Short Sales Acceptance Seems to be on the Rise at More Banks

By
Real Estate Agent with Piquet Realty

According to  a recent MSNBC.com article,as a way to assist struggling homeowners avoid foreclosure , lenders are accepting more short sales.Short sales and foreclosures increased in 2010, but in 2011, short sales increased  26,000 nationwide, at at the same time  foreclosures dropped by 255,000, according to Hope Now data.Since statistics showed banks  make more money off a short sale  against a foreclosure ,they are now more open to the idea to accept short sales than in the past.

The average price of a foreclosed home in the second quarter of 2011 was $164,217 compared to $192,129 for a short sale. In addition , foreclosures  cost more in legal and administrative expenditures.Also ,since short sale properties sit vacant less time than foreclosures ,the carrying costs are shortened and vandalism is curtailed sharply,helping properties near by keep their value.



Source: “Increase in Short Sales Give Market a Little Breathing Room,” MSNBC.com (Dec. 29. 2011)

Comments (8)

Chandler Real Estate Liz Harris, MBA
Liz Harris Realty - Chandler, AZ
#ChandlerRealEstateAgent

I think that this is good news... there seems to be more dignity in a short sale vs. someone just walking away from their home.

Jan 02, 2012 03:54 PM
Nicole Needham
Needham Realty - Winters, CA
SFR (530) 302-5478

Michael,

I agree, here in Vegas we are seeing approvals and we are getting them done in less time.

Jan 02, 2012 03:55 PM
Shannon Coe
exp realty of California, Inc. - Oceanside, CA
760-586-5268, San Diego Realtor

I am seeing more approval and at a faster pace. Great news for sellers that are under water.

Jan 02, 2012 03:59 PM
Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

It only makes sense the bank loses more money when they take the home back.

Jan 02, 2012 04:07 PM
Michael Correra
Piquet Realty - Brickell, FL

Liz , you are right the whole process seems more professional , as all parties are facing reality and moving quickly to resolve the problem.

Jan 02, 2012 05:05 PM
Michael Correra
Piquet Realty - Brickell, FL

Hi Nicole ,

Just like here in Florida , Vegas needs to move the properties along much quicker ,and short sales for lack of  a better system seems the best option.

Jan 02, 2012 05:08 PM
Michael Correra
Piquet Realty - Brickell, FL

Shanon ,with your specialty in short sales this better acceptance of them by banks makes life easier for all concerned.

Jan 02, 2012 05:12 PM
Michael Correra
Piquet Realty - Brickell, FL

Hi Mark ,

 Yes,  all parties are facing reality and moving quickly to resolve the problem.Since we have  a mountain  of these distressed properties to address  getting them through the pipeline ASAP is paramount.

Jan 02, 2012 05:18 PM