bjforeclosures

Short Sales No Great Alternative To Foreclosures [Housing Tracker]

Some lenders are beginning to become more realistic when it comes to short sales. It is not uncommon in my area, which was supposed to be insulated from the bubble burst according to local RE professionals, to see official foreclosure notices that contain text similar to the following.

"ATTN: The Plaintiff may let the bid go for less than the judgment amount consistent with the adjusted FMV of the property at the time of sale. Plaintiff may also agrre to a short sale. Please address any inquiries to: xxxx@xxxxxxx. Please use our File No. and "3rd party" or "Short Sale" in your subject line. "

Inventory is rising and prices are falling and indications are that it is only going to get worse. The foreclosure process can be fairly long. By the time the lender even gets a judgment, they have missed out on 3 months worth of payments. By the time the auction actually happens it could be 6-9 months or more.

If you own a home with an upside down mortgage and are having a hard time with payments, contact your lender. You may be surprised how willing some will be to discuss options.