Short Sales In the Media

By
Real Estate Agent with CDPE

 

Here’s an excerpt from a recent article on short sales in The New York Times:

WITH property values down by as much as 30 percent in New York City, some homeowners who bought at the height of the market are finding themselves underwater and are being forced to sell their homes in short sales.

Did you catch that? FORCED to carry out short sales? This may seem trivial, but here “short sales”—a dignified solution to foreclosure for struggling homeowners—has been connected to the term “forced,” a hefty verb that often carries a negative connotation. Here’s some context where that word might have fit more appropriately:

§ When the homeowner lost her home to foreclosure, the authorities FORCED her to vacate the property.

§ Due to all his missed mortgage payments, the homeowner was FORCED to pack his belongings when the locksmith arrived to change the locks.

§ After the homeowner declared bankruptcy because she could no longer afford her escalating mortgage, she was FORCED to surrender her assets.

Unfortunately, real estate agents deal with this every day. Their clients and potential clients read influential language in the media presented with a dual purpose: report and engage. The information is important—often otherwise unavailable to the public—but also written to grab attention. This exposes the danger in relying too heavily upon singular media sources for market data and perspectives.

Real estate agents and homeowners in today’s challenging market must seek multiple sources and viewpoints for their information. This is the only way to form an accurate opinion and make the best possible decision in any given circumstance and again shows why we need to educate the distressed homeowners and give them their options.

There were, however, some incredible positives in this article that bear mentioning. Here’s an awesome perspective from one of the nation’s leading lenders:

Short sales are a gentler alternative to foreclosure for both sellers and lenders. “Compared to a foreclosure, a short sale generally allows an easier transition for the borrower, less impact on their credit history, and larger net proceeds to the loan’s owner,” said Tom Kelly, a spokesman for JPMorgan Chase, adding that Chase encourages borrowers who are unable to keep their homes to consider short sales.

See, there are silver linings … you may just need to look for them seven paragraphs down.

 

 

Posted by

Ed Macias, CDPE

Certified Distressed Property Expert

REO Certified

NVSTI Valu-U-Cert BPO Certified

Broker/Owner

Real Estate TeamMates

ed@edmacias.com

www.edmacias.com

Cell: 305-773-8564

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Anonymous
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Rainer
52,062
Nicole Kraus
Signature Realty & Associates - Dover, FL

Good FYI, but I am seeing people abuse the short sale process.  They are walking away from homes that they paid to much for (whose fault is that?), then turning around and buying another home and walking away from the first one.  Unbelievable.

Aug 01, 2010 09:49 AM #1
Rainer
63,878
Durrell Thomas
San Marcos Real Estate Company 760-798-0331 www.SMRECO.com - San Marcos, CA
San Marcos Real Estate Company | 760-798-0331

Ed, Thanks for sharing.  Short sales are one of the best options for homeowners who can no longer afford their home.

Aug 01, 2010 09:49 AM #2
Rainmaker
259,743
Bill Travis
Captain Bill Realty, LLC - Gilbert, AZ
Broker/Owner

Short sales are going to be with us for awhile. And so are the strategic defaults because the stigma is gone. People realize it's a business decision, not a moral one.

Aug 01, 2010 10:02 AM #3
Rainmaker
259,743
Bill Travis
Captain Bill Realty, LLC - Gilbert, AZ
Broker/Owner

Short sales are going to be with us for awhile. And so are the strategic defaults because the stigma is gone. People realize it's a business decision, not a moral one.

Aug 01, 2010 10:02 AM #4
Rainmaker
241,275
Phil Stevenson, CRMP
PS Financial Services 305-791-4874 or 888-845-6630 - Miami, FL
Reverse Mortgage Expert in Miami and Florida

HI Ed,

Long time no see!  Great article.  hope all is well!

Aug 02, 2010 07:44 AM #5
Rainmaker
1,108,397
Jim Frimmer
HomeSmart Realty West - San Diego, CA
Realtor & CDPE, Mission Valley specialist

I've only been a real estate agent since May 2005, but during that time I've learned not to listen to the headline news unless I'm going to dig deeper for the rest of the story.

Aug 03, 2010 03:46 AM #6
Anonymous
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Rainer
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Ed Macias

Commercial, Property Management, REO
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