It is tough and mostly sad to have to tell owners that they can’t get out of their homes to move for a job, retirement, downsize or whatever because it’s now worth so much less than when they bought or re-financed for. Here in Florida many homeowners count on the value of their home as a big part of their “nest egg”, an egg now gone bad. For others the home they loved and maybe raised their family in is now a ball and chain preventing them from making a move for a better job or maybe to be closer to family. For some more fortunate sellers that has meant bringing money to the table to sell their homes, so they could move on. For others that has meant just walking away and losing everything that they had worked so hard to build. It’s not a pretty picture.

Some might think that the Federal programs, like “Making Homes Affordable” would help; however, the lenders have not jumped at the program. Even if they will modify, the best I’ve see them offer is to put the late payments at the back of the loan. How does that help? It doesn’t lower payments or put the strapped homeowner in a better equity position. It actually just makes things worse.

Even Short Selling is getting harder with second mortgagee wanting more of what is left and both mortgage holders taking months to decide often resulting in a good buyer walking away. It goes back on the market, the process starts over and now usually at a lower price. You would think, with all the bailout money these lenders got they would be happy to sell for whatever they could get and make the process smooth and easy. Anything they get over 25% of what is owed is probably money in their pockets. If a lender really wants to “help” let them short sell to the original owners. What a novel idea! It would eliminate many homeowners abandoning their homes and the lender would probably end up with a better loan at a better price. Instead, most homeowners who short sell have to sign an “arms length agreement” that says they don’t even know, much less are related to anyone purchasing their home.

Enough of what should be. We have to work with what we have, a flawed system at best. Still, the best option for a homeowner who is upside down in today’s crooked world is to short sell. Don’t make the mistake of hiring someone who is not EXPERIENCED in short selling, it can be a long arduous process that is not easily done. Would you hire an OB-GYN to perform brain surgery? Don’t hire a general Real Estate sales person to handle your short sale. Hire someone with a track record that is documented.

By: Pat Perrotta, Keller Williams Emerald Coast and owner of United Loss Mitigation.

It is tough and mostly sad to have to tell owners that they can’t get out of their homes to move for a job, retirement, downsize or whatever because it’s now worth so much less than when they bought or re-financed for. Here in Florida many homeowners count on the value of their home as a big part of their “nest egg”, an egg now gone bad. For others the home they loved and maybe raised their family in is now a ball and chain preventing them from making a move for a better job or maybe to be closer to family. For some more fortunate sellers that has meant bringing money to the table to sell their homes, so they could move on. For others that has meant just walking away and losing everything that they had worked so hard to build. It’s not a pretty picture.

Some might think that the Federal programs, like “Making Homes Affordable” would help; however, the lenders have not jumped at the program. Even if they will modify, the best I’ve see them offer is to put the late payments at the back of the loan. How does that help? It doesn’t lower payments or put the strapped homeowner in a better equity position. It actually just makes things worse.

Even Short Selling is getting harder with second mortgagee wanting more of what is left and both mortgage holders taking months to decide often resulting in a good buyer walking away. It goes back on the market, the process starts over and now usually at a lower price. You would think, with all the bailout money these lenders got they would be happy to sell for whatever they could get and make the process smooth and easy. Anything they get over 25% of what is owed is probably money in their pockets. If a lender really wants to “help” let them short sell to the original owners. What a novel idea! It would eliminate many homeowners abandoning their homes and the lender would probably end up with a better loan at a better price. Instead, most homeowners who short sell have to sign an “arms length agreement” that says they don’t even know, much less are related to anyone purchasing their home.

Enough of what should be. We have to work with what we have, a flawed system at best. Still, the best option for a homeowner who is upside down in today’s crooked world is to short sell. Don’t make the mistake of hiring someone who is not EXPERIENCED in short selling, it can be a long arduous process that is not easily done. Would you hire an OB-GYN to perform brain surgery? Don’t hire a general Real Estate sales person to handle your short sale. Hire someone with a track record that is documented.

By: Pat Perrotta, Keller Williams Emerald Coast and owner of United Loss Mitigation.