SS - a win for the homeowner?

hey guys…whew! its been a while since i’ve posted. anyway, i used to avoid short sales but have been presented with one.

theres no equity in the house and the homeowner wants to refi. their mindset is if they cant refi, then they are in the same boat they are in now. they tried to list with a realtor but theres no equity so she’d walk away with “$700 which isn’t enough for a down payment on an apartment” were the exact words.

whats a win to the homeowner (or better yet, what win options can i provide)? is it really only saving their credit? i know the HO cannot benefit in anyway in short sales.



the thing about the homeowner not benefitting financially is the banks rule

there are ways to get around it, if you need to.

Personally, I think its (for the most part) ridiculous to pay somebody in foreclosure w/ no equity after you complete a successful shortsale. They took on the financial responsibility of buying a home, and then shirked those responsibilities. Saving their credit should be enough.

If you need to though, you could offer to buy their piece of crap furniture for say a thousand bucks. They really arent owed a damn thing though.

If your homeowner has no equity it’ll be a miracle to refi. On top of that any late payments and they can forget that idea.
If your homeowner has no equity, what does she have to lose? Her house and all the expenses that go with it? She might as well be renting an apt.
You’re alleviating her from her problem property by shorting it so she can move on, get a fresh start. She has to be at least 90 days in arrears before her bank would even consider a short sale and on the HUD-1 statement you’ll provide if your negotiating with her bank, they don’t want to see one thin dime going to the homeowner.
Offer to pay her moving expenses, her first month, last month deposits and a grand or two to move into an apt. If her credit is bad that’s about her only option.
If she fights you and ends up in foreclosure, that blotch on her credit will more than likely prevent her from buying anothr house for many, many years, much less leasing or renting one. Convince her your there to help her out of her situation but you need at least 60+ days to work out a deal with her bank and every day she sits on her hands and is indecisive is costing her more in legal fees and is one less day you have to work out a deal with her and her bank.
Again, ask her what does she really have to lose if her house has no equity anyhow and has probably even lost value, and she’s out of options? Her answer will tell you how motivated she is to do something. Otherwise give her your card, stay in touch with her once a month and move on.