Just sit right back and you'll hear a tale, a tale of a fateful decision made by a lovely lady named Carol in the year of 2010. You see, Carol had bought her house in Lake Orion, Michigan a few years earlier, when home prices were at their peak. A nice home with plenty of space for her growing daughters, great neighborhood, terrific school district.
Many of her neighbors bought in this beauty wood around the same time Carol did; original owners who had a lot of equity cashing in and upgrading to little mansions. Many of the original owners who chose to stay re-financed and pulled equity out of their houses to finish their basements, enlarge decks, update their kitchens and baths (Doesn't everybody have granite now ‘days?) - which was all great for Carol. The more her neighbors did to improve their homes the more her house was worth!
Today- July 12, 2010, Carol was chatting with her neighbors, Elvieny and Lukey, as they were breaking the news- they were putting their house up for sale.
Carol- "Can you afford to sell? You paid at least what I paid."
Elvieny- "We're doing a short sale. We're at least a hundred and fifty thousand upside down."
Carol- "I thought you needed a hardship. Did one of you lose your job?"
Elvieny- "It's called a strategic short sale. Heck- the Simpsons and the Rubbles both lost their houses and the banks dumped them for almost nothing. The Bunkers and the Jeffersons are both short selling. There are a few others that have gone back to the banks- you can tell by the way the yards aren't maintained. We're sitting here just watching the value draining from our house. It's time to cut bait. We can rent for a couple years then buy a nicer house for half what we owe on this one. We don't have a choice."
Carol- "You have a choice! You can afford your house payment! What you're doing is not right!"
Fast forward to 2015. Carol is still in her lovely home. The "new" neighbors, George and Jane and their lovely kids Elroy and Judy are over for dinner. George is thrilled at the interest rate he's getting on the equity loan he's taking to send Judy to college. Carol's jaw hits the floor. She's still an easy hundred grand upside down on her mortgage and paying close to a full per cent more for her mortgage! Her daughters are all going to have to get student loans because she has no equity to pull from her house to help them. Hell! She's even going to have to put off retiring for 5 years because she can't afford to sell. Or even refinance for that matter!
So much for doing the right thing! For taking the moral high road!
And what ever happened to Elvieny and Lukey? After renting in the same neighborhood for three years (at half their old payment) they loaded up the truck and moved to Beverly! Hills that is! Oakland County! Michigan!
Oakland and Lapeer County Michigan home owners. If you want information about selling via short sale (strategic or not), please don't hesitate to contact me. I promise you I will not pass judgment!
Jackie Hawley
Keller Williams Realty, Clarkston
Cell: (248)736-6407
Email: Jackie@JackieHawley.com
Web: www.MiRelocation.com
Blog- for sellers only
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