Short Sale Odds and Ends

Short Sale Odds and Ends -

Watch Those 2nds and Be Your Own "Economist"

Getting second mortgages settled so your short sales can close is a problem with a hundred different faces.  As much as you try to identify what obstacle the 2^nd is going to present, they throw a new twist to an old theme and you are back to the drawing board looking for a solution.

Don't let your frustration cause you to lose focus.  Keep in mind that you have responsibility to your homeowner/borrower/seller to give them the information and the guidance they need to make informed decisions - decisions that could impact their financial lives for years.

Whether you are going to get a short sale closed for a client, or not, be sure to communicate to the seller the importance of getting advice from an attorney as to potential debt liability that could survive either a short sale or a foreclosure - and have signed documentation in your file that verifies you provided such guidance.  The holders of the junior debt you are trying to settle will be back to try and settle-up with your client later, and the advice your clients get from attorneys who specialize in this area will keep both you and your client out of trouble.

On The Economy - Listen to Many, Decide for Yourself

There is no shortage of opinions on both the economy in general and the on the housing market.  One thing that does seem clear at this point, the general economy and the housing market are closely linked.  It's hard to imagine a scenario where we would see a broad based economic recovery without  significant improvement in the housing sector.

It's not easy to know who has it right and who is just another crazy with a voice.  However, never has there been a time that your real estate clients have been more in need of your heartfelt input - what are you seeing in the market and what are you feeling about how economic forces might impact that market?  You may not be an economist, but that does not mean your views are not valuable.

Do your homework.  Your clients are entitled to your informed view of the market and how it might change over time.  There are any number of people presenting views on where things are headed.  National, regional and local views of what we can expect.  Seek out information, process it, and develop your own view.  And don't be afraid to trust your instincts, you may just be the one who has it right.