I have always been sour on short sales. As an agent working with buyers, I learned through two dozen offers that the bank simply doesn't accept short sales. If they do, they will advise the listing agent immediately and the price is almost always right at or above "market" value. Short sales are being pushed as a win-win situation since the bank gets
something, and the homeowner avoids foreclosure. To one blog poster in
New Mexico it looks like a lose-lose-lose situation, and they do have
some pretty poignant points (how's that for alliteration?) Short sales
hurt the mortgage company who loses money. The homeowner loses their
home. Families that live around the property lose value in their homes
since short sales and foreclosure drive down the values of the homes
around it. This hurts families who did everything right, but are still
pulled into a situation where they are also underwater on their home.
Short sales are not going to stop the spiral of foreclosures that have
contributed to the mortgage crisis, and although they might make sense
for a particular property owner they can create their own problems.
1 in 6 homeowners, or nearly 12 million homeowners, are upside down on their mortgages. Experts believe that this number will climb to over 15 million in a year, and this figure could be higher if house prices continue to fall. This was reported in a story on ABC News Nightline on October 17, 2008 on the mortgage crisis. To avoid foreclosure and modify your existing mortgage, call me at 310-709-8283 or visit my site here.