Short Sales in the Headlines

For years industry insiders have been touting short sales as a way out of the mortgage mess. Now the mainstream press is picking up the theme. In this CNN article that was picked up by Yahoo, the latest statistics from RealtyTrac tell the story:

• Short sales rose 15 percent in the last quarter of 2011 over the previous year.
• Short sales comprised 10 percent of all homes sold in Q4.
• REO sales dropped 12 percent over the same period.

The article itemized several things that make short sales preferable to foreclosure for everyone:

1. They’re consensual. “Short sales have become a more attractive option since all parties agree on the terms, leading to fewer legal issues, said Daren Blomquist, RealtyTrac’s director of marketing.”
2. They offer better returns. “During the quarter, the average short sale sold for $184,221, while the average foreclosure sold for $149,686. And banks typically don’t have to spend a mint maintaining a short sale home like they do a foreclosure, where they have to pay more in legal fees, property taxes, maintenance and insurance, said Blomquist.”
3. They’re faster. “During the fourth quarter, it took an average of 308 days, to complete a short sale. Foreclosures, meanwhile, can take years to complete.” And, ”Quicker approvals mean fewer buyers get discouraged and withdraw their offers. Blomquist said some banks even pre-approve prices so deals close very fast.”

No kidding. This is what we’ve been telling you since the mortgage crisis began.

But you knew that already.

Rob Alley, Realtor/Owner of Virginia Real Estate Solutions at RE/MAX Assured Properties
434-220-7133
roballeyrealtor@gmail.com
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