The essence of a Short Sale is that it is a solution for both you and your lender.  Allow me to be blunt. The lender gets rid of you, and you lose the headache and the majority, and many times all, of the unpaid residual mortgage debt. This sounds very enticing given that your current options are limited. I would like to touch on where most people are mentally regarding the current housing crisis and the current options that are available.

Let’s face it, people are stuck with property all over the country that they cannot afford and they don’t have the money to sell the houses. When the tide went out, everybody was affected. Today the majority of the people simply focus on the problem and they are angry and obsessive about it.  Often I hear things like, “can you help me sue my lender”, or,” my builder hustled me to close”, or “my lender switched the loan program on me at the last minute”.  It’s ok to be angry and I know these type of things happened to many people.  Other people may have simply made a bad decision and are now financially stuck and can’t afford to sell the house and they are looking for a way out.  Regardless of where you are physiologically and emotionally, it is very important to put the problem behind you, and strictly focus on the realistic options you now have. That leads us to the solution.

Today you have two options.  First, you can pay the lender everything that is owed and cover all of the expenses of selling the property.  Secondly, you can choose to do nothing, waffle around for a bit longer, and then eventually allow the property to go into foreclosure.  Both of these options are not very attractive. The first is usually not financially feasible and the second will hurt you immensely for many years.  This brings us to the solution which is a new third option that many people may not be aware of or trust due to lack of knowledge.  The Short Sale Solution is a wonderful option because it is the only positive proactive path you can take where both you and your lender have the opportunity to win.

How does the Short Sale Option benefit both the distressed homeowner and the lender?  To avoid confusion, let me be very clear and tell you that you are going to sell your house for whatever the real bid of the current market may be and you will be moving out at some future date. The solution hinges on your cooperation. With a Short Sale you are offering the lender the opportunity to sign on the dotted line for less than what is owed to them and frankly get rid of you, your problems, the property, and all other financial risk associated with the property.  In return, you minimize the negative affects to your credit by avoiding foreclosure, you get out from under the burden of the home thereby not allowing it to wreck you financially, and you have the opportunity to have a significant amount of mortgage debt forgiven with no further recourse.

Many people simply do not understand or trust when the statement is made that debt can be forgiven with no further recourse. It almost sounds too good to be true. However, it is very true that the current macro environment in real estate lends the opportunity to just about anyone who is underwater on their home relative to equity and losing sleep over it. If you are at this very moment beginning to obsess over what you paid for the property and what you owe on it that is very natural. You are caught up in an emotional web and stranded like a deer in the headlights. It’s time for you to take a time out and investigate if a Short Sale Solution is an attractive viable option for you. Deadbeats walk away from their accountability while productive people strive to find solutions. It’s a personal choice. Make the right choice!

Submitted on Monday, September 22nd, 2008 at 6:55 am