The so called "short sale" sounds mysterious, as if it may be something ultra-sophisticated.
In fact it is nothing more than paying off what you owe to someone, or to some entity such as a bank, with an agreed upon amount that is less than what is actually owed.
In fact, this practice is talked about in the Bible; and obviously goes back to the beginning of man.
In this article I hope to further de-mystify the short sale, and simplify how it is used in this 21st Century.
With banking institutions being what they are, and lawyers being what they are, the short sale of real estate has become a complex undertaking, i.
e.
, these powers have seen to it that when it comes to the short sale of real estate, there are lots of "ifs," "ands," "buts," "maybes," "what ifs," "wherefores," traps, surprises, etc.
Thanks to unscrupulous banks, and mortgage companies financing millions of people to buy homes that they could NOT AFFORD to make payments they couldn't make, there are now literally millions of homeowners suffering the consequences of the unavoidable melt down.
Those who cannot afford the monthly payment now face foreclosure, and the ruination of their credit.
And for those who bought homes during this period of rapidly escalating home prices who CAN AFFORD the monthly payment, the question is: Am I being stupid to keep feeding this "declining in value alligator" that I'm stuck with, when I can go buy another one for half the price? The irony of all of this is that those homeowners who invested the least to get into their homes are in a better position than those who invested a lot.
The obvious solution to all of this is that the banks should do the obvious, ethical thing.
They should lower all home loan balances to be in line with current reality.
In fact, they should be the ones voluntarily offering the relief (short sale) from the excessive debt.
Instead we, the sheep, have to go beg the banks for these so called "short sales.
" Short sales that are in fact are literally designed to screw the homeowner.
The home owner is literally not allowed to pocket any money from a short sale; and top of that, must not only walk away without a home but also walks away with credit ruined.
I had a new neighbor move in a few years ago, before housing had turned down.
Then 2 years ago just as housing was just beginning to turn downward, the husband's job was downsized, and they were no longer able to afford the home.
They were a wonderful young couple.
Their real estate agent lead them on for months that they would get a short sale; and that since they both had excellent credit, they were told that the short sale would not ding their credit that much.
So for months they continued to make their monthly payments.
Finally, after 8 months of jumping every hoop imaginable, the short sale happened.
They were not allowed to profit one dime from the sale, and their credit was ruined.
The big question: What should they have done? I will leave that for you to ponder.
Enjoy your day - stay happy! Don't let anyone talk you out of it.
In fact it is nothing more than paying off what you owe to someone, or to some entity such as a bank, with an agreed upon amount that is less than what is actually owed.
In fact, this practice is talked about in the Bible; and obviously goes back to the beginning of man.
In this article I hope to further de-mystify the short sale, and simplify how it is used in this 21st Century.
With banking institutions being what they are, and lawyers being what they are, the short sale of real estate has become a complex undertaking, i.
e.
, these powers have seen to it that when it comes to the short sale of real estate, there are lots of "ifs," "ands," "buts," "maybes," "what ifs," "wherefores," traps, surprises, etc.
Thanks to unscrupulous banks, and mortgage companies financing millions of people to buy homes that they could NOT AFFORD to make payments they couldn't make, there are now literally millions of homeowners suffering the consequences of the unavoidable melt down.
Those who cannot afford the monthly payment now face foreclosure, and the ruination of their credit.
And for those who bought homes during this period of rapidly escalating home prices who CAN AFFORD the monthly payment, the question is: Am I being stupid to keep feeding this "declining in value alligator" that I'm stuck with, when I can go buy another one for half the price? The irony of all of this is that those homeowners who invested the least to get into their homes are in a better position than those who invested a lot.
The obvious solution to all of this is that the banks should do the obvious, ethical thing.
They should lower all home loan balances to be in line with current reality.
In fact, they should be the ones voluntarily offering the relief (short sale) from the excessive debt.
Instead we, the sheep, have to go beg the banks for these so called "short sales.
" Short sales that are in fact are literally designed to screw the homeowner.
The home owner is literally not allowed to pocket any money from a short sale; and top of that, must not only walk away without a home but also walks away with credit ruined.
I had a new neighbor move in a few years ago, before housing had turned down.
Then 2 years ago just as housing was just beginning to turn downward, the husband's job was downsized, and they were no longer able to afford the home.
They were a wonderful young couple.
Their real estate agent lead them on for months that they would get a short sale; and that since they both had excellent credit, they were told that the short sale would not ding their credit that much.
So for months they continued to make their monthly payments.
Finally, after 8 months of jumping every hoop imaginable, the short sale happened.
They were not allowed to profit one dime from the sale, and their credit was ruined.
The big question: What should they have done? I will leave that for you to ponder.
Enjoy your day - stay happy! Don't let anyone talk you out of it.
Source...