For homeowners thinking of giving-in to a real estate agent vowing “To Save You” from foreclosure, think again, especially if you live in Poinciana, Florida. Short sales–the preferred phrase among agents today–is really the double of “foreclosure is imminent." It is the new industry crop for agents, many of whom tout the process because that's what they're being told by their short sale guru's, a.k.a., brokers and anyone else in the industry who can get away with making a buck on the side while the life-dream of homeowners results in economic horror. Poinciana today is now boom-town to buyers thinking of moving to Florida and is an American example of how the decisions from way up on the chair of Ben Bernanke can reach down to family neighborhoods. This one rendered Poinciana Ground Zero of the U.S. housing bust.
Of the nearly 2,000+ short sales and REO's (bank-owned/foreclosed) reported by RealtyTrac for the Poinciana area, only slightly over 200 are listed in the local multiple listing service (MLS), the realtor’s tool. And why aren’t the 1,800+ short sales and REO’s on the MLS? Some theories: banks don’t know what to do with a commodity other than money; banks don’t play well with real estate agents; or banks don’t have enough incentive from the Feds, et al., to do anything but watch the foreclosures roll in. It is also possible that mortgagees are so overwhelmed with the crisis that they cannot process contracts quick enough to satisfy the needs of most pre-qualified buyers on the market today; or, whisper, whisper, banks are just plain incompetent when it comes to houses.
Real estate agents, most of whom are still not familiar with closing a short sale, sell the Save to distressed homeowners but not the Experience they’ll be feeling as a result of a shoddy response to the housing bust. As might be expected, it is the primarily because the Experience means you, the seller, will have to be told that you more likely than not to end in foreclosure. But, “Hell,” says the agent, “one can’t do business unless we sell the Save.” That truly is the attitude of the Save Shorty agent.
If you are a homeowner with a financial problem be wary of the caroler at your front door or you might be ho, ho, hosed, by one who says they can Save You from foreclosure. But, if you do happen to mistakenly open your door to one of these, rule of thumb is to compliment them on their courageousness, then ask, “Exactly, how many have you saved this year?”
The home I helped him buy was a generous 1,794 square feet. With three bedrooms, two baths, a free pool table with cues, and a backyard facing the preserve, it was a magnificient deal at only $170,000. On top of that I helped to ensure the buyer received a minimum equity of $50,000 walking into his just cleaned home. Even in today's credit-crunched society, that's amount is tough to achieve.
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