Short Sales on the Rise as Foreclosure Delays Mount
In August 2009, short sales accounted for 8% of all liquidations of distressed properties. That number grew to 25% by the middle of 2011, according to research from Moody's Investors Service.
Meanwhile, the time it took from a borrower default to eventual REO liquidation grew from an average 14 months in early 2009 to 24 months by the summer of 2011.The delays pushed the timelines out and as a result, losses on the eventual sale of those properties higher. Servicers had to halt the foreclosure process in October 2010 to correct forged documents and mishandled foreclosures as part of the robo-signing scandal. Since then, new regulations from federal agencies and still ongoing negotiations between the state AGs left servicers turning toward an early sale of the property before a filing a foreclosure.
Read the full story at HousingWire.
To learn more about about short sales, see also:
- All About Short Sales
- Short Sales: Nightmare or Path to Financial Solvency?
- Short Sales: Are they Worth the Trouble
- How to Sell Your Home in a Short Sale
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Find homes for rent in your area.
See celebrity real estate