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Short Sales Are They A Sign Of The Times

By
Managing Real Estate Broker

Short Sales I guess they are just a Sign of the Times.

 

 

According to the multiple listing service of Long Island,  as of this morning there were 2,116 homes being sold as SHORT SALES.

 

If you do not know what a Short Sale is here is a link to a great short sale definition from Wikipedia.com:

 

Wikipedia's Definition of a Short Sale

 

Mortgage companies take big losses when they foreclose on a home and will often do anything to avoid doing so. A short payoff is a viable alternative to taking the house back and it has become very popular.

 

The psychological effects of a Short Sale on home owners is devastating. Most that we have had experience with are very remorseful and many are very embarrassed.

A Short Sale destroys the Seller's credit making it impossible for them to buy another home in the near future. So the entire situation is very painful and very unpleasant. 

 

We recently had a young couple who paid close to a million dollars for their home in 2008. The husband lost his Wall Street job and they were no longer able to afford their mortgage payments. They borrowed money from their family to stay current on their payments.

 

We advised them to apply for a SHORT SALE. They felt as did their family that  they had an obligation to pay the bank what they borrowed from them.  We sold their home for $795,000.00.

 

They accepted their loss and after paying the bank everything they owed them they attempted to buy another home. Due to their low credit scores they were unable to do so.

They were able to rent a Condo ONLY WITH THE HELP OF THEIR FATHER, who because of their credit scores had to pay one year in advance and 4 months security on a $3000.00 a month unit.

 

It was our pleasure to work with this young couple. It was sad to see what had happened to their lives through no fault of their own and wonderful to be able to be in a position to help them get started all over again.

 

Short Sales are heartbreaking for the sellers but for the buyer they may offer a good home buying opportunity.

 

If you are in need of a SHORT SALE SPECIALIST please don't hesitate to contact us.

If you would like to explore the advantages of An All Cash Offer for your home please contact www.longislandcashhomebuyer.com

Short Sales... are they a Sign Of The Times... What do you think...

Comments (35)

Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

~20% of the current listings in my town are short sales.  That's a lot of distressed homes.

Feb 02, 2015 08:08 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Beth and Richard,

We have very few short-sales or foreclosures in our area. Our prices are appreciating and if a seller wants to sell they can usually sell and pay back what they owe. You have a lot of short sales in your area..I found it surprising.

Feb 02, 2015 08:17 PM
Linda Metallo DiBenardo
RE/MAX Impact, Lockport, Illinois - Lockport, IL

A good percentage of the closed sales on my area's daily MLS hotsheet were either a short-sale or foreclosure.   There are still many homes purchased in the boom years with lost equity. Many have no choice except selling short or bringing money to the closing table.   

Feb 02, 2015 08:35 PM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

I have seen a trend here in Nh that short sales are a fraction of what they were, but they are still here. The problem is many sellers are listing with agents who have little to no experience in listing and negotiating them. It leads to rejection before a sale can even start on some cases. 

Feb 02, 2015 09:43 PM
Jenna Dixon
Momentum Real Estate Group LLC - Marietta, GA
55 & Over | New Constructions | Horse Farms

The presence of short sales remains in the metro Atlanta market.  While they are down considerably, certain areas of the MSA have more than their fair share.  Good luck getting your "re-buyers" off to a fresh start this year!

Feb 02, 2015 10:10 PM
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

Fascinating how regional short sales are - They are much less prevalent in the DC metro area market now. 

Feb 02, 2015 10:12 PM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

Whoops..NO a short sale does NOT destroy credit...it helps to repair it

far faster than a foreclosure....it is not paying the mortgage that destroys the credit...

Feb 02, 2015 10:28 PM
Christine Smith
Buyers Brokers Only LLC - www.BuyersBrokersOnly.com - Canton, MA
Exclusive Buyer Agent & Attorney, Canton, MA

We don't see many short sales in our market these days.  There are a few still here and there but not as many as a few years ago.

Feb 02, 2015 10:34 PM
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Good morning Richard and Beth, number of Short Sales are way down in my area compared to 2013, hope it continues that way. 

Feb 02, 2015 10:47 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Beth, seeing a family go through this process is heart breaking, and sad to see the bread winners lose their jobs.   

Feb 02, 2015 10:50 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Playing high stakes poker with your HOME and losing...short sales is just that

Feb 02, 2015 11:31 PM
Tom White
Franklin Homes Realty LLC (615) 495-0752 or www.FranklinHomesRealty.com - Franklin, TN
Franklin Homes Realty LLC, Franklin TN

We see very few short sales here now compared to just a few years ago. 

Feb 03, 2015 04:55 AM
John Marshall - FORE!
LoKation Real Estate - Cherry Hills Village, CO
Specializing in Golf Course Properties

It definitely pays to hire an experienced short sale agent, like the two of you, a few years ago every other home in Denver was a short sale, I just checked and with over 5000 homes on the market in the Denver MLS only 53 are short sales.

Feb 03, 2015 08:05 AM
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Richard & Beth Witt - so true - short sales are really challenging. These sellers not only need professional guidance, they also need counseling.

Feb 03, 2015 12:52 PM
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

I see less and less short sales. Yet, I work with a company who liquidates nonperforming assets , recently they got a huge number of them. We'll see what they decide to do with those homes: short sale or foreclosure them....

Feb 03, 2015 04:39 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

We have fewer short sales in our area than we had in 2013.

Feb 03, 2015 08:44 PM
Roy Kelley
Retired - Gaithersburg, MD

Many prospective home buyers are trying to avoid short sales because of the low success rates.

Feb 04, 2015 04:02 AM
Debb Janes
Nature As Neighbors - Camas, WA
Put My Love of Nature At Work for You

I applaud you for helping sellers in a short-sale situation. It's a daunting task and takes a very patient person to get through the process. Good for you. D

Feb 04, 2015 04:34 AM
Noah Seidenberg
Coldwell Banker - Evanston, IL
Chicagoland and Suburbs (800) 858-7917

Beth I sure hope to see short sales go away. It is often a sad situation. I agree with Debb Janes you are doing a great service even by writing this post. See how many responses you have gotten.

Feb 04, 2015 05:25 AM
Claude Labbe
RLAH / @properties - Washington, DC
Realty for Your Busy Life

Sometime ago, I represent buyers.  You could so easily see, the prior owner's spirit was crushed when they had to sell their home.  Truly sad.

We are seeing fewer here in the DC area.  Surely I hope you can say the same thing in Long Island right? Are you seeing the volume decreasing?

Feb 04, 2015 10:14 AM