To Keep or nOt to keep my house!

By
Real Estate Agent with Nicholas Real Estate

I had a client who came to my office and tells me "I want to short sale my House. It is not worth it to keep it. I can make my payments if I put some more effort, But I can also prove that I don't earn enough money to continue paying" What is the right answer? What do we suggest this person? Is it Ethical to help him to do the short sale? Does it really make sense for homeowners to hold on to their house knowing their house is worth 100s of thousand less than they  owe to their lenders?  How long is going to take for the market to turn around? How many years will take to make up the 100K loss that the homeowners incurred? What is a better option for a person who is under water for 100K or more? In the other hand, I had another customer who came to me asking me for a loan modification. I thought she couldn't qualify for loan modification and her house was worth about 200K less than she owes to her lender. She is a single mother of two girls. I suggested her to start all over and do the short sale. She didn't want accept that and she went to an attorney to do the loan modification. The attorney made his money, but didn't do anything for her.  She still think she is going to keep the house and somehow she will make it happen.  The market is still shaky. We don't know where the market is going? How do we help these people? All I know is that at least we need to be truthful and straight forward with these people. We need to be knowledgeable about other options and let them choose!

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Topic:
ActiveRain Community
Location:
New Jersey Passaic County
Groups:
Internet Lead Generation-How Best To Capture Your Audience
More Referrals: Strategies & Tips on Getting More Referrals
Realtors®
Short Sale REALTORS®
Short Sale Specialists & Pre-Foreclosure Education
Tags:
keep my house
short sale

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Rainmaker
516,377
Ken 360.609.0226 Vancouver Homes for Sales
Ken's Home Team at Keller Williams

all you can do is what they are askign you to do, as long as it is ethical... as long as you are not breaking any laws, you need to make sure that you inform them of the infomration so that they can make the right choice for them

February 02, 2010 12:09 AM
Rainmaker
251,176
Robert Machado
CPM MPM - Property Manager and Property Management - Sacramento Area
HomePointe Property Management, CRMC

If you are not getting paid it is hard to give these people mucht time. I would refer them back to their bank or a loan modification specialist.  Tough times indeed.

February 02, 2010 12:20 AM
Rainer
27,290
Alix Pinzon
Lic# 1167761
Southern California Mortgage Lending

Good points.  It's hard to help someone when they're still living in the past.  Prices rising fast, etc.  I would ask them "how long would it take you to save that much?" being the difference between what it's worth and what they owe (negative equity).  Anyone who's more than $100k underwater should probably short sale, or let it go back to the bank or lender.  Times are really tough.  Waiting for a miracle, when you have a family to raise, that's pretty risky!

February 02, 2010 01:17 AM
Rainmaker
128,782
Ray Wright
- Inland Empire Realtor
Keller Williams Realty

I have people coming to me that used their house as an ATM to get cash for toys, boats, sea-doos, motorhomes, etc.  Then they want to short-sale or loan modification.  I have the hardest time dealing with these folks.  I'm in the business of helping people, not bailing them out after they make irresponsible decisions.  But then again, without all these folks and their irresponsible decisions...I'd possibly be out of a job.

By the way, where was the loan modification from the lender for the car I bought that I really couldn't afford many years ago?  Hmmm.

February 02, 2010 11:39 PM
Rainer
17,731
Hugo Meza
Nicholas Real Estate

Ray, I totally agree with you

I had people coming to my office for loan mod after cashing out then buying luxury cars, houses in their native country, buying motorcycle, etc.  What shocks me is that they blame the goverment for not helping them! You sound like an attorney now "if people dont make mistake, attorney's would be out of job" lol

Since I couldnt break in to REOs, short sales are keeping me alive in this busines...and BPOs :)

February 03, 2010 09:39 AM
Anonymous
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Rainer
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Hugo Meza

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