Since SC halted foreclosures in early May for owner occupied homes more lenders are required to prove to the court that they have exhausted attempts to work with homeowners to avoid foreclosures. For homeowners that are unable to pay their mortgage one viable option is to sale the property as a short sale since it is very likely the home is now worth less then the amount owed on the mortgage. With increased efficiencies by mortgage servicers and cooperation by all parties short sales should be set for a much smoother process going forward and buyers should begin to take notice of short sale bargins on the market.
While the number of foreclosues in South Carolina are certain to decline over the next few months the number of short sale closings are likely to increase. In the first quarter of 2011 single family forclosure sales increased over 40% from the first quarter of 2010 along the Grand Strand and short sales increased over 51%. Short sales have been less popular with buyers due to lengthy lender response times but most lenders and servicers are now working to make short sale decisions in weeks rather than months.
Copyright©2011 Sandra Bundy, Broker-in-Charge, B&P, Inc. Serving the Pee Dee and Grand Strand of South Carolina.
