Are Short Sales Morally Right?

I get this question as much as any of the other questions.  Are Short Sales Morally Right?   It’s actually an easier question to answer then you might think.   For the complete analysis of this issue you must first decide what you believe.   My answers are based on the Christian Bible.  If you’re a Christian, then these answers will make complete sense for anyone else asking this question, I hope this helps, but it also might not exactly add up for you. 

Most clients that ask me this have read this particular scripture:

The wicked borrow and pay not again [for they may be unable], but the [uncompromisingly] righteous deal kindly and give [for they are able]. Psalm 37:21 AMP

Here’s some KEYs to understanding this situation.

  1. You’re asking for help – In a short sale you are asking the bank to accept less than what is owed.  You are not forcing them to take less (Bankruptcy) and you are not sitting by and just letting this happen.   This is a completely voluntary thing by the bank.
  2. You are taking action – In fact, you are taking the only action that you have available.  (If you can pay the mortgage and have no hardship at all but just want to sell, then this is a different story)
  3. It’s the best for everyone – The best option is for you to keep your home and pay your mortgage.  The next best thing is to sell the home at market value.  Statistically speaking, a short sale is the highest possible price outside of a traditional sale.  So it’s better for your neighbors, better overall for the bank (saves them as much as 50%) and better for you.

The real answer will come from a consultation on the phone or at the very least you doing your own research about your options and being honest.   You should be seeking out counsel from people who are closing short sales at a high level.  Of course I’m biased.

If any of you lacks wisdom, let him ask of God, who gives to all liberally and without reproach, and it will be given to him.   James 1:5