Short Selling? Don't Move!

If you are thinking of short selling your home, or are already in the process DON'T MOVE! Why? President Obama passed legislation earlier this year which allows you to stay in your home for 90 days AFTER a foreclosure sale. You may be thinking "the entire reason we are short selling is to avoid foreclosure so how does this affect us?".

Here's how it affects you. Your lenders motivation to grant a short sale is based purely on weighting whether taking the house back at auction is going to cost them more than granting a short sale. For them it is not a matter of making or losing money, it's a matter of how much. For them it is a matter simply of short sale or foreclose, short sale or foreclose.

By staying in your primary residence while you are marketing the property for a short sale you retain the right to stay in the property for 90 days following foreclosure. That makes foreclosing that much more expensive for the bank and gives additional incentive to approving a short sale. That is 90 days more interest they cannot make, 90 days more deferred maintenance, 90 days for something bad to happen on the property, 90 days more liability and exposure that could cost them.

I represent allot of short sale clients and can say with certainty that if you allow the lender to take your property with little or no hassle, they will! When negotiating a short sale it is my job to take positions that make approving the short sale much more attractive than taking the property back at foreclosure. For clients that move and leave the property sparkling clean the lender has the least amount of incentive to negotiate. For properties where the homeowners stay they have to account for the added cost and uncertainty in their calculations.

Financially is makes sense for you as well. 3 more months of free rent gives you the chance to save up money for the move and allows you some relief. Emotionally many homeowners are at their wit's end and just want to put the whole experience behind them. I understand that, and know that moving is the first steps towards healing. My goal is to help you get through this process and back on the road to financial stability and a happier life so if you must move, go ahead. If you don't have to, consider staying for a few more months, payment free!