Sacramento Real Estate Views

Short Sales Becoming Preferred To Foreclosure

Wells Fargo & Wachovia Making It REALLY Easy

I had a lunch meeting with my favorite title company sales representative today, and yes I bought for you RESPA geeks, who had some very noteworthy news to report about short sales.

I often get new information from a variety of sources and my title connections are great because they see so many transactions coming through their doors and can fill me in on trends.  They are great resources for up to date information.

On The Spot Approvals AND Quick Closes?

Have I died and gone to Fantasyland?

I was told today that Wells Fargo and Wachovia, a Wells Fargo acquisition, are sending out a field representative who already have an idea of what the bank will accept for a home in distress and give an on the spot short sale approval.  This allows the homeowner to sell short and avoid the credit degradation of foreclosure and preserve what’s left of their credit rating.

This is good news for everyone.

I was also told that, while the percentage of NOD’s continues to grow, the banks are preferring short sale as an option for distressed homeowners over foreclosure.  “They just don’t want any foreclosures, they want short sales” was what I’ve been told.

While homes in the “foreclosure process” have increased, this isn’t a reflection on just how many foreclosed homes will come on the market or how many will be taken back by the banks.  It could go either way, short sale or foreclosure.  Right now it seems the decision is up to the homeowners willingness to work with the banks to sell short.

A Change of Heart?

There are many reasons this is happening not the least of which is the government is subsidizing the lenders for allowing homeowners to sell short.  Another reason is that a home that is sold short typically stays occupied longer and taken care of until it’s sold.

That means the bank will not have to pay someone to clean it up or make repairs prior to selling it.  The appearance of the home will be better and will sell for more money than if it were a vacant home.  As I’ve pointed out statistically, short sales sell for more than vacant bank owned homes.  Click here for additional short sale info.

This does benefit the lenders but it also benefits the homeowner.  The classic win-win scenario.

If you’re you’re behind on your mortgage or have received a notice of default, your best option may be to sell short.  Please call us for a confidential consultation if you think a short sale might be your best avenue to a fresh start or just fill out the form below and we’ll get right back to you.

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This entry was posted on Monday, May 10th, 2010 at 7:01 pm and is filed under Short Sale Information. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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