Your catalyst for change can be your catastrophe. What’s your catastrophe? Are you thinking: “should I sell home as Short Sale?” because of your catastrophe? What’s yours, a divorce, job loss, reduced income, health problems, death in family or a past adjustable mortgage interest rate that has you thinking; should you sell home as Short Sale? These are all too common catastrophes facing many South Florida homeowners so you know you’re not alone. However, knowing that you’re not the only one facing these events certainly doesn’t lessen the catastrophe or the pain it causes yet it may provide you with some hope knowing that perhaps your chances for change may be greater in numbers.
Do you know about Short Sales? Are you asking, “What is a Short Sale?”. Short Sales have become a prevalent force in the Real Estate market particularly in South Florida. We’ve seen unemployment rates that have been steadily increasing over years past and they still remain too high today, predatory lending had plagued our economy, increases in gas prices that trickle down into our good & services that we buy along with so many other factors that contribute to a homeowners inability to make ends meet is still with us, as I’ve updated this post from back in March of 2012.
Enter the Short Sale, to begin to process what has happened in our economy and they’re in abundance. We’re currently at a small reduction here in the fall of 2013, yet they still remain in the high teens to low 20 percentile. A Short Sale is when your Lender agrees to accept less than what you owe in order for you to sell your home as a short sale and avoid foreclosure. Short Sales have been around a long time yet we hadn’t begun to see them in such high numbers until about 2007/2008. Short Sales have come along since the onslaught were it seemed inevitable that one must plan on faxing a Short Sale Package at least 2 times to Lenders processing Short Sales for distressed homeowners and the Lenders seemed to be clueless in how they were going to process all of these Short Sales. As an example, in my South Florida market for the city of Coral Springs alone, we were averaging about 20-25% each month in Short Sales sold. This demonstrates that Short Sales have been a large part of the Real Estate market. With Lenders experiencing this kind of volume coming in from cities across the nation, it was difficult for them to implement a plan to handle the Short Sales. Since then they have made improvements yet, they’re a far cry from being run efficiently. What is the Short Sale timeline?
Short Sales do afford a distressed homeowner an alternative to avoiding foreclosure when they’ve been faced with any of the various catastrophe’s described above. Nobody likes to consider the thought of losing their home and it often takes homeowners quite some time before the realize that they must become Sellers.
Selling your home as a Short Sale can be a good thing. It could be an event that results in good things for a distressed Seller. It can allow the distressed Seller to work towards getting back on their feet again. They’re able to move to another home and rent while they rebuild their lives. A lot of good can come from a catastrophes that we go through in life. Remember that catastrophe can often be your catalyst for change. We can often look back at the catastrophe and view it as a stepping stone to where you may be at now, at a later date. You’ll likely get to a better place when you’re able to look back and see what you learned and what really is important in life.
For updates from when this post was originally written see : FHA Update for buying a home after a Short Sale (as of October 15, 2013)