Real Estate Agents Target Upside Down Homeowners, But is a Short Sale Always the Best Solution?

In this busted economy, Realtors and mortgagetools to accomplish this. Afterwards, these reams of
brokers have become "counselors" for the hundredspaper must be compressed into a listing presentation
of thousands of homeowners who are upside downthat compares different courses of action to each
on their mortgages. Much of America has seen theirother in order to explain recommendations. And
home equity evaporate and find themselves stuckabout that time, the client asks, "Yea, but what if I
with large monthly payments on a property that hasbuy down the principle...or do this?" Oops, back to the
lost as much as fifty percent or more of its marketdrawing board.
value. It is a depressing situation and theseObviously, manually trying to come up with
homeowners are crying out for help.recommended course of action for prospective
"What should I do?" is a common request fromclients is not cost effective for real estate
beleaguered homeowners, "What makes the mostprofessionals. So, are there automated tools that can
financial sense for our situation?" There are aaccomplish this without consuming endless man
multitude of possible answers, but which works besthours?
for a prospective client? After all, these are hardlyWhat Realtors and mortgage brokers really need is a
"one size fits all" situations.single solution that automatically analyzes alternatives
Here are the common options:for prospective clients and then creates a
- Accomplish a short sale to get out from under anprofessional listing presentation. This package should
upside-down property while minimizing damage to ainclude easily-explained backup data to satisfy
homeowners credit score.analytical homeowners, plus easily-understood graphs
- Take advantage of loan modification opportunities.and charts for "touchy-feely" personalities. And it
Either refinance or leverage government and lendermust be easy to use, allowing real estate
programs to reduce a homeowner's loan principle orprofessionals to just enter numbers and instantly see
monthly payment on a permanent or temporaryresults already formatted into a killer presentation.
basis.Moreover, this solution must accommodate "what if"
- Another option is to rent out the home to supportquestions, providing instantaneous answers that allow
a prospective client's move to a new area, hopingreal estate professionals to smoothly overcome sales
that eventually their equity will recover to aobstacles and close new business. Searching the
break-even point...or even create a profitable salesInternet found only one solution that satisfies this
situation.criteria - Home Decision Wizard.
- Or how about doing a short sale, renting for aWill the best course of action for a prospective client
couple of years while the ex-homeowner's credit isalways be a short sale or loan modification? No.
repaired, and then buying a new home at a muchSometimes, homeowners are better off just
lower price?continuing to pay their existing mortgage or turning
- And sometimes simply letting the property go intotheir home into a rental and relocating to a new city
foreclosure may be the best answer.where the economy is improving. But even in these
Whoa! This is complex stuff. How are we expectedcases, guess who will eventually get a listing, loan
to sort all this out? It is easy to envision real estateapplication, or referrals from family and friends down
agents and mortgage brokers spending hoursthe road? In this world, "what goes around comes
developing spreadsheets or using cash-flow analysisaround.
software to find answers...if they have the skills and