Short Sales Growing Fast In Real Estate Market
April 15th, 2010 | by admin |Statistics show that in March, distressed properties involving homes acquired as part of a foreclosure or pre-foreclosure sale accounted for 48.1 percent of the home purchase transactions in the country.
The February numbers were up significantly from the 37.3 percent level recorded as recently as November.
It was also the highest distressed property market share seen since last July.
Temporary foreclosure moratoriums and a push to qualify more financially troubled homeowners for mortgage modifications, temporarily reduced the number of distressed properties coming on the housing market this past winter.
But now a growing number of distressed properties appear to be hitting the housing market.
There are three major types of distressed properties: damaged REO, move-in ready REO and short sales.
During the period from November to February, sales in all three categories rose.
“Short sales now account for the number one category of distressed property,” commented Thomas Popik, research director for Campbell Surveys.
But as more and more people default or simply want to walk away from their properties, mortgage servicers are having trouble expeditiously processing these complicated transactions.”