I list and close dozens of short sales each year, which gives me a reliable vantage point of a typical short sale in my city.
Here's my observation of a typical short sale seller.
- High sense of responsibility.
- Devastated that they can't meet their obligations.
- Ran up credit cards trying to keep the house payment afloat.
- Depleted their savings trying to keep the house payments afloat.
- Incurred other debt and did not pay other critical bills so they can keep their house payment afloat.
- Took on additional jobs to make a little more money to try to keep their house payment afloat.
- Conversely, their jobs were eliminated and they are actively searching for replacement work.
- Diligently tried to restructure the loan so they can keep the house payment afloat. Loan modifications, repayment plans; they were either denied or the terms weren't sustainable.
- Tried unsuccessfully to refinance to a lower interest rate.
- Tried to sell their house or at least contacted a Realtor to sell the house for enough to pay off the loan in full. Were unsuccessful because values declined through no fault of their own.
The common theme is hard working Americans are trying to do the right thing. I'm not seeing strategic defaults. Maybe it's just the nature of sellers in my city of Louisville, KY. I'm meeting distressed sellers who are out of options to save and keep their home. This financial tsunami is bigger than all of us. Borrowers have been trying to outrun it but are now mentally and physically exhausted.
Borrowers need relief and peace of mind. A short sale is often the way for them to sell their house and not lose it. It enables them to regain control of the process and restores the dignity and self-esteem that they deserve.
Dave Halpern
Broker, Louisville Short Sale Expert Realtors
http://davehalpernlouisvilleshortsaleexpert.wordpress.com/
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