2012 Was A Year of Short Sales!
2012 had roughly about 3 times as many short sales compared to foreclosed properties in 2012, according to RealtyTrac. Short sales rose a steady 5% year-over-year, accounting for 32% of all home deals. Foreclosures accounted for only 11%, down from 13% in 2011.
What is a short sale
A short sale happens when borrowers sell their property at a price less than what they owe the lender. To short sale your home, you must show a financial hardship to your lender. This can range from loss of income to a divorce, death in family, or loss of job.
The biggest peak in short sales last year occurred during the second half of the year. The National Mortgage Settlement, an agreement between the government and the nation’s five biggest lenders, was fueling that peak.
In the second half of the year, many homeowners were also trying to get rid of their home before the Mortgage Forgiveness Debt Relief Act, which was believed to expire last year on December 31st. Thankfully, the government voted to have that act reinstated until December 31st of this year.
In California, short sales increased 14%, compromising a 3rd of all sales.
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