Short sales are increasing at an accelerating rate. A “short sale” is much different than a “foreclosure or bank owned property”. The seller in a short sale situation is still the current owner of record. The owner is in a situation where the amount owed on the mortgage is higher than the value of the property. They are selling the property for less than the mortgage payoff, thus being “short” of what they owe. The seller/owner accepts a “short” contract and the sale becomes contingent on the bank (lien holder) agreeing to accept the “short“ payoff of the loan.
The good news for buyers is they are purchasing homes at lower prices than they normally would. The bad news for sellers is they are walking away with no capital from the home and they will get a ding on their credit report.
Short sales are definitely increasing at a accelerated rate. From 2009 to 2010 YTD, short sales have increased 19% in Plainfield, 53% in Oswego, 21% in Bolingbrook and 35% in Naperville. For more information regarding short sales, please email us at piketteamrealtors@hotmail.com.