Short Sales on the increase in Louisville KY
Short Sales are increasing and becoming easier to do. I went to school last year to learn how to do short sales. Since that time, the process is becoming more streamlined and familiar. Banks and consumers alike are moving to the short sale as an alternative to foreclosure. The banks don’t like the expense and risk that foreclosures entail. Homeowners don’t want a foreclosure on their records.
There are still 200 properties offered for sale every 2 weeks at the Jefferson County Commissioner’s office. An increasing percentage of properties are withdrawn before the sale. To be withdrawn, the homeowner needed to have worked out something with the bank. They may have worked out a loan modification, brought their status up to current, or have a contract to sell their house.
The Treasury Department has guidelines for short sales. The acronym is HAFA which stands for Home Affordable Foreclosure Alternative. The program, as can be expected is complex. Its purpose is to streamline use of short sales. It also provides for $1,500 to help with borrower relocation expenses. This does not take effect until April 5th, 2010. However, many lenders are implementing this earlier.
What does this mean for the Louisville Market? Continued pressure as these homes will be sold to somebody for some price.