Sippn

Are Short Sales Shorting the Real Estate Market?

Short sales are pseudo inventory - future REO inventory, as such a very small % of short sales actually result in closes. In the mean time, Joe homeowner who paid $1.2 mil for his big tract home, watches his neighbors blow out of there with $600K priced short sales - the question is... why be left behind while the lender that financed your home and apparently made a mistake appraising it, gets your monthly ransom. To make matters worst, word on the street is FNMAE, etc are working on products and ways to "forgive" those short sellers and foreclosees sooner so that they can be new customers/borrowers sooner..... lenders digging their own graves.