Last week we closed a Las Vegas short sale for client. That is not all that unusual anymore, but what is unusual is the way the bank let us do the short sale. Our client had to move to another city for her work. She has great credit and didn’t want to destroy it. Upon having discussions with the bank we were able to convince them that it was in their best interest to allow her to sell her home and let her keep making her payments until it closed. The bank agreed.
We sold her home quickly and even had to adjust the price due to appraisal. The bank stuck with us and we closed the deal without a hitch. Our clients credit will not reflect any late payments and her FICO score will only be mildly blemished. She won’t be able to buy a home for 2 years, but everything else in her life will be normal. No foreclosure, no bankruptcy and very little disruption.
As the banks adjust to our dramatically reduced markets, they are beginning to understand that short sales will be one of the elements that get us back to a more normal market. I don’t believe that short sale is the right answer for everyone, but it will be the correct method for a lot of homeowners. As a homeowner you will have to demonstrate NEED. You can’t just say that I want to sell this home because I overpaid. You must have a reason to NEED to sell your home. If that is the case, then the bank should work with you to get that accomplished.
The bank’s punishing homeowners for their need to move in a down market will not serve anyone, but a homeowner saying I want out of this home because my neighbor paid less than me will not serve anyone either. We must all recognize that the market will eventually become more seller friendly, but until it does we need to be able to get people out of the homes when they NEED to get out.
I applaud the bank that took this approach and I am hearing that other agents are having similar successes. I hope that we see this trend continue.