Florida’s short sale fever catches on nationwide

Miami /
Apr.April 17, 2012 03:45 PM

Long favored in Florida, short sales for the first time are more popular than sales out of foreclosure in the U.S., according to data from Lender Processing Services cited by Bloomberg News. As lenders increasingly favor the faster and more lucrative process, short sales accounted for 23.9 percent of home sales in January, while foreclosures represented 19.7 percent of sales. A year earlier, 16.3 percent of deals were short sales, while 24.9 percent were foreclosures.

In Florida, short sales have outnumbered bank-owned sales since July.

Lenders are opting for the short sale route for three reasons: to avoid the drawn out foreclosