A few years ago, if you mentioned a Short Sale, most people would look at you with a puzzled look on their face. Today, many are becoming educated on exactly what a short sale is...first hand. It's becoming a common term in every household.
I predict over the next 12 months the term "Short Sale" will be used almost as much as "Foreclosure".
The driving factor:
- The banks are increasingly more willing to allow a seller to sell a home for less than is owed = A Short Sale. The banks would obviously rather sell while an owner is keeping up with the property trying to get it sold vs. a Foreclosure where an owner has usually bailed out months if not years before the bank puts the property up for sale.
- HAFA which stands for Home Affordable Foreclosure Alternatives program. This is the Treasury Department releasing guidelines for lenders to follow when completing a short sale. "Guidelines" being the key term as it is completely voluntary. This program kicks into gear on April 5th, 2010. If nothing else, it's sure to help streamline the system to some extent. You can read about HAFA here.
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