Here's a few interesting things I've recently learned about Short Sales through my accredation with the Certified Distressed Property Expert program:
* In a healthy market, 1-3% of all sales are distressed. Today's market you could argue that there may be as many as 1 in 5. (This is certainly true in Bend, Oregon)
* The fastest growing segment of the Distressed Market? Million Dollar + homes.
* Of Prime Mortgages, there are 2.75% in foreclosure---but wait--6.41% in DEFAULT.
* Of SubPrime Mortgages, there are 6.63% in foreclosure --- 12.5% in DEFAULT.
* Of VA Loans, there are .57% in foreclosure --- 6.82% in DEFAULT.
* Of HUD/FHA Loans, there are .95% in foreclosure --- 12.5% in DEFAULT.
The loans in Default will do one of three things:
1. The properties will not be sold and go into Foreclosure. Or Deed in Lieu. Or Bankrupcy.
2. The properties will be redeemed somehow through forebearance or Reinstatement or a Mortgage Modification or REFI.
3. The properties will be sold through a SHORT SALE process.
The new regulations for Short Sales set by the US Treasury, will speed up the formerly long and arduous short sale process to "stem the rising tide of foreclosures."
What is the BEST result? In my opinion: The response time. Finally, mortgage services will have 10 days to approve or disapprove a short sale contract. This will really help us out---no longer will we have to wait 6months for an answer that our Buyers might not even want to hear at that point!
I highly recommend the CDPE: Certified Distressed Property Expert program and would be happy to either help or refer clients to Realtors with CDPE accredation.