St Petersburg Short Sales: For those of us working short sales in St Petersburg Fla the process is not improving. More short sales are coming into th market and luxury shorts are expected to increase over the next 12 months. The Feds unwillingness to work the process is creating another financial meltdown. Hold on to your hats! Follow me, John and Sally are great people living here in St Petersburg, always paid bills on time. Joe down the street looses his place to a short sale or bank owned sale. John and Sally due to a slow down at Johns workplace need to reduce debt. They apply for a refi and find that because of Joes short sale, values dropped and now John and Sally cannot get a new loan to reduce debt. This forces them to sell short. Heres the rub, they are allowed to sell short by the bank, with the understanding they sign a promissory note for the 2nd mortgage. They do not have the ability to pay back anything. The bank insists and John and Sally who have always paid all the bills, decide to go bankrupt to avoid paying the promissory note. Months go by and John and Sally final finish the bankruptcy and go on with life. Heres the deal, so the note and mortgage go away, since they are going bankrupt, car loans go away, the boat loan goes away, the student loan goes away, the 30k in credit card debt goes away. John and Sally are great people. This trend will crush financial institutions again. All of us will suffer again. Courts will get so tied up processing bankruptcies all because lenders are trying to squeeze water out of a rock. Steve Busse CRS GRI, CLHMS Broker Associate Remax Allstar St Petersburg Fla www.stevebusse.com
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