Thinking about short selling?
There was a very interesting front page article in the New York Times last Friday. It turns out that the rich think and act on short selling at a much higher rate than the middle class. The rich are walking away from their homes at a 50% higher rate than homes in lower price ranges.
The New York Times said “The Rich are Different. They are more Ruthless.”
Key thought here. Ruthless?? I don’t agree. I think those with money are very educated… not Ruthless. They know their rights. They know this is not a debate about “right” and “moral” and “ethics” the way the banks talking heads have spouted on cable tv.
It serves the banks for you to think you’re “bad” for not paying them interest on a house continually without question even if and when the home is upside down and you need to sell. The more guilt they can spread the more they keep the gravy train going for themselves.
The more guilt they spread over cities, the less mobility people have. Homeowners will continue to pay on condos and homes that have payments based on 2006 values, even when they need to move.
The first short sale I closed was a savvy business owner a few years ago. I guess they would be classified as “rich” even though I don’t think of them as that way. They are a normal thoughtful family. They trusted me and my specialty training in short sales: I got a $2,100,000 loan written down to $1,600,000 with no deficiency!! A half million dollar “discount” that allowed me to sell the home and kept them moving on with their lives.
That was the right decision. They didn’t have a stain of foreclosure on their credit. Nor did the bank foreclose and sell the home at auction for say $1.2 million and sue the family for the “deficiency” which would have forced them to Chapter 7 bankruptcy.
If you are in a home with a payment that does not make sense for you, STOP and think. Ask, why am I playing along? What’s best for us? Then call me. I have found that banks in all price ranges will do a short sale.
It is so much easier to start over without a huge debt on an upside down home.
Education is so important when selling short sales. Critical thinking outside of the way banks want you to think, “that you are unethical” or “immoral” for considering a short sale. We, as taxpayers, just bailed out the banks. Was the fact that they over did it, packaged and rated mortgage backed securities in manipulative and shady ways good business ?
Well your families needs come first in my book. The only reason somebody should stay in a home is if it makes financial sense and fulfills their needs to empower their lives. That is what the rich know.
Call me if you need to short sell a property or you know someone that needs my help. 312-953-6725