Foreclosure or Short Sale?

Many people are feeling the impacts of the shrinking economy.  This is translating to many Americans as losing their homes.  As real estate professionals, we need to educate and consult with our clients into understanding their options and opportunities to remedy a seemingly destitute situation. 

So, the question is then, do we Short Sale or Foreclosure?  Short Sales are a lot of work and a long process, but the end result from there is an easier path for people to move forward and possibly own a home again.  Foreclosure is much more destructive and mentally damaging long-term.  Take for example, Terry Hoskins from Moscow Ohio, who decided rather than let the bank foreclose on his home, he decided to bulldoze it down completely . . . 

“Frustrated Owner Bulldozes Home Ahead Of Foreclosure – Man Says Actions Intended To Send Message To Banks.”  WLWT channel 5 news in Cincinnatti reported this story.  “Like many people, Terry Hoskins has had troubles with his bank. But his solution to foreclosure might be unique. ‘When I see I owe $160,000 on a home valued at $350,000, and someone decides they want to take it – no, I wasn’t going to stand for that, so I took it down,’ Hoskins said.”  (Read entire story)

I think that a lot of times, consumers don’t really know or understand the options they have today.  The real estate industry is constantly changing and all the programs and regulations associated with homeownership is in constant flux as well.  Bringing knowledge and help to our neighbors is what we do best in real estate, and most rewarding. 

Many national sources are showing signs of improvement of  real estate sales.  Banks and mortgage providers are also showing some signs of softening or at least a light at the end of the tunnel. 

The Los Angeles Times reported, “Short sales grow as a cheaper alternative to foreclosure.  Banks’ resistance to the tricky transactions is softening as the number of distressed properties increases.  With more Americans losing jobs and missing mortgage payments, banks and investors increasingly are agreeing to short sales as a less costly alternative to foreclosure.

Short sales approved by Fannie Mae and Freddie Mac, which own 57% of U.S. mortgages, nearly quadrupled in the first nine months of 2009 compared with the same period in 2008. At the nation’s largest mortgage servicers, short sales soared 165% to 74,513 in the first nine months of 2009 from the year-earlier period.” (Read More)

Real Estate Professionals have such an opportunity right now to help their neighbors and communities.  Giving people hope and peace of mind in a world of such turmoil and uncertainty is a blessing.   Realtors, remember how valuable you are and take that knowledge and bring it to your friends and clients.

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