Get those short sales done soon...it may cost you thousands more if you dont!

To dodge foreclosure, many South Floridians hit by the housing crisis have chosen to go with a short sale.

In just a few months, that process could cost thousand of dollars more than it does right now, which is why we strongly suggest that people start the short sale process now.

Since 2007, most short sale sellers haven't had to pay those taxes because of the Mortgage Debt Relief Act, but that act is scheduled to expire at the end of this year.

Banks are agreeing to more short sales, and for the first time, short sale transactions are exceeding foreclosure deals, according to the most recent housing data from Lender Processing Services (LPS) Inc.

In January, short sales made up 23.9 percent of home purchases, according to LPS. Meanwhile, foreclosures made up 19.7 percent of sales.

Just one year prior, foreclosures made up the bulk at 24.9 percent of transactions while short sales made up 16.3 percent.

“It’s a fairly recent phenomenon that short sales have been increasing,” Jonathon Weiner, a vice president with LPS, told Bloomberg News.

So why are banks getting more agreeable to short sales? Banks are realizing that short sale transactions usually sell for higher prices than foreclosures. In fact, foreclosed homes tend to sell for 29 percent less, on average, than comparable non-distressed properties. Short sales tend to sell at a 23 percent discount, according to Lending Processing Services data from January.

Banks and government agencies in recent weeks have taken steps to speed up the short sale process, setting new timelines for how long mortgage servicers have to respond to short sales offers. Also, some banks, such as Wells Fargo and JPMorgan Chase, have offered some home owners cash incentives — up to $35,000 — if they agree to do a short sale instead of let the home fall into foreclosure.

It looks like all of the stars are aligning to get a short sale done before the end of 2012. If you think you might be a candidate for a short sale...don't wait too much longer. Give me a call and lets find out.

Thanks for reading...Steve Jackson
561.602.1258 Direct line
or Email me