Selling Poinciana One Property at a Time.: Why a Strategic Short Sale May Make Sense.

Why a Strategic Short Sale May Make Sense.

Buy a house in Poinciana Florida 407-873-2747

Hi folks. Let's talk about this Strategic Short Sale thing a little. I know there are many people that just can't understand why anybody would do a Short Sale if they can afford their mortgage payment and they do not have a hardship. In fact, there are those that would call this immoral. Well OK then.

My job is not to judge. My job is to inform people so they can make a decision based on facts, their needs and what's best for them. And as much as it sucks a Strategic Short Sale MAY be the best option. Just because someone can afford their mortgage payment does not mean continuing to make it is the best way to go. 

This post will give you some hard cold financial data. Do with it what you may.

First, you have to remember that in my area property values are down 75% and in some communities as much as 85%!!!! Folks that purchased from 2003-2007 with 20% down are still way up side down. Just to put our decline into perspective.....the average house in Poinciana, in the year 2000, sold for $81,000 and $56 per sq ft. Today, 2010, they are selling for $72,500 and $41 per sq ft. Unfortunately our MLS data only goes back 10 years so I can't see how far back values have gone. But we do know houses are worth less today than they were 10 years ago!!

If you purchased a house in Poinciana Florida in 2006 at $220,500 (average 2006 selling price) and put 20% down ($44,100) today, that house is worth $72,750! Your PITI (principle, interest, taxes, insurance) payment, if you have an interest rate of 6.75%, would be roughly $1,450 per month. You would still owe $168,000. This is 232% of what the house is now worth (LTV). So just to be EVEN on your mortgage, values would have to increase by 132%!! Of course this doesn't include the $44,100 you put down.

So.....should you continue paying? Only you know the answer to that question. Just remember that until values increase by 132% you will STILL be upside down on your mortgage.

If you did decide to do a Strategic Short Sale today and rent a similar house you would save approximately $700 per month. If you invested $400 of that savings at 5% you would have almost $28,000 at the end of 5 years. If you kept your mortgage instead you would still owe $150,500. What would your house be worth in 5 years? I have no clue. But I can only guess that it would not have appreciated 100%. That means if you needed to sale in 5 years you would SILL have to do a Short Sale. Do you take the hit now or take it later?

The numbers are staggering. What say you?

Are you facing foreclosure in Florida?

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more?

***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

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***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

The BIO for Bryant Tutas


 Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales,  Orlando Florida Short Sales, Celebration Florida Short Sales, Windermere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.

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Comment balloon 63 commentsBryant Tutas • August 16 2010 03:38PM


Reserved for TLW

Posted by Bryant Tutas, Selling Florida one home at a time (Tutas Towne Realty, Inc and Garden Views Realty, LLC) about 9 years ago

Property values down 75-85% is like something out of a nightmare. I can't lay blame on the doorstep of people who do what seems best for their families and their future.

Oh, I almost forgot to say - 'great post'!

Posted by Joetta Fort, Independent Broker, Homes Denver to Boulder (The DiGiorgio Group) about 9 years ago

WOW - and I thought some sections of East Las Vegas were bad!

Posted by Renée Donohue~Home Photography, Western Michigan Real Estate Photographer (Savvy Home Pix) about 9 years ago

Bryant, instead of the familiar "actions speak louder than words", your post incites the revised "numbers speak louder than words"

Posted by Kent Dills, Real Estate 817-495-8028, Bellingham, Washington (Broker, Dills Real Estate) about 9 years ago

Hi BB - This is one of those hard questions, and each homeowner simply has to evaluate what is best for him and follow his own decision for what is best for his family.  No one feels good about stiffing the banks and their investors, but if he can't fix this situation, and this is the only way he can save himself, which your numbers show, he has to do what he has to do.

I know you will get some interesting opinions on this one, and I'll check back to see what other have to say.

