Back in 1849 when gold was discovered in California, the news spread quicker than fire in the Angeles forest. People from all over the country were packed and headed to California in search of finding the fortune that had alluded them for so long. In 1849, I don’t think we had Facebook or Twitter and social networking was a bar fight at the saloon.

Could people in 1849 receive more reliable information than they do today, 160 years later? Was a text message delivered by carrier pigeon, a better source of communication than the same message delivered over the Verizon network?

The point attempting to be made is in this present day, information age, technology at your fingertips society; how can so many myths and misconceptions about short sales and foreclosures be so prevalent?

Many homeowners who find themselves in the unenviable position of owing more money on their home than it is worth worry about incurring additional debt in the sale process. Some homeowner’s will incorrectly assume that the bank will pursue a deficiency judgment against them, making them liable for the unpaid balance. Probably the biggest misconception is that foreclosure is inevitable and there are no alternatives, the house will be lost and the credit score destroyed in the process.

Suppose you found yourself in the position of missing your last 4 house payments as well as skipping the latest installment of the property taxes. Add to this the market value of your property has dropped $100,000 since you purchased it over three years ago. Perhaps you have suffered a financial hardship that has catapulted you into this situation that seems hopeless and unending.

This is where you need to look into the possibility of doing a short sale to sell your home.

While a short sale is not a panacea, its the closest thing we have to helping a homeowner in financial distress. Every day I see homes scheduled for auction as they progress through the foreclosure process and I wonder if the homeowner looked into the possibility of selling their home with the approval of their mortgage lender in the short sale process. Help is available, why aren’t more consumer’s finding it?

For whatever reason, some homeowner’s seem content to let the foreclosure process take its course. I think it’s due more to a lack of knowledge regarding the alternatives than it is just to accept what may seem inevitable.

Shhh, I Cannot Hear For The Noise

With all of the communication channels we have available today, you would think consumers would be aware of the choices they have and where to turn. However, just the opposite may be true. Perhaps we have become reluctant to leave another voice message on a prerecorded customer service phone line, knowing that the call will not be returned or that our request for assistance will ultimately be denied.

Maybe things haven’t changed that much after all in the last 160 years. People are still having to sift through a lot of sand to find that one lucky nugget.

Tags: homeowners in distress and foreclosure, What is a short sale?