PW the current short sale I have listed right now tried to convince the lender to go for a deed in lieu of foreclosure but the lender would not budge. They said that we could attempt to sell it short or they would just take the home at trustee sale. This WAS indeed a hardship case as well! I am working with another client at the moment and they actually have a hardship case as well. They has authorized me to talk to the lender and I have been going round and round with them. This home is not yet listed either and the owners simply do want to just mail the keys in but the lender is being uncooperative.
As far as the advice to people who want to simply mail it in so to speak. I guess I don’t have any strong feelings. I would have to agree that yeah simply paying out money you cannot afford to pay is something that one should not do. Still I cannot help but to want to grab these people by the collar and shake em around a bit and ask why the heck they bought something they couldn’t afford in the first place? If it is a true hardship where something did happen, at least there is an excuse there. Anyways walking away is a very realistic option and yes I have recommended it to many people. It is a very realistic option and it dovetails nicely in the the post PR made.
Essentially we as taxpayers have/will take on the burden of these shortfalls. To me this has to be one of the changes in the housing market. I cannot stand these non recourse loans. Build the risk into the purchase and let the buyer pay that risk. If it means 20% down, or if it means 30% down then so be it.
If we make it a major hurdle to purchase a home, I don’t think we would ever get close to creating a bubble like the one we created again.
Right now it is like we keep squeezing these bubbles into different areas. The stock bubble got squeezed into real estate, now real estate is getting squeezed into the tax bill… Seems to me sometime someday there will be no places left to squeeze to.
