Will we see an increase or decrease in Short Sale Activity in 2011?

It’s been a bumpy ride for short sales investors since 2008.  Over the last two years a lot of banks have been less than eager to approve short sales, instead drawing out the process for long periods of time and ultimately halting short sales completely for a while at the end of 2010 because of the robo-signing debacle.  So is there light at the end of the tunnel for short sale investors?

Short Sale Predictions

While I have continued to operate my short sales business successfully through this mess, I must say that it has become more difficult for a short sale to get approved by the bank, so it’s taken working on more deals to create the same income (luckily for investors, there are a lot of short sale deals out there).  If the short sale predictions for 2011 that are reported in the news are correct we should see a significant increase in short sales a fewer foreclosures during 2011.  One report released today explains it like this:

“According to world ratings agency Fitch Inc.  And MD Diane Pendley industry leaders are expecting to witness more short sales and fewer repossessions in 2011, an encouraging sign for homeowners in the D.C.  Metro, northerly Virginia and Maryland regions as well as those looking for alternatives to foreclosure.  A short sale, or a sale in which a property is sold for a bit less than what’s owed on the mortgage, can be an effective alternative to foreclosure while permitting owners to escape the load of bankruptcy.  The Tania Ivey property Group, which services Northern Virginia, Maryland and Washington, D.C, offers numerous licensed troubled Property professionals ( CDPE ) to advise clients in the short sale process.  Home sellers in specific areas such as Fairfax County VA, or Loudoun County VA are seeing the number of Short sales increase.  If you are a home-owner in Leesburg VA or Ashburn VA attempting to sell your house you are competing with numerous Short Sales.  Even areas like Great Falls VA and Vienna VA are seeing a serious part of the market being short sold.”

In the end the banks will be the ones that decide if they’re prepared to play ball in 2011.  There’ll be no scarcity of delinquent mortgages any time soon, and so it boils down to foreclosure or short sale for the banks.  For both investors and house owners alike, Let’s hope the banks choose to start short selling more properties again. 
Read more: http://www.benzinga.com/press-releases/11/01/p784762/real-estate-short-sale-to-increase-in-2011-as-banks-attempt-to-dispose-#ixzz1BPPrqizR