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Short Sale, Foreclosure, Loan Modification, Deed-in-Lieu of Foreclosure? What?

By
Real Estate Agent with ERA Realty Center

When oh when can we just go back to resales and new construction with hardly any distressed sales any more?   I feel so sad for the sellers who can't make their payments because they lost their jobs or have some other hardship; and yet, I feel so strongly that the payments should be made because a commitment was made to pay them.  But how?  It seems for many there just is no way.  I certainly don't know the answer. 

Everything seems all confused in today's world.  I want it fixed, but I don't know what can be done to fix it.  Will someone out there please do whatever it takes to make the pain go away for so many sellers?  Leave politics out of this and find a way to bring back our nice, steady, even economy with no big ups and no big dips.

In the meantime, I believe we should keep some things in perspective.  For example, are the lenders really always the bad guys?  I believe we have to recall that they were kind enough to grant the loans, so people could buy the homes they wanted at the price they wanted to pay. 

What prompted my outburst?  It's from my heart which is broken to think that my own neighbor is having such a tough time financially.  I just learned that he has decided to let his home be foreclosed.  He bought the home for thousands more than it's worth now.  Does that sound just a little too familiar in this real estate market?  I've heard from a reliable grapevine source that he's going to walk away.  Wait!  There are options out there.  Did anyone tell him a foreclosure on his credit report is not a good thing? 

My question to you is,  "Is it okay for his real estate neighbor, me, to interfere in his business to let him know that there are options?"  I typically like to mind my own business when it comes to neighbors to keep things warm and friendly, but I believe he should at least call his lender and discuss his options!  He may be able to stay in the home with a loan modification or refinance.  I would think that even a deed-in-lieu of foreclosure would be better than walking.  As difficult as short sales can be, I think selling is worth considering, too.  Wouldn't you agree?

I would love to hear your comments and opinions.  Please call me at 435-865-1019 or 800-934-3742.  That's Janet Naisbitt-Bagley at ERA Realty Center.  You can also email naisbitt@infowest.com or text or call my mobile at 435-559-7772. 

My website is www.homesincedarcity.com where you can find the Cedar City, UT, area homes for sale including foreclosures, short sales, new construction and other bargain-priced homes.  Whether buying, selling or referring, I'd love to help with all your real estate needs!  There are a lot of opportunities, I believe, for buyers in this bargain-driven real estate.

 

 

Comments (4)

Janet Naisbitt-Bagley
ERA Realty Center - Cedar City, UT

I think the trials people are experiencing in the current economy are breaking all of our hearts.  It hits home whether it's a family member, friend, loved one or neighbor that is experiencing the hardship.  It makes us want to band together and help each other to make a better world.  Agreed?  Any ideas?

Sep 09, 2011 04:39 PM
Lynn B. Friedman CRS Atlanta, GA 404-617-6375
Atlanta Homes ODAT Realty - Love our Great City - Love our Clients! Buckhead - Midtown - Westside - Atlanta, GA
Concierge Service for Our Atlanta Sellers & Buyers

Dear Janet -

OF COURSE ---- OFFER HIM THE OPTION OF ALTERNATIVES TO Foreclosure.
Look for a trained CDPE in your market area -

THEY CAN HELP -

Have a happy day -
Lynn

Sep 09, 2011 04:54 PM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

The Lenders - that is, the Big Banks and the Fed - are definitely the Bad Guys.  They knew exactly what they were doing.

Should you help your Neighbor - absolutely!   Who else can give them any hope to get out of the mess that they are in?

When can we just go back?   Probably around 2018 or 2020.   By that time, people will have paid down the Principal Balance on the Mortgages, and they will no longer be Upside Down.

Sep 09, 2011 05:38 PM
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Janet,

I honor your passion. Most of us in the real estate and mortgage world want to fix it. So many situations pull on our heart strings.

Yes, of course, do what you can to assist your neighbor. There are many possible options and you have mentioned a few. I always recommend a modification if possible. Unfortunately, this process ends in disappointment very often. Most mortgage holders will not accept a deed in lieu of foreclosure. If this is an option, the negotiation process must include, relief of all debt and reporting to the credit bureaus must also be part of the negotiation.

Sep 10, 2011 12:25 AM