Realty experts say short sales of homes have increased as homeowners and banks started seeing the benefits over those of a foreclosure. (VICENTA ADELLE TAMAYO PHOTO ILLUSTRATION / August 30, 2010) |
The county has a seen a 5 percent increase in residential short sales in the last year, real estate agent Frederic Din said, citing the Imperial Valley Multiple Listing Service Web site.
Short sales have increased as homeowners and banks started seeing the benefits over those of a foreclosure, Din and another realty expert said.
The growing trend is always a better choice as it is not as harmful to credit ratings and a person can buy another house sooner, Michelle Solorio, president of the Imperial County Association of Realtors, said. Homeowners can also stay in their homes longer.
Short sales occur when the sale is less than the balance owed on the property’s loan and can happen before a homeowner stops making payments.
“There are more people out there that want to know what a short sale is, how it works,” Solorio said. “People are educating themselves and starting to call before falling behind.”
Din said the government’s foreclosure prevention tactics are starting to come into play as banks are allowing more short sales. Though he said it still takes an average of 120 to 150 days, a lot of the paperwork can be submitted electronically.
Another advantage is that homes can be better protected if they are short sold, Imperial County Assessor Roy Buckner. He said loan institutions are “getting into gear” by allowing more short sales.
While Solorio said people are starting to talk more about having to short sell their home, some are still hesitant.
Such is the story of one man who prefers to remain anonymous. He short sold his house in Brawley three months ago.
“Before you know it we had one, then two kids going through college and no way to finance their college,” he said. “We needed to provide that for them, that’s what parents do. This was our way of going around that.”
He was going to ask for loans but the value of the house decreased. The hardest part of the process was the decision to short sell the house, he said.
“The American dream is to own a home, but the reality was it was a means of obtaining futures for our children,” he said. “You are looking and saying ‘What is happening?’ but you have to adapt to the changing economy.”
>> Staff Writer Sarah Horne can be reached at 760-337-3435 or shorne@ivpressonline.com
BY THE NUMBERS
5 percent — increase in short sales
$122,000 — median price of active listings for residential homes
Short sales have increased as homeowners and banks started seeing the benefits over those of a foreclosure, Din and another realty expert said.
The growing trend is always a better choice as it is not as harmful to credit ratings and a person can buy another house sooner, Michelle Solorio, president of the Imperial County Association of Realtors, said. Homeowners can also stay in their homes longer.
Short sales occur when the sale is less than the balance owed on the property’s loan and can happen before a homeowner stops making payments.
“There are more people out there that want to know what a short sale is, how it works,” Solorio said. “People are educating themselves and starting to call before falling behind.”
Din said the government’s foreclosure prevention tactics are starting to come into play as banks are allowing more short sales. Though he said it still takes an average of 120 to 150 days, a lot of the paperwork can be submitted electronically.
Another advantage is that homes can be better protected if they are short sold, Imperial County Assessor Roy Buckner. He said loan institutions are “getting into gear” by allowing more short sales.
While Solorio said people are starting to talk more about having to short sell their home, some are still hesitant.
Such is the story of one man who prefers to remain anonymous. He short sold his house in Brawley three months ago.
“Before you know it we had one, then two kids going through college and no way to finance their college,” he said. “We needed to provide that for them, that’s what parents do. This was our way of going around that.”
He was going to ask for loans but the value of the house decreased. The hardest part of the process was the decision to short sell the house, he said.
“The American dream is to own a home, but the reality was it was a means of obtaining futures for our children,” he said. “You are looking and saying ‘What is happening?’ but you have to adapt to the changing economy.”
>> Staff Writer Sarah Horne can be reached at 760-337-3435 or shorne@ivpressonline.com
BY THE NUMBERS
5 percent — increase in short sales
$122,000 — median price of active listings for residential homes
