The Secret to Short Sales
The Secret to Short Sales. You might be starting to read this thinking, “I knew it, there’s away to get this done quicker, smarter, or faster.” Well, that’s not at all what this blog is about. The truth is there is a secret to short sales and it’s the one that you keep from yourself, or others.
I’ve been saying for several weeks, that indeed we are in a shifting market. The real estate market is taking a dive and no one is talking about it. How do I know? Well, I’ve been paying attention to the Notice of Defaults and the Notice of Trustee sales that are going on around me. The numbers are increasing and there are plenty of people putting their head in the sand.
With my partner, I’ve been out visiting home owners in default. We hear some heart wrenching stories of why people aren’t making their mortgage payment. We met one couple who had to take out a HELOC or Home Equity Line of Credit to give their son a proper burial. Their payments have jumped significantly and now they are in the rears…working on their third loan modification. We met another man, he lost his mother and now he’s about to lose the house. A lovely woman we met, we’ll call her Amanda, says she’s renegotiated her loan with the bank, doing a modification but here boyfriend had no idea they were in default. She was handling everything on her own. That’s the secret of short sales. It’s not getting done fast, it’s how it eats away at you.
Here’s what the banks know to be true, they know that if you miss a mortgage payment that you, most likely, will never catch up and that they will one day, take your home. It’s just a matter of time. They also know that 80% of loan modifications don’t go through and they also know of the 20% that do, those will end up back in default. Here’s something else you should know. The loan modification department and the foreclosure department at the bank–they don’t talk to each other. So that means, if you’re in default and working on a loan modification and you aren’t making payments… they are still moving forward with the foreclosure process. So those trial payments you are on, really mean nothing unless you are in contact with the foreclosure department. Essentially, you are throwing good money after bad. Guess what? The bank doesn’t care, and they will indeed take it.
Now, I completely understand that you don’t want to lose your home, I do. I understand, it was the first house you ever bought. I understand you raised your son there. I understand it was your mothers. I understand. I also understand that if you do nothing, you will, in fact, lose your home. That’s right, go back and re-read that sentence, you WILL lose your home.
The good news? There is help. Someone who is in default can get help. Keep your Home California offers four different programs for those who are in default. The truth is though, many will only qualify for the one program and that is relocation assistance. That means, you will get some money, up to $5000 to get your life back on track. You also have 9 mortgage relief options. There is help, however, not opening mail from your bank and burying your head in the sand isn’t an option. If you do that, one day, a foreclosure notice will be taped to your door.
Chris Spade is a top producing agent for Keller Williams San Diego Metro. Chris specializes his business in problem solving and helping his clients make better decisions about their home. For information on your options, call Chris at 619-320-5467,