It’s hard to pinpoint exactly when the tide began to turn and whether home owners still on the brink financially have escaped using short sales as a tool to eliminate crushing mortgage debt. Rising interest rates and continuing economic uncertainty will continue to fuel the short sale market. By now consumers would expect that lenders/servicing companies handling short sales to have their act together – but many of the short sales are in the state of constant delay -causing frustration for both the sellers and the potential buyers.
A quick check of the Multiple Listing Service of Greater Cincinnati shows 623 active short sale listings and 707 “lender approval required” listings. It’s obvious that many of the listings are sitting on both lists- sometimes it’s just easier for agents to check both boxes when filling out the MLS worksheets.
A search of the Cincy MLS turns up 175 short sales closed between 1/1 thru- 7/15. Please note our MLS system wasn’t great about tracking short sales in 2011-so the number may be artificially low 2011. During the same time frame in 2012 571 short sales closed and this year (to date) 386 closed. Still quite a few -but less than last year at this time. And while many buyers think of short sales as very low priced properties-the average sale price in 2011 was $124,061, in 2012 -$107,341 and 2013 -$111,618.
Since short sales are anything but short, patience is the key to completing a successful sale. Sellers have to submit the required sale package with every “i” dotted and “t” crossed if they want sell. And buyers need to remember that the person/people handling the short sale for the lender/servicing company is probably handling a gazillion files and often cannot or won’t communicate personally with agents. Deals are out there for buyers who are willing and able to plod through a deal at a very slow (slower) and steady pace.
Related Article: 3 Things to Know About Short Sale