Do you ever wonder about the short sale seller? Are they really distressed? Why are the banks being so difficult? What is really happening.
Many people who short sell their home have no choice. They have fallen on hardships that can't be overcome. Hardships like divorce, illness, job loss, military deployment and much more. Live changing events that cause them to loose their home to a short sale. Asking the bank to take less than what is owed to allow the sale of the home. Asking the bank to "take the hit" on behalf of the sellers misfortune.
It happens, life is going along well and BAM!!!!! Your in trouble and you have to make the heart wrenching decision to short sale your house! It is embarrasing, ego deflating and comes with it's own list of ramifications well beyond the economic distress they are in.
Now, that being said, it is hard to stand by and watch those who "claim hardship" and try to short sell their house. Should their be more stringent rules for the seller distress? Maybe.
Let' talk about the "Tale of Two Homes". Recently I watched two separate homeowners short selling their homes. Both had two very nice homes. Their current homes lavish, filled with all the extras one would want...upgrades galore. Thier former homes....on the market at various times...still nice locations but the owners neglected to add the upgrades that would have made them marketable with the current competition in the neighborhood. Both owners wanted top dollar for their former homes despite the fact that they lacked any upgrades worthy of top price. In fact, the top price they wanted exceeded the top price of many that had sold in the same neighborhood with more upgrades and more desirable floorplans.
Both former homes failed to sell. Infact they remained overpriced and out of date! Both sellers proclaimed throughout the process, "I am not paying for those upgrades, the buyer can!" "I have plenty of money to pay both mortgages as long as I have to but I am not giving away my house!"
Now both are short selling their lavish newer homes and REMODELING THEIR FORMER HOMES. Yes, while asking the bank to take less than what is owed because of a "hardship", they are landscaping, putting in granite, new cabinets, new bathrooms, hardwood flooring, new carpeting, new appliances, new light fixtures, upfitting the homes with all the latest upgrades in todays market. In addition, they are taking fixtures, upraded features and more from the LAVISH HOME and putting it in their former homes...leaving the LAVIS Homes raped of their glory.
Did I mention that both of these "former homes" are less than 10 years old, in the same neighborhood the Lavish Homes are in? Thousands and thousands of dollars to spend on their former homes while asking the bank to take the hit on the Lavish Home!
Hardship or strategic move? You decide! If you have enough of a "hardship" to make the bank take a huge hit....should you be able to remodel your other home with thousands of dollars that you could use to sell your current home. Is the system broken? Should this be allowed? Who is policing this type of activity? Should this be a crime?
What do you think?
Sarah Moore, Broker/REALTOR - CRS, CDPE, SFR, e-Pro RE/MAX EXECUTIVE REALTY 7752 GATEWAY LANE, SUITE 204 CONCORD NC 28027 www.WeOpenMoreDoors@hotmail.com 704-706-4160
- We Open More Doors
- Grew up in Charlotte and have seen alot of change over the years. I am blessed to be married to my husband Todd and we have two beautiful children, Hayden who is in Collge and John Robert who is in 5th grade. We have a rescued dog named Riccardo that we love! I enjoy traveling, playing cards with my husband, VEGAS, the beach, singing and volunteering at my church. I am blessed to work with my father who is my real estate assistant. He is an amazing man and shares his wisdom and humor every day. I owe my work ethic to the positive role models my parents played in my life. I believe in honesty, integrity, perseverance and having fun!