Shorts sales are perpetuating the foreclosure market. Agents continue to under price properties to get a listing and a buyer. The Government now saying on their loans the sellers of short sales no longer have to stop making mortgage payments. And they will be more aggressive in asking for cash assets from the seller at closing on a short sale. On Jan. 1 2013, the primary homeowner will no longer be exempted from paying taxes on the difference of the debt and the short sale.
Since 2008 the REALTOR organization has pushed short sales. Before that underwater property owners brought cash to closing to save their credit. REALTORS obtained a Stay on the Federal MARS Disclosure Law to exempt real estate agents from telling the seller their credit will be hurt by doing a short sale, they could get future judgments, the seller can cancel the short sale at anytime and the seller does not have to agree to the terms of a short sale when approved by the lender. Therefore, many seller's have been mislead down the path to foreclosure rather than loan modification. Legally in Florida the real estate agent can only do a short sale. It is illegal for them to help a seller with a loan modification.
In spite of short sales, foreclosures and the failed attempts by the government the real estate market is correcting itself. Agents doing short sales need to reevaluate the meaning of the REALTOR Code of Ethics which says we are to protect the individual right of real estate ownership. They will find more short sales backfiring as property values continue to increase. There will always be buyers ready to buy. And there are always good deals via regular sales transactions. I can and other buyer brokers can find great properties in the buyers price range without having to put them thru the grueling process of a failed short sale attempt or foreclosure with no toilet and a shaky deed or title issue.
Read The 20 Things That Listing Agents Don't Tell You About Short Sales and Short Sale Fraud at http://www.FloridaBuyerBroker.com
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Beverly Howe, CIPS, ABR, GRI, TRC
Florida Buyer Broker
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