Why Short sales are really “long sales”
October 1st, 2009 categories: Real Estate News
I read a very good article in the Steve Harney Quick Report about short sales today. Any buyer or realtor here in Asheville, N.C. that have been involved with a short sale will always tell you that it’s anything but short. You have to come to the table with the lion’s share of patience. This small article summed up how the process has been doing, and gives us a peek at the change coming down the road.
“For the last few years the joke has been that ’short sales’ should be relabeled ‘long sales’ because of the difficulty in getting them closed. However, things just may be changing. Completed short sales in the first half of 2009 were up 208% over the first half of 2008.
It seems the banks are no longer happy with the alternatives they have been using in place of the short sale – either loan modification or foreclosure. A new study says that over 50% of successful modifications end up in default anyway within six months. The banks are also seeing that bringing a home through the foreclosure process nets them only a fraction of the price a short sale would.
Look for the administration, in the next few weeks, to announce a ’streamlined’ short sale process that should make selling a short sale quicker and easier. We believe the banks will look favorably on the new process and that will lead to tremendous opportunities in 2010.”
