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Seller Denial in Short Sales is not a good idea

By
Real Estate Agent with The Virtual Real Estate Team 104556

I had two out of three short sale listings recently in Oklahoma City where distressed homeowners buried their head in the sand and were in danger of having the real estate they owned go into foreclosure. One waited until when we got the property to list, only two weeks remained until the sheriff's sale date. We got it immediately under contract, but with only 10 days left, it is requiring daily followup, and we won't know for sure that we have had it removed until three days before. When you are ten payments late and have received the notice of foreclosure, the time to call a Realtor is long passed. We will know on Monday so we have our fingers crossed.

Two more were phone calls today. One client called early in the process, we have a meeting set up tomorrow, and he is fully cooperative. Job loss and a relocation to another state is in his future, and he understand the advantage of the short sale. I am afraid that he is the exception to the rule. The other call was from a divorced couple, one of the main reasons for short sales, and it seems that they will argue their way to the courthouse sale. When you have a distressed sale, you have a distressed homeowner. All we can do as realtors is give them the facts and hopefully they will make a rational decision. This is what makes short sales even harder. You process three times the paperwork, spent more hours on the contract process, then when you add in the emotional turmoil that you have to deal with, it is not surprising that most Realtors don't want to work these sales, and they shouldn't unless they are prepared.

Given enough time we can make a big difference in people's lives when it comes to the preforeclosure process. We can limit the pain to two years, save people's jobs who have a security clearance, keep the Fair Isaac hit to a minimum, and have people who have a furture to look forward to rather than a past failure to dwell on. The problem with procrasination and letting a home go to foreclosure when the short sale option is out there, is that at some distance from the event, they will realize they made a huge financial mistake. So if you find yourself in dire straits don't wait, and don't dispair. There is an answer.  

Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

Joe, and isn't making a difference in people's lives what this is all about?

Jul 18, 2009 03:42 PM
Brian Brumpton
Keller Williams Boise - Boise, ID
Boise Idaho Real Estate

Joe,

I've stated away from marketing to the NOD list for this very reason.  I have found that the people waiting that long are hoping to keep their homes and the reality is they're almost guaranteeing a foreclosure in doing so.

Jul 18, 2009 04:41 PM
Not a real person
San Diego, CA

Some people keep hoping for that company bonus or lottery winnings that will allow them to catch up on the back payments. Others need to have a garage sale, or at least sell 19 of their 20 plasma televisions.

I'm still on my quest for a head in the sand. This is about the best I can do at the moment:

Head under water

Jul 18, 2009 08:05 PM
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTORĀ® - Oklahoma Investment Properties

Russel, you are the nature guy and if anyone can find it, it's you.

Brian, we have been successful in getting some homes pulled from the sheriff's sale list, but it is an intensive job to do it.

Patricia, if it wasn't about making a difference I wouldn't be doing short sales, there are easier ways to make a living, but sometimes that is not the way to look at it. We should make a difference in everything we do in real estate, but the reward is at closing where smiles and relief rule the day. 

Jul 19, 2009 12:31 AM
Jim Valentine
RE/MAX Realty Affiliates - Gardnerville, NV

This is a common behavior with people in financial trouble.  It seems simple from the outside, but it is amazing how many bury their head in the sand.  That is when they need you more than ever.  Nice post.

Jul 19, 2009 04:28 AM
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTORĀ® - Oklahoma Investment Properties

Jim, sometimes we have to become very firm. There are times where I feel like a parent with a wayward child. I don't want to be so negative that I stifle a learning experience, but I have to set the tone for saying that I know what's best more than they do. FYI, I have yet to have a loan modifiaction that has gone through even though I have always brought that to the discussion.

Jul 19, 2009 04:42 AM