Short Sales, Many Coming Soon

Just a couple weeks ago, RealtyTrac released its Q2 2011 U.S. Foreclosure Sales Report. The report confirmed what we were hearing in the marketplace, that is, that banks are beginning to look more favorably on short sales as options to foreclosures.

The report examined the sales of distressed properties in the second quarter of 2011. Below are several findings:

  • A total of 102,407 pre-foreclosure homes (short sales) sold in the second quarter, an increase of 19 percent from the previous quarter.
  • A total of 162,680 REO homes (foreclosures) sold in the second quarter, nearly unchanged from the first quarter.
  • Sales of homes that were in some stage of foreclosure or bank owned accounted for 31 percent of all U.S. residential sales in the second quarter of 2011, down from nearly 36 percent of all sales in the first quarter.
  • REOs on average sold at a discount of nearly 40 percent below the average sales price of non-foreclosure homes.
  • Short sales on average sold for a discount of 21 percent below the average sales price of non-foreclosure homes.

These results could suggest good sign that banks are finally realizing the advantages of short sales over foreclosures.

There is some hope that lenders are getting more realistic. It is a win for borrowers who avoid foreclosure, the buyers who get a home in better condition and the banks that lose less money. It is also a win for the taxpayers.

The End Result

Banks are beginning to do more short sales. It is time for everyone involved to help in this endeavor.

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