Fort Lauderdale Realtors | South Florida Real Estate News | Short Sales
The amount of short sales in the United States surpassed the number of foreclosure sales in 12 states in the month of August. This is a sign that more and more homeowners have realized that there are simpler methods to deal with a distressed home loan.
Short sales arise when a lender settles to a home sale for less money than remaining on the mortgage. Short sales increased 33%
in August compared to August of 2011. According to data provided by RealtyTrac, the amount of short sales in September has also grown.
This study also indicates that lenders are more willing to agree to short sales which can prove more detrimental to communities
than foreclosures. When dealing with short sales, homeowners have the ability to re-claim entitlement for a brand new mortgage
quicker than borrowers who experience foreclosure. A representative from the National Association of Consumer Advocates
states that the increased amount of short sales is overall beneficial.
One apprehension is that homeowners may be forced to short sell after being turned down for loan modifications that may have
allowed them to make it work and stay in their homes. Foreclosures occur after a lender has reclaimed a home. According to RealtyTrac, the
amount of foreclosures sales still surpasses the amount short sales throughout the nation but the difference is starting to decline.
Bloomberg News recently recounted that the data released from mortgage analysts Lender Processing Services, indicates short
sales have outnumbered foreclosures in January of 2012 for the first time. Data released from RealtyTrac shows that short sales
outnumbered foreclosures in California, Florida, Arizona, and 9 other states. This data also specifies that lenders are appraising
short sales higher. The average price of a short sale property was 10% lower in January than in prices seen a year ago. This
drastic decline of 10% is higher than the decline in home prices of normal properties in the United States.
Many mortgage providers have started to market short sales with more efforts for quite some time now. Bank of America shared
that the firm processed 107,000 short sales in 2011 which is a large increase from the 92,000 short sales processed in 2010.
The amount of short sales processed by Bank of America in 2011 was a 200% increase compared to the amount of short sales
they did in 2009.
Modifications to the short sale process are expected to increase short sales even more. Freddie Mac and Fannie Mae account
for 60% of home loans and will call for lenders to make a decision on short sale bids within 60 days of the offer. The latest $25
billion mortgage reimbursement has also boosted short sales. New standards have decreased the amount of foreclosures in
numerous states which has been another reason that short sales have increased.
Each month the Henri Frank Group at Remax Preferred posts the monthly sales of single family homes, condominiums, townhomes and villas in the South Florida region. The region includes Palm Beach County, Miami Dade County and Broward County. It includes all areas in these counties.
Here is a list of each of the cities and municipalities that are included in the report.
Lauderdale By The Sea
North Miami Beach
Royal Palm Beach
West Palm Beach
With this statistical data, we at the Henri Frank Group can assist you with making decisions about selling, buying a primary home, second home or investment property. We believe it is imperative to have this information available to all of our clients each month so we can follow trends within the national, state and local real estate market. We can be contacted by email, firstname.lastname@example.org, or call or text us at 954-604-9999.
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