Not Sure On The Short Sale

Sovanrey has an upside down house. She is considering a short sale, but she doesn’t have a hardship and has never been late on mortgage payments. Dave thinks they need to wait it out.

QUESTION: Sovanrey in Georgia has an upside down house. She is considering a short sale since it’s more than 50% upside down, but she doesn’t have a hardship and has never been late on mortgage payments. What do they do? Dave thinks they need to wait it out.

ANSWER: You’re not in financial trouble, you’re just worried that the United States is never going to recover. I completely disagree with your premise that this real estate is not going to recover. I think you’ve been watching the news too much. Yes, there are some problems and the short sales and foreclosures will continue to drag the market down as far as value. But when those are worked through, we’re going to see some pretty quick escalation in reasonable neighborhoods in reasonable cities that don’t have structural problems to their economy. I’m virtually positive you’re wrong.

I think you’ve bought the lie that the sky is falling. I’m so sure that it’s not falling that I’m buying real estate as fast as I can because I think it’s really on sale now. I’m confident that within the next five years, these real estate values will recover and then some.

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