Ed's Blog

New reports out show that the trend in short sales (where a homeowner sells their property at a discounted rate, rather than go through a foreclosure) continues here in CA. Although it’s never a good thing to have to sell your home if you don’t want to, the trend in short sales means that fewer homeowners are being foreclosed upon.

Although banks still lose money in a short sale, it is far better than having to repossess a home through foreclosure. I’ve said it before but it bears repeating: banks are NOT in the business of selling homes. So anytime they can avoid having to sell a home as a foreclosure, they prefer it.

Likewise, a short sale is usually less bad for a homeowner than a foreclosure from a credit point of view, a financial point of view, and a stress level point of view.

In an ideal world, no one would have to short sell their home, and certainly no one would be forced into foreclosure, but progress is never ideal. It will still take significantly more time to right the real estate ship, but at least we’re taking steps in the right direction.

Oh, and buyers are scooping up these short sales in droves, which is also helping drive home prices back up, again boosting our economy.

Here’s to keeping the positive momentum flowing!

Ed

ecraine@smithcraine.com

415-206-2330