Let’s set the record straight.
A short sale is an elective procedure, and none of the parties involved are forced to participate. It has been a way, however, for underwater homeowners to have themselves removed from a very ugly weight; tens or thousands of dollars of inequity.
A nip there, a tuck there, what’s the harm? Any elective procedure comes with complications, so let’s highlight what the downsides are to “short sale surgery”.
1) Side Effects
Having a short sale done is much like having liposuction. You don’t want the extra weight there, you’ve done everything you can “naturally” to remove the unwanted mass, but it’s simply will never go away on it’s own.
So, an invasive tactic is used to get in there, take out what’s necessary, and trim the adipose down to a more normal level. There’s always risks though, and no two people or houses are alike.
For instance, electing to do a short sale could possible put the sellers in a worse condition financially. Like, if a Seller was considering doing bankruptcy, in which the house would have been included in their monthly expenses, it’s important to keep that costs on their balance sheet as part of a means test.
If suddenly that house is no longer an obligation, it could change their monthly expenses and overall financial picture to where they no longer qualify for certain types of bankruptcy, if at all.
If you’re a Seller and considering doing a short sale, perhaps bankruptcy, or both, it’s important to heed the advice of a qualified professional. This is NOT your local short sale agent; it’s also not an Attorney that will not simply advice you to declare bankruptcy to earn the fees. It’s working in tandem with two qualified, knowledgeable professionals that are not …read more