Why do people wait so long before trying a Short Sale?

Reblogger Trisha Pennington
Real Estate Agent with Coldwell Banker Reilly & Sons

This morning I had decided to look for articles about short sales.  So many sellers know nothing about them and how they can potentially help you sell your home before it goes into foreclosure.  If you find yourself falling behind and having trouble making payments contact your lender, they have different options to help you.  But stay on top of it. These banks are swarmed with phone calls and paperwork.  Dont give up!

Original content by Andrea DAmato Lisc# 9018600 MA

I have seen so many bank foreclosed properties that were never on the market.  How does this happen?  In the present market, there is really no reason for a home owner not to try to save themselves the travisty of a foreclosure!   More and more banks are putting systems in place to assist their home owner clients with the Short Sale process.

We have come a long way in Massachusetts in the last 24 months.  When I first heard the term "Short Sale", it was shrouded in mystery. Questions abound: How do you write up and offer? What closing date do you use? What is the phone number of the lien holder? Who do I talk to first? This has changed!

A Short Sale is when the lien holders on a property are willing to take less they they are owed and are willing to release or partially release the consumer from their mortgage agreement.  It allows a sale to be processed which prevents a foreclosure from taking place.

Today, the Short Sale process has been streamlined in many ways.  It is still not an easy process or concept to manage but worthy of a chance to prevent a family from facing foreclosure.  It is important that consumers understand they have many options, especially when they feel they are at the end of their rope in their financial situation.  They need to make the call for help as soon as they feel they are not able to keep up with mortgage payments.  It is difficult to give up a home.  A short sale allows for more ptions for recovery.

Education and clear communication will help turn this economy around.  I hope that home owners in distress will reach out and find answers before they walk away from their home and leave the keys to the bank.  Contact a REALTOR who is willing to work through the process of a short sale. Make sure they have a track record of selling Short Sales. Make sure they have a team of professional who will be willing to help through the process of a Short Sale.  Make the call...

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Kansas Leavenworth County
Tags:
selling your home as a short sale
short sales and foreclosure default
leavenworth ks real estate
kansas city real estate

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Ambassador
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Harry F. D'Elia
Precision Real Estate Inc. - Phoenix, AZ
Investor , Mentor, CSSN, Radio Coach, REOs, ABR

I believe people think they can overcome it themselve. Then, procrastination sets in. Finally, it is time to call a Realtor as it is going to auction in thirty days.

Jan 17, 2011 08:06 AM #1
Rainmaker
1,182,899
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

Most hope it will go away or really think they can work it out, unfortanately most wait too long. Once the bank sets that auction date, it is often too late. Contacting someone sooner will lead to a better result

Jan 17, 2011 08:11 AM #2
Rainmaker
1,034,280
Gary L. Waters, Broker Owner Waters Realty of Brevard, LLC
Waters Realty of Brevard, LLC - Melbourne, FL
Personal Service, always.

Hope, denial, apathy, lack of information...There are probably as many reasons as one can think of!

Jan 17, 2011 08:13 AM #3
Rainmaker
369,227
Sylvie Stuart
Keller Williams Check Realty 928-600-2765 - Flagstaff, AZ
Home Buying, Home Selling and Investment - Flagstaff, AZ

Yeah, I think there is just so much emotion involved which leads often to procrastination and inactivity. It is always sad when you see a foreclosure that never went on the market.

Jan 17, 2011 08:29 AM #4
Rainmaker
594,476
Dan Edward Phillips
Dan Edward Phillips - Eureka, CA
Realtor and Broker/Owner

Good Morning Tricha, excellent post and input, thanks for putting it back up.

Jan 17, 2011 08:42 AM #5
Rainmaker
924,575
Tony Marriott
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Associate Broker, REALTOR

It's amazing how many people facing foreclosure never talk to an attorney or real estate agent about alternatives such as a Short Sale.  We keep spreading the word - hopefully more people will get the message!

Jan 17, 2011 09:19 AM #6
Rainmaker
79,245
Jim McNinch
Trademark Loss Mitigation - Spring, TX
Short Sale Specialist, Texas

Many times its not just a question of education on what their options are.  Sadly, its often the drawn out process of the lender.  We do a large number of short sales for agents and homeowners.  I can't tell you how often we get a homeowner that comes to us at the last minute before the trustee sale desperate for help.  The reason they waited?  Because they were trying to work with the lender to get an alternative to foreclosure.

Many lenders are notorious for dragging out the loan modification or HAMP process only to tell the homeowner at the last minute they don't qualify, or on occasion, not give them an answer at all.  So the homeowners have no alternative but to scramble at the last minute or, for many, watch their home go into foreclosure still waiting hopefully for some news from the lender.

 

Jan 17, 2011 09:56 AM #7
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Trisha Pennington

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