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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.
