Short Sales Will Soon Outnumber Foreclosures Nationally
According to a recent article in Bloomberg, we will soon see the number of short sales outpacing foreclosure sales throughout the country. A short sale occurs when a house is sold for less than is owed, and often gives the homeowner more control over the sale of their home. Our Moorestown foreclosure attorneys appreciate that short sales provide a positive option for many families struggling with their mortgage.
A Closer Look at This Trend
In the first quarter of 2012, the number of short sales increased by 25% from the same period last year. There were a total of 109,521 pre-foreclosure sales in the first quarter of this year, with the majority of these proceedings being short sales. This number is the highest it’s been since the first quarter of 2009. Meanwhile, during this same period foreclosure sales fell by 15% nationally from the previous year, down to 123,778.
Experts predict that by next quarter the total number of sales that occur in the pre- foreclosure stage will surpass sales initiated by the bank. Pre-foreclosure sales totaled 60% of all transactions where the mortgage was overdue in New Jersey; this figure may increase by next quarter.
The growth of pre-foreclosure sales is likely due to a variety of factors that has lead banks to welcome the short sale. First, short sales may help both the lender and the homeowner cut back on some losses. Secondly, foreclosure proceedings are often complicated and can take over a year to complete—banks face many legal hurdles along the way. Additionally, our Burlington County foreclosure attorneys know that the federal government has given banks incentives for accepting short sales, and lenders are taking advantage of these programs.
For example, Bank of America has a new program that gives up to $30,000.00 to homeowners if they take part in a Preapproved Price Short Sale.
Take Advantage of the Short Sale
As the number of bank-approved short sales continues to grow, you may want to take advantage of this trend if your mortgage is in default. With both the government and lenders offering financial incentives to homeowners who choose to take part in a short sale, it typically presents a better option than waiting for the bank to foreclose on your home. Don’t forget, in most situations, a lender will pay for all of the necessary legal fees. To learn more about these programs and determine if a short sale is the right option for you, contact one of our New Jersey real estate attorneys for assistance.