Walk-Away’s…Financially Smart or Financial Suicide? | Real Estate Training
Submitted by Tim Harris on November 30, 2009 – 1:01 pm8 Comments | Popularity: 12% [?]
Must watch video:
Here is the bottom line…according to this professor..not only has the negative social stigma of a foreclosure gone away…but, now doing a strategic default (short sale or foreclosure) is seen as being financially smart…
Agents, as this video points out..1/3 of all homeowners are underwater. In this market you simply must be a HREU Certified Short Sale Designation (CSSD). Watch the FREE Agent Short Sale Secrets video and download the FREE how-to list Short Sale book.
Popularity: 12% [?]
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No question about it. The short sale process is the only way to truly get the overpriced inventory off the market. This mess was not created with a bold stroke of the pen and mandates from the government. It happened one house at a time. What caused it is not the issue right now. We need to move the houses off the books of non performing assets and back into the hands of home owners and investors. Let the market speak and the houses will sell. It’s not hard to sell bargains to bargain hunters, and if you create value for the buyer they will buy. The short sale is the only way to move houses that are sitting because the market is speaking, in fact it is screaming.
AMEN Steve!
We have been doing our best to get the rest of the real estate industry to wake up to what you are saying for years!
By the way, stay tuned to what is coming Jan 2010….we have on good authority that the Fed is going to play their heavy hand
forcing banks to do more SS…faster!
White is Crazy! people who have used there home as an ATM machine should stay and pay for the home mortgage 1st 2nd and 3rds I’am talking about the high ticket cars, boats, jewlrey etc.they they have stuck to there Home! I see it everyday! The people who truly have a hardship is a different story! Dave Johnson Remax Westerville Ohio
Dave,
While agree with your statement from a moral point of view I really think this is not a moral issue. Sure what you mentioned is morally wrong, but is it financially wrong. I have walked into many of clients homes where their previous realtor told them the value would double in two years or where the mortgage broker got them into an exotic loan which they should of never been put into. Yeah I think the home owner shares in the blame but the banks made bad investments and now they are paying the price. When wall street thought real estate was going to exponentially increase forever, there was never a moral question about putting Joe public who makes 20k a year in a 600k house. Don’t think for a second if the bank was holding a non performing asset that held equitable value they wouldn’t take that asset back and sell it. They are in business and they decided to go into business with Joe public. The real issue I think is wall street decided to semi educate/brainwash mainstreet into thinking a house is a commodity instead of a home. Buy, sell, trade these commodities any way you can. With that mentality I believe people should not have a moral obligation but rather a contractual one. The contractual obligation states if the home owner fails to pay the bank can foreclose….
Well stated…Ben.
As a newer agent I have 26 closed YTD 15 were short sales this year. With 4 more pending that will close. But the first time buyers from the listing sign calls is HUGE!! Glad to hear the Fed’s hand will get heavy!Woo Woo! My business has grown and remained strong from shorts. And hopefully I will start pulling REO’s next. This is a great market that if your coachable you can do very well. Dave I have clients that have used the home ATM. And as many as four loans on a home. Still laughing about that apt.( I chose not to list them, its still not sold) Its ugly and ugly! Tim,Julie I will be calling.
Now we are getting closer to some of the issues underlying this current situation. It was not the first mortgage that was the the killing issue. It was the 2nd loans that put most over the top. The 2nd loans that were given at up to 125% of value. John J. Ellering, Select Associates Realty, St Paul MN
Hi John,
In most markets….the seconds AND the firsts are getting shorted!
Tim