A Short Sale is Not the End of the World
In the past couple of weeks I have had several conversations with homeowners who are stuck as to what to do with their homes. They can’t make the payments or realize very soon they won’t be able to. At lunch the other day a colleague shared her story of losing her home. When she got the notice of default in the mail, she put it in a drawer – afraid to read the whole letter or to take action. And because of her inaction, the home went to foreclosure. She is not alone. Many people become “frozen” and wait too long before taking action.
We know when we have to face the tough decision to either try for a loan modification or sell the house. It is just easier to put it off – I know. But once the call is made to a real estate agent asking for help it is a huge relief. We are not alone in this situation. Thousands of families have been through the short sale process or will in the near future. A short sale is generally a better solution than a foreclosure.With a short sale your credit will bounce back faster and you may be in a position to buy another home in a couple of years. Foreclosure can take 5 to 7 years before a repurchase can be made.
Things happen that are out of our control and when we realize this everything starts to get better. Banks are putting better systems in place to speed up the short sale process. New laws are in place which will make tighter regulations as to how the short sales are handled and requirements for negotiators to be licensed.
Having to sell you home on a “short sale” is not the end of the world. The hardest part sometimes is making the decision and then taking action to move forward. The past few years have been tough for all of us with the economic down turn and I believe that better days are on the way!! 🙂
Filed under: Real Estate
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