Survey statistics shows 95% of people still are not understanding short sales!

Real Estate Broker/Owner with Remax 24/7 Real Estate

An article about a recent survey from 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.

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About Me: I have been in the real estate broker since 1993. I have a BS from University of Wisconsin-Madison (92). I have experience in real estate, land (subdivision) development, new home construction, and mortgage finance. This experience gives me a well round knowledge base of all aspect of a home and I use that knowledge to help sellers and buyers with highly informative sale style.

I am the first nationally certified distressed property expert (CDPE ) in the fox valley area and specialize in Foreclosures and Short sales. What this means? As a CDPE I am a skilled negotiator with banks on a national level and a savvy marketer of real estate. I set the right market determined price and convey the correct information to the banks, I can help successfully facilitate both residential and commercial situations where financial stress and market changes result in non-performing (upside down) loans as it relates to real estate property. This net result to my clients, is faster resolution and reducing long term credit damage.

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Comments (4)

Jeremy K. Frost
Keller Williams Realty - Dripping Springs, TX
Associate Broker, ABR,CNE,CRS,ePro,PSA,RENE,SRS

Short sales are a huge part of todays market. Thanks for the info!

May 21, 2010 03:44 AM
Michael J. O'Connor
Diamond Ridge Realty - Corona, CA
Eastvale - 951-847-4883

I'm not sure that I'd interpret that nearly half of people are walking...  I think the survey indicates that 59% don't think it's right.  The other 41% may not think it's wrong but it doesn't mean that they all ARE walking fact the articles first paragraph indicate that about 1% are walking. Still a large number.  :-)

May 21, 2010 03:47 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Thomas...the scary part is that we do not know the full repercussions of a short sale yet. I suspect lawsuits are in the wings in the years to come.

Thank you

May 21, 2010 03:47 AM
Michael Collins
*ROCK REALTY|Broker|Realtor|Real Estate|WI Short Sale Agent* - Janesville, WI
CDPE, SFR , Wisconsin Short Sale Specialist Realto

Thanks for the blog Thomas.  This is so true.  Although 'short sales' are more recognized than even a few years back, most still would rather just walk away.  It's a lack of education.  If the media would actually cover things like short sales as an alternative, the market would likely be much better off.

I'll keep your information handy in case a lead from your area comes my way.

Jun 01, 2010 05:03 AM