More Short Sales

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Short Sales on the INcrease!! :(

According to RealtyTrac, short sales are increasing as a
percentage of home sales in many states, helping some
neighborhoods and homeowners avoid the more devastating impacts
of foreclosures. The increases were sharper in some states,
including California, Nevada, Michigan, Georgia and Colorado,
the data show. In Colorado, short sales were 17% of all sales in
the second quarter, up from 10% a year earlier. In California,
they made up 25% of sales, vs. 18%. Bank of America, the largest
home mortgage servicer, expects to complete more than 100,000
short sales this year — more than double what it did in 2009,
the bank says. Wells Fargo Senior Vice President J.K. Huey says
short sales have been "steady to slightly" up in recent months,
partly because there are fewer bank-owned houses for sale in
some markets, and that has forced buyers to pursue more
short-sale properties.

In the second quarter, short-sale homes sold at a 21% discount
to non-foreclosure homes, while bank-owned homes went at a 40%
discount, RealtyTrac says. Short sales may also reduce losses
for loan owners because they avoid full foreclosure costs.
Borrowers may qualify for new mortgages sooner after a short
sale than after a foreclosure. peaked at 16% of the
market in early 2009, RealtyTrac says. Realtors say there should
be more short sales and that they should get done faster.

RealtyTrac

Second-quarter pre-foreclosure sales jumped 19% from the previous
quarter, suggesting more banks and distressed borrowers are
searching for efficient ways to offload properties that are near
foreclosure, RealtyTrac said. Third parties acquired 102,407
pre-foreclosures in the second quarter, while 162,680 bank-owned
homes were sold in the same period. Pre-foreclosure sales are
generally short sales and properties sold within the foreclosure
process. As for who is nabbing up distressed and bank-owned
properties, RealtyTrac said third parties acquired 265,087 homes
classified as in foreclosure or bank-owned in the second quarter.
That is up 6% from the revised first quarter figure and down 11%
from the second quarter of last year. The average sales price for
foreclosures or bank-owned properties hit $164,217 in 2Q, down
less than one percent from 1Q and 5% from the second quarter of
2010. The sales price for distressed real estate was 32% below
the average sales price of homes not in foreclosure. States with
the largest quarterly increase in pre-foreclosure home sales
included Nevada, which experienced a 43% increase; Washington
(39%), California (38%); and Texas (34%). The states with the
highest number of foreclosure sales included Nevada, Arizona and
California.