Article on Short Sales "Borrowers Losing Their Homes Are Staying in Them Longer"

[Eric M.]

Interesting article from Managing REO. Requires free registration.
Interesting quote from article
"“I think everybody overestimated the borrower’s desire to do a short sale versus living for free until a foreclosure date,†said Christopher Saitta, the chief executive of Equator, a Los Angeles company that has created technology for servicers to process short sales through the government’s Home Affordable Foreclosure Alternatives program.

There are only a handful of plausible explanations for why higher-value properties are going the short-sale route. Either low-end borrowers have their “heads in the sand,†Saitta said, because they are less sophisticated, or they are staying in the home as long as possible without paying rent until they get evicted. Borrowers with higher-priced homes also are more likely to care about the damage to their credit.

“The lower-value properties seem to be more resistant to a short sale, so they can stay in the home as long as they can,†Saitta said."
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