Short Sales: A Rising Trend and Alternative to Foreclosure

The trend of short sales isn't going away, especially now that the Federal government is providing more incentives for short sales as an alternative to foreclosure.

Banks are following this trend by shifting some from mortgage areas to short sales, and by making the process faster. The banks have also realized that short sales are financially better than foreclosures, losing only 30% in short sales cases, as opposed to 50% in foreclosure cases.

The days of "short-sale hell" may be over, as the process continues to improve.

Successfully closing a short sale means an agent must be organized and able to get together all the necessary paperwork quickly. If a seller hasn't provided all the necessary documentation--such as financial statement, copies of bank statements, IRAs, 401(k)s, W-2s, pay stubs, a hardship letter, and an authorization letter giving the listing agent the authority to negotiate with the lender on the seller's behalf--it may be a tip-off to an uncooperative seller.

Read more about the trend on CNNMoney.com and strategies for short sales Inman News.

Posted on March 29, 2010 12:00:44 by Blog Author