Major Bank's Short Sales Outpacing Sales of Foreclosures


In the pecking order of risky real estate transactions, homebuyers are usually most wary of short sales, which are notoriously more complicated than foreclosures. But with some key revisions to the Home Affordable Foreclosure Alternatives (HAFA) program in April, short sales could suddenly become more accessible to both banks and buyers. Could HAFA change the stigma attached to short sales and finally cut down on America's distressed home inventory? HousingWire has the full story.

For every month in the last year and a half, Bank of America has completed more short sales than it has sold previously foreclosed home.

In May, BofA completed roughly 9,000 short sales compared to 7,000 REO, said David Sunlin, the bank's real estate management executive. With the introduction of the Home Affordable Foreclosure Alternatives program in April 2010, lenders received the first guidelines for these transactions.