Some of the unfortunate realities of short sales as posted by Lenn Harley:
HUMAN NATURE IS OFTEN HARD TO UNDERSTAND, especially when the human involved is a home owner faced with:
- the loss of their home,
- the loss of their financial stability,
- the knowledge that their children's education will be disrupted,
- the reality that their credit is ruined for years,
- the fact that their dream of home ownership has been lost
- the loss of their dignity in front of their family, friends, neighbors, co-students, co-workers.
IT'S NOT JUST A SHORT SALE. Few experiences are as humiliating to an American family (can be a family of one) as the forced loss of their home through foreclosure, short sale or other distressed sale. The operative word in this description tossed around by banks, appraisers and real estate practitioners is distressed sale. Homeowners facing the lost of their home, security, standing in the community, in the face of family and friends are truly facing the abyss. See: The Abyss: There is a place in the human psyche that ... well, until you've been there, warnings sound trite,. more. . .
HUMAN NATURE IS WHAT IT IS. What do many consumers do when their lives are falling apart? They do what they can to preserve what dignity they can salvage.
- Many ignore mail from their mortgage company.
- Many ignore phone messages from their mortgage company.
- Many don't answer knocks on their front door.
CAN SOMEONE PLEASE HELP US? Because of the repeated TV and radio ads for refinance, short sale* or loss mitigation**, many believe that there are ways to salvage their home, their credit and their dignity***. Sadly, once a home owner is the owner of a home with negative equity**** and they can no longer make the monthly payments, they don't always understand that they will, almost always, have to go through the loss of their home. So, they seek the help many promise, only to be faced with the inevitable fact that they will lose their home.
WE ASKED FOR THE JOB, WE DIDN'T INHERIT IT. I don't believe that most agents/brokers who manage foreclosure sales or short sales prefer distressed sales to regular home seller/home buyer transactions. Yet, we advertise our services to the consumer. We promise help, that magic word. Of the many TV, radio, Internet, direct mail, etc. advertisements I've observed, the fact that the end result of our services is that the target of our advertisement will lose their home is never mentioned. I've not seen an ad that started with "SO YOU'RE LOSING YOUR HOME! CONTACT OUR REAL ESTATE COMPANY. WE CAN HELP YOU MANAGE THE LOSS OF YOUR HOME" After all, loss mitigation means financial loss. The financial understanding of loss mitigation doesn't include the loss of dignity.
When we agents/brokers take a foreclosure listing from a bank or a short sale home owner, the process is different because:
The selling REO bank or short sale approving lender:
- doesn't understand the real estate market,
- rarely takes real estate advice from their listing agent/broker,
- makes up the rules as they go,
- isn't required to follow the Realtor Code of Ethics for timely response.
WE CAN'T EXPECT MORE FROM THE HOME OWNER THAN WE RECEIVE FROM REO SELLING OR SHORT SALE APPROVING LENDERS. If we believe, as do I, that the American home owner is not responsible for the mortgage mess. Neither can they be expected to always comply timely with bank demands or agent requests to comply with bank created requirements for short sales.
THE BANK IS TAKING A FINANCIAL LOSS. Sure, we get that. However, the losses endured by home owners facing the loss of their home, and more, is far more difficult and lasting than mere financial loss.
Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988.
"Honey, have you called the mortgage company back yet?"
"Not yet, Dear, Not yet."
"What are we going to tell them?"
"I just don't know, Dear. I just don't know."
"Do you think they'll give us more time?"
"I hope so, Dear, I hope so."