Free Webinar

Short Sales: A Dignified Solution for Many Families

by Steve Harney on August 31, 2011 · 21 comments

  • Comment
  • Email
  • Print
  • Comment
  • Email
  • Print

Occasionally, Steve Harney, our founder and lead content creator, asks us permission to share his personal feelings on a current real estate issue. Today, is one of those times. – The KCM Crew

I am truly excited that the banks are beginning to see that a short sale in many cases is a good alternative to foreclosing on a property. It makes more sense to sell the property at a higher price. At the same time, the banks are creating less vacant REOs (foreclosures owned by banks) which have blighted neighborhoods and negatively impacted  surrounding house values for the last several years

It is also satisfying that so many of my fellow real estate professionals are taking the time to get properly trained to facilitate these transactions to a successful closing. It is a good revenue stream for some agents at a time that has proven to be very difficult for many industry professionals to make ends meet.

However, today I don’t want to speak to the financial aspects of the surge in short sales. Instead, I want to address the impact it has on the families living in these homes. They have found themselves in over their heads. In many cases, they can’t afford the mortgage and are trapped – unable to sell because the mortgage exceeds the home’s value. They may believe that they are left with only one alternative – allow the home to proceed to foreclosure.

Let’s realize the consequences of this decision for the family. The day will come that someone in an official capacity knocks on the door and notifies the family it is being evicted immediately. No matter how well they have prepared, at that moment, spouses look to each other in embarrassment. There is a big difference between imagining how this moment might feel and actually experiencing it.

And, in so many cases, there are children involved. The official stands there as a mother or father gets on a knee and explains to their son or daughter that they must go pack up some of their toys and belongings in a hurry because the family must leave – now!

The short sale process avoids these situations. The family plans around a set closing date. The children are made aware of the move months in advance and the parents have time to lessen the pain of that move.

Short sales make good financial sense for all involved. They also allow families to exit an extremely difficult situation – WITH DIGNITY.

Share

Free Webinar

Steve Harney

About The Author


Steve Harney is the leading expert in negotiation and leadership training for residential real estate professionals. His 20 year history of success began as a top performing Realtor before he built his own 500 agent firm. He travels the country sharing his inspirational message with real estate professionals. Steve was also announced as one of the 100 Most Influential Real Estate Leaders in the country, as well as, featured on FOX Business News. For more information on hiring Steve to come out and speak to your organization, click here.

  • http://Wwwrealestatefountainhills.com Patti irwin

    I agree..more families need to know shorts sales are an alternative

  • http://fredford.lnf.com Fred Ford

    Great blog ! Thanks Steve for all the great info. I post it on my facebook pages, have a nice day !

  • Chris Smith

    It’s hard to imagine that the homeowners would be completely surprised when someone knocks on their door. Maybe they are surprised because it took the bank so long to foreclose.

  • Pingback: Short Sales: A Dignified Solution for Many Families | Richard Barrow Utah Mortgage Professional

  • http://www.firstcal.net/prete Greg Prete

    Hello Steve,
    Thank you for this relevant article. You know those times in life when you’re truly enthusiastic to refer a product or service? (If I may share this here) I feel that way about Fitzpatrick & Prince Real Estate in Lake Forest, CA. Our industry is known for being far too transactionally focused. Their (F&P) approach is unique on many levels incorporating highly targeted marketing, HD videos, and much more. There is an artful style in everything they do. They work on a shared compensation model so the fatigued seller knows there is a broad and talented team around them during this very challenging chapter of life. This group truly serves (serve being the operative word!) as an oasis, a breath of fresh air to many satisfied clients who are now raving fans. If you know of someone looking for a safe place to begin this journey, and very much in need of expert navigation, they would be well-served by visiting http://www.shortsaleabc.com for educational videos and http://www.fitzpatrickprince.com where video testimonials are found. They love what they do, and it shows through their contagious spirit!

  • Pingback: Short Sales: A Dignified Solution for Many Families « King David New York Real Estate

  • Don

    Not all banks are taking short sales. I’ve had two offers and was flay out denied by both! It was a kick in the gut and now the bank is looking at a foreclosure.

    • http://www.steveharney.com Steve Harney

      @Don,
      Just out of curiosity, which banks?

  • http://www.realestatechampions.com Dirk Zeller

    Steve, you are correct it is nice to see that banks are starting to get it. Some are gettting quicker to make decision…some are not. We can only hope that this trend continues. The faster this inventory moves to other homesowners be it investors or owner occupied the faster we enter recovery.
    Interesting article today in the washington post about the effects of all forms of distressed sales on FICO scores http://wapo.st/qhckus . The conclusion is little difference in the score…interesting. All the best to you Steve.

    • http://www.steveharney.com Steve Harney

      @Dirk,
      Thanks for the head’s up on the article.

  • Don

    It was Chase that denied me twice. Apparently they’d rather foreclose.

    • http://www.steveharney.com Steve Harney

      Thanks, Don.

  • Pingback: Short Sales: A Dignified Solution for Many Families « pattigregory

  • http://www.loricox.com Lori Cox

    Great post!
    As the Co-Author of the SFR Certification, I ALWAYS begin the SFR program by facilitating a discussion on the psychological and emotional impact to the family. As a former psychotherapist, my passion in delivering this program is to assist our REALTORS in understanding that the delivery of the information to the homeowner must come with compassion for the impact to those in the family. My frequent comment is to go “soft” on the people and “hard” on the problem. It is the empathy, understanding, knowledge and perseverance of our REALTORS that will continue to assist so many homeowners in distress

  • Pingback: A Post from KCM Blog on Short Sales | Real Estate In Trussville

  • Bob Pace

    I must say that I agreee with Chris S. It’s a tough transistion but to act the least bit surprised is a kind of a stretch . There truly are debtors who willingly ride it out until that knock on the door comes .
    They (borrowers) have to take some responsibilty
    No I Am Not The “Grinch” but the La la la that it’s not my fault I over extended myself is not an excuse.

  • Pingback: Short Sales: A Dignified Solution for Many Families « lynnfairfield

  • Pingback: * SHORT SALES: A DIGNIFIED SOLUTION « Short Sale Chicago

  • http://www.weisslongo.com Edna Chalmers

    Hi Steve,
    I also thank you for this relevant article. I want to share with you what our office is doing to help in these very troubling times. Our office EXIT Homestead Realty has joined forces with a really great company Weiss / Longo. This company is a real estate solutions company focused on helping property owners manage the risks associated with the decline of the housing market. The dramatic dip in real estate values has put millions of mortgages underwater and exposed owners to the threat of foreclosure. Many homeowners find themselves trapped by a mortgage they can no longer afford and a house they are unable to sell. While the banks have been bailed out it is homeowners who are left to fend for themselves.
    At Weiss Longo they are working to change all of that. Their mission is to help property owners protect themselves by (1) understanding how they can best manage the risk associated with a property that is underwater and then (2) implementing the most effective strategy. Proven strategies include include short sales, loan modifications and/or forensic loan audits. They are dedicated to serving the needs of the homeowners. There is no charge for any of the services they provide and they always put the homeowner first.
    If you know of someone very much in need of expert navigation, they would be well-served by visiting http://www.weisslongo.com for educational information, they are solving the real estate crisis one family a time.

  • Pingback: Short Sales: A Dignified Solution for Many Families « Darren Koenig

  • Pingback: Short Sales: A Dignified Solution for Many Families « Darren Koenig

Previous post:

Next post: