A short sale is when a homeowner sells property, but for less than the amount due on the outstanding mortgage. The lender agrees to release/discharge the mortgage on the property to allow the property to change hands to a new owner. Now, there seems to be a belief out there that short-selling a property is better than allowing it to slip into foreclosure. I’m not going to agree or disagree on this – because what’s good for some people, is just not good for others. But since there is a resurgence of media reports that former homeowners are “surprised” to learn they are still responsible for their debts to the bank even after a foreclosure, I thought I would revisit the subject and list out some pros and cons as well as perceptions and realities. (more…)
Archive for February, 2010
“I never thought I would be sitting here talking to you.”
Tuesday, February 2nd, 2010
I hear it from clients who meet with me for the first time, who have already had a chance to talk to me on the phone, and have already taken the time to start pulling together some important information and documents I need to assess their situation. And usually, I see a look in their eye. Something that reminds me that even though I am a fairly nice guy, some people find it painful to have to sit across the table from me. (more…)
Those People
I was recently chatting with an old friend who was sharing with me her recent trials and tribulations. She is on unemployment – has been for a while - and trying to sell her house. Her house is not priced to sell – but priced in line with what other houses in her neighborhood are going for… and are also not selling. She has also made some regrettable financial and life decisions that have lead her to the place she now finds herself in. It’s not a judgment – it’s more of an observation. Some of what she’s experiencing was avoidable. Some of it – like the unemployment, wasn’t. She asked me for my advice.
As I started offering some suggestions (among them, dropping the price on the house), I could tell she was getting upset. She then took a deep breath and said “you know, I’m not like those people you represent. Those people in bankruptcy.”
There was this period of awkward silence – I don’t think it was particularly long – but it was long enough for me to think something more serious than “really, Blanche. Really?” but not as dramatic as “oh. my. gawd!”‘
“Those people,” I said – and I could feel my eyes widening.
Being good friends, we could tell that we both hit a nerve in each other and we silently retreated to our respective corners. I did not have it in me to say what I wanted to say then.
I do now.
(more…)
Tags: Commentary, debt, Economy, Homes
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