Hi guys. Here's a very cool interactive map*** showing the foreclosure activity throughout the United States. In my area, Polk County Florida, 1 in 297 properties is in foreclosure. In 2009 it was 1 in 149. So I guess that's something :)
Short Sales however have increased quite a bit. In 2009 only 763 short Sales closed in all of Polk County. Year to date for 2012 is 1,355. So Short Sales have more than doubled in the last 3 years while foreclosures are half what they were in 2009.
It looks like more people are being proactive and choosing to do a Short Sale over just letting their property be foreclosed. Since Florida is a deficiency State that’s a very good thing.
Doing a short sale at least gives the Seller/borrower an opportunity to negotiate an exit strategy to hopefully avoid a Deficiency Judgment in the future.
My experience is that most lenders will waive their deficiency rights if the Borrower does the right thing and doesn’t just walk away from the property. Not only can you get your deficiency waived but you may also receive money at closing.
We’ve recently had some of our Sellers receive as much as $23,000 at closing. Now isn’t that better than being foreclosed on?
***The map came from: http://www.wnyc.org/ using data from Realtytrac.