I have got a couple in a forebearance agreement to stay in their house till june.They want us to try to sell house for full amount owed,which is a waste of time in this market.How should we convence them to let us list as a short sale and bring all offers?
Put it to them this way!
You either short sale your home, save your credit from reflecting foreclosure for 7 years and the chance any of your lenders may seek a judicial judgement.
Do nothing and let your credit be damaged for 7 years, and there is a chance your creditors will seek a judicial judgement and garnish your wages for the next 10 years to recover there loss.
Either way don’t sweat it, there are probable thousands of owners across the country who either do not understand the benifits and process or who are procrastinators and have no interest in doing anything.
So go on to your next client (Deal).
I would move on…there are many others out there who are willing to list with you and are also reasonable.
I would go through a financial worksheet with the seller and show them all of the income coming in and all of the bills going out. If it is realistic for them to keep the property then give them any advice you can and move on. If not, going through that process with them will let them prove to themselves that keeping the property at this point is not realistic.
Once you are at that point explain the features and benefits of a short sale and let them make a choice. If they work with you great. If they don’t work with your great! Either way you are probably better off…lol
If you’re the type who doesn’t give up easily, and you really want the house in your hands, then maybe a little free seller-education is in order.
Maybe they aren’t clear on the def of a Short sale, or why you’re offering this alternative.
Outside sources of info give the sellers a chance to be more involved and informed with the suggestion.
About.com and Google are decent suggestions for the seller to get and feel more informed, and HGtv (the Home & Garden channel) has a site that many older owners seem to respond to.
HGTV’s RE-related site is called FrontDoor.com:
Here’s a recent Short Sale article from their site
You stated your case as clearly and directly as you could…and if giving them a few days to do a little research on the reason / benefits of a short…You can’t help someone who doesn’t want help, can you?
I’d say move on…You could be missing out on some good deals while trying to deal with stubborn sellers…not sure if it is worth it in this market when many people are motivated to sell.