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Permalink Reply by Sheyenne Schultz on February 25, 2013 at 9:06pm

Excuse me  but "breaking even" IS a short sale. If a home is worth 300,000 and they owe $300,000...it's still a short sale.

Remember, you have to add up taxes, title, escrow, commission, all other fees ON TOP of the PAY OFF amount to come up with what would BREAK EVEN in a sale so that the owner would NOT have to WRITE a check to SELL his/her home.

Depending on where you are at... add up the fees on top to see if they can clear any monies or have to write a check to sell,or bein the red and consider it a short sale.

People will usually wait until the last moment...aren't they ALL in denial until it's usually too late? It's like a deer running across the road and sees the head lights coming...they freeze.... and can either run BACK OR KEEP going ahead...or do nothing and SPLAT!!!!  

We ARE seeing a spike in appreciation...which is a FALSE BUBBLE.....it's partly due to the falsely created LACK OF INVENTORY..with the banks leading the way on NOT releasing the shadow inventory they've had for years...

AND Fannie and Freddie coming in with valuations WAY TOO HIGH...

the banks across this country KNOW what they are doing...and after this FALSE BUBBLE bursts again we'll be right back where we started!  It's a VICIOUS rolelr coaster ride they've strapped us in on and we can't get off...until they let us...

God help us all.

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Permalink Reply by Peter J Kim on February 26, 2013 at 6:41am

that's a good point sheyenne.

Homeowners don't realize that breaking even really means being another 20k+ away from actually coming up from underwater

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Permalink Reply by Janis Schade on February 26, 2013 at 8:25am

In Missouri, we sometimes take another approach.  Put the home on the market, market value, and see if it sells.  If the market value will not support what the homeowner owes, then you start the Short Sale process, and convert the listing into a Short Sale. 

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Permalink Reply by Minna Reid on February 26, 2013 at 10:11am

Here in CT where most of my clients have lost say ~30% of their value....we do the math...if the market turned around today and NORMAL appreciation of say 3% a year followed, how long will they wait until they are no longer upside down?

The answer is never pretty. I have never had a single client say they are willing to wait that long. 

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Permalink Reply by Sheyenne Schultz on February 26, 2013 at 10:40pm

In reading the post ....there are 2 ways to view "break even"    There is a break even on market value...meaning if the home is worth $300,000 and you OWE $300,000....without adding in commission, taxes, title, escrow, and other fees...then you are upside down.  

Or if after you have a HUD settlement statement in hand and have added in all costs in a sale and THEN the seller "breaks even" and is NOT writing a check to sell their home..then YES..that is NOT a short sale.

And NO...there is no "conspiracy theory" and Bush has absolutely zero to do with the post or any questions answered in here...

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