No one really talks about it, but what about the emotional toll of a short sale?
Short sales are all the rage in the real estate industry. And when I mean rage, I mean bad rage. Realtors and property owners alike would agree that the short sale process is cold, unorganized, slow, tedious, and downright depressing.
Here are some basic statistics about the housing market today. They fluctuate based on who you ask, but in general they are true:
• 25%-30% of all mortgaged homes are worth less than the balance of their mortgage(s)
• More than 1 in 10 mortgagors are behind on the mortgage
• Some say over 5 million foreclosed homes could hit the market throughout 2011
These are some sobering statistics, but it leads us to our point. A homeowner, you, or someone you know, that is in default and pursuing a short sale is not alone. Sure it feels like they are alone. Many people don’t feel able to freely discuss financial difficulties because of the fear of being ridiculed, ostracized, worrying the kids, and a whole plethora of personal reasons. The fact is it’s hard to deal with these issues and many people feel similarly.
The plain truth is a short sale owner will be leaving their home and that in itself is filled with unknowns, fear, and emotional angst. No one likes not knowing where you are going to live. How much it will cost? Where it will be? Will the kids like the new school or neighborhood? Moving is particularly hard for families when kids have roots and have grown comfortable. For those of you that moved as kids most certainly understand.
Many people relocate and kids can be taught that moving can be a good thing, exciting, a new adventure. And the same is true for the homeowner. You are going on a journey and you’ll be leaving where you’ve been. You’ll meet new people, see new areas, and enjoy new local restaurants. And most importantly you’ll be with your family, together, and ready for the new challenges that life consistently presents.
You see a house is just a bunch of wood, cement, tile carpet and other stuff.
A home does not make a family;
A family makes a home.
Financial strains can be the cause of arguments between husband and wives, or worse with children. The stress can and will most likely make emotions run high and patience run thin. It’s important during the stressful short sale process to take a step back when things get loud or stressful and focus in on what the problem really is. Would you normally be fighting or arguing about this? Are your daily issues being exacerbated by the financial situation? Stop and take a deep breath. It is remarkable how just stopping and relaxing for a moment can clear some of the stress and allow you to focus on the important items.
It is important to avoid procrastination. Let’s suppose you are notified an offer of your property has been accepted. Now you need to plan and execute. But first you have to get out of your own way. Some are better than others, but many of us procrastinate and it’s important to not let your emotions take control. You should always have been looking for a rental property. Most likely you will not be able to buy a home for awhile. And that is OK.
Take this freedom to enjoy being a renter and letting the property owner handle being a real estate owner. There advantages to being both a renter and owner. Focus on the good of renting. Lower costs, less maintenance, no landscaping, no HOA fees, more or less room depending…There are many advantages – just look and you’ll see. More importantly, you’ll feel better.
Remember, you are not alone. A home does not make a family, a family makes a home. Obtain the services of a Real Estate Broker/Realtor. Consult your tax expert and whenever possible consult an attorney with expertise in short sales and their legal ramifications. Your Realtor/Broker should be able to offer significant advice and direction if you are contemplating a short sale transaction.