Short Sales!

Short Sales are on the increase! A short sale is when a homeowner wants to sell their house at a price below what they owe on their mortgage ---- "underwater". They have to sell their house below what they owe because that is what the market will bear at that point in time. At that point in time, the homeowner doesn't know if the house will appraise for the list price nor do they know if their bank will approve the sale.

In many cases, the homeowners are still up-to-date on their mortgage but must sell for numerous reasons. What I have seen thus far is that short sales are not an easy proposition and difficult to negotiate since the lender, as a third party, is sitting up in the bleachers just watching and waiting.

Why the increase since 2008? Our economy! As the unemployment increased the homeowner decision was delayed. In some cases, the homeowner found a job and life continued on. But in most cases, the homeowner didn't find a job nor work and overtime the mortgage payment became an issue. It will be the same problem with making rent payments! There is a delay from the time someone is out of work to the time a short sale is contemplated. Thus the increase in short sales over the past 3-4 years.

As housing goes.....................so goes the Economy!