It's my belief that the very best outcome would be to keep homeowners in their homes, whether that's through loan modifications, short refinance, or some other workout plan. But many of these homeowners are facing chronic, long term hardships that make modifications virtually impossible. If homeowners in arrears can demonstrate that the hardship they are facing is acute, and of a limited duration, then (in my opinion) we as realtors have a certain obligation to assist homeowners with the task of staying in their homes. Short sales should be a last resort.
I know that lenders and loan servicers are working as hard as they can to offer solutions to homeowners in arrears. The problem, as often as not, is that these homeowners typically withdraw themselves from communications with their lenders. Too often they miss out on opportunities to help themselves because they are scared, and fail to respond to any lender initiatives.
Short sales definitely have a place in this real estate market, and are a better option than foreclosure. The damage done by foreclosures extends beyond the individual, and affects all of us locally, regionally, and nationally. Before I consent to do a short sale, I will counsel homeowners to explore and exhaust all options. I introduce them to many of the resources available to assist them. Foreclosure is not merely a lending problem; it is a societal problem and a human tragedy. Too often we lose sight of the fact that these are real people being displaced from their homes.
Comments(0)