Posted by Susan Neal, Fair Oaks CA & Sacramento Area Real Estate Broker (RE/MAX Gold, Fair Oaks) about 9 years ago

And, I recommend an apartment complex rental rather than a SFH if you're going to strategically default!!  Seriously, 75% down is REALLY difficult to swallow and I cannot IMAGINE what I would do in that situation.  We're down a fraction of that here--some higher than others but, for the most part, about 20%.  It's a far cry from paying over 132% of your mortgage just to possibly get 'caught up.'  It's frightening, simply frightening...

Posted by Debe Maxwell, CRS, Charlotte Homes for Sale - Charlotte Neighborhoods ( | The Maxwell House Group | RE/MAX Executive | (704) 491-3310) about 9 years ago


We may need popcorn for this discussion :)


Posted by "The Lovely Wife" (Broker Bryantnulls Wife) The One And Only TLW. (President-Tutas Towne Realty, Inc.) about 9 years ago

That discussion takes place almost daily with condo owners here.  Because many of the properties are their 2nd or even 3rd homes it comes down to making a proper business decision.  Wait too long to decide and you may see an unwanted domino effect happen.     

Posted by Kevin J. May, Serving the Treasure & Paradise Coasts of Florida (Florida Supreme Realty) about 9 years ago

Bryant - The numbers take the emotion out of it a bit, don't they?

Posted by Wendy Rulnick, "It's Wendy... It's Sold!" (Rulnick Realty, Inc.) about 9 years ago

Bryant...Basic math and good accounting doesn't show the whole picture, but you can't argue with big picture.

Posted by Steve Loynd, 800-926-5653, White Mountains NH ( Alpine Lakes Real Estate Inc., ) about 9 years ago

with the current equity positions we see in good olde fla you could be handcuffed for quite awhile. the lenders are now off the demand hardship wagon. if we want some sense of normalcy i think this is necessary.

the homeowner will be severely punished by having to live through the short process.

i've come to believe we need to get off the moral bandwagon and use all the tools available to solve the problem. this is one.

Posted by Jay Beckingham, Seniors ROCK! ( Bank of England Mortgage) about 9 years ago

BB - the cold hard facts are hard and cold.  I'd like to know the rest of the story.  What does walking away do to impact the economy, especially in area's as hard as yours?  Hurt, Help, No difference?

Tell TLW I'll bring the tomatoes to the party!

Posted by Bob Haywood, (McGraw Realtors) about 9 years ago

Hey Broker B.  We are in similar straights in the overall Phoenix market.  I know a number of people who have dumped their homes for the exact financial reasoning you have laid out. 

My husband and I love our home and have no intentions of moving... BUT I can't help but think about how much money I could be saving on a loan amount far less than what we currently have.  What are we doing to our retirement $$$ by hanging on to a once overpriced/overfinanced anchor.

Posted by Kathy Anderson, Arizona Retirement Homes For Sale, Sun City Grand (HomeSmart) about 9 years ago

Those numbers are real eye openers.

I'm starting to see crazy numbers like that with townhomes and condos around my area.  I saw a townhome that sold for around $300,000 a few years back now on the market at $135,000.  At those spreads, if a hardship is needed it might be worthwhile to lose your job for awhile.

I'm too much of an optimist and being in sales, I can always hope that a few big paychecks are right around the corner.  Therefore I will just keep paying until I can't.  I'd rather drain my savings than go through the mess of a short sale.  But for someone on a fixed salary, I can see how it can seem like an endless nightmare with no light at the end of the tunnel.

Posted by Tim Maitski, Truth, Excellence and a Good Deal (Atlanta Communities Real Estate Brokerage) about 9 years ago


Is Florida a non recourse state? If not are the lenders asking for promissory notes or cash from the seller to settle the short sale?

Posted by Surprise Arizona Realtor Jim Braun Sun City Grand Active Adult Communities, Surprise AZ real estate Phoenix West Valley (Coldwell Banker Residential Brokerage Jim Braun Sun City Grand Az ) about 9 years ago

Bryant, At this point, homeowners would be negligent to themselves and their families to stay in a house that won't get back to par until they're old and gray. It's a no-brainer.

