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Posts Tagged ‘short sale sellers’

Oakland County MI Seller- When Foreclosure May Be Your Best Option

If you need to move, and you’re upside down on your mortgage, short selling your house isn’t always the best option. Sometimes bringing the difference to closing is best. Sometimes renting your house out instead of selling is your best option.

And sometimes letting the house foreclose is your best option.

I had a call from someone yesterday who wanted me to find him a house to lease. He had a “short sale specialist” lined up to list his current home. After talking a bit he told me his house had already sold at sheriff’s sale this past December, so while we were on the phone I looked it up in the public records. The bank had bought it back for $130,000. I asked what he owed- less than $120,000.

THERE IS NO DEFICIENCY!! Nothing for the bank to come after him for over the next 10 years. Foreclosure or short sale– both screw your credit and either way he’s looking at 2 or 3 years before he can get a mortgage. So why would he want to go through the headache of a short sale? Why not live out the next 5+ months rent free and save his money, THEN find a rental? Why didn’t the “short sale specialist” give him his options? That last question will be the topic of a future post.

Other times a person may want to consider allowing their house to go into foreclosure instead of going through the hell of a short sale is when you are planning in filing bankruptcy. If bankruptcy is possibly in your future, you need to talk to a bankruptcy attorney before signing a listing.

In Michigan you have possession of the house for 6+ months after the sheriff’s sale and if you are on 3+ acres you have 12+ months rent free.

Everybody’s situation is different and there is no one size fits all solution. If you have any questions about possibly selling your house- short sale or regular sale, please feel free to contact me for a confidential consultation.

Jackie Hawley
Keller Williams Realty
cell: 248-736-6407
email:
Jackie@JackieHawley.com

www.MiRelocation.com

Seller Blog

For Sellers

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distressed homeownerThere are many distressed sellers in North Oakland County MI. I just did my sales updates for Oxford MI and over 60% of the sales in 2010 were distressed salesbank owned and short sales. I will probably come up with similar numbers when I’m finished with Lake Orion and Clarkston, and the surrounding areas in North Oakland County and Southern Lapeer County seem to be about the same.

One of the numbers that really sticks out is that the bank owned sales are down from 2009 but short sales are up significantly. Because of this phenomenon there has been a HUGE proliferation of so called experts into the field of real estate sales. Agents who couldn’t earn a living in a normal market ran out and got a 2 hour designation and are now “short sale experts.” Attorneys who are seeing their income decline in Michigan’s bad economy are getting into negotiating short sales on behalf of home sellers- attorneys who NEVER practiced real estate law are now “legal experts” in the short sale arena.

Along with all of these new found “experts” is a major influx of mis-information designed to convince desperate home sellers that of course the short sale route is always the best route. Of course if the homeowner, who is losing his house, choses one of the other options available, these so called experts wouldn’t be able to make a pay check off that homeowners misery.

A good real estate professional needs to go over all of the options available to a distressed homeowner along with the potential consequences of the various options. Whether to sell via short sale, give the house back (deed-in-lieu of foreclosure), attempt a mortgage modification or simply allow the house to go into foreclosure should be a decision that has been invested with a lot of thought. Whatever you decide can have a long term impact on your life.

Because of instances where I have felt the seller was getting sold a bill of goods – I have decided to write blood sucking specialista series of blog posts explaining in detail the different options available to the distressed seller in North Oakland County MI and Lapeer County MI. For a quick primer on how the foreclosure process works in Michigan, please visit a post I wrote back in September, 2010.  And one thing that I have discovered over the years- there have always been “experts”, but I can’t remember a time where an agent pigeoned holed themselves like the foreclosure agents and short sale agents of today. Many of the short sale agents only deal with short sale listings. So it is not in their best interest to talk a seller out of the short sale route. I think about 2/3 of my listing appointments with distressed homeowners result in that homeowner NOT listing– with me or anybody else.     

When I have finished my series of posts for the distressed seller, I will paste links to all of them in one blog post for easy reference.

Jackie Hawley
Keller Williams Realty
cell: (248)736-6407

Jackie@JackieHawley.com

Home Seller Blog

What Makes a Good Short Sale Agent

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