Real Estate agents, homeowners, buyers and communities across the nation just can’t make sense of it, if a short sale is more beneficial to everyone involved, including the banks, then why are foreclosures more prevalent in the marketplace? Trust me, the banks aren’t doing you any favors by granting you a short sale, by accepting a short sale banks are avoiding the legal fees associated with foreclosure, avoiding an auction and maintaining the existing value of the property. The longer a property sits vacant the less it will be worth by the time it actually sells. The Huffington Post reports, “According to one analysis, short sales resulted in loan losses of only 19 percent, compared with an average loss of 40 percent on homes sold after foreclosure.”
In the same article, the Huffington Post reports on the launch of Fannie Mae’s newest pilot program,” Fannie Mae just wrapped up a pilot program to test a process for streamlining short sales by partnering with local listing providers in Arizona and Florida to pre-approve 400 properties for short sales.” Those are our government bailout dollars at work! Because the program is gaining positive results, Fannie Mae is set to expand it to other areas in the coming year. Homeowners and realtors in Orange County where default rates have steadily increased in the past two years could find true relief in a speedier short sale process, so here’s hoping the OC tops that expansion list!
Minda Reves is a freelance writer for SHORTsense.com