Posted by Judy Chapman (Referral Network of Illinois LLC) about 9 years ago

I have really come around on this subject in the past few months, and this post is really informative and smart.  I used to think that a strategic default was just wrong, but have made a total 180 primarily because the banks are refusing to help people like this.  No refi because the appraisal is bad, no loan mod because they are too swamped.   What's left?  Just what you described.  Those numbers are so depressing!

Posted by Coral Gundlach, Real Lives. Not Just Real Estate. (Compass) about 9 years ago

Tough one, Bryant.  I think self preservation comes into play here, and then the answer is easy.  How will FL ever recover?

Posted by Kathy Kenney, Realtor - Princeton & Central NJ Homes for Sale (Keller Williams, Princeton, NJ) about 9 years ago

I''m doing strategic short sales in Sacramento. I don't judge. Not every seller has a hardship and so what? The banks are still approving the short sales. As long as the banks approve them, I will sell them. It's not my place to decide whether sellers are ethical or the situation is moral. What I won't do is list a short sale that I don't think will close.

A seller told me today that she wanted me to list her short sale but she wanted a release of liability from Bank of America. I told her that Bank of America is not going to release her. She said the lawyer told her they would get a release and, if they don't, she won't have to do the short sale; she can let it to go foreclosure. And that's what she would do, so, did I want to list it? Do I look like I've got sucker tattooed on my forehead?

Posted by Elizabeth Weintraub Sacramento Realtor Top 1%, Put 40 years of experience to work for you (RE/MAX Gold) about 9 years ago

I am with you-I do not judge during these times. Each homeowner must make tough decisions during these hard times. Someone has to give them expert advice. I have teamed up with lawyers, CPAs and credit restoration companies to help sellers

Posted by Harry F. D'Elia, Investor , Mentor, GRI, Radio, CIPS, REOs, ABR (RentVest) about 9 years ago

Bryant - Excellent short sale post. And yes you're right, we as short sale agents are to inform and assist, not pass judgment. It is the sole responsibility of the homeowners to decide if a short sale is right for them!

Posted by Todd & Devona Garrigus, Broker / REALTORS® (Garrigus Real Estate) about 9 years ago

I worked with a couple that COULD still afford their payments. They were just tired of being short of money. I did not get the listing and I'm o.k. with that.

Posted by Jill Watts, A Luxury Experience at Every Price Point! (Realty Pro, Inc.) about 9 years ago

I worked with a couple that COULD still afford their payments. They were just tired of being short of money. I did not get the listing and I'm o.k. with that.

Posted by Jill Watts, A Luxury Experience at Every Price Point! (Realty Pro, Inc.) about 9 years ago

Hard numbers to look at...  You'd think that the banks might come up with a way to mitigate their losses... and those of the owner... so that they wouldn't have to take such a vicious hit.

Posted by Lane Bailey, Realtor & Car Guy (Century 21 Results Realty) about 9 years ago

Quite a conundrum for sellers. What I wonder, is if the tax write off offsets the numbers a bit? You may be able to rent for less, and save some extra money... but you lose a large tax write off (which some folks need), by not paying principal and interest on your mortgage.

Posted by Julie Baldino, Opening Doors to New Chapters... (Front Door Realty) about 9 years ago

Short sales are continuing to make more and more sense with all of the legislation that is being developed to help accomodate them.

Posted by Ralph Gorgoglione, Hawaii and California Real Estate (310) 497-9407 (Maui Life Homes / Metro Life Homes) about 9 years ago

Our society's entire moral compas has been readjusted.  It's just the way it is.

Posted by Sally Dunbar, Fair Oaks Realtor - Fair Oaks Homes for Sale (Lyon Real Estate, Fair Oaks CA (Sacramento Area)) about 9 years ago

Good post. When you look t the numbers one has to wonder why homebuyers would stay. As much as we love our houses its the people that make it a home.

