I love talk radio. I listen to news, political and business talk radio all the time.
On Saturday (today), local talk radio shows are more prevalent as they take over the air-waves that are mostly made of nationally syndicated talk radio shows during the business week.
Today, As I was driving home from breakfast this morning, I was listening to financial show talk radio.
Much of the conversation was about the Phoenix real estate market. Topics ranged from Phoenix real estate prices, mortgage lending, mounting Phoenix AZ foreclosures and Phoenix AZ short sales.
Today, there was a guest speaker who was , by his own admission, an expert in helping struggling Phoenix AZ real estate owners with short sales. In fairness, there is no fee , out of pocket, for the home seller. Ultimately, he was a Phoenix AZ real estate agent who would list the property for sale with the hope of earning a commission upon a successful sale.
An honest service? Yes! A good service? Well maybe.
Here’s why.
For the vast majority of homeowners selling short, there is little benefit.
Yes, sellers avoid a foreclosure. However, in 99% of cases, the seller still has ruined credit. The seller still has to move out of the home. The seller gets no money from the sale.
In fact, (in almost all cases ) the only beneficiaries to a short sales are the buyer who are usually getting a great deal and the real estate agents who earn a commissions.
There are exceptions to this rule, of course. If you are not behind on your mortgage and continue to pay until the home is successfully sold short, you can avoid late payments on your credit.
You also avoid what some feel is a social stigma of a foreclosure. I personally do not see that as a problem. However, some people do.
A short sale may work for many people. It is not the answer for all people.
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