You aren’t going to find many real estate agents that are going to say this…
You may need to talk with an agent that specializes in helping people through short sales!
And it isn’t me.
That’s right. It isn’t me. I don’t specialize in foreclosure mitigation or short sales. It seems to be the “hottest” new specialty around. Every single day I get invites for webinars, seminars and classes on “How to be a Short Sale Expert”. And it’s making me crazy.
The reason it is making me crazy is that NOBODY is going to be a “short sale expert” just because they took a class. These are incredibly complex transactions. Not only is the “normal” complexity of a sale involved, but there is an added layer from dealing with the bank(s). And that is where the problems start.
In a short sale situation, the seller is in a perilous financial situation. They could not just lose the home, but they could be sued for deficiency judgement, face bankruptcy and lose all semblance of good credit for years. And, bad advice could make it worse… much worse.
I know a few people that DO specialize in short sale situations. They were handling short sales and helping sellers that were facing foreclosure before it was cool. I’d be happy to provide a referral. I’ve seen the end-game for not doing something. It breaks my heart to walk into a foreclosed home and see the kids rooms and know that these kids were torn from their lives.
Here is the bottom line: If you are in trouble… or heading down the path for trouble… there are steps that CAN be taken to minimize the damage. But, instead of watching another episode of The Office, you need to get started in taking care of the situation. Seriously, you know if you are having trouble making your payments. And you know it before the Sheriff shows up. It is too late to fix it then.
BTW, I know that there are websites and “Gurus” that advise people to stop making payments and let the foreclosure process work out. They tell people that they can save up money during the several months it takes for the bank to foreclose. But, what these “Gurus” don’t tell people is that they WILL face bankruptcy, and likely face a deficiency judgement. A Deficiency Judgement means that YOU might be on the hook for the difference between what your loan is and what the bank sells the house for. So, the “Guru” may fail mention that you might end up owing tens of thousands of dollars, and not just to the bank. Walking away can result in Imputed Income… and that means that you might end up on the hook to the IRS, too. If the situation is handled appropriately, there are protections from Imputed Income and many banks will waive deficiency judgement.
But, you need to act.
