Oh, just short sell it…

I don’t like to write about short sales, because people will find the post through Google… but this is important.

While I was wandering through a neighborhood grocery store here in Lilburn, GA, I overheard a conversation.  I wasn’t liking what I was hearing.

Two folks were talking about a friend that was upside down on the home she bought a couple of years ago.  One of them then suggested to the other that she could “just make the bank settle for less on a sale.”  There was a little more explanation, and then “get her to find a friend or relative to buy the house for a reasonably fair price and the bank will HAVE to take the write-down.”

Ok, that would be fraud.

And I’m not kidding.

If the transaction isn’t “arm’s length”, then it has to be disclosed to all parties, including the bank that would be writing down part of the mortgage.  Arm’s length means that the transaction is between people that are NOT otherwise engaged.

If the transaction isn’t arm’s length, the bank is not going to write down the loan balance.

So, the point…

If you are in this situation, you need QUALIFIED help.  Even most real estate agents are NOT qualified help.  I am NOT qualified help.  I can help you find someone… but that is about it.

There are a LOT of agents out there that are “Short Sale Experts”.  But, few of them are actually experts.  There are a lot of opportunists that are offering classes in Short Sales…  But a few hours don’t make one an expert.  This is a tough nut to crack.  And honestly, the place to start isn’t with an agent unless you really need to move… and not because of the value, but because you need to move.

Don’t wait until the world is crashing around you before you act.

If you are having problems keeping your home, talk with your bank.  Talk with a professional that actually knows about loss mitigation for mortgage holders.  But don’t wait until you don’t have any viable option except to walk away.