A short sale is NOT an easy-out!!!

Friday, February 1st, 2008

OK, this has come up a few times in the last few days, so I am going to take a minute to write (vent!) about this new habit that people are picking up: thinking that the easy way out of a home when you don’t want to deal with it anymore or want to move into a hot new place is to short sale. 

Short sales are  designed for and intended to be used by people who are truly unable to handle their mortgage payments.  For those who got sucked in by subprime loans and the rapid ARM adjustments that took their payment into the astonomical realm of double digit percentage rates - NOT for people who have decided they want to move into a different neighborhood and simply want to  get out of their house the easy way.

Because, you know what?  Short Sales are NOT easy!  

A. They wreck your credit - no matter what your situation, they wreck your credit.  The nice man at the Credit Reporting agency could not care less about your sick mom or your broken ankle or your dog that had a very bad cold so you couldn’t possibly make your mortgage payment.  He will see SHORT SALE and he will lower your credit score by hundreds of points.

B. They take a lot to negotiate.  The bank will not even CONSIDER a short sale unless you have missed several payments and have a incredibly bad debt to income ratio.

C. Once your house is on the market, you still have to deal with showings and everything else that you normally would.  It’s just like selling your house, only you have nothing to gain and everything to lose!

For further proof, read this article by USA Today.

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