Are the Short Sale Opportunities Disappearing?

[Corey Dutton]

Short sales have proven to be a viable route for distressed homeowners to get out of underwater mortgages or delinquent debt situations. In some U.S. Cities where housing values have bounced back quickly, many short sales in waiting have fizzled out in recent months. We’ve personally seen several in the past month that were in line to close, and then the bank came back after a BPO or appraisal, and suddenly pulled out. For distressed homeowners. the short sale route has proved fairly successful in recent years in allowing them to get out of mortgages they were underwater in. But with values bouncing back in areas like Southern California, San Francisco, and other U.S. Cities, many banks have lost their incentives to “sell short.”

Have you seen this happening to your clients or to some of your short sale deals? Are short sale opportunities dwindling in your City? Please share.

Posted by Corey Curwick Dutton