About Short Sales

Foreclosures happen when the bank reclaims your property. Short sales are what people do to avoid the bank reclaiming their property (but ironically, the person is still left without their property).

Orange County has taken a lot of flack recently for being an area with a large amount of foreclosures. The reality is, Orange County follows the same trends that most of the metro areas on the east coast have been following.

Let’s look at this way, and we can keep it all on the West Coast. Orange County has over 10% of their listings as foreclosures. On the other hand, Washington has the exact same numbers. Oh, actually Washington has over 11% of listings. So they have even more foreclosure per capita than Orange County does.

One the flip side of things, another important metric to look at is the percentage of short sales. In Orange County, the percentage of short sales has climbed to about 26% of home listings right now.

So let’s think of this way. 1 in 6 listings are short sales in Washington… 1 in 4 listings are short sales in Orange County. 33% more are short sales. That’s a substantial difference. But what is that difference you ask?

More short sales mean that home prices were inflated higher. People bought when the home was ‘worth’ a lot, and then the value of that home fell, so people don’t want to pay on it because really, they’re wasting their money on something that won’t have the same value in a couple years.

This makes for a slow house sale situation. Everybody with their homes for sale are waiting for everybody else to come and purchase their home, and they can’t purchase unless somebody comes and purchases theirs…

So next time you’re in the Orange County area, check out what listings are for sale. Turns out, home prices actually aren’t that bad. Compare them to Denver, and you’ll be happy to see that Orange County doesn’t cost much more anymore.

While we’re on the topic view Orange County Foreclosures and Orange County Short Sales

Almost any real estate agent trying to work out a short sale deal with Bank of America will express frustrations with the slow and painful process. Bank of America is dealing with more short sales than any other company, in large part due to their acquisition of Countrywide Home Loans which was notorious for offering bad loans during the housing boom.

There are a number of things why a short sale transaction in Bank of America is rather difficult compared to other companies. One, Bank of America only approves a short sale file with only one agent. They don not allow the same agent to represent both sides of the transaction.

I’m sure they are doing this because they feel it will help them to get the best purchase price for each home they need to approve, and will help them stay out of potential legal issues. But, for real estate agents who have BOA short sales listed, this can be a royal pain when they have a buyer who is interested in a property they have listed.

Bank of America compels home buyers to be prequalified with BOA before they will accept a short sale offer even if they know they are already qualified. On the other hand, potential buyers and real estate agents find this requirement a mess. Indeed a smart move for Bank of America.

If we step back and look at short sales from the view of Bank of America, it is a really tough situation they are in. They are losing millions every day. And while the policy’s they have are annoying for real estate agents, as a business, they have to do what they can to try and make a profit, or at least reduce their losses.

Bank of America is wasting America’s money! In my state at the present, they have paid the attorney’s fees to foreclose approximately at a low end of $40K and surely will continue to face the same or worse market conditions.

For Short Sales buying tips, visit Bountiful UT Homes for Sale and Real Estate in Utah.

Between Short sales and Foreclosures, banks, lenders, and even homeowners would rather have a short sale home than a foreclosed property. For the reason that both have impending financial consequences. However, it shows that both parties are better off with short sale. Foreclosure is such a very expensive solution as most banks suggest. Moreover, CoreLogic reports that that the rate of short selling has tripled since 2008 in entire state.

It seems that the rate of short selling has tripled since 2008, according to the recent study conducted by CoreLogic, a leading innovative analytics, information and outsourcing solutions for businesses and government seeking dynamic insights.

Furthermore, short sales will continue to be a significant factor in the real estate industry. The study showed that 55.8% of all short sales occurred in California, Florida, Texas, and Arizona, during 2009 and 2010, and roughly 4% of short sales have a subsequent resale within 18 months.

Data shows that 5.2 perecent of Logan Utah homes for sale are listed as short sales, and 3.62 percent for Cache Valley Homes were short sales. Utah can be a good source of short sale homes with the number of short sales increasing this year.

A short sale is indeed s foreseeable yet important part of the mortgage industry’s post-crises stabilization process. Homeowners can now survive from drowning in their mortgage interests and from the threat of foreclosures with short sales. Well, short sale is the hero, the lesser of two evil since losses can be minimized if properly initiated not only by banks andn lenders, but also the homeowners.

The number of short sale propertiesare increasing in the real estate market, shows that home prices have lowered down, but the other side is that it also made the home buying to a large extent more difficult. This article, Short Sales VS Foreclosures has free reprint rights.