Short Sale or Foreclosure?

By
Real Estate Broker/Owner with Greenrock Realty 01525318

I've received many calls asking if they should short sale or foreclose on their home.  My advice is to attempt a short sale with a Realtor first, then foreclose if you are not successfull with the short sale.  Financially speaking, most homes in California that were purchased between 2003 and 2006 are upside down in equity.  From the economic indicators, it will take somewhere between 5-10 years to recoup the losses, at best.  Most people aren't planning on staying in their homes that long.  New tax laws are in favor of the homeowner regarding losses on primary residences.  Your credit will take a hit, however your checkbook won't.  Which one is most important to you?  If you can afford the payments, I would recommned speaking to your CPA and attorney for best course of action.   

Comments (18)

Stefan Geyer
SOA Realty - Aurora, CO

I agree, and banks are becoming more and more open to short sales. 

Aug 14, 2008 09:23 AM
Patricia Fisher
Keller Williams Realty - Spartanburg, SC

Welcome to the Active Rain Community!  This is a great site to network, learn, and share ideas with others.  Have a great day!

Aug 14, 2008 10:44 AM
Kevin Wood,
Keller Williams Southern Arizona - Tucson, AZ
Tucson, AZ Realtor

Michael,

Thank you for sharing your perspective. I wish you the best of luck and look forward to reading your future blogs. This is an awesome place to learn and grow.

 

 

Aug 14, 2008 12:46 PM
Susan McQuaide
Keller Williams - Simpsonville, SC

Welcome to Active Rain! Hope you find this site as informational and entertaining as I do!

Aug 14, 2008 12:57 PM
Bill Kennedy
Keller Williams Realty - Greenville, SC
Homes For Sale Greenville SC

Hi! I wanted to welcome you to active rain! This is a great community for learning as well as sharing.  Join some groups, check out some blogs, and write whatever comes to mind.  Tip: Sometimes the best received blogs are the ones that have nothing to do with real estate!  Have a great week.

Aug 14, 2008 02:49 PM
Marcy Fedalei
Keller Williams Realty - Spartanburg, SC

May I be one of the first to welcome you to the ActiveRain community - full of information, ideas and surprises. Enjoy and share!

Aug 14, 2008 11:30 PM
Ron Martin
Keller Williams Realty - Spartanburg, SC
Ron Martin Team

Welcome to active Rain, This site is an wonderful marketing tool for all of us. have a great day!

Aug 15, 2008 12:32 AM
Ginger Ryals
Prudential C Dan Joyner and Young Realtors - Spartanburg, SC

Welcome to Active Rain!! This is a great site to network and share ideas!! Have fun with it!!

Aug 15, 2008 01:08 AM
Yvette Gardner
Keller Williams Realty, Spartanburg, SC - Spartanburg, SC

Welcome to the Active Rain community. You have chosen a great site with tons of information you can learn from.  Have fun with it and hope to see more of your blogs soon!

Aug 15, 2008 01:09 AM
Kirk Westervelt
Van West Realty - Greenville, SC Realtor -Short Sale Expert! - Greenville, SC
Kirk Westervelt, Broker In Charge, Van West Realty - CDPE - Short Sale Agent - Home for Sale - Greenville, Simpsonvil...

Hi, welcome to Active Rain! I hope to see more of your blogs in the future. Learn from others, share your knowledge and experiences and enjoy yourself! Take care! ---Kirk.

Aug 15, 2008 01:23 AM
Paul Howard
Paul Howard, Broker, Paul Howard Realty 856-488-8444 - Cherry Hill, NJ
Paul Howard Realty, 856-488-8444

 

Welcome to activerain and congratulations on your first post. You may want to be sure you post to groups that are active in the area you are interested in too.

 

Good luck.

Aug 15, 2008 01:33 AM
Lori Isaacson
Credit Restoration Consultants - Plantation, FL

Hi Michael,

On behalf of Credit Restoration Consultants and the 103,000 plus members of ActiveRain, I wish to welcome you to the network.  Should you ever have a question as it relates to bad credit, credit repair, credit restoration, or identity theft, please do not hesitate to contact me at (954) 581-5050 or at my direct dial number of (954) 449-9987.

 Best wishes,

Lori Isaacson

Aug 15, 2008 02:03 AM
The Trumm Team Omaha Homes for Sale, Real Estate
Keller Williams Greater Omaha - Omaha, NE

Welcome to ActiveRain!

If you would like a few tips on getting the most out of ActiveRain, please visit my blog Welcome to Active Rain.  It has a few simple steps of what to do now that you have joined.

If you ever have any questions, just let me know.

Troy Trumm

Aug 15, 2008 03:10 AM
Nate Blankenship - Spartanburg, SC Realtor
Keller Williams Realty - Spartanburg, SC

Welcome to Active Rain! This is a great site to network, learn and share ideas with others. Thanks for a great post and I look forward reading more in the future. Have a great day!

Aug 15, 2008 05:56 AM
Greg Steffens
Mountain Country Realty - Lake Arrowhead, CA

Michael - Welcome to Active Rain and congrats on your first post.  Be sure to spend some time looking around at what and how others are blogging here.  It is a great education and lots of fun.  Looks like you're off to a great start...keep it up!

Aug 15, 2008 06:17 AM
Michael Green
Greenrock Realty & Finance, Inc. - Granite Bay, CA

Thank you for the support, encouragement and recommendations! 

Aug 15, 2008 03:41 PM
Lorena Westervelt
Van West Realty - Greenville, SC
Co-Founder/Co-Owner

Hello, welcome to Active Rain! This seems like a wonderful environment to network as well as learn from others. I hope you enjoy yourself and participate often in the Active Rain environment!

Aug 16, 2008 02:31 AM
Rick Sergison
EXP Realty of Canada Inc., Brokerage - Pickering, ON
Durham Region Real Estate Blog

I just stopped by to welcome you to Active Rain. I hope that you find it a great benefit to your business and that you see the value that I have also found here. I am from Charlottesville Virginia and using Active Rain has really increased my business!

My main blog on Active Rain is here: Charlottesville Real Estate Blog, not the link at the bottom of this post. 

I hope you will look into the many groups as there are some great group both local and broad based,.... 

enjoy!

Aug 16, 2008 12:35 PM