Being a Short Sale Specialist in my area I come across many distressed home owners that are looking for a route to avoid foreclosure. I generally conduct a phone consultation; if that goes well, it is followed up by an email with a list of items that I will need in order to sit and meet with a home owner. Usually they have everything in order when I arrive, we discuss the past, present and future as well as the Short Sale process and what to expect. Then I take the listing!
During the consultation I constantly try to tap into how the situation got into its current state and look to determine how valid the hardship is before agreeing to take that journey...
What I have found is that people have a hard time determining what a "HARDSHIP" truly is; so I want to go over that as well as what's NOT a hardship...SHALL WE ?
The following does not constitute a Hardship:
- The neighbor sold for 50k less and has brought value down in the area.
- Your tired of paying your mortgage (Secretly aren't we all tired)
- That guy that works at your job and has no Real Estate experience told you that all you have to do is be late a few times and the bank will work it out for you.
- You bought at the height of the market and you feel you got taking advantage of; so the bank better do something
- You got a raise at work and a 25k bonus but they wont find out, so you claim insolvency
- You hired an idiot Agent who convinced you if you miss a couple payments you qualify for a loan mod or short sale (know your job)
- An investor knocked on your door and told you to take all your money out of the bank and let him negotiate a short sale and he will pay you when its done (can you say jail?)
- Bad purchase decisions. Over the last 2 years you had fun Blowing your paycheck on a home theater system, brand new Mercedes and maxxed out all your credit cards, so now your broke.
- You hate the nosey neighbor next door and one of you has to go!
- You want to sell the house to your cousin because they can buy it back for 50 cents on the dollar.
(I don't see or hear anything your talking about right now)
OK, enough jokes, but seriously, distressed owners need a real hardship and its the Agents job to qualify them for a short sale, so be diligent and ask the right questions and I hope it all goes well.
The following describes exactly what is a Hardship:
- Unemployment, loss of income is a huge reason for most hardships
- Divorce, if you are coming out of a two income relationship and now you are left with one, it may be difficult to carry the load
- Medical emergency / sudden illness, this can be tragic and cause problems with going to work and making money to pay bills
- Bankruptcy, if you have become financially strapped and go the bankruptcy route a lot of changes can and will take place with your home.
- Death, in the event the primary or even secondary mortgagors demise, paying for burial services and or losing a partner may make paying the mortgage impossible.
- Severe Damage to the property may make the property uninhabitable thus making it difficult to pay for two residences.
- Payment increase or mortgage adjustment, a lot of home owners realized an increase in their interest rate or Tax payment and now they just cannot afford to maintain the home
A Distressed home owner experiences many different emotions and its up to us help guide them to the foreclosure avoidance options that are available and not leave them feeling alone.
Of course there is no straight answer when you are dealing with a short sale; each one is different regardless of the lender and you have to have a knowledgeable agent that has your best interest at heart. Do not play the game of making up a hardship as it could get very ugly if your deceit is discovered. That warning also goes for agents, do not involve yourself or your brokerage in any transaction that is not 100% authentic. When people lie and manipulate the system it affects your REAL clients adversely and that is unacceptable as they are the ones that truly need the help. Contact us at 973.849.6907or by email at info@goodbuyhomesnj.com if you or someone you know is in need of our help.
Malik Crichlow
BROKER/OWNER , CDPE, SFR
GoodBuy Homes NJ Realty
1811 Springfield Avenue Suite 2 Maplewood, NJ 07040
Office: 973.849.6907 Direct: 347.538.6864
Fax: 973.843.0277
Info@Goodbuyhomesnj.com
GO TEAM GREEN!!!
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