What is in store for Short Sales in 2010

Short sales have been around for many years but only the recent housing bubble burst has resulted in such real estate transactions becoming so common.  Estimates have been that around 50% of all home sales are so called “short sales”.   For those new to the concept, basically a short sale means that a seller/homeowner is upside down on what they owe compared to what the home is valued at in today’s market.   Mortgage modifications have been a great option for those who can still afford some form of the payment and who have a desire to remain in the home.   For those homeowners who find themselves in the position where a modification is not an option, short sales are a great alternative.  For those that are forced into selling a home at today’s value due to a number of reasons may find a short sale is the best option for them.

Short sales have notoriously taken on a bad rap due to the long time frames and uncertain demands from the lenders.  Buyers often don’t wait around long enough for the bank to respond to the request or even worse, the market continues to slide and the contracted price no longer represents a fair value by the time the approval comes around.  Well, recent government changes are geared toward changing the way short sales work.  The goal is to streamline the process and force banks/lenders to respond in a more timely fashion.  Details on the program can be found here: Short Sale Guidelines.

The verdict is still out on what impact the new government guidelines will  have on the process.  Either way, if you are facing a hardship and possible foreclosure a short sale may be right for you.  You want to ensure that you work with an agent that is experienced in the process to ensure the highest likelihood of success.