We've heard many stories about how unfortunate circumstance befall a household where they no longer can afford to pay their mortgages. We've heard many stories of trying to ‘beat the system' or walking away from a home they no longer want. We've all heard ...and seen....the disarray of a home for those that just no longer cared because the bank would not help them modify their payments or help them through a short sale.
Well, there are homeowners out there who are trying to do the right thing and continue to pay their mortgages until the dying end. They've depleted their savings and retirement accounts to ‘do the right thing' only to be left with nothing.
They didn't realize that in order to do a short sale they had to be delinquent in payments....at least by one month and more according to Fannie Mae and other institutions by two or more payments. They didn't realize that paying those payments would actually hurt them in the long run to where they are just getting by.
And then the length of time to go through a short sale leaves them....on empty.
They get discouraged when the bank takes too long to respond to the offer in hand and more often than not, the buyer has already walked away. They can't do it without the cooperation of the banks....who are literally holding the homeowners lives in their hands.
This is an ongoing problem for those that are trying to save what piece of dignity they have left.
A disheartening chapter in their lives indeed......
For those who believed they were doing the right thing....
Being a respectable homeowner.
Celeste "Sally" Cheeseman is a Realtor-Associate® and Certified Residential Specialist (CRS) with Century 21 Liberty Homes in Mililani, Hawaii. With a sharp understanding that a listening ear is the key to a client's needs she serves the island of Oahu (Honolulu County) and all Hawaii Military Relocations, Hawaii Retirees, Hawaii Job Transfers and Hawaii Residents, Home Buyers and Sellers.
© 2007-2012 Celeste "Sally" Cheeseman's Hawaii Real Estate and Relocation Blog.
All rights reserved.
Sally, this just makes me sick, makes my blood boil. People are trying to do the right thing and the lenders don't care. I know, there are hourly people on the other end of the phone trying to keep their jobs and their homes too, I know they have to do what they have to do. They don't have the training, they just don't have the empathy, they can't do anything anyway. My anger is toward the people who are still making their bonuses, living their lavish lifestyles, no hiccup in their lives.
Trying to do the right thing is just not working, is it.
Good information that I think the average home owner just doesn't know.
Sally - I have had many disillusioned sellers who have kept up with their payments, overlooking their other debt thinking they were doing the right thing by at least maintaining the mortgage only to end up filing bankruptcy and eventually going through the foreclosure process or a short sale later. In every case I have heard of banks and credit card companies not willing to work with these people. By the time we finally get these homes sold the sellers could care less anymore - because they've already lost everything. Our business goes far beyond "selling" real estate any more - we carry this weight on our shoulders after listening to these stories.
Carol: I truly have empathy for those that are in the situation of 'doing the right thing' and getting slapped in the face. It would be nice if all worked together in a timely fashion so everyone can move on with their lives.
Billi: there's more to it than that...but it's a start :)
andrea: No kidding...I am as frustrated as they are...KNOWING that they truly are doing the right thing...it's the 'others' that just don't care.
It truly is sad, Sally. I have sellers who try to stay in their homes during the short sale, but start feeling so guilty about staying without paying on their mortgages that they wind up moving out while the property is listed.
These are really good folks who have suffered unexpected circumstances that are simply terrible to go through, and although they have nothing and cannot pay their mortgages, they feel super guilty about it. These are the ones that I try to help all I can. The listing presentation is usually very tearful.
Very good point Sally. The entire process is very disheartening.
Hi Sally~ This is very hard to deal with and it is so disheartening to every one involved. Doing the right thing is still the only way to go!
Sally finding yourself in a situation to have to do a Short Sales is not a good position to be in. People deserve to be treated with respect, but very little respect is found in the process of going through a Short Sale.
Good morning Sally,
The process is heart breaking for those involved in Short Sales. I think George has a point there is very little respect found in those caught in the net held by the lenders.
The entire short sale problem is indeed a sad state of affairs for many people.
Susan: And that's why we do what we do...
Susan M....It's happy when it's over :)
Vicky: yup
George: Everyone deserves respect George..no matter if a short sale or not.
Dorie: It's sad that people who are trying to do the right thing have to feel like this
Sally - is it any wonder that some folks just say the heck with it and walk? YOu try to do the right thing and you get nailed, so why bother?
Jeff
The entire process is messed up. The banks wait for someone to destroy their credit, before they will talk to them. Then they take a long time and devalue the property further. In the end everyone loses including the neighbors who get their property devalued by those actions or lack of actions.
My heart aches for these people. Just messed up and wrong!
I was led to believe that there had been a short sale reform, but I have yet to see any banks that follow the new rules. It is a terribly sad situation for far too many people.
I agree that this process is flawed. If banks are going to sell the house for less on a short sale why not help the people stay in the house. It will benefit everyone. It will also keep values up and keep people with a legitimate desire to stay in their homes, in their homes
Sally,
When you are a responsible person who is used to paying your bills, it is a hard thing to think that you have to become delinquent before you can get some help. I was in a similar situation a few years ago. When I called the bank, I was willing to give them the house and possibly pay off the difference over time. Their response.....nothing. Why? I was current on all payments.
Luckily for me, a whole lotta prayer and struggle helped me to keep the house and I didn't have to go into foreclosure. Seems like the banks would want to help people out of situations, especially if they have been good customers.
Go figure.
Have another great day
Leander
obtw - I like your new profile pic :)