I think the biggest hurdle that most sellers have with a short sale is the worry of where to go next. After months of dealing with the bank, (often trying to work out a loan modification) the frustration and stress become paralyzing.
It's often difficult to make a plan to move yourself forward when you're constantly fighting to stay right where you are.
But does your current place bring you joy? Is home REALLY where the heart is, and is it still worth the fight?
I believe a lot of homeowners fight more out of fear than the actual desire to keep their home. While moving into the unknown is probably the biggest fear for most people, moving to a new home isn't quite as scary as you'd think.
True, your credit is not the best, and buying a new home may not be possible right away, but you CAN get into a new place and rent for a few years. You will need to have money up front for moving expenses, but the short sale moving incentives (up to $10,000 for a HAFA short sale) can help considerably.
A lot of homeowners who have had trouble paying their mortgage also have had difficulty with the maintenance of their home. Home repairs are often very expensive, and not having the cash flow means that these repairs are often left on the back burner. Being a tenant rather than an owner means no more costly home repairs. That's a nice relief from the added stress of hearing that constant drip coming from the behind the tub...
Another fear is that everyone will know your business. Homeowners who've had trouble making their payments always feel like they're the only ones in this situation. The truth is, one of your friends, family members, neighbors and co-workers are probably going through the same thing. Trust me, you are not alone. If you'd like to keep your decision to sell your home to yourself, that's perfectly fine. All anyone needs to know is that you're ready for a change, and not ready to jump back into the housing market. "We'd like to see where we'd like to be, so we're going to rent for a couple of years" is the perfect answer.
Once my clients make the decision to move on, they realize that there really is a better place to go to.
Call us to help you make a fresh start.