Posted by Markita Woods NMLS#196099, Queen of Mortgages - FHA, VA, Conventional, USDA (Fairway Independent Mortgage) about 9 years ago

And we are not happy in our market with a 38% decline in value!

Posted by Jerry Morse, BBA,GRI (The Morse Company) about 9 years ago

I am also down here in SW Florida.  I have seen many families going through the hardship of losing their home.  I also do not judge strategic short sales.  We are all aware of the dramatic drop in property values.  My job is to find buyers and to negotiate the best value I can get them on a home.  There is no easy way out.  As Realtors, we need to be ethical in everything we do but we are not judges. Let people make the right choice for their life, let's just get these houses sold again.

Posted by Mike Cathell, Real Estate Investing for Real People (Real Estate Services of SWFL, LLC) about 9 years ago

My opinion of strategic short sales...

If it works for the lender

If it works for the borrower

If it works for the buyer

Then it works for me!

The last time I checked, I'm here to help people, not judge them.  Another good one Bryant.  I'm re-blogging it...


Posted by Bob Hertzog, Designated Broker (Summit Home Consultants) about 9 years ago

I'm happy to see those who have commented getting off the moral issue bandwagon.  The pendulum finally seems to be swinging or is it that you just explained it in such a way that a person can't argue with your numbers?  At any rate, I don't see it as a moral issue, but as a numbers issue, always have.  Thanks for putting it in plain and simple terms.

Posted by Fran Gatti, Managing Principal Broker - RE/MAX Integrity (RE/MAX Integrity) about 9 years ago


here in Daytona The Plaza Resort converted to condo-hotel at the peak of the market. I had a unit under contract, which the Sellers bought for $409,000. It was under contract for less than $50K. however, their mortgage payment was a bit over $3,000 a month. Which is $36K a year.

So, if the market stays this way another 3 years, they will pay another $108K in loan payments while they can just buy a unit there for practically what their annual mortgage payment is.

Believe me, under these circumstances people walk away

Posted by Jon Zolsky, Daytona Beach, FL, Buy Daytona condos for heavenly good prices (Daytona Condo Realty, 386-405-4408) about 9 years ago


here in Daytona The Plaza Resort converted to condo-hotel at the peak of the market. I had a unit under contract, which the Sellers bought for $409,000. It was under contract for less than $50K. however, their mortgage payment was a bit over $3,000 a month. Which is $36K a year.

So, if the market stays this way another 3 years, they will pay another $108K in loan payments while they can just buy a unit there for practically what their annual mortgage payment is.

Believe me, under these circumstances people walk away

Posted by Jon Zolsky, Daytona Beach, FL, Buy Daytona condos for heavenly good prices (Daytona Condo Realty, 386-405-4408) about 9 years ago

Great post, BB!  I guess you can consider it the cost of doing business.. Or in this market, save what you can. wow!  Tough times for everyone!

Posted by Don Wixom, "Looking out for your next move..."tm (RE/MAX Executives Nampa, ID) about 9 years ago

So I ahve seen the reblogged like 4 time sin the last 30 min.  I agree it is not right to do a stritigic short sale.  You and i will pay for this in the future,  Why? because the banks & gov. will make us pay higher fees & Taxes to correct this.

Posted by Ken's Home Team LLC. | 360.609.0226 | Portland, OR & Vancouver, WA Real Estate Team, - SOLD IS OUR FAVORITE 4 LETTER WORD - (Ken's Home Team LLC.) about 9 years ago

Bryant -

The logic of strategic short sales could not be made more plain than it is in this post.



The banks, confronted with their own commercial properties that are underwater, are not above doing such a sale themselves.

And when they take in a foreclosed property, they often fires sale that puppy in a heart beat.

It's the same darn thing.  Or you can just call it moral equivalence if you want.

