The number of short sales is growing, while the number of foreclosed, bank-owned REOs is dwindling. And the volume of short sales nationwide could increase rapidly when new streamlined federal short sale rules are rolled out next month.
Starting June 15, the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, will be required to give short sale buyers a final decision within 60 day. Moreover, the new guidelines also require Fannie and Freddie to respond to short sale offers within 30 days of receiving a buyer’s submission.
Real estate agents nationwide are gearing up for the rise in short sales.
“We are seeing a shift with the banks,” said Ben Hirsh, broker/owner of Hirsh Real Estate Specialists in Atlanta’s affluent northern Buckhead district. “The banks are now more interested in doing short sales. So we have to shift with the changing market. We like short sales better (than REOs) because we control the deal.”
Hirsh, who is expecting to close 400 deals this year, is so confident that his short sale business will explode this year that he has created a new short sale website — ExpertShortSale.com — to manage his growing short sale business in Atlanta, Ga.
In the first quarter of 2012, the 109,521 short sales accounted for 12 percent of all existing home sales, according to RealtyTrac’s Q1 2012 U.S. Foreclosure Sales Report, compared with 87,631 short sales in Q1 of last year, which accounted for 9 percent of home sales.
Readers what do you think? Are short sales about to take off? What are your thoughts?
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