Relocate to Wisconsin : Short Sales are Like a Divorce.....

 We are currently at the "end stage" of several short sales...final approval with lenders to agree on the offers of the generous and patient buyers we have been fortunate to attract for our short sale sellers. As the back and forth "Yes Buts...." continued for the final attempts at squeezing every possible nickel and the closing dates creep closer, I thought how like a divorce a short sale really is in a number of ways.

 - The beginning of the relationship is euphoric...you plan a lifetime together.....or at least a good number of years.

- You know that you are accepting something (the house and mortgage) or someone (your spouse) that is less than perfect....but you are so in love you know the good outweighs the bad

- You depend upon the strength of the relationship to get you through the thick and thin times and know that if you work together, things will work out you took the vows and signed the papers "for better or worse."

Begins to crumble....

     For whatever reason, money...the lack of....communication...the lack of...priorities for the spouses become dramatically opposed......and divorce proceedings  commence..and the process can take months or years....and the arguments can drift to a petty level (he bought her the nail polish/eye shadow collection and he is taking it with him....)

And so it can go with Short Sales

    The lender wants more money than the home will appraise for...The agent is forced to point out the obvious on the sellers' upside down financial statement...The over burdened loss mitigator does not return calls or answer e-mails on a timely basis...finally there is judgement day...with the 2nd level, the supervisor, the vice president...and all evidence is presented again and updated. The relationship must be severed.

   And the divorce is granted....with last minute meetings on the courthouse steps...The short sale is approved with hours before the buyer walks...their ratelock expires...

And the Similarities Continue...

    Neither spouse got all they wanted.... and the custody agreement means no one gets the children as often as they wish..but they can now go their separate ways. 

    The bank took a hit on the mortgage and/or HELOC....and the sellers lost their equity....but they have avoided foreclosure...garnishment of wages and deficiencies that haunt them for a lifetime...and they can begin again in just a couple short years to have a house they can call home once again.