Another short sale closed! The sellers avoided foreclosure, the buyers purchased a nice home at a discount, and the lender did not have the losses involved with a foreclosure. 
Many people feel that the nation's economy rises and falls with the housing market. While this is often true, we believe the current housing crisis is a direct result of the economic downturn and massive job loss across the nation.
In the Short Sale community, the vast majority of homeowners did not get a bad loan or buy more house than they could afford; they're just good, hardworking Americans who fell on bad times.
All indicators point to Short Sales being on the real estate horizon for the foreseeable future, at least through 2012, and maybe longer. Industry experts see another wave of distressed homeowners surfacing when the once popular Pay Option Adjustable Rate Mortgages (ARMs) begin to adjust in the coming months.
These mortgages allowed the borrower to essentially "pick a payment" that fit their budget in order to get into the house they wanted to purchase. These loans have the potential to negatively amortize and the rate will adjust upward - it's just a matter of time. Pay Option ARMs were widely used in California and will begin adjusting soon.
We encourage homeowners across the United States to get educated on the options available should they become financially distressed. Short Sales are a great tool, providing relief to all parties.
Just remember to choose a REALTOR® with a proven Short Sale track record to negotiate on your behalf. Making the right choice can mean the world of difference to your financial future.
Tom Branch and Gina Branch, The Branch Team with RE/MAX Dallas Suburbs, service the greater North Dallas suburbs including Dallas, Plano, Allen, McKinney, Frisco, Lewisville, and Carrollton. While Gina concentrates on traditional listings and buyer/tenant representation, Tom specializes in assisting distressed homeowners to avoid foreclosure. Tom and Gina have published two books (Achieving Rock Star Status and The Field Guide to Short Sales) and are available for speaking engagements in the greater Dallas - Fort Worth Metroplex. Subscribe to The Branch Team Blog.
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The Branch Team - Texas Real Estate Broker 547597 | Team Members are Texas Licensed Real Estate Professionals
Tom Branch - National Mortgage Licensing System 341963
Important Notice: The Branch Team with RE/MAX Dallas Suburbs is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.
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Congratulations, Tom! I've assisted with short sales, and I know in part the great challenges that they present, but I think of you as a short sale expert. I hope to gain more expertise in this area of real estate service.
David,
Thanks for the comment. We've closed over 100 short sales in the past 3.5 years. They continue to be a challenge. Some banks are easier than others to work with. I suspect that we will be doing these for the next few years. Once the economy recovers so will the housing market.
Tom
It is GREAT to see that they DO happen! I have only been "involved" in two over the past 18 months and NEITHER CLOSED! Lots of wasted time, energy, effort and VERY UPSET buyers. Only one of those two customers actually got to the Finish Line.
Great post and CONGRATULATIONS on your success in this area.
Happy SELL'ng out there!