Posted by Jim Hale, Eugene Oregon's Best Home Search Website (ACTIONAGENTS.NET) about 9 years ago

Bryant, I re-blogged this wonderful post of yours! :)


Posted by Bob & Leilani Souza, Greater Sacramento Area Homes, Land & Investments (Souza Realty 916.408.5500) about 9 years ago

Divorces are immoral too, yet people get them every day. Sometimes it's a mercy for both parties to call it quits.

Posted by Michelle Carr Crowe,Altas Just Call...408-252-8900!, Family Helping Families Buy & Sell Homes 40+ Years (Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty) about 9 years ago


Explained like that, I makes sense. I still question the morality of it though.

Posted by Terry Chenier (Homelife Glenayre Realty) about 9 years ago

Thanks for this summary.  I know that many agents do judge homeowners that choose strategic foreclosure, but based on the numbers, I agree that sometimes it's the only option that makes financial sense...

Posted by Sara Abbas, CNE, CDRS - 512-522-4990 (Realty Austin) about 9 years ago

And the really scary thing to take into consideration is all of the programs and $$$ that were put in place over the past year to keep home values from going down even further...

The Job market is really not improving that much and all of the borrowed bucks flooding the state and local governments to keep them propped up is about to come to an end unless continued... what happens by this time next year? Tax revenues to keep the music going certainly are not going up.

A strategic short sale could be seen as planning for the future...

Posted by Paul Francis, Las Vegas Real Estate Agent - Summerlin Homes (Francis Group Real Estate) about 9 years ago

Good morning. OK I just went back and edited some of my spelling and grammar errors. My writing is really bad. I guess I should have paid attention in school.

Bob#12, I don't consider this walking away. These folks are trying to work out a solution with their lender. Most attempt loan mods first. It's just they are so far upside down there is no way the lenders can do a modification. So the lenders tells them to do a short sale. The majority of the people I do short sales for are investors.

Jim#15. Florida is a deficiency State. Lenders do ask for cash and notes. But it really depends on the sellers financial situation.

Kathy#18. Florida will recover because we have lots of sunshine and beaches!! The same things that got us into this mess will get us out. The question is how long will it take? I'm already seeing property value increases in some markets.

Julie#25. In may area the folks are just working people. Mostly working in the service industry and for the attractions (Disney, Universal, Sea World). They take the standard deductions on their taxes. The interest write off doesn't mean much.

Sally#27. I do not believe this has any thing to do with morals. It's a financial decision.

Jon#33. I don't thing anybody would continue to pay under those circumstances. We have condos out near Disney that are in the same situation.

Thanks for stopping by and participating. And thanks for all the reblogs!!! I love it when that happens.

I was researching some lots last week in a community in north Orlando called Bella Colina. This was supposedly going to be the place to live for the wealthy folks. Beautiful golf course, lake front, club house and the whole nine yards. In 2005 people were buying lots on the water for $500,000 and turning around and selling them days later for $700,000!!! These were about 1/2 an acre. Today those lots have been foreclosed on (yes the lenders were financing them) and are back on the market for.......$45,000. AND...they can't sell them at that price because there is a mandatory buy in to the club of $40,000.






Posted by Bryant Tutas, Selling Florida one home at a time (Tutas Towne Realty, Inc and Garden Views Realty, LLC) about 9 years ago

Wow..worse than my area...we're at about 50% and still not enough for me to work on my tan!

Posted by Neal Bloom, Realtor CRS-Weston FL Real Estate (Brokered by eXp Realty LLC) about 9 years ago

Oour prices are down to 1998 to 2000 prices. EVeryone is upside down, those that have to sell must go short. Thanks for a easy to explanaton with the numbers.

Posted by Missy Caulk, Savvy Realtor - Ann Arbor Real Estate (Missy Caulk TEAM) about 9 years ago

Many home owners will have to look at this and say ... "How much am I missing out by not selling"? Aside from the moral aspect which nobody here should get into, 100%+ appreciation to BREAK EVEN is staggering, let alone the truckloads of mortgage payments made over the timeframe ... and when you stop to think of what else you can do with that money; save it, help a needy family, help your kids prepare for college ... it becomes a very complex emotional situation.

