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Permalink Reply by P Nicolas Velecico on September 7, 2011 at 7:59am

 

  So whats wrong with that advice ? , maybe he can file a 13 and keep the property , or he is doing a 7 , getting rid of all unsecured debt to and try a modification , or maybe the attorney just wants to get paid and he can " keep " the property for another 6-12 months while the BK takes its course

 

Unless you know the sellers financial situation you cant make a comment if its good or bad advice.

 

Whats is the advantage to the seller doing a SS ?

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Permalink Reply by wally pelaez on September 7, 2011 at 8:33am

Well, obviosly I am trying to sell the property we ONLY make money when the sale occurs, if every seller is going to file bankruptcy to keep his property we have no businness,but definayelly a short sale is the best option to sellers with a negative equity on their property,as long as after the sale there is not a deficiency judment against them,giving the seller the opportunity of a fresh start without a huge debt.

I was reviewing and chapter 13 gives the opportunity to the seller to negotiate new payments without touching the principal and adding the late payments to the principal. which means higher monthly payments. and Chapter 7 the seller will eventually needs to give the property to the bank with no deficiency judment but with a bankrutcy and a foreclosure in his credit.

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Permalink Reply by Jeff Payne on September 7, 2011 at 8:41am

my only question would be.... What is good for the seller?  Doesn't really matter what we think is good for us the agents, it matters what is best for the homeowner.

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Permalink Reply by wally pelaez on September 7, 2011 at 8:50am

this is a forum for agents no for homeowners,anyways the pictures is bigger than that the question is what is good for everyone? what we need to do to move this forward and leave behind this recesion, we are a part of the problem and we have to become a solution as well.

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Permalink Reply by Jeff Payne on September 7, 2011 at 9:22am

Wally, I am well aware of what the forum is for, I am the moderator of the forum.  It is to share information and sometimes the information that we have to know is what is best for the seller because each and every situation is different.

For the record, I have never thought that an educated short sale agent was part of the problem, quite the contrary, I believe that we are the solution.

BTW, we have plenty of homeowners and homebuyers who use this site

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Permalink Reply by Anna "Banana" Kruchten on September 7, 2011 at 11:06am

I've had a few sellers go the BK route because it was best for them, as advised by their attorney. They are still in their homes and glad to be so. Will they refer others to me, absolutely.  

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Permalink Reply by Sam on September 9, 2011 at 3:34am

I certainly hope you are simply trying to push buttons with this post and that your comment is fictitious.  I can assure you that if your post and attitude is real, your stay in the business will be a short and unprofitable one.

While it can be hard to ignore the influence of a commission on your advice to your clients, you always have to place your clients well being at that forfront of any RE transaction irregardless of how it impacts you.  If you feel your client is getting bad advice from a BK atty, recommend that they seek a second opinion.  If they are receiving sound advice, be happy for them that they have an option to keep their home, which they obviously want to.

Additionally, you should have (perhaps you did, but I doubt it) solicted feedback from your clients up front if they wanted to keep their home, and if they did, made them aware that there are modification programs and bankruptcy options that may be available for them as a way to keep their home, so they could exhaust these possibilities.  If they wanted to keep their home, and they explored these options up front, you would have not wasted your time listing the property and processing a short sale in the first place.

RE agents are given tremendous regulatory leeway in stepping in as the homeowner advocate in these challanging times.  Unfortunately, and unsurprisingly, many RE agents look at the $$ signs of a short sale and do not help/advise their clients appropriately...can you say fox in the hen house.  That being said, it seems as though many agents on this site really care about the well being of their clients and that is refreshing.

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Permalink Reply by wally pelaez on September 9, 2011 at 4:13am

Sam, I want you to be clear  on it ,the purpose on this forum is give each other an advice based on our experiences dealing with short sales, in my experience Short sales are the best option to every homeowner with a negative equity on the property. I have closed many short sales (my listings) and the sellers are very thankful for the good decision that they made at that time ,they are free of the debt and they are enjoying a fresh start, on the other hand some of my sellers that decided to go with the attorney they finished with a bankrupcy and a foreclosure  in their credit

If you have a different experiences we wanted to hear it,if you know someone that filed bankrutcy and has kept the property with a lower mortgage and a lower principal after the bankruptcy we wanted to hear that.

Short sales inventories are increasing and foreclosures are decreasing. the reason is because a short sale works and is better for everyone involved on the transaction, is not only because we will make a commission at closing as you were mentioning... "dont become another hen in the hen house nor the fox",become a solution to the problem. 

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