Short Sales - Articles

FHA Program Gives Distressed Homeowners a Second Chance

ShutterstockForeclosure doesn't have to mean the end of homeownership. By Scott Sheldon A consumer who sold his or her home in a short sale or lost it in a foreclosure would normally have to wait 36 months to purchase a primary residence again with an FHA fixed-rate mortgage. However, the FHA Back to Work Program allows... Continue Reading »

Short Sales: Why They Can Take So Long

AP By Brendon DeSimone When buyers hear the term "short sale," they typically think about distressed sellers and good deals -- especially in markets where prices have ticked upwards. But the word "sale" can be misleading. In fact, many real estate agents have renamed "short sales" as "long-and-drawn-out sales." Here's... Continue Reading »

Why Troubled Homeowners Might Be Hit With Huge Tax Bills

Shutterstock By Mitchell D. Weiss Financial adversity is an unhappy fact of life -- jobs are won and lost, savings stashed and spent, and investments gain and lose ground all the time. Certain reversals of fortune are within our ability to predict and prevent. Indeed, some losses may even be manageable. Others,... Continue Reading »

Credit Report Error Sinks Short-Sellers Bids for a Mortgage

AP By Scott Sheldon Need to finance a home this year? If you had a previous short sale, pay very close attention to your credit report, because it might list the home as a foreclosure. It's important to know how this difference can prevent you from getting a new mortgage again, and how you can deal with it so you can get... Continue Reading »

Short Sales Hard to Find, Except in Hard-Hit Housing Markets

Bloomberg via Getty Images By Christine DiGangi Home sales and prices continue to rise on an annual basis, and as those numbers have climbed, the number of short sales going through the market has dropped. Short sales, which are home sales in which the sale price is less than the total of the outstanding mortgages... Continue Reading »

Castle Ruins for Sale: Needing Some TLC

Zillow By Erika Riggs The limestone ruins look ancient, like something abandoned by its residents hundreds of years ago along a misty loch in Scotland. The property, however, is not across the Atlantic but in upstate New York, most fittingly located in the town of New Scotland. The ruins are not as ancient,... Continue Reading »

Improving Market Pushes Home Prices Higher in June

Nam Y. Huh/AP By Leah Schnurr NEW YORK -- U.S. home prices jumped in June and are forecast to ramp up further in the latest signs of a housing market that is on the mend, data from CoreLogic showed Tuesday. CoreLogic's home price index rose 1.9 percent from May and accelerated by 11.9 percent from June last... Continue Reading »

Why Buyers Should Consider Foreclosures or Short Sales

By Brendon DeSimone For years, many buyers routinely steered clear of foreclosures and short sales. In their minds, such properties were "damaged goods" -- real estate remainders that were likely to be dumps and money pits. Why risk such a big investment on a property sold in distress? We're now in a housing market... Continue Reading »

Multimillion-Dollar Short Sales

Short sales are a popular option for homebuyers right now because they're cheap. Well, cheaper than regular non-distressed properties. We recently brought you the 10 best cities to buy short sales, where they sold at an average of 23 percent below market rate. There were three times as many short sales as sales of... Continue Reading »

5 Cities Where Homes Are Still Cheap

If you're bargain shopping for a home, don't be discouraged by the gigantic leaps home prices have been taking lately. There are still places where you can find cheap homes. You might start with the 10 best cities to buy short sales. Short sales and foreclosures made up 43 percent of residential sales last year,... Continue Reading »

10 Best Cities to Find Short Sales

Don't worry, the housing recovery isn't wiping out the discounts on homes that were prevalent at the height if the housing decline. Short sales and foreclosures are still aplenty in many housing markets around the country. And the savings are steep. Short sales went for an average of 23 percent below market rate in the... Continue Reading »

Boomerang Buyers Return to Market After Foreclosure

By Les Christie Borrowers who lost homes to foreclosure during the housing bust are starting to buy again. Since the housing bubble burst, 4.8 million borrowers have lost their homes to foreclosure, and another 2.2 million gave them up in short sales, according to RealtyTrac. While many are still struggling to recover... Continue Reading »

Struggling Homeowners Turned to Short Sales in 2012

By Les Christie Struggling homeowners increasingly turned to short sales to get out from under mortgage debt last year. There were nearly three times as many short sales as there were sales of foreclosed homes in 2012, according to RealtyTrac. Foreclosures accounted for 11 percent of all sales, down from 13 percent a... Continue Reading »

Existing Home Sales Jump, Home Prices Rise More than Expected

By Paul Ausick We have two data points on the U.S. housing market this morning. The National Association of Realtors reports that the seasonally adjusted annual rate of existing home sales in November rose 5.9 percent to 5.04 million from a downwardly revised total of 4.76 million in October. Sales are up 14.5 percent... Continue Reading »

Short Sales Jump Ahead of Tax Hike

By Les Christie A soon-to-expire tax break for troubled homeowners is helping drive a spurt in short sales. During the three months ended Sept. 30, short sales in which homeowners had fallen behind on mortgage payments soared 22 percent over past year, according to a report released Thursday by online marketing company... Continue Reading »

