Nearly 21% of homes sold in S.C. were in foreclosure
http://www.charlestonbusiness.com/news/34895-nearly-21-of-homes-sold-in-s-c-were-under-foreclosure
Until the foreclosure mess is cleaned up, our real estate market cannot move forward. There are two benefits to pre-foreclosure homes being sold.
1. Foreclosures are being prevented. A prevented foreclosure has several short and long term benefits to the seller, and the community benefits from not having a vacant home which can increase crime and decrease property values.
2. Foreclosures are being prevented. Until the foreclosure mess is cleaned up, our real estate market cannot move forward. Foreclosed homes have a great impact on the real estate and financial markets. Preventing a home foreclosure helps stability both markets.
A negative impact from short sales is decreased sale prices which lead to decreased values. However, the article does an excellent job of pointing out bank owned properties sell for a higher (sometimes much higher) discount than short sales sell for.
In the long run, short sales are helping create a bottom for home values which will enable the market to have a point to rebound from. I guess I could label this a third benefit.
Aaron
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