http://activerain.com/blogs/donnafagnantdreamhomes en-us http://activerain.com/blogsview/201288/short-sale <p>&nbsp;</p><p>&nbsp;&nbsp;&nbsp;&nbsp; What a sad time when decent, well meaning people are losing their dream homes.&nbsp; I have been working with a young man who one year ago, bought a 3 unit home in a great area of a local town.&nbsp; He did not use a buyer agent and totally trusted a mortgage person that he began to work with.&nbsp; Unfortunately this guy did not do much homework and believed the mortgage agent when she told him that he would have a 7% rate, $5,000 in closing costs and payment approximately $2,000 per month mortgage payment.&nbsp; The home was owned by a friends parents, so no listing agent was involved either.&nbsp; When it came time to close, the interest rate was over 10% and variable, the closing costs were over $10,000 and his payments were $3500.00 per month and going up.&nbsp; He was able to hold on (barely) for about 8 months and then one of the tenants stop paying rent.&nbsp; He then had to evict and could not make the mortgage payments any longer.&nbsp; In the course of the eight months, he used all his savings and retirement money and put the home on the market.&nbsp; We have dropped the price drastically and have done all the paperwork required to deal with the bank. (tax returns, paystubs, letter of hardship, copies of bills).&nbsp; We finally got a very low offer that was vehemently denied and are at a standstill.&nbsp; This guy does not want to foreclose and have this home over his head for 20 years, but its getting close.&nbsp; Foreclosure is set for mid October.&nbsp; I will let everyone know what happens, but I am frustrated with the entire process.&nbsp; My seller realizes that he should have walked at the closing, but thought he had 3 days to rescind and of course then it was too late.&nbsp; </p><p>People need to know that with any large purchase, consult&nbsp;a professional, get advice, do their homework, and be informed at the closing.&nbsp; The attorneys are there to make sure every aspect is understood.&nbsp; I am sad to know that this is probably not the last short sale I will be dealing with and it is a depressing thought for someone who really loves her job.</p> Donna Fagnant (Home Source Realty) Tue, 11 Sep 2007 16:06:37 -0700 http://activerain.com/blogsview/201288/short-sale