An Open Letter from Steve Harney

Today’s blog is going to be different than my normal posts. Usually I give you a story in the news and my insights on the subject. Today I am going to talk about me, because I think my story can help others avoid making mistakes regarding their home.

There are many families struggling to make their mortgage payments every month in this country. Some have already fallen 30, 60 or 90 days behind. They have no way of catching up and are not sure what their next step should be. I know their challenge, as I too have been there.

In 1990, I ran into major financial difficulties. I couldn’t afford to pay my bills. I was married and had two young sons. My home was approaching foreclosure. I didn’t know what to do and I was afraid to talk to anyone about my troubles. I was too embarrassed. I was depressed and ready to give up. Foreclosure seemed to be the only option.

Thank god I had my friend Michael. He, like I, was in real estate. He realized I was struggling and sat me down and forced me to tell him the truth about my circumstances. He patiently explained to me that a foreclosure would probably prevent me from purchasing another home for over 5 years. He told me that if I let the house go to foreclosure, the bank could force me to pay the difference between what I owed them and what they sold the house for.

He put me on a plan to sell the home (it was a short sale before people had heard of short sales). He helped me find a decent rental and started me back on the track of building good credit.

I won’t lie to you. The next two years were not easy. Things changed pretty dramatically for us. My family of four was forced to live in an apartment one quarter the size of the home we left.

But in the end, Michael was right. I re-established my credit. Three years later we bought a larger home in a nicer neighborhood. We came back strong and both my boys have now graduated from college. The struggles of 15 years ago are nothing but a distant memory.

If you are struggling like I did and if it seems like your world is spinning out of control because of finances – DON’T GIVE UP! Find a good real estate professional and tell them the truth. Let them know the depth of your challenges. And then, together, make a plan. Perhaps you are eligible for modification. Perhaps a short sale can be the answer.

If you put together a plan, you can control your destiny. Things may be difficult for a while but before you know it, you will be past it.

Why have I shared my story?  Because I feel it may help others through this tough time. If you know of someone who may benefit from reading this letter, please feel free to share it with them as I have shared it with you.