Short Sales surpass Foreclosure Sales. It’s About Time!
Short sales currently represent a bigger share of home sales than foreclosures according to information provided by Lender Processing Services with short sales making up 23.9% of homes sold versus 19.7% for sales of foreclosed homes.
Did the banks get smart all of a sudden or were they also aided by a an order from the Federal Housing Finance Agency telling loan servicers to respond to all short sale offers within 30 days and approve or reject them within 60 days?
This is great news for the many of Real Estate agents that help homeowners through the short sale process. Short sale properties usually represent a better value to a potential homebuyer because the home is kept in much better condition than once the lender has foreclosed it.
The best part of this new development is that it’s a win-win situation for all:
- The Buyer gets a well-kept property at a significantly lower price that what the property is truly worth.
- The Seller gets out from under a liability they can’t afford to pay for, while reducing the damage to their creditworthiness.
- The Lender gets a better price paid for the property because they avoid having the home being vacant and sometimes vandalized after the home is foreclosed.
It’s about time common sense started driving the Real Estate market!