2/15/2011

Short Sales are Working Better in 2011

Lenders are primed for short sales in 2011 because short sales are a terrific option for homeowners struggling with unaffordable mortgage payments. In fact, lenders’ losses due to foreclosure are projected to increase at record rates in 2011, giving them more reason to pursue short sales. Lenders are projected to incur losses as severe as 85 percent in foreclosure! Meaning, after deducting the expense of the foreclosure process on a $100,000 loan, they may only get back $15,000!

It’s common sense that lenders will be looking toward the short sale solution. Even though they are accepting less than is owed on the property, they lose far less than in a foreclosure sale.

In fact, right now in the Long Beach market, short sale transactions for condos and lofts increased by more than 200 units from 2009 to 2010.  Short sale transactions for single family houses grew from approximately 762 home in 2009 to 875 homes in 2010, or about 27% of all sold, cancelled or expired single family listings in the MLS.

Thus far in 2011, there are 593 single family homes in short sale status as active, in escrow, or otherwise on the market, out of a total of 1280 or 46%; and 380 condos and loft units are in the same categories of short sale, out of a total of 738, or 51%.

It may be a surprise to many that lenders actually want to work out a solution that benefits all parties. Oftentimes, the lender is seen as the villain in the situation. I’ve found that the lenders want to avoid foreclosure just as much as homeowners. The free, downloadable report at "Distressed Property" called "On the Edge of Losing Your Home" on this website at Long Beach Condos and Homes talks more about working with your lender, and details all the foreclosure alternatives available to you.

Download the report and call me today; I can help you develop a plan to work with your lender and avoid foreclosure.




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