Short Sale Madness for Sellers – Why Continue to Pay?
In tracking my short sales which I do a fair amount of in the past few years, I am finding the following for my short sale sellers:
If they continue to pay on their mortgage, even though they have a hardship, the Bank(s) are uniformly asking them to come to closing with monies as a contribution or a promissory note commitment.
This means they are borrowing money to pay this closing amount since many do not have the take home pay or savings to meet the payment obligation.
In these short sale situations a mortgage insurance company is involved. However, I am amazed at how strident the mortgage insurance company is being and as far as they are concerned if the borrower is ready, willing and able to work, then they can pay a promissory note over time.
I would not have a problem if my clients had a job now that could meet their obligation agreement but some do not. Yet I can get no movement on this issue from the MI company.
How is this different from my other Rhode Island real estate short sale clients who have stopped paying on their mortgage? My clients who stop paying their mortgage get their deficiency judgment waived and sometimes may be required to contribute a couple of thousand dollars at closing. A lot better offer than the ones who continue to pay their mortgages up until the short sale closing!
So I ask you in the short sale field…what is the point for a short sale seller to continue to pay on their mortgage when they will get the short end of the stick at closing?! I, as a short sale agent, never advise them to stop paying their mortgage but I want all my present and future clients to understand what is happening in the RI short sale arena. There is no pity from the banks here. Short Sale Madness for Sellers – Why Continue to Pay?
Ginny Lacey Gorman is your go to North Kingstown Realtor® for real estate in North Kingstown RI and beyond…knowing the geographic area, schools, happenings, important tidbits of information and businesses well. Waterfr
ont, oceanfront, luxury and coastal Rhode Island real estate are my specialty but all of RI is my backyard. So feel free to search for RI Homes for Sale. When you are in need of a true real estate professional for your buying, selling or relocating needs and an internet savvy Realtor® who sells RI houses in this real estate market call Ginny at 401.529.7849.
As a North Kingstown short sale agent, if you are having trouble paying your mortgage contact Ginny to help you through the short sale process successfully