Top 44 Reasons Sellers Don’t Do a Pre Foreclosure Short Sale Even If They Need To

If you are a homeowner with an “underwater” mortgage or an “upside” down house, please know that millions of Americans are experiencing the same confusing and stressful dilemma.

Please be aware that under many circumstances there are solutions favorable to you. You have options and there are answers to each one of the concerns listed below.

It is extremely important that you consult with a Louisville short sale Realtor who specializes in pre foreclosure situations.

I have compiled this list of concerns as a result of hundreds of consultations and kitchen table conversations with sellers in need.

Homeowners Lose Their House To Foreclosure Instead Of Avoiding Foreclosure With A Short Sale Because They Think They Have An Unsolvable Situation. Most of the Problems Can Be Overcome. Some of them aren't even problems even though they seem to be.

1. Their bankruptcy lawyer told them not to do a short sale, because it must be too good to be true
2. Divorce lawyers drew up divorce agreements that cannot be fulfilled regarding payment of the mortgage
3. Sellers thought they needed to pay Realtor commissions they couldn’t afford
4. Thought they couldn’t sell it because the house needs work
5. Because they have back taxes they can’t afford to pay
6. Because they have delinquent HOA fees or condo fees
7. They have two or more mortgages
8. They have a home equity line
9. Sellers believe there is equity in the house even though there really is not.
10. Owner thinks they can rent the house to even if it doesn’t cover the mortgage
11. Heard they have to pay taxes on the short sale
12. Afraid the lender will pursue them for the deficiency
13. Confused, needs time to think
14. Don’t even know what a short sale is
15. Thought a short sale is too good to be true
16. Had a bad short sale experience with previous Realtor
17. Overloaded with life events don’t know what to do
18. One spouse wants to do a short sale but the other thinks they can beat the market.
19. Seller wants to hang on so not to lose their down payment, even though values went down
20. Bad experience with a loan modification, they don’t believe the lender anymore
21. Angry at what they perceive to be abusive lender practices and they don’t care anymore
22. Don’t think their bank will work with them because they’re so nasty, so they give up
23. Think once they are served with the foreclosure lawsuit then it’s a done deal and they have to leave immediately.
24. They get many conflicting or insulting scare tactic solicitations in the mail, they don’t know who or what to believe
25. While they are trying to do a loan modification they get served with foreclosure papers
26. Think no one will want to buy their house
27. The foreclosure auction is already scheduled, the owner is afraid it’s too late
28. Owners don’t have money to move
29. Embarrassment, they think the “For Sale” sign will say foreclosure or short sale
    
30. Hoping something will happen financially to save them
31. Moving out of town, just abandon and walk away
32. They are current on their payments
33. They have savings, 401(k), retirement accounts
34. Think the bank will take their cars and force them to sell every everything they own
35. Think no one will rent to them and they will be homeless
36. Borrow from friends, family, credit cards
37. Have a tenant in the house, think they can’t sell while lease is in force
38. Divorce, and one spouse isn’t cooperating
39. Heard about a short sale but don’t understand it. Your regular Realtor said it can’t be done
40. House is a mess, don’t want people walking through
41. Too stressed to do anything
42. Paralyzed with fear
43. Think they have to move immediately
44. Inheritance, heirs see no reason to go through the effort

Dear homeowner, if you are in a tough mortgage situation, please consult with a short sale expert Realtor. You have options, we can help. We understand your predicament and we care. We will give you all the time you need.

If you are a short sale Realtor reading this, please add any situations you encountered that are not included in this list. Let’s help each other help clients wherever they are.