Short Sales Up 600%
WASHINGTON DC - Freddie Mac just released information indicating that short sales are up 600% from just 2 years ago. This statistic is remarkably powerful considering that 2008 was a record year for short sales. As anticipated (and predicted by this author), short sales continue to rise at astonishing rates. Anyone NOT investing in short sales is missing out on a gigantic portion of the market (as much as 64% of the available properties for sale in some parts of the country).
Freddie Mac CEO Ed Haldeman said that Freddie Mac is doing everything it can to prevent more foreclosures and that short sales are becoming an ever-popular tool in situations where foreclosure is immenent and modifications have failed. Short sales have become so prominent that RealtyTrac, an online foreclosure marketplace, is even preparing a short sale report to go along with its usual foreclosure report every month. Sources at RealtyTrac say that this will not be launched until the end of the year.
Haldeman made it very clear that a short sale is an important foreclosure alternative. Citing numerous indepedent studies, he even revealed a lending secret stating that banks lose 30% to 60% of the outstanding mortgage when a property goes to foreclosures. Freddie Mac, of all organizations, would be acutely aware of this because they have reported $84.4 Billion in loses since the middle of 2008…OUCH!
The Orange County Register reported that short sale transactions are up 74% in Southern California this year. The total amount of short sales in Southern Cal have topped 13,000 in the first half of 2010 alone and that number is rising.
What makes these statistics so incredibly powerful is just how many short sales there have been in 2008 and 2009. Short sales were swallowing the market for the last few years and now they are even bigger than ever (once again, as this author had predicted).
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I have been investing for many years. As far as real estate foreclosures and short sales go, I am certainly a ‘Rookie’. However, with that said, if I have only learned one thing in my education of real estate, it is, “Short sales are misunderstood by most people, including most investors. They take too long because the process is done incorrectly and the banks don’t have time to teach people what to do.” I have found only TWO (2) investors that really understand this process and do it right! I have not seen your training as of this comment, so I don’t know anything about what you teach. I look forward to learning from you and seeing if you become number THREE (3) in my educational portfolio!
After you learn about our systems, tools and resources, you’ll find we have the most sophisticated and finest short sale and foreclosure education in America. You’re right that most people (agents, investors, etc) are missing the boat when it comes to short sales and foreclosures. You have to know as much about the lenders and their approval process as the lenders do. I appreciate your comments!