Here is a post on the future of the short sale that has attracted lots of comments on ActiveRAIN.
But here is also my frank prediction for short sales in 2011:
Whether short sales continue as a big market segment is solely up to the banks....in two ways.
1) The banks are wanting regular sale prices for short sale properties. That will only work for buyers if lenders shorten the processing period to be equivalent to an ordinary loan.
Some lenders think they have. None have. Buyers still expect a price premium. If banks are unwilling to speed up or price down, short sales will go the foreclosure route more and more.
2) Short sales have now been going on in large numbers for some time. They have been chosen by sellers based upon a general promise that they can buy again sooner.
Many short sellers are not anxious to buy soon. But if large numbers try and fail to be approved in the mysterious 2-3 year window the industry has been talking, watch out for a lot of negative press for the short sale...and a serious "come to Jesus" moment for the industry - both banks and brokerages.
I believe 2011 will tell the tale on these two variables...in a big way: one way or the other.
If Short Sales will reportedly be a large part of our market in 2011, what do you think is the general attitude toward working them across America? There are so many mixed feelings from agents and brokers about working them, yet hundreds of thousands of homeowners continue to face foreclosure. Many accept that they're a part of the market and will be for some time. Many others continue to close their eyes and hope these market conditions will pass. As we quickly approach 2011, what is the general consensus in your area and how do YOU feel about Short Sales?
** Read Post #33