Folks are now seeing many short sales close in less time than in the past, banks are working with agents more effectively and in a more timely manner, why you ask?
Banks Net More Money on a Short Sale
RealtyTrac’s latest data tells us that a short sale sells at approximately a 10% discount. A foreclosure sells at approximately a 35% discount. Obviously, the bank will net more by agreeing to short sale than they would by bringing the home to foreclosure.
Housewire today, Nov. 29th has an article titled, "CitiMortgage paying borrowers $12,000 after a short sale" "CitiMortgage said the percentage of troubled loans that now go to short sale route have quadrupled (4% to 16%) in the last two years.
And in a separate article, Bank of America reported they completed over 95,000 short sales in 2010 which more than doubles the number in 2009. BofA also reported that they completed more short sales than it sold previously foreclosed homes every month for the last year and a half. Last month (May), BofA completed roughly 9,000 short sales compared to 7,000 foreclosures sold.
Bottom Line
There are many advantages to a short sale over a foreclosure for the seller (they get to plan their move, there is less embarrassment with friends and neighbors, the negative impact on their future ability to purchase is much less severe). Luckily, it now seems that the banks also think it is in their best interest to pursue a short sale
Today, my short sale closing at Kinvarra Place was the buyers' dream home! The price was right and the home shows wonderful amenities which they are getting for a steal. Take a tour here.
Another great home in Purcellville at 953 Devonshire Circle which just had a price adjustment and is perfect for Purchasers who love to entertain on a grand scale... Take a look at this 4,000+ swq. ft home with 5 bedrooms and 4.5 baths. Priced at $429,000. it is waiting for YOU!
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