If You Know You Won't Be Able to Keep Up With Your Mortgage, Here Are Some Options

By Christopher Maag Donna Moore's husband earns a good income, and he can easily afford to pay their mortgage. But in a few months, when her husband retires, all that will change. "(W)e will not be able to pay this mortgage," a reader using the screen name "Donna Moore" wrote in response to a recent Credit.com story,... Continue Reading »

Short Sales Could Spike This Summer, Data Suggests

Due to a confluence of several factors, experts predict that there will likely be a significant uptick in the number of short sales for distressed properties throughout the rest of the year, with a spike coming over the next few months. The market for short sales -- that is, underwater homeowners selling their houses... Continue Reading »

Foreclosures Made Up 26% of All Home Sales in 1st Quarter

By Jessica Dickler Homes in some stage of foreclosure accounted for more than 1 in 4 home sales during the first three months of the year, according to a report released Thursday. Distressed properties that were either in default, scheduled for auction or bank-owned accounted for 26 percent of all residential sales... Continue Reading »

Senator's Mortgage Trouble Highlights Positive Housing Trend

While presumptive Republican presidential nominee Mitt Romney may be in the process of quadrupling the size of the La Jolla mansion (one of six homes in his real estate portfolio) that he purchased for $12 million in 2008, not all of our politicians appear insulated from the impact of the housing meltdown. Utah Sen. Mike... Continue Reading »

Avoiding Foreclosure: More and Better Options Available Now

If you're teetering on the edge of foreclosure, you may have a much better chance of finding your footing than in years past. Servicers of delinquent or at-risk mortgages appear poised to ramp up their use of alternatives to foreclosure this year, an industry shift that could enable many more homeowners to hold onto their... Continue Reading »

4 Secrets to Scoring a Bank-Owned Property Deal

Scanning the foreclosure listings to snap up your dream home on the cheap? It's tempting indeed to take the bottom-fisher route, especially when bank-owned deals are so plentiful and annual housing prices in 20 major cities combined declined 3.8 percent in January, according to the closely watched S&P/Case-Shiller... Continue Reading »

Short Sales: The Long and Short of Them

Before the housing meltdown, the term "short sale" was hardly part of the residential real estate vernacular. But now that about 11 million homeowners owe more than their homes are worth, millions of whom are headed toward foreclosure, the sales method has emerged as an alternative to foreclosure. For homeowners teetering... Continue Reading »

Short Sales That Are Long on Value

The perfect-storm buying conditions of today don't end with record low interest rates and severely depressed home prices: The housing meltdown has also caused a bargain-friendly type of home sale to flourish, injecting the market with even more potential for great deals. No, we're not talking about foreclosures: We're... Continue Reading »

Report: Foreclosures Down, But Discounts Abound

LOS ANGELES -- Foreclosures made up a smaller slice of all U.S. homes sold in last year's third quarter, as banks delayed placing properties for sale and home sales slowed. Despite the decline, foreclosures still represented 20 percent of all homes sold in the July-September period -- about four times more than at the... Continue Reading »

House of the Day: Malibu Short Sale With a Steep Price Drop

Think the high-end of the market hasn't been felled by the economic downturn? Guess again. Here's a lovely four-bedroom contemporary home in Malibu, Calif., that is now being offered as a short sale with a recent price drop of $1 million. Ouch. The 5,000-square-foot home is now listed at $2.85 million, subject to the... Continue Reading »

Upside Down on Your First House? Just Buy a Second One!

Oddly, the best way to deal with being upside down on your home mortgage may be to just go out and buy a second house. As housing values spiral down and people increasingly owe more on their loans than their homes are worth, many start to look longingly at a different house -- perhaps something smaller and cheaper and... Continue Reading »

Bank of America Offering Up to $20,000 to Florida Short Sellers

It's not mortgage principal reduction, but it's a start. Bank of America is quietly rolling out an incentive program in parts of Florida in which they'll pay distressed homeowners up to $20,000 if they successfully short-sell their home, according to The Palm Beach Post. A short sale is an arrangement in which the lender... Continue Reading »

'Flopping' Homes the Latest Short-Sale Scam

Wherever there is a crisis, there will be a line of unscrupulous people poised to take advantage of it. The housing crisis is no exception. According to CoreLogic, fraud occurs in one in every 53 short sales. And sometimes, it's not the homeowner but the lender who is targeted in the scam. While hearing that lenders have... Continue Reading »

Viewpoint: Feeling Guilty About Buying a Foreclosure?

The sides in the housing crisis' morality play have been very neatly defined for us. The banks are the ruthless, faceless devils who cast out the sick and (financially) weak from their homes. A few bystanders -- let's call them renters-by-choice and anonymous online commenters -- stand on the sidelines cheering because,... Continue Reading »

Short Sales on the Rise as Foreclosure Delays Mount

Mortgage servicers contending with attorney general investigations and extended foreclosure delays turned more to short sales in the past year. In August 2009, short sales accounted for 8% of all liquidations of distressed properties. That number grew to 25% by the middle of 2011, according to research from Moody's... Continue Reading »

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