Housing Crisis - Remove unqualified Borrower with qualified Borrower in a Short Sale

With the recent financial markets reeling in turmoil, industry experts and administrations are putting on their thinking caps in hopes of finding some resolution to what affects Wall Street and the housing industry.

Take a look at the Short Sale and how it can help. You hear talk of bailouts to those facing foreclosure with government throwing them a life rope. You hear of the alternatives offered in a Loan modification and if that doesn't work then foreclosure is imminent. Offering a loan modification to someone who had a small hiccup along the way but now clearly demonstrates that their income and debt will support a loan modification is a fabulous option. But offering a Loan modification who really can't firmly demonstrate their ability to pay their loan is just stalling the process of later inabilities to pay.

In comes the Short Sale. So what about the Short Sale? Many, but not all Short Sale candidates are not in a position for loan modification as their income, debt, credit history or other factors simply doesn't show them as being in a solid position of repaying the loan. Providing a relief to such individuals just to stop foreclosure isn't eliminating the inevitable. This type of relief is what got so many homeowners into their current troubles; giving them loans without looking at their income and without full documenation and without money down.

Why not encourage Lenders to quicken the Short Sale approval process and approve more Short Sales. With lending practices now tightening as they have, you'll be getting a new homeowner into a home that can afford the home with the new stricter guidelines solidifying future market values and not lending to someone who is in a position of future default as what is being evidenced now in the mounting foreclosures. You'd be eliminating foreclosures that affect everybody's neighborhoods; getting the bad debt out of the market and bring in solid credit homeowners who will perhaps make the market whole again and most importantly helping distressed homeowners get on with rebuilding their lives.

There is a middle of the road favorable outcome and that is a Short Sale - I hope Lenders and advisors can pick up on this benefit of a short sale; removing the unqualified borrower and replace it with a true qualified buyer. Everybody wins here!

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I serve Coral Springs and the surrounding cities such as Coconut Creek, Parkland and Sunrise in Broward, Dade and Palm Beach County of South Florida as your dedicated Realtor ready to work for you. Looking forward to hearing from you soon. Call me at 954-464-1100 or email me at: lynnp@ImagineYourHouse.com