Who Put the Shame in Short Sale?
Even though the “Lesser Depression” is in full swing and the Housing Bust is old news, I still occasionally run into the sentiment that short sales are shameful. Why? Is this a case of middle class morality run amok? As a Santa Maria short sale agent, I’ve consulted with many underwater home owners who believe they can "afford" to keep paying their bloated mortgages. However, paying a 2005 mortgage on 2011 wages is tricky indeed. And, when you sit down and review financials, you often discover people are amassing credit card debt on a monthly basis, not able to save for retirement, and have years of deferred maintenance on their home. Some would prefer to go on in this fashion until they reach the door of a bankruptcy attorney. As nonsensical as it sounds, others would rather load their things in the back of a U-Haul in the middle of the night and let the home go to foreclosure rather than stick a “for sale” sign in their front yard. Why? Who put the shame in short sale?
Because I worked as an attorney before coming to real estate, I view the question of bankruptcy as one of mathematics. Are you in the red or in the black? And I view a short sale in much the same way. Interestingly, what is the financial condition of the US right now? Last I checked, the country’s entire economic system is undergoing a major adjustment. Yet, for some, pride demands that their financial condition should not (seemingly) be affected in these troubled times. I regret that we’ve gone this long as a nation without an acceptable response to the after effects of the housing boom and bust. I regret that bailing out financial institutions was viewed as vital, yet bailing out underwater homeowners has been and continues to be a low priority. And, I regret that every major effort aimed at the problem of the underwater homeowner seems slighted towards people losing their home and sitting on the sidelines of the housing market. That I think is shameful. However, I do not think a short sale is shameful ... I think a short sale is about math.
Before deciding whether to short sell your Santa Maria home, it is essential that you obtain legal and tax advice, and consult with an experienced local short sale agent. If you are considering a short sale of your Santa Maria, Orcutt, or Nipomo home and would like a short sale consultation, please call my office to schedule a meeting or a telephone consultation at (805) 938-9950.
Tni LeBlanc is an independent Real Estate Broker, Attorney, andShort Sale Agent. She is a Certified Distressed Property Expert (CDPE) and Certified HAFA Specialist (CHS) serving the Santa Maria, Orcutt and Five Cities area of the Central Coast of California.
* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement. Mint Properties is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.If you stop paying your mortgage, you could lose your home and damage your credit rating.
Copyright© 2011 Tni LeBlanc *Who Put the Shame in Short Sale?*
Who Put the Shame in Short Sale?