Hello Real Estate Community,
Being on the lending side of the industry I try not to get involved in the Real Estate side. There are questions I do have and hopefully someone can educate me specifically about short sales. Recently a close friend of mine and ex husband went through the short sale process. When the Realtor came to list the house he told my friend that she better get all of their belongings out immediately or the Sheriff would come and take their possession's. Fearing the worst she found a rental, packed and moved all the furniture. When the ex husband returned they all lived in the rental unit at the cost of $1900 a month. Again the Realtor made it very clear this was the best route to go so they could get the house listed and on the market. 6 months later and nearly $12,000 lost in rental income, the house still sat, and sat, and sat. In fact it is now approaching a year on the market. My friend has since moved back into the short sale property and the ex husband went to live somewhere else. All and all the cost of movers, packing supplies, rental truck and rent close to $19,000 was spent. In my mind wouldn't it have been better for them to stay living in the short sale house rent free till the bitter end? I don't understand who the short sale is suppose to benefit? I have heard several various things from it keeps someones credit in tact which is not true, to it makes it easier to sell resulting in a faster transaction. In this case the house has sat on the market going on a year. Surely not a faster process. Please can someone explain who this truly benefits? Thank You.
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