Trends in Distress Sales in Santa Clara County; A Market Report.
The 
graph shows the percentage of MLS (Multiple Listing Service) Single Family Residence sales that were reported to be either Foreclosures (REO) or Short Sales, according to the local MLS (MLSListings, Inc.). Foreclosures refer to homes taken back by the lender after the borrower defaults; also called REO for Real Estate Owned by the lender. Short Sales occur when the seller's lender(s) accept(s) less than full pay-off of their loan(s). Lenders may do this to avoid foreclosure and the additional expenses they may incur.
Since January 2009, the percentage of Foreclosures has generally trended downward except for upward interruptions during of the winter months. Some of the increase in the percentage during the winter is due to fewer non-distress (equity) home sales. REOs comprise a larger segment of the total market. Since May 2011, REOs have comprised about 11% of Santa Clara County home sales.
The percentage of Short Sales has generally trended upward, most sharply since July 2011. At least part of the increase is because lenders are agreeing to Short Sales more often than they previously did. Additionally, some homeowners have tried alternatives solutions prior to short selling. November 2011 experienced the largest percentage of short sales, 36%.
Lloyd Binen
Broker/Realtor/DRE #572654
Certified Realty Services
19200 Shubert Drive
Saratoga, CA 95070-4046
Certified Residential Specialist (CRS); Graduate Realtors Institute (GRI)
408-373-4411
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