Short Sale, Foreclosure and Strategic Default

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Saturday, June 16, 2007

Short Sale instead of foreclosure?

Over the last six months there has been a change in the attitudes of the Lenders. They have become significantly more open to short sales.

Country wide had hired 60 people into its loss mitigation department.

Before you agree to doing a short sale make sure you are doing it for the right reasons. I know many Realtors are suggesting that a short sale saves your credit. Currently the benefit may be negligible and soon it may be wiped out. The fico score people are currently considering making a short sale as damaging to your credit as a foreclosure. There are many reasons to consider a short sale. But a short sale should probably not be your opening Gambit with the bank.

Given the right circumstances there are better offers which may also help you with the IRS loan cancellation bill. The Realtor in me sees a short sale as the way to earn the most money. But, the lawyer in me knows that a short sale is one of a host of options which should be considered.

Another thing to consider in markets like San Diego, Bradenton and Sarasota is that home can be on the market for a long time without so much as getting a showing.

My experience shows the great homes in great locations can be sold without too much price cutting but that homes on less than ideal lots or in less than ideal condition become very price sensitive.

1 comment:

Daniel said...

Sometimes the easiest way to stop foreclosure should be to walk. If, after overlooking your financial situation, you arrive at the conclusion that eliminating your personal credit card debt and/or cramming down your mortgage won't be enough to set yourself on reasonable financial footing, and your home is "under water", then the greatest thing money could possibly be to convert your property over to the lender and begin anew.

Decatur Foreclosure Attorney