With foreclosures, bank owned, auctions, pre-foreclosures, and other distressed property types, we can see that people are in pain. Some move on with very little in the way of "visible" emotional attachments with their personal situation. However, on some sellers of this world, they take their toll.
Scenario 1: Job Loss strikes Rick and his family of three children. While he attempts to find another job - he knows he is going to have trouble making his mortgage payment. He calls his banks - both the first and second loan's - tells them of what he is experiencing. They say to Rick, "Thanks for calling, and thanks for letting us know, what do you want us to do?" Phil gave them the scenario and all they could tell him is that they see no signs of trouble because Phil is still current on his payments.
Scenario 2: Within the Short Sale process, with an executed offer for a client, the bank approaches our clients and tells him they can do a Loan Modification with a principal reduction. We re-explained, as we do in the beginning, that when there is an executed contract - A seller cancelling can equate to massive liability. However, the buyers in this case were very gracious and allowed the Seller to cancel this escrow in an attempt to keep their home. In this case, the home has to be taken off of the market, cancelled from the Multiple Listing Service. The real estate sign has to be taken down. The seller then starts the process of Loan Modification / principal reduction with their bank.
Time goes on. Paris and I are keeping in touch. Mr. Seller Calls us and is exceedingly upset, screaming and swearing - talking about how the bank pulled one over on him. It seems that his property sold at auction.
These are two of the many that we deal with. The people affected are real human beings. With real families and real troubles. Watch our for yourselves and make sure you are getting the best real estate advice possible.
Especially when it comes to having a short sale negotiated.