In simple terms, a successful home short sale is when a lender agrees to take less for the sale than what is owed. The number of homes listed as a short sales in our community has been pretty steady at around 250-300 for the last couple years. They are most often unsuccessful, leading to foreclosure. But lately, it seems the number of successes have been increasing. Mostly, due to bank/lender changes in staffing and attitude. But also because agents representing sellers have become better at accomplishing these often complex transactions. We attended a standing-room-only short sale seminar for agents yesterday put on by the Shasta Association of Realtors. It seems we all think there will be more short sales coming, and so are actively sharing information about how to get them done.

I’m uneasy with many aspects short sales. But I don’t think that anyone can argue that a neighborhood is better off with vacant foreclosures than occupied short sale homes. Foreclosures create problems for the community.

This short sale video from the California Association of Realtors is perhaps overly upbeat. While I don’t necessarily agree with all this broker’s conclusions, I think he illustrates the growing realization that there are more short sales on the way. All are served best by getting better at the process.

“Karen Farley hadn’t made a mortgage payment in a year when she got what looked like a form letter from her lender.
‘You could sell your home, owe nothing more on your mortgage and get $30,000,’ JPMorgan Chase & Co. (JPM) said in the Aug. 17 letter obtained by Bloomberg News.”

That’s what they’re writing about home lender JP Morgan at Bloomberg News. This particular short sale was for $200,000 less than what was owed, but taking that loss was still cheaper than foreclosing. According to the article, they are offering up to $35,000 in some cases, and other banks may follow. Lenders are getting more realistic about short sales.

Do you need to explore this idea? We can offer reliable advice about your Redding area home’s actual present market value, with no obligation. We can’t make any promises about lender bonuses, but we know a lot about local real estate and marketing.

If you get a similar offer letter from your lender, call us to arrange the sale.

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The California Association of Realtors published a full page ad in California’s major newspapers yesterday pleading for lenders to make it easier to accomplish a Short Sale. Here is the text:

An important message from the CALIFORNIA ASSOCIATION OF REALTORS®:

I write on behalf of the CALIFORNIA ASSOCIATION OF REALTORS®, whose 170,000 members continue to witness the devastating consequences the home foreclosure crisis is having on California’s families, neighborhoods, and communities on a daily basis.

The number of families affected by foreclosure is staggering. During the past three years, more than 640,000 Californians have lost their homes. With the number of homeowners who owe more than their home is worth hovering at 30 percent, experts predict there will be many more foreclosures in 2011 and 2012. Unless we take immediate, aggressive action to assist these homeowners, any meaningful recovery in the housing market and overall economy will continue to be delayed.
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