The Bend Bulletin reported the number of homes sales in the United States via short sale hit a 3 year high in the first quarter of 2012. It was up 25 percent from a year earlier according to the report. Short sales made up 12 percent of all residential sales according to the report.
A few years ago we were advising our clients to avoid short sales. After the market crash in October 2008 lenders were not easy to work with on their short sales. They really did not know what they were doing. I would takes months only to have the bank refuse to allow the sale.
Short sales are where the current owner owes the bank more than the market value of the home. The bank essentially has to take the loss. After several years of foreclosures the banks have figured out it is easier and cheaper to approve a short sale at market value than it is to go thru the expensive process of a foreclosure and end up with a home that is possibly damaged either buy a disgruntled home owner or by vandals or frozen plumbing.
Bend Oregon Short sales are also on the rise. Now that the banks are approving short sale more readily we are working with our clients to find good values in today's market which seems to be hitting bottom. Bank foreclosures are also a good avenue to a good buy. Owners are also lowering their prices to compete with distressed properties.
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