Hardest-hit housing markets welcome Short Sales
If you browse the authentic real estate sites online, you will invariably find two striking realities. One – the foreclosure crisis has hit very hard some of the most-sought after locations of the U.S. country and two – as an alternative to escape foreclosure, the troubled home owners select Short Sales in these areas.
As per latest statistics of January 2010 the top ten foreclosure-crisis-stricken States are: Nevada; Arizona; California; Florida; Utah; Idaho; Michigan; Illinois; Oregon; and Georgia.
Nevada’s foreclosure filings in January continue to be the highest in the country (for the 37th consecutive month). Although a decrease by 18 per cent is recorded in the year-over-year figure of foreclosure filings, the rate of foreclosure is four times more than the national average in January. Virtually one in every 95 Nevada housing units received a foreclosure filing – demand notice, actual foreclosure or repossession after foreclosure public auction.
The second highest foreclosure filings are recorded in Arizona. There is 4 per cent increase in the figures in January, compared to the previous month. It is noted that one in every 129 housing units in Arizona received a foreclosure filing.
In both the above locations – particularly Las Vegas in Nevada – Short Sales are becoming more popular as the best alternative for foreclosure avoidance. This is evident from the figures that 21.1 per cent of all existing home sales in Las Vegas are Short Sales.
Judging from the way Short Sales are becoming more popular among distressed home owners, the Government seems to be keen on encouraging this trend. In December 2009, the U.S. Treasury Department has introduced new guidelines for Short Sale completion.
The law makers in Phoenix Arizona are contemplating a bill, towards making realtors learn the new strategies of Short Sale. It is reported that the State’s Short Sale Task Force has recommended for successful navigation of the Short Sale process and the legislature make it a mandate for realtors to take up 15 hours of Short Sale classes.
In yet another development, the local institution of Las Vegas – Five Star Institute (FSI) has given importance to Short Sale processing. A Short Sale Summit has been slated to be held on March 12, as part of their West Coast 2010 Spring Training. They are planning to conduct exams for a course in Short Sales, where real estate agents and practitioners will participate, to master the skills of Short Sale process. Successful attendees will be awarded with Five Star Short Sale Certificates.
So there is no question – Short Sale has attracted most of the crisis-ridden home sellers as the best option for avoiding foreclosure.
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