What a Short Sale Does NOT Do....Banks are Not Fairy Godmothers...

By
Real Estate Agent with EXP Realty 414-525-0563 57026-90 Broker

   Short Sales are not as common in Wisconsin as they are in many parts of the country.  There are consumers and realtors alike that are uninformed and misinformed and we see it as part of our job to provide information about short sales...correct things that people believe that are not true...and explain things that are true in an effort to save more sellers from foreclosure.

    One of the myths that we have heard recently is that if a seller choose to...they can take all the debts that they have...medical, credit cards, tax liens and have them put as liens against the house.  They believe that all these debts will then disappear when they list their home as a short sale...they get an offer and the bank will magically make all the debts disappear.fairy godmother

Many sellers who cannot pay their mortgage begrudge the bank for ever having lent them the money in the first place.  "They knew I could not afford the __________increased interest rate, the HELOC to the level that was loaned....

   Banks do pay some costs associated with a home...the property taxes...water and sewer bills. We have had lenders argue that water bills were too high...even after they were submitted, not just claimed as part of the short sale package. 

   The bank is not the magic for eliminating all debts.

    A short sale is a far better solution than foreclosure which can mean a much longer period of recovery for credit scores...possible garnishment...and other problems.

   If you are unsure if your situation qualifies for a short sale and what that could mean to you....Give us a call...no matter where you are in the country, we can refer you to a Short Sale Specialist who can explain the options available for your specific situation. Locally: 414-525-0563 or Toll Free: 877-525-0563...Calling sooner than later will give you more options to solving your situation.

 
Posted by

Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS


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Rainmaker
5,424,775
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thanks for sharing. For some families, bankruptcy may be a cleaner action.

Oct 11, 2009 01:25 AM #1
Rainmaker
3,268,403
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

  We always send all our short sale prospective sellers to a lawyer first...we do what we do and they are in the best professional position to advise sellers of their options.

Oct 11, 2009 01:28 AM #2
Rainer
41,231
Mark L. Ostrovsky
Howard Hanna Real Estate Services - Beachwood, OH
Howard Hanna Real Estate Services

Helo David & Sally:

How does FNMA, or a primary lender for that matter, feel about a buyer (who has an accepted offer on their existing home) putting a clause in the purchase agreement, in what will be a short sale transaction on the home they are subsequently buying, that this transaction is contingent upon the successful closing of buyer's current home. Your insights are very much appreciated. Thanks.

Oct 11, 2009 03:25 AM #3
Rainmaker
525,052
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Sally & David - Some of the lenders are checking to find out what these equity loans were for.  It factors in approval decisions, as I am just going through on a Chase junior lien.

Oct 14, 2009 11:33 AM #4
Rainmaker
3,268,403
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Thankfully,....we have run into that a while ago and sellers had been landscaping,, hardscaping...lower level finishing and not blinging, biking etc.

Oct 14, 2009 02:36 PM #5
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Rainmaker
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Sally K. & David L. Hanson

WI Realtors - Luxury - Divorce
For All Things Wisconsin Real Estate...Call the Hansons
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