Too Many Distressed Homeowners Don't Know About a Short Sale!

Reblogger
Real Estate Agent

This is a great blog post that needs to be reposted. We need to get the word out that there is a alturnative to forclosure. Hundreds of home could be saved if home owners are educated on the process of a short sale. Many can be saved from facing foreclosures by just linking up with a Realtor that is knowledgeable about short sales and halping distressed owners.

Enjoy!

Original content by John Verdeaux 319217

Based on data from RealtyTrac and NAR, more than 700,000 HOMEOWNERS FILED FOR FORECLOSURE AND NEVER LISTED THEIR HOME IN 2010. How many of those 700,000 homeowners could have been saved from foreclosure?

This number was both shocking and sad to me.  Our goal this year is not only get this number down, but also to provide as much correct information as possible to help homeowners make the best decision they can when faced with a distressed financial situation. 

A SHORT SALE IS A FAR BETTER OPTION than a foreclosure for the vast majority of people who find they can no longer afford their homes or investment properties.  Unfortunately, not enough people know what their options are.  Most lenders are doing a better job with indicating to their borrowers on foreclosure alternatives.  Where they fail is in properly explaining to their borrowers how the process works and why it benefits them.  Almost all of the clients we have who were turned on to a short sale by their lender had no clue how to go through the short sale process or how it was beneficial to them.

In the end, ANYONE who finds themselves in a situation where they can no longer afford their home and finds that they have little to no equity as well should at least inquire about how a short sale to see how it could help them. 

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Comments (7)

Melba Baquero
Melba Baquero, Ascent Home Loans - Temecula, CA

You are absolutely right...lots of distressed homeowners have no clue about short sales.  I've actually tried to explain their options to them and refer them to a realtor and some have actually said that they'd rather just let it go into foreclosure!  In an age where so much information is at your fingertips, it's so sad to see so many still living in the dark.  good post!

May 27, 2011 05:06 AM
David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

hmmm maybe....

I dont believe that they all could have gotten the short sale and we dont know their curcumstance. Yes I totally agree there could have been a significant number go this route and it is always good to inquire about options but no way could they all have made it through. I see short sales fall apart constantly or take so flippin long the foreclosure would hit before the approval of the short sale??

 

Peace

May 27, 2011 05:06 AM
Dan Edward Phillips
Dan Edward Phillips, Humboldt and Del Norte Counties, CA - Eureka, CA
Humboldt and Del Norte Counties, CA

Good Morning Arary, an excellent post to put back up again.  Good input for home owners in trouble.

May 27, 2011 05:06 AM
Arary McGowan
Union, NJ

@Melba Thanks for the comment, your absolutely right. There are a lot would like the house to just go, but there is a majority that have no clue the short sale option is even available.

May 27, 2011 05:25 AM
Arary McGowan
Union, NJ

@ David, you're correct also to an extent. There are loads of deals that fall apart due to the bank not willing to negotiate or multiple lien holders. The case I am trying to make is that it some home owners knew of the other options that may be in a better position to save there credit. You and I know that a foreclosure is a bid ding on the credit and a short sale is not as bad.

Thanks for the comment!

May 27, 2011 05:30 AM
Arary McGowan
Union, NJ

Thanks Ed, glad you enjoyed the post.

May 27, 2011 05:31 AM
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

At some point the sellers give up, especially after their lender ran them through a denial of a loan modification.

May 29, 2011 08:03 AM