT CREATED THIS MESS, SEEM TO BE BENEFITING FROM THE PREFERED METHOD OF GETTING OUT OF THE MESS.
THE SAME PEOPLE THAT WERE HURT GETTING INTO THIS MESS ARE THE ONES THAT WILL END UP BEING HURT THE WORST GETTING OUT OF THE MESS.
The honest advice for those that can not pay seems to run counter to what we have been told is the moral and ethical manner to advise clients. Get out….pack, move while you control your circumstance, stop sending money to the lender….YOU NEED IT. Of course, if we were really following what is ethical, a great deal of this mess would not have occured or most of the people now in a jam would have gotten there without representation.
AGENTS MADE MONEY REPRESENTING CLIENTS ON THE WAY INTO THIS MESS
AGENTS WILL MAKE MONEY ON THE WAY OUT
THE CONSUMER CAN NOT WIN
If you are convinced that you are helping folks when you list short sales, at least have the decency to admit that you are helping everyone other than the person living in the home. Tell them the truth..their credit is in shambles, they will not be able to buy again for at least three years, every dime they send their current mortgage holder does nothing to assist their position or credit rating. Let them know that when you are asking them to stage the home or put money into the home that they are not going to receive any benefit from that action. Tell them that whether your commission is 1% or 10%, the bank will make the final decision. Tell them that the sales price is nothing more than a headline on the listing and their failure to pay will not be eased by the amount of money the mortgage company receives.
TELL THEM THE TRUTH….
YOU CAN’T HELP, BUT YOU CAN MAKE A DOLLAR GETTING THE HOUSE SOLD
Let them get off the roller coaster before the ride begins. Let them get on with their life while they still have some resources. Let them find another place to unpack and mourn the loss of the dream. Let them have the dignity necessary for rebuilding a life.
Of course, you can always walk away and tell the lenders, that are now left holding bags that they chose, they will have to foreclose on every one of the “short sales”. Let them spend the time and money now. If the home does not sell as a short sale…..it will become bank owned property at some point.
Today, agents listing short sales are gambling that they can turn the transaction before the bank forecloses on the property. There are no guarantees. The agent is using the calamity to build business, gain exposure and hopefully cash a check.
They just need to be honest…it is not for the owner, it is not for the bank…it is all about the “benjamins”.