While talking to a potential buyer client, I asked if she would like to see Short Sale and Foreclosure properties. Her answer was not what I expected. She said she would not hesitate to buy a foreclosure but did not want to look as any short sales. When I asked her why, instead of the usual reasons (negotiating with lenders, waiting months for approvals, etc.), she told me she did not to want to be a "vulture." She believed that buying a short sale property would be taking advantage of a homeowner in financial distress.
I explained that rather than taking advantage, she would actually be helping the homeowner. Why? First, she would be rescuing the owner from foreclosure. If the owner is not able to sell the house before the bank forecloses, their credit will be destroyed for at least seven years. If their work requires a security clearance, like the military or government, their emplyment could be jeopardized. By selling short, the owners could buy another house in as little as two years. Second, the homeowner would be relieved of the burden and stress of not being able to fulfill his financial obligation. Putting this bad situation in their past is a huge relief for the distressed homeowner. They can now breathe easier and get a new start.
Also, the short sale buyer helps the lender because even though the lender would receive less than the amount that is owed to them, this expense is much less that going to foreclosure and having to sell the house themself. Lenders do not want to be homeowners. Maintaining the property is an additional expense. When the home is unoccupied for any length of time, the condition (and value) will deteriorate .
Last, the short sale buyer is helping the community. Unoccupied homes become a blight on a neighborhood and reduce the value of all the houses in the community.
Rather than taking advantage of a family in a financial crisis, the short sale buyer is the savior for the homeowner, the lender and the community. So go head, buy that short sale. You are getting a bargain and doing something that is very admirable.
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