Posted by Stephen Kappre, Helping You Home (KW Hometown) about 9 years ago

Sorry, but I just don't feel like paying for other peoples' bad investments, bad gambles, or bad judgment. Back many years ago I invested $5,000 in a Broadway play--Seascape by Edward Albee. See  It was critically well-received, but closed fairly soon and I lost every penny. Did I demand that the producers refund my money? No. I recognized that not all investments succeed.

Since then, I've made plenty of other bad investments, some in real estate. No one ever guaranteed they'd turn out well. And when they didn't, I took my lumps and tried to learn from the experience. What would I do differently? In some cases, like Seascape, probably nothing. In some of my real estate ventures, a lot more due diligence. But you've got to take responsibility for your own actions.

In the case of a strategic short sale (or a strategic foreclosure), that's not what the owners are doing. They're saying: "I made a commitment. Now the numbers aren't working out the way I'd expected. So I'd like to pass my losses on to someone else."

And who are they passing them on to? Oh, no. Not the big, bad banks. Those losses flow right through the big bad banks to the federal government and back to us. You and me. We're the ones who'll pay. Are paying. Oh, and our children and likely our grandchildren. If someone's got to pay for a bad decision, I'd prefer that it be the person who made that poor decision.

The original posting, and many of the follow-ups, say it's not our position to judge. As Realtors, we're expected to best serve and represent our client. Same with a lawyer who's defending a guilty client. OK. That's our professional responsibility. But, come on, of course we can judge. Do we check our morals and ethics at the door? I hope not.

Posted by Donald Tepper, DC area investor helping heirs of inherited homes (Long and Foster) about 9 years ago

Bryant - great post - short sales are indeed necessary for some situations - we are seeing single family home prices going up a little but condos are still dropping - will it ever end???

Posted by Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional, Palm Harbor, Dunedin, Clearwater, Safety Harbor (Charles Rutenberg Realty) about 9 years ago

If you are going to do a short sale, now is the time to do it.  5 years from now, most people including lenders are going to look back and say 2010 was a very bad time in the economy for all of us.  But if you wait 5 years and then try to short sale, you are going to be frowned upon heavily if the economy has improved. 

Posted by Rob Arnold, Metro Orlando Full Service - Investor Friendly & F (Sand Dollar Realty Group, Inc.) about 9 years ago

Great blog and it will hit home for a lot of folks across the country.  Florida will recover as will the rest of the country, the ? of course is how long will it take.


Posted by Las Vegas Real Estate Agent Dawn Barrier, South Las Vegas, Henderson, Summerlin Homes (eXp Realty) about 9 years ago

I agree it is our job to present the facts and let the seller make the best decision as to their particular situation.

Posted by Dick and Dixie Sells, Realtors, Tampa Bay Florida Homes For Sale (Sells Real Estate, LLC) about 9 years ago


Clear, concise example, BB, of the challenges some face with their underwater homes. Your numbers show just how long it will take for some homes to appreciate back to a break-even price level.

And what if someone is just a few years away from retirement and doesn’t have the time to wait and financially recover? Strategic default may be their wisest choice. Thanks for posting this.


Posted by Bill Burchard, Broker, Realtor, Representing Buyers and Sellers (3B Realty: 951-347-3818, CA) about 9 years ago

Bryant, well put. My area isn't that bad. As you say, you don't judge but you gave us great facts to consider. Not every loan made during 2003-2007 was a bad loan, but the people who bought during that time over paid for their properties.

I would not like to be put into that position, but if I were, I'd have to look at the numbers as you suggest.

Posted by Gary Burleson, Myrtle Beach Homes, Condos, Foreclosures, Investment Propery (Beach Water Realty - about 9 years ago

Your numbers are staggering and I get it. But the issue I've faced ... and perhaps I just haven't been willing to go down the path with this sort of short sale ... is how does one say to the banker who's to approve this short sale "Hey, I'm selling my house short just because I don't feel like making the payment!"

