Tip 12-2012: More Short Sales & REO’s in the Future?

Tip 12-2012:  More Short Sales & REO’s in the Future? 
The number of Borrowers in default unfortunately continue to rise.  One answer to overcoming this trend is more successful short sales.  However, with the possibility of an unsuccessful short sale or the homeowners simply walking away, the number of foreclosures will continue to grow.  This means more REO properties (“Real Estate Owned” by the foreclosing banks) offered for sale.
Today’s Purchasers, Realtors and Lenders should not be apprehensive of short sales and REO’s.  These types of transactions are going to be part of the real estate landscape for many years to come.  In fact, some recent projections predict that by the end of this year, 50% of all transactions will be either short sales or REO’s.  In other words, one out of every two sales will require a third party lender or quasi government agency to agree to the terms of the contract.   
Although these third party banks and quasi government agencies usually cause additional complexity and add time to the transaction, there are some improvements occurring.  Remember, these banks, Fannie and Freddie do not want to own troubled real estate.  They would prefer not to foreclose at all.  If they have to foreclose, then they will want to dispose of the REO property as soon as possible through a sale to a third party. 
All Realtors and Lenders need to realize that they will probably have to deal with short sales or REO transactions in the future.  These type of transactions can be handled and closed successfully.  Get as much education as you can, and prepare the purchaser for what to expect. Good Luck!! 
     
Contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions.  Thanks for allowing us to send you this email.    
Please feel free to share this tip on your social media sites (buttons above.)
  
William D. Tucker, III 
Charlottesville 434-973-7474 | Lake Monticello 434-589-3636  
      
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About Charlotteville Personal Injury Attorney

Personal Injury attorney helping people injured in automobile, truck or mortorcycle accidents.
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