The Other Side of a Short Sale
I feel good today. I just solved a problem for a family who was upside down on their mortgage and facing foreclosure. Helping a client sleep better at night always gives me a warm fuzzy feeling.
When Robert called me recently to ask for help, he had a hard time talking about his family’s situation without choking up. Even though I hear the same story on a daily basis, Robert has only one story – his. It’s always hard to hear the pain in a homeowner’s voice, no matter how many times I hear a nearly identical story.
Most people who are in trouble on their mortgage still think they are the only one in trouble. “How could this happen to me?” they wonder. “I’m honest, I work hard, and I did everything right.” Eventually I help them see that many people are in the same boat, and most didn’t do anything wrong. Most of the buyers who got us into this situation already lost their house, which probably wasn’t even their “home,” but rather an amateur stab at investing. People who hung on to their “house” because it was their family’s home are finding themselves unable to save their underwater home, and that’s just tragic.
A homeowner who is upside down and having trouble making his or her mortgage payments fears the unknown, worries about the kids, and feels embarrassed. Robert lost his job, and has been unable to find another. He hung on for as long as he could, making a payment every other month, and then every third month. But when his wife Florita lost her job as well, they were finally unable to make any payments at all.
Robert eventually found another job, but the lender had already denied his loan modification. I listed the home as a short sale and found a buyer quickly. I was then able to keep Robert and Florita in their home for nearly 5 more months, with the bank’s blessing, while we found a buyer for their home and waited for the short sale approval.
I’d like to say I saved their home, but I’m a Realtor, not a miracle worker. I was able to get HAFA approval for their short sale, and they were able to exit with dignity. They didn’t have to fear the dreaded foreclosure notice on the front door. With the $3000 that the lender gave them at closing, Robert and his family had the money to move into a rental home for now. With no foreclosure on his record, he should be able to become a homeowner again before his children enter high school.
Robert is happy again, and that makes me happy. He no longer loses sleep over a payment that was twice what his neighbors next door were paying. He found a comparable home to rent, in the same neighborhood, for less than half of his previous mortgage. And perhaps most importantly, Robert knows this wasn’t the last house he’ll own. We’ve already set him up on a credit monitoring program with my preferred lender, and he’s preparing to buy his next home as soon as he can qualify. It may be a year, two years, or even longer – but Robert and Florita want their own home, and they are getting ready for it.
Every successful short sale ends with a happy seller. It makes up for the initial, painful conversation when I see the smiles at close of escrow. And that’s why I still say I have the best job in the world.