Yes, there'll be a defiiciency and tax ramifications, but with the difficulty we often face just getting banks to approve short sales with really sad hardships, make it hard for me to understand this one well. (count me naive ...)

I'm curious to know how many of these types of transactions are truly closing; I'd like to be a fly on your wall for a while to hear how you're convincing lenders to approve them.

Luckily our prices haven't dropped to the extent you see in Poinciana (we're closer to 2004-2005 numbers), but we tend to lag behind most of the other parts of the country by several months ...

Good post, Bryant. Love the ones that truly make you think.

Posted by Gabrielle Nemes, 206.300.8421, S King & Pierce County RE Advocate (RE/MAX Realty South) about 9 years ago

Are the banks really taking the strategic shorts sales?  Perhaps in your area, but I dont know that this is the case all over.

Posted by Chuck Carstensen, Minnesota Real Estate Expert (RE/MAX Results) about 9 years ago

Abandon ship......

Posted by Richie Alan Naggar, agent & author (people first...then business Ran Right Realty ) about 9 years ago

I, too, have made a 180 turn around on this topic. At what point do you stop throwing money into a really bad investment???? I think that it's easy for people to condemn those who purchased in the early to mid 2000's at the height of the real estate boom for making "bad investment decisions", but the reality is that many people were steered into awful loan products because it made more money for the brokers at that time. What about those individuals??? Were they stupid??? Did we really expect them to fully understand the ins and outs of our profession?

Posted by Vanessa Calhoun, Your Greater Atlanta Marketing Guru!! (PalmerHouse Properties & Associates, LLC) about 9 years ago

Wow! What an eye popper & a different, yet very logical way to look at Short Sales! I hope your post is somewhere for the general public in your area to view ... perhaps a local paper (site).  I feel for those people who bought in the early 2000's they, like Vanessa above stated probably didn't fully understand our profession & no doubt were steered more into their "i want to buy a house" craving. I think your post is necessary for them to see!

Cheers & Thanks for another great post!

Posted by Samantha Smith, Sam I Am Houses, Simply Texas Real Estate (214.422.0729 about 9 years ago

Bryant - Thanks for the comment on your reblogged blog. Wow that was a keyboard full. It's reall valuable information, and even though we haven't had nearly the valuation problems you do, short sale situations do come up. Anything you write about short sales will probably get reblogged by me. I hope it sends you some additional business, and me also. Keep up the good work.

Posted by Larry Brewer - Benchmark Realty llc (Benchmark Realty LLc) about 9 years ago

Gabrielle, Persoanlly I don't tink the lenders even look at the hardship letter. They just need it for the file. I have never had one come back and dispute the short sale over the hardship. They just approve them. The hardship for someone that just wants to sell is exactly that...they need to sell and they can't because they owe too much money. The negative equity IS the hardship.

Posted by Bryant Tutas, Selling Florida one home at a time (Tutas Towne Realty, Inc and Garden Views Realty, LLC) about 9 years ago

Agreed.  Poinciana has been hit the hardest in the area.  Your numbers are staggering and at the same time illustrate the reality of realty. Will Florida come back- of course it will. Being one of the first States to tank, it is making a gradual improvement in year over year comparisons.

Posted by Allison Stewart, St. Cloud Fl Realtor, Osceola County Real Estate 407-616-9904 (St.Cloud Homes ) about 9 years ago

Hard for folks to argue with unemotional facts and numbers like that. Thanks for making it crystal clear!

Posted by SarahGray Lamm, Realtor - 100K Hours of NC Real Estate Experience (Allen Tate Realtors Chapel Hill, NC 919-819-8199 ) about 9 years ago

I've never thought of short sales as a moral issue.  It's a business decision.  If Wall Street can do it, Main Street can, too.  No judgement here.  Thank you for putting this issue into perspective. 

Posted by Gail Robinson, CRS, GRI, e-PRO Fairfield County, CT (William Raveis Real Estate) about 9 years ago

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