There are no "Entitlement Programs" in a Short Sale.

Yesterday was a culmination of what`s been going all wrong with Short Sales.
Many people begin to believe their are "Entitlements" when selling a home in a Short Sale.
People who for whatever reason were able to secure loans two years ago can no longer afford to pay a mortgage.
Rather than deal with reality, they begin to believe they`ll be rewarded.
The truth is very simple" The lenders won`t compensate you and neither will the listing agent who sells your home".

I sat at a listing appointment yesterday going over what transpires in a Short Sale with the potential seller. They were referred to me from a client who`s home we recently sold in a "Short Sale".
I went over the entire procedure,explained how the lenders work, the Comps, and I thought all was well until the person began to question me.

The conversation is as follows:

Me: Once we list your home we`ll contact the "Loss Mitigation" department for instructions on what to do next.

Short Sale: How much money will I receive?

Me: Money? You`re upside down in your home. There isn`t any money.

Short Sale: If I list my home with you, why not compensate me?

Me: Pay You to sell your home? That`s a first for me. Sorry we don`t do things like that.

Short Sale: You mean I get nothing?

Me: Look at it this way! We`ll be lucky to get this home sold at a price the lenders can live with. Isn`t that good enough?

Short Sale: It`s important for me to receive something. You can do it!

Me: You haven`t paid your mortgage in 4 months. The home is worth less than you purchased it for. There isn`t any compensation here.

With that i decided to excuse myself from this person and told them to "Think about it and call me in the morning". Hopefully,prevailing minds will apply.

There are no rewards in a "Short Sale".