It is quite possibly the much easier route to take if you know what step to take first, executing a short sale from beginning to end. Measure the discomfort involved between them; worry/foreclosure vs legwork/short-sale.
I’ll stop procrastinating tomorrow!
Short sale is a plan for getting it done now, and foreclosure is drawing the stress and burden out over time, and in the end, it sticks with you longer anyway. I think of it all like I do my daily life. Why do it today when I can put it off tomorrow? For me it is the opposite. Do not put it off today, so I do not have to deal with it tomorrow. If you choose to foreclose, there is a good chance your mortgage and house go into the shadow inventory. This means you do not know when your home will go into the active foreclosure process, and though you can easily just move out and let it happen when it is going to happen, most do not. Most people procrastinate as long as they can, wondering when the inevitable will actually happen. Is that not the same as putting off dishes so that you can give yourself comfort to not worry about it today, while forgetting that tomorrow has just as much going on as today, but now tomorrow has twice the dish-load? After you dredge through the foreclosure process of worry, guilt, and stress, you still have life knocking at your door pleading, “what next captain”.
For the experts I surround myself with, short sale is the right thing to do on a number of fronts (life/personal coaching, helping the banking system progress in unloading the shadow inventory).
Everyone who is faced with the short sale or foreclose fork in the road are not all there because you were undisciplined, or taken advantage of by an inexperienced loan officer. Remember, employment rate is not the best right now, and some people were giving it their 110% at work and still got laid off…those folks make up a good part of this foreclosure epidemic. My point, we can all still play a roll in helping our economy recover, and short sale may serve as a way to help support our banking system.
I realize that the popular vote in America is in favor of letting these banks and Wall Street dig themselves out of what they got themselves into, but there are millions of families that work in the banking systems that had no decision making ability that are suffering too…I’m starting to make my point towards what is right about short sale, because in my experience, there is a lot of guilt in making this decision. Pardon me while I quote my faith’s Light on the subject, and whether you are a believer or not, it makes since in plain English…”Our willingness to forgive hinges on our realization of how much we have been forgiven” (Luke 7:41). This is a very true statement, and if we do not ‘pay it forward’ and forgive the big so that the small can eat, we continue to lengthen that list of unforgiven, and if the quote is accurate, those people are less likely to be forgiving in nature as well (putting off the dishes for tomorrow…let the future generation deal with it so I can enjoy my comfort now). To some up this point, that is the life coach front.
How does a short sale help the banking system when you are selling the collateral for less than what they loaned the borrower? The banking system loses loads of ‘Benjamin’s’ on foreclosures, and they can not afford to hire the workforce to support workload, because its a money in to hire the workforce that does not produce a money back system…lets say it like that to keep it simple. Since the workload is greater than the workforce, the foreclosures that need to be dealt with are growing and until the economy turns and less folks foreclose, the endless circling will continue.
The process of a short sale deals with the “dish-load” now/today, and the bank involved can check that chore off their already overloaded list. You simply contact a Realtor whom specializes in short sales, and those Realtors are out in droves in this market. That Realtor will likely request phone numbers and letters that the lender has sent you. Then, she/he uses their experience to submit a request/offer to the bank for the “blessing” to short sale the home at a certain price, or to at least accept offers. The bank doesn’t have to employ an attorney, or higher a team of Realtors to give them a value on the home. The bank issues an approval on the short sale and the Realtor establishes a system to find a buyer for the home. The home is sold, the debt is wiped clean from the current owner, and the bank writes it off as a loss, which is what they were going to do anyway.