In recent news, it has been reported that short sales made up 23.9 percent of home purchases as compared to foreclosures, which comprised of 19.7 percent of sales. These numbers from January 2012 were relatively higher than the numbers collected in 2011, which showed foreclosures to have the bulk percentage of transactions in comparison to short sales.

The reason for this change is a result of banks and government agencies taking the initiative to increase the likelihood for short sales to proceed to closings. It is known that foreclosures affect not only our economy, but also the families and communities in which the homes are located. The promptness of banks approving short sales and taking the initiative to make these sales a priority, will help families who are unable to keep their home proceed to a short sale closing and avoid a foreclosure proceeding.

If you should have any questions or would like more information regarding this topic, please do not hesitate in commenting this post or feel free to email or call (718) 377-7798 to speak with Michael Reinhardt.

DISCLAIMER:

The use of the Internet or this forum for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this forum. This information is for general information only and should not be relied upon without consulting with an attorney.

A seller who can successfully complete a Short Sale will be better off than a party who lost their home to a foreclosure proceeding.

In a foreclosure proceeding, the lender may come after the seller for a Deficiency Judgment; the amount owed less than the amount collected at the sale. The foreclosure will usually damage the sellers credit to a greater degree than a short sale.

When a short sale is completed, the seller should insist upon a release from the balance owed. Congress had recently passed the Mortgage Forgiveness Relief Act which can help certain homeowners avoid being taxed on the discounted payoffs, provided it was on primary residence homes. Psychologically the seller is done with the hassle of a pending foreclosure action against the premises.

If you have any questions, concerns or would like more information email, comment this post, or call  (718) 377-7798 to speak with Michael Reinhardt.

DISCLAIMER:

The use of the Internet or this forum for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this forum. This information is for general information only and should not be relied upon without consulting with an attorney.