Sell Your House Through A Short Sale
Short sales are another option to choose if you don’t want a foreclosure. The trend for short sales is growing popular especially when the government starts handing out cash to encourage lenders to close these deals.
According to Duane Legate of House Buyer Network, “banks have ramped up short sale approvals. They’re hiring a lot of the people who once worked in the mortgage-lending industry and moved them over to short sales.”
Short sale transactions account for 17% of all residential real estate sales in the month of February and nearly 13% in November, according to a monthly real estate survey by Campbell/Inside Mortgage Finance.
Bank of America, the country’s largest mortgage servicer has more than doubled the number of short sales it processed in months and they can sometimes approved it in 24 days.
In the past months, many short sale transactions would never come to fruition and the short sale market was stalled and many people describe the process as a real estate hell.
But now, many people are choosing to sell their house through a short sale. Banks also realized that they make out far better financially with a short sale compared to a foreclosure. Lenders usually lose 50% on a foreclosure and only 30% on a short sale.
On April 5, lenders and mortgage investors will have even more incentives to offer troubled borrowers in short sales. Borrowers will earn a $3,000 “relocation incentive” and servicers will get $1,500 for handling a short sale.
Short sales are also better for distressed homes because their credit scores suffer less. If you are about to lose your home, try a short sale instead of a foreclosure.