The following information regarding a real estate industry survey underscores the continuing opportunity to purchase homes in foreclosure and more specifically through short-sales. The estimate that roughly 20 percent of all home sales in March were short sales in truly mind boggling. It is also very encouraging to investors and clearly communicates that BANKS ARE WILLING TO SELL PROPERTIES AT A DISCOUNT.
The deals are there for the taking, but you must be aggressive and active in chasing these deals and making lots and lots of offers to banks.
Short sales now widespread
Last week Bethesda, Md.-based Inside Mortgage Finance, and Washington-based Campbell Communications released a real estate industry survey indicating that roughly 20 percent of all U.S. home sales in March were “short sales.�
“Our numbers suggest that 20 percent of completed home sales nationwide are short sales,� said Guy Cecala, publisher of Inside Mortgage Finance. “The number would be larger if it weren’t for the fact that one-third of all attempted short sale deals don’t go through.�
So why so many short sales? The combination of falling home prices and homes financed with low down payments means many homeowners owe more on their properties than they’re currently worth. Add to that the population of homeowners who face foreclosure due to resetting mortgages or who must sell for other life reasons (relocation, etc.) in the middle of a bad market, and it makes sense that lenders hoping to avoid more foreclosures on the books will take this alternative.
According to IFM/Campbell research, two-thirds of short sales are initiated by homeowners and one-third are launched by mortgage lenders (as a foreclosure alternative). IFM/Campbell data indicates the top reason for short sales initiated by homeowners is their inability to make mortgage payments, followed by other factors such as the value of the property declining.
Written by Jane Hodges, MSNBC contributor
Posted by Carter Brown
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