Thursday, May 10, 2012
Is 2012 the year of the Short Sale?
In 2006, no one knew what the real estate values would do except that they were declining. It wasn't until the second half of 2008 when the banks announced that they were really in trouble that the cat was out of the bag. Serious declines in home values had occurred overnight it seemed.
Housing inventory was piling up, homes were being abandoned, sold on the courthouse steps, and some short sales were happening. Many realtors did not want to participate in the short sale transactions due to legal liability and their experience with the banks in the previous housing downturn (the late 80's and early 90's). Nevertheless, the short sale has emerged as a viable and cost effective way for the distressed homeowner to release their real estate holding(s).
A short sale is defined as the sale of a property for less money than what is owed to the banks on that property. Banks typically make 20% less on the sale of a foreclosed property than on a short sale property. This is one of the main reasons that the banks are now willing to do more short sales.
If you are a buyer or distressed homeowner interested in the short sale process give me a call today, I can point you in the right direction for advice on the process.
ps all photos are a courtesy of http://www.freedigitalphotos.net