"Do Your Sellers REALLY have a hardship ?" asked the Selling agent

By
Real Estate Agent with EXP Realty 414-525-0563 57026-90 Broker

 One of the requirements....let's say the primary requirement for doing a short sale is that the Seller(s) have a financial hardship.  We dupside down houseon't know anyone who buys a house with the thought of at some time, having insufficient funds to make the mortgage payments...it is not a sought after or ever desired situation by any homeowner.

   Many times there are multiple hardships which may include things like unemployment and divorce or serious illness and job loss...death of a spouse and insufficient income.  We know the reasons for each short sale we list, we have seen the financial disclosure...we know that the expenses as minimal as they may be for the necessities in life, exceed the income of the homeowner.

income and expensesWhat the nature of the hardship is...is documented to us.  We see no reason to document it to the "world" other than in the required hardship letter to the lehardship collectionnder when we are seeking approval of the short sale. In some cases, Divorce for example, the hardship may be public knowledge. Court records are available to anyone who wants to research them. 

We see no reason to document whatever the hardship

to the Buyer or their agent. Life is tough enough for distressed sellers  without adding unnecessary problems to make things more difficult....airring the financial details of their hardship is unnecessary.
    If we list a home as a short sale, we guaranty that the Sellers  have a hardship. We believe that experienced agents who list short sales understand their professional and ethical obligation to make that determination before taking a short sale listing.

   The short answer to..."Do your Sellers REALLY have a hardship?"...is YES.

    If you or anyone you know is unable to pay their mortgage for reasons of hardship...Call the Hansons. If you do not live in southeastern Wisconsin, we will help you locate an agent with expertise that practices in your area. 

   

 

Posted by

Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS


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hardships for short sales

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Rainmaker
1,054,289
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

For short sale the sellers are only interested in stalling forclosure process so they can get to stay longer.

For regular sale, I have not encountered hardship from the seller. May be wife punched her fist on his face to give a black eye-divorce.....

Feb 27, 2016 12:55 PM #13
Rainmaker
799,632
David Alan Baker Laveen & South Phoenix Realtor
Keller Williams Realty Phoenix - Laveen, AZ
Your local Expert

Done many short sales here in Phoenix, South Phoenix and Laveen.  Currently have one I"m working on.  All have hardship.  Its a must.

Feb 27, 2016 01:17 PM #14
Rainmaker
1,317,651
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Good information for those who may find that a short sale is an option.

Feb 27, 2016 01:20 PM #15
Rainmaker
2,812,451
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Some people just take a lot of convincing or don't have the patience to do the proper research. Thanks for being one of the good ones!

Feb 27, 2016 01:25 PM #16
Rainmaker
2,812,451
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

A lot of it is fairly quick information for short sale, but that's what it needs to be in this case and it works! I agree!

Feb 27, 2016 01:28 PM #17
Rainmaker
1,504,058
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, Blackstone Realty Group - brokered by eXp Realty - Kalispell, MT
The House Kat

It's no one's business why there is a short sale; obviously there is a need or the bank would not have said yes. I'm not sure why a buyer agent would even need to know this.

Feb 27, 2016 07:12 PM #18
Rainer
503,464
Rose Mary Justice
Synergy Realty Pros - Dandridge, TN
Synergy Realty Pros

Working for the sellers is to maintain their privacy.  There has to be a need or the bank would not allow it.

Feb 27, 2016 08:26 PM #19
Rainmaker
3,055,815
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Sally K. & David L. Hanson "We see no reason to document whatever the hardship to the Buyer or their agent. Life is tough enough for distressed sellers  without adding unnecessary problems to make things more difficult....airing the financial details of their hardship is unnecessary."  Agreed - it's "nunya" to the Buyer/Buyer Agent.  Re-Blog!

Feb 27, 2016 09:04 PM #20
Rainer
551,961
Sham Reddy CRS
H E R Realty, Dayton, OH - Dayton, OH
CRS

Yes, sellers have to demonstrate a valid hardship to qualify for a short sale!

Many times there are multiple hardships which may include things like unemployment and divorce or serious illness and job loss...death of a spouse and insufficient income. 

Feb 27, 2016 09:28 PM #21
Rainmaker
2,513,548
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Here we see what experience and talent does when it is working...thank you

Feb 27, 2016 11:10 PM #22
Rainmaker
908,388
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

It is lack of experience of a selling agent who asks this question. A buyer doesn't need to know why a seller is selling. 

Feb 27, 2016 11:13 PM #23
Rainmaker
1,027,100
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

Since we are in the age of oversharing and TMI, this question doesn't surprise me in the least, although it's sad it's being asked.  

Feb 27, 2016 11:45 PM #24
Rainmaker
585,752
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

Inquiring minds want to know... they think it may help with their negotiations, but as the listing agent, the reason for the sale (or hardship) is not relevant and should be protected. Good for you!

Feb 28, 2016 12:37 AM #25
Rainmaker
529,640
Hella M. Rothwell, Broker/Realtor®
Carmel by the Sea, CA
Rothwell Realty Inc. CA#01968433 Carmel-by-the-Sea

Just because someone poses a question, we don't have to answer it. It's amazing how much information I get out of agents on the other side, and that does not make me a bad agent.  I try to find out what my client wants to know. If I can't, I can't especially if it's not relevant to the transaction.

Feb 28, 2016 01:18 AM #26
Ambassador
4,123,001
Jeff Dowler, CRS
eXp Realty of California - Carlsbad, CA
The Southern California Relocation Dude

Sally and David

I'd say you covered they whys and hows of hardship in a short sale pretty well. Yes there is a hardship - Nuff said

Jeff

Feb 28, 2016 01:20 AM #27
Rainmaker
2,190,577
Elizabeth Weintraub Sacramento Realtor Top 1%
RE/MAX Gold - Sacramento, CA
Put 40 years of experience to work for you

Sometimes agents chase short sales that are not short sales, so they get burned because the sellers have no intention of really following through on the short sale, but those are idiot agents who list those things. You, Sally, are certainly NOT in that category, so regardless of  WHAT the buyer's agent thinks he is entitled to know, he is incorrect. The hardship is nobody's business but the listing agent and your fiduciary requires confidentiality, which some buyer's agents simply fail to understand; too bad, so sad. You go get 'em. :)

Feb 28, 2016 01:34 AM #28
Rainmaker
1,561,423
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Are short sales have dropped considerably.  Do you still have many?  And yes, I agree with you that there is no reason to air the dirty laundry of clients, no matter what.  WE have fiduciary duties.

Feb 28, 2016 07:39 AM #29
Ambassador
2,916,229
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

As a listing agent I need to know that the seller has a hardship or I don't take the listing.  I however, like you, protect that information from other parties. 

Feb 28, 2016 07:40 AM #30
Rainmaker
5,614,624
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is an excellent perspective to share with prospective home buyers and their agents.

Feb 28, 2016 09:10 PM #31
Rainmaker
20,543
Michael Kaim
Berkshire Hathaway HomeServices Professional Realty - Mentor, OH
Real Estate team serving the Cleveland Area

Thanks for sharing, Great information Sally K. & David L. Hanson 

Mar 01, 2016 09:49 AM #32
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Rainmaker
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Sally K. & David L. Hanson

WI Real Estate Agents - Luxury - Divorce
For All Things Wisconsin Real Estate...Call the Hansons
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