Are short sales outgrowing foreclosure?

By
Real Estate Agent with Beach and River Homes

After taking a long hard look at my current business model and receiving some education regarding short sales I have come to embrace a totally new view of the future of our market. Granted this is only my opinion but after looking into a few things I beleive that Short sales are on the rise PERMANENTLY. Now many would ask how I come to that conclussion and I would start with just some common sense reasons to back up my opinion. First off, short sales save lenders money by eliminating the costly procedure of foreclosure. Second, short sales limit liability. Third, short sales eliminate much of the damage done by occupants who are being evicted. Lastly the short sale process gives the current occupant a sense of control and allows much more dignity to be retained by not being "thrown out" of the home. Now there are many other factors that are positives reasons to conduct a short sale vs allowing the bank to foreclose (credit of the occupant, legal issues to the seller, ect) but in this blog I would just like to examine the possible future implications of short sales vs foreclosure. Now with all things considered why would an educated person who had an option allow a property to go to foreclosure when a short sale is generally so much more attractive? The answer (I think) is that many consumers do not know they have an option. As the word gets out and more lenders seek to incorperate short sale programs into the pre foreclosure process I believe that short sales will baloon. Even after our economy stabelizes the lessons learned about short sales will remain.

 

After all is said and done I beleive short sales are a viable option to foreclosure and will continue to grow.

 

Comments (3)

Margo Currie
Exit 1 Stop Realty - Saint Augustine Beach, FL

Interesting post. Thanks. A short sale is a much better alternative.

Nov 11, 2011 06:13 AM
Devona Garrigus
Garrigus Real Estate - Redlands, CA
REALTORĀ® / Short Sale Specialist

Sidney, Short sales have outnumbered foreclosures and short sales here in our neck of the woods for almost two years now, and I expect it to last at least another two years.

Nov 11, 2011 06:23 AM
Terry McCarley
Coastal Real Estate - Cape Coral FL - Cape Coral, FL
REALTOR, SRES, CDPE - Cape Coral, FL

Short sales have dominated my market for quite sometime now and I don't see them going away anytime soon.  I do believe they are far better than foreclosure but sadly alot of distressed home owners still do not know what they are.

Nov 11, 2011 07:44 AM