If you live in the wonderful world of real estate, short sales seem to be “the thing” these days.
As many now know, a short sale is a transaction in which a homeowner is looking for their bank’s approval to sell their home for a loss. Because the owners are selling the property for less than what is owed on it, they need the bank’s permission to do so.
Both sellers and the lenders oftentimes are motivated to take part in a short sale as the owner avoids a foreclosure on their record (although they still take a significant credit hit) while the bank doesn’t have to go through the lengthy and expensive foreclosure process.
Although these transactions seem to be becoming slightly more popular, the number of Big Bear homes to sell as a short sale each month do not appear to be an overwhelming number.
From the graph above, you can see that there are only about 8 – 12 short sales of Big Bear homes each month, accounting for only about 10% - 15% of the market share.
Many sources have said that short sales will become more prominent as banks, already overwhelmed with existing bank owned inventory, will try to avoid additional costly foreclosures. Ironically, short sales are usually anything but short and have the reputation of sometimes turning into time-consuming fiascoes. It is not unusual for banks to be unorganized and illogical in their decision making, leaving agents to wonder whether it is truly a matter of the bank negotiator’s incompetence or if the lenders have some other ulterior motive in delaying or denying short sale approval.
The bottom line is that for every short sale that is approved, there are likely several times those which fall apart for one reason or another, with the property in question ultimately ending up being foreclosed on.
Although there are many unsuccessful short sale sellers and unsuccessful short sale purchasers who would advise you to stay as far away as you can from these frustrating and lengthy attempts at a transaction, there are also those who were successful in their attempts and feel their efforts were well rewarded.
If you are thinking of short selling a Big Bear property or are interested in buying a Big Bear home that is a short sale, please do not hesitate to contact me for more information.
Paul Zamoyta ~ INFO@ZAMOYTA.COM ~ 909.557.8285