photo credit: The/Waz

Most people never knew what a short sale was, and they never need to know. Today, however, thats not the case. We have more and more people getting into a short sale situation to avoid foreclosure. This is a desperate move by homeowners, selling their home for less or short of what is owed on the mortgage.  As a result of so many people selling their homes through this method short sales get partial blame for a slow housing recovery.

Unfortunately, the mass exodus towards short sales has backlogged the system, which was a problematic system to begin with. Many of the short sales have taken an excessive amount of time or have caused the deal to fall apart completely. The problem lies with banks taking too long to make decisions on whether or not to accept the short sale.

Many forecasters and economist have said that until the short sale issue is resolved the housing recovery will not repair itself as fast as everyone hoped it would. This issue is in part to blame for the entire real estate market crisis experts say. Lenders recognize the problem, but defend themselves by saying the housing markets flood of foreclosures overwhelmed their industry and actually created the backlog.

Read the full story from the gazette.com

Posted in Denver Colorado Real Estate, Blogging, Real Estate Market Conditions, Real Estate Industry, Real Estate Industry Trends

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