Sometimes answering the phone is a predictable sport.
When home values drop 50% and the economy is shedding jobs like I wish I could burn calories writing posts (lots and fast), it seems that every call I get is so… predictable.
Hello, can you just answer one simple question for me? Do I have to be late on my payments in order to get help from my bank?
I have been asked this question no less than about 200 times in the last 2 years.
And usually after someone asks me the question, it is followed by fairly lengthy explanation of how they have never been late on their mortgage payment, have never been late on anything – and currently have a 700 (or higher) credit score.
In short, the callers are stressed out.
As with many of the larger decisions in life, often times the stress of knowing you are going to have to make a decision is worse than the actual decision making itself.
Another thing that many people won’t tell you when you are short-selling your house is that once you make the decision to actually do it, your stress level will go down.
Or at least mine did.
And many other people that I have talked to have said the same thing.
Once you actually make a decision as to what the best choice is for your particular situation, your stress level will decrease.
Generally speaking.
So if you happen to be one of those people with a perfect credit score who finds that you are staying up late worrying about whether or not the time has come to short-sell your house, I have good news for you:
Once you make the decision – whatever it is – your stress level will decrease.
About the Author:Justin McHood calls himself a “Mortgage Commentator” and works for Academy Mortgage Corporation. You can find his loan officers at Ten Day Close and read more of his thoughts on the mortgage business on Zillow’s Mortgages Unzipped Blog. You can also find him at most East Valley Friday Nights gatherings. He’s the one in the blue shirt.
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The Phoenix Real Estate Guy was started by Jay Thompson, and I have a little blogging problem... he liked to say...
We’ve lived in a credit society for so long, it’s hard to go late and ruin that perfect score. But, you have to ask yourself, with so many short sales and so many foreclosures effecting thousands of American families, don’t you think that credit “bar” will be lowered? Banks need to lend money. If a large percentage of us now have lower scores because of foreclosures and late mortgage payments there will be lower standards for qualifying in the future.
.-= Atlanta Short Sale´s last blog ..Over 400 Current Short Sales in Atlanta, GA =-.
It is a very difficult decision for many families. In addition to the stress I also see many people struggling with shame. I think the perception of many people is that their neighbors will look down on them. They don’t discuss the situation or the possibility of doing a short sale with any of their neighbors or friends. It isn’t until the sign is in the front yard that they can’t hide it anymore. But short sales and foreclosures are so prevalent right now I don’t think anyone even bats an eye.
.-= Carmen Brodeur´s last blog ..Become a Fan of Desert Mountain Real Estate on Facebook =-.
Nice post, seems to be so true. I have not gone through a short sale or had to make the decision like yourself but the most difficult part seems to be getting to the decision of doing a short sale. After the decision is made it’s interesting because I have seen some people really loosen up and feel so much less stressed out. In some areas in San Diego, it also improves once they realize that every other home is going through a short sale or foreclosure.
this article is so true when you finally made some deffinite decisions your stress level just suddenly goes down… i am sure this situation applies to any scenario not just on getting late on your credit paymetns or something….
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.-= Jun B. Lumongsod´s last blog ..San Roque Beach Resort ”¦. Tony Coen =-.
A short sale can be the best alternative to avoid foreclosure of your home. However, there are pros and cons about a short-sale that you have to consider with. It is better to short sell you house if you can no longer keep your mortgage current.
.-= Jake Hamilton´s last blog ..Things to Consider in Choosing a Modern Builder Home =-.
@Atlanta Short Sale,
Great point. I wonder what the underwriting credit standards will be in just a few years. I suspect they will be… different.
@Carmen,
This is the 2nd in a series about one guy's experience short-selling his house. You touched on a few topics I will be covering — including "what will the neighbors think?" or what some call "shame". Great point.
@San Diego Short Sale,
Be sure to tune in this week when I cover "what is the best way to avoid short selling your house".
@Jun,
Note to self: I need to go to Italy.
@Jake,
Agreed. There are pros and cons – and it is a decision that is a personal one. It seems that the pros and cons are measured differently by each individual.
Justin
.-= Justin McHood´s last blog ..Snicker Bar Happiness =-.
Hey Justin,
Great advice…I too am going through the rollercoaster ride of a distressed property owner and you are right on the money. It's like a giant weight is lifted off of your shoulders once you have a game plan.
I would also suggest that before you make the decision of what to do with your house – short sale or ?? – talk to an attorney. Just that conversation can be a great stress reliever too.
.-= Kristin LaVanway´s last blog ..Phoenix Real Estate FAQs – 3-12-2010 =-.
The secret to surviving a personal financial crisis is to recognise that you are in trouble early in the piece and to get the best advice possible from your lawyer and financial adviser … Tony
.-= Tony Coen´s last blog ..Expert Debt Guide To Debt Consolidation Loans … Tony Coen =-.
Can we expect to be paying three or four dollars a gallon to fill up our cars again soon?
Maybe the financial institutions that made these loans should be the ones getting disciplined? I've noticed that short sales are primarily a result of idiotic mortgage brokers and "investors" trying to make a quick buck on flipping properties. Shouldn't the banks be penalized for making a bad decision…just as a homeowner is? I hate to see anyone EVER have to go through this problem of short selling, but at the same time there are people out there that paid "Cash" for a home and not getting any forgiveness on their debt. Fair? No.
.-= Columbia SC Real Estate´s last blog ..A Summary about Longcreek Plantation, Blythewood =-.
I think when you take a general look at stress levels of property owners, or prospective property owners, the blood pressure and stress levels always spike a little. It is after all most peoples biggest transaction of their life.
In Australia they say that the average first home buyer pays 37% of their post tax income on the interest alone. Why any society would find this reasonable I cant understand.
I agree with stress level a bit but I've heard that if you've taken a second out on your home, the second (loan company) can come and sue you for the defaulted amount. Very serious consideration and scary. This will add even more stress. Anyone have any thoughts on this?