An article about a recent survey from Trulia.com and RealtyTrac released today really shows people are not getting the help they need or they do not understand how to solve their foreclosure problems.
Points of interest:
1. 59% would not strategic default or leave the keys and walk. Shows there are still a large number... 41% would consider walking away...that's nearly half.
2. 69% would opt for loan modification but it shows only 10% actually are successful to loan modification. How many still fall behind after they modify. Not good, so only 10/100, sounds like the odds are against you or the loan modification requirement are not realistically meeting the needs of those applying. It now seems clear that government programs will not reach the overwhelming majority of homeowners in trouble, which only will result to a larger number of foreclosed homes on the market.
3. Only 5% see Short Sales as an alternative. I find that alarming. Not because I am a Realtor and make money from the sale of the homes, but the fact that people still are uninformed about the benefits. If only 10% can get a loan modification that means that 90% are going to foreclosure unless they short sale. It shows that the education and incentives for short sales are not reaching the homeowner.
I always tell my clients that the biggest mistake they make in these times is shutting down. This is a natural reaction to being in financial distress and loosing their home. Not thinking that things will get better will mean that short term decisions, like letting the home go to foreclosure, may seem easier than going through the hassle of selling. "Why help the bank...they do not want to help me!" My answer is things will get better and this ball & chain of foreclosure will follow you around for years on your credit. Making and effort to short sell will allow you to buy a home again, earlier. The incentive right now do not seem like much but waiting another 2-3 years until you qualify for a loan may seem like forever. Banks are penalizing homeowners that leave it go to foreclosure.
If I can be of any help with short sales as a foreclosure alternative, let me know.