Emotional, not just a financial matter anymore; what Short Sales entail.
Emotional, not just a financial matter anymore; what a Short Sale/distressed property entail.
First we must define what a short sale is, a distressed property. Once we can define a distressed property we can properly address a Short Sale. A distressed property could be in poor condition (in need of repair), a property soon to be processed to a foreclosure status, and most of all a home in which the mortgage obligation exceeds its current market value; many times forcing the owner to sell their home out of necessity.
Clearly defined, we can state that a Short Sale must prove a hardship, being “underwater,” is NOT a substantial reason to list the home as a Short Sale. 
How a person gets to a point of wanting to Short Sale their home can happen for varying reasons; divorce, separation, death, loss of employment and/or income, loan resets (basically the payment increases; many of this loan were subprime loans, or to the consumer, called “High Risk Loans”), missing mortgage payments due to injury, etc. We could expand on the various reasons as to why someone would want to Short Sale their home.
Financial distress is apparent, but no one ever speaks of the emotional ride that so many homeowners face. Face it, the sub-prime market created a false market as to who could buy. Like a band of little kids running into a candy store, many ran into the market, snatching up a home they could not afford, or several for that matter. I can vouch that many of this consumers where subjected to predatory lending, and over priced homes due to demand. Burning money as I call it, when you pay out more in interest than principle, can be quite annoying; when a home isn’t worth what you paid, it can be infuriating. Short Sale can be the last thing on your mind!
Awaking to a home that you can not afford is very stressful in itself. The hardest part is to ask for help; we as people DO CARE as to what their neighbors, peers, and family might say or think if they are about to lose their home. Many times, there seems to be little hope as to EVER thinking one can climb out of such a disastrous emotional and financial stress. Denial and hoping that the bank will “work” with you on a loan modification, can be very discerning; including if the bank denies the modification and the client stops paying their mortgage. Nevertheless the disparity of the whole situation can cause many homeowners to feel self-doubt, depression, anger, grief, fear, and physical pain, the thought of walking away, rather to Short Sale is very tempting. 
What realtors need to understand is that we are not here to judge, and to also inform the seller that every 5 homes will rather face a Short Sale or go into foreclosure. Realtors are called to problem solve, and make a sale, not to judge why a client needs to Short-Sale their home. 
My goal as a realtor is to make my clients see that there is a light at the end of the tunnel and to put this emotional nightmare behind them. Hope is alive, being courageous and asking for help from a certified distressed property expert (as like myself), can be the first step to regaining peace of mind and financial freedom. 
Get you family back to a path of happiness.
Raiza Schwartz
Certified Distressed Property Expert
First Time Buyer Consultant.
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