Mewborn Team Real Estate Consultants: CoastalLuxurySanDiego.com

October 12th, 2009

Carlsbad Short Sales Getting Tougher

Categories: Home Loans

Due to the hassles and costs involved, more banks are not agreeing to short sales, forcing sellers to pay extra at closing or demanding a promissory note for the amount due. According First American CoreLogic, one-third of borrowers owe more on their mortgages than their properties are worth, making it more enticing for borrowers to just walk away.

When their situations were really tough, most banks preferred short sales because they were their best opportunity to get the most money back. But with an improving economy, and because the losses on many of these properties have already been written off the books, banks are increasingly reluctant to negotiate a short sale.

Today, banks demand 9.5 weeks to respond to a short-sale request, compared to 4.5 weeks a year ago, according to research firm Campbell Communications. Their reluctance is frequently stymieing sales and frustrating real estate practitioners.

Source: Based on article from Business Week – Christopher Palmeri

Tags: Carlsbad Short Sales

Posted by Mike and Amy Mewborn//