I recently listed two new short sale homes. One is just shy of $1 million; the other is around $350,000. One is Rockland County just 15 minutes from the George Washington Bridge and Manhattan, the other is in western Orange County, NY about an hour from the city. One is almost 5000 square feet, the other is closer to 1500 square feet and although it doesn't sound likely, the two clients have a great deal in common.
- Both are responsible and hard working
- Both are frugal and fiscally conservative in their management of money
- Both are college educated professionals
- Neither fits the profile of an irresponsible foreclosure candidate
- Both are devastated at their situation; feel alone, and under considerable stress.
What is different about many short sales in the current market is that due to job loss, loss of income, or something else completely not related to their responsible behavior, otherwise good and accountable people are finding themselves needing to sell and not having the equity to cover their costs. These were not subprime borrowers. Both are stable. One had his business fail due to the recession, and the other has lost income. This is unfamiliar territory for both, because they have always been careful and diligent in life and never overextended their credit.
In both cases, they are not alone, they are actually smart for getting proactive and contacting a Realtor that is conversant in short sales and a CDPE. In both cases, I will do my utmost to get them out from under their upside down mortgage and get their short sale approved. It won't be easy, but if we do it, they will not owe the lender anything after they close. They will get a fresh start. They will be able to keep a roof over their family's heads and will repair their credit over time. In 2 years after they sell, if they want, they should be able to buy another home.
The money is not the worst part of a short sale. No one starves or has no clothes. The worst part is the perceived stigma and related stress. My plea to anyone in this situation is to address the stress or find someone to help, and in time you'll be free and clear of the issues and able to move forward with life without looking back. After all it's not like you are the only one in this situation anymore.
However, I must stress that my biggest ally in achieving short sales is a well versed attorney. Without whose help I would truly struggle. I'm supposed to be able to negotiate the whole deal, however, the whole process is developing almost daily and even with my CDPE certification, without a powerful attorney who stands up to the lenders at my side in court, the hope of getting a short sale through the system would be difficult at best.
I'm interested in hearing how other REALTORS; especially CDPE's are coping with the constant changes and ever growing numbers of short sales and foreclosures in their markets. I'm certainly getting feedback from buyers these days that they are frightened of bidding on pre-foreclosures (short sales,) as the perception is that they are so difficult and lengthy to negotiate. A very different picture from 6 months ago.
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