For the last few years the joke has been that 'short sales' should be relabeled 'long sales' because of the difficulty in getting them closed. However, things just may be changing. Completed short sales in the first half of 2009 were up 208% over the first half of 2008.
It seems the banks are no longer happy with the alternatives they have been using in place of the short sale - either loan modification or foreclosure. A new study says that over 50% of successful modifications end up in default anyway within six months. The banks are also seeing that bringing a home through the foreclosure process nets them only a fraction of the price a short sale would.
Look for the administration, in the next few weeks, to announce a 'streamlined' short sale process that should make selling a short sale quicker and easier. We believe the banks will look favorably on the new process and that will lead to tremendous opportunities in 2010 for the agents willing to learn how to manage the expectations of the purchaser considering a home requiring a short sale.
Adapted from a recent report from Steve Harney, KeepingCurrentMatters.com