One of my clients emailed me the link below. He and I were talking the other day and he could not believe that we have had clients at RREA that have been over a year behind on their mortgages and still not foreclosed on. It would have been unbelievable years ago, but in today’s market, it’s become the norm. One of my agents closed on a short sale and the owners of the home walked away with $8K dollars after closing. WOW! The agent’s commission was less than $1,000 on the house. The house was sold for less than $50K. So the owner that got foreclosed on walked away with almost one third of what the house sold for as a short sale. This is free government money being given away to people who do not pay their mortgages. What is wrong with this picture??
I worked on a short sale last year where the homeowner had a first and second mortgage. After we found a buyer for the home, the second lien holder refused to take a settlement. So although the first lienholder agreed to the deal, the buyer could not purchase the home because the second lienholder refused to take a settlement. I have found that trying to do short sales on homes that have a first and second lienholder are much more difficult that short sales with just a first lien. Unfortunately, the home foreclosed and the buyers lost the opportunity to purchase the home. Short sales are tricky, so you need an experienced agent that can work the system to negotiate on your behalf with the mortgage company. After you read this article, please leave thought below. I would like to know how you feel about short sales. If you or someone you know could potentially lose their home to foreclosure, please have them call me early enough so that we have time to sell the home before it forecloses.
