What is a Strategic Short Sale?

Metro Broker Barbara Gregg, of Diva Properties describes how a strategic short sale can be a better alternative than just walking away, for someone about to lose their home. Let Barbara help you through the process. Call her at 303-757-7900

Interviewer: Hi, I'm Kathy Soltero, with Metro Brokers TV, today we have in the studio with us, Barbara Gregg, and she is with Diva Properties, Barbara thank you so much for coming in today, and talking with us.

Barbara Gregg: Thank you for having me.

Interviewer: Tell me a little bit about what your feel is on how the Denver economy is going in real estate right now.

Barbara Gregg: I think Denver is very strong, big part of that is we are organic, there is no device we've got, we've got our industry, power, energy, mining is big right now, we've got agriculture, so we have a lot to offer as well as the amenities, so we are certainly one of the strongest in the country.

Interviewer: You do a lot of short sales; we've done a lot of short sales in the last few years, how receptive do you think the banks are right now, and how they are responding, and that sort of thing.

Barbara Gregg: Well the banks have gone through a huge metamorphosis, at how they look at short sales, they want to do them now versus before they didn't, and I think they have decided that it actually helps their bottom line to do a short sale. So Fannie Mae and Freddie Mac just passed a rule where they have thirty days to give a short sale approval. Now I don't know enforcement, I don't know how that is going to look, but as of June 15^th, they have 30 days to get short sales approved, or not approved, so that should be huge.

Interviewer: Awesome, so there's been a lot of talk about strategic default, can you explain that and what are your views on that?

Barbara Gregg: Well the strategic default, that is when people can and have the ability to pay the mortgage, and they look at the situation, and they choose not to. They say, "Well the home is underwater by $200,000." I mean there are strategic calculators, there are strategic monitors and there are books to help people go through and see, you know, the long term picture- does it serve me to continue to pay the mortgage?

Interviewer: Okay.

Barbara Gregg: So, in Colorado, it's not so big, in places like Florida and California, it's huge, because people paid $500,000 for a house that is worth $150,000. You know, at that point you keep paying your 500,000 dollar mortgage, does it make sense.

Interviewer: Now can you define what tactical short sales are?

Okay this is my favorite; "tactical" is what I call a strategic short sale, because the definition of tactical is strategic. But the difference is that people that may not have the option of paying, both with strategic, they are making a choice, they can pay, they choose not to, but tactical people have lost their jobs, there's been health issues, they are no longer able to continue to pay, with that they lose their power, they go into the panic, the fear, the humiliation, and then they make bad decisions. So with tactical what we try to do is give them the same options that people that are using strategy, and we just turn it around, and say okay we'll look at your fear, we'll look at your humiliation, we'll look at your shame, we'll look at your pain, lets look at all that, because it's real, but then lets move on, and make great decisions, so things look better in six months.

Interviewer: Right, right.

Barbara Gregg: Now and, generally what happens is people will get afraid to move out of the house, and that's honestly the worst thing they can do...

Interviewer: ...without taking steps to maybe short sale it do modifications or something to that nature, is that correct.

Barbara Gregg: And there's all kinds of laws being passed right now, with the refinancing, so even if they have tried to refinance, provided that there is the money there, provided you know if you have lost your job, they are not going to refinance, if you don't, if you cant prove income to cover it, then we need move on, and look at bankruptcy.

You know, a lot of times people will say, "Barb we just, we want our kid to graduate from the house, we need nine months." I can get them nine months, and we do that-strategically, it doesn't just happen, we have to have a plan, and we have to work the plan, so that's why it's important to work with a specialized short sale agent, that they can make help make things better, instead of status quo.

Interviewer: Right, so what's the best way people can get a hold of you if they want to buy or sell their homes?

Barbara Gregg: We have this incredible new web site; I think it's one of the best searches in the web site, wwwdenverhomesandcondos.com.

Interviewer: Okay.

Barbara Gregg: And then my phone is 303-757-7900.

Interviewer: Alright Barbara thank you so much for coming in and talking with us, I know it's such a short time, and that's such a huge issue, but it's been very informative, thank you.

Barbara Gregg: Thank you.

Interviewer: And for more real estate related videos like this one, be sure to tune into MetroBrokersTV.com.