Short Sale Rush Is On
July 31, 2012
Housing experts are predicting a drastic rise in short sales, with an all-time high expected to be reached this year.
The number of short sales has already risen 25 percent during the first quarter year-over-year, according to RealtyTrac data.
Banks are realizing that short sales can be more profitable than letting homes slip into foreclosure, so they are becoming more willing to do them. Some banks are reportedly offering home owners up to $45,000 to agree to do a short sale.
"We're seeing a rush already," Daren Blomquist of RealtyTrac told Reuters. "There was a big increase in the first quarter and we're expecting that to continue."
The Obama administration is also pushing for banks to do more short sales, and new government initiatives are no longer including the loan amount forgiven on a short sale to be counted as taxable income under federal law — but that will expire at the end of this year, Reuters reports.
Source: “Prepping for the Summer Wave of Short Sales,” Reuters (July 25, 2012)
Updated: February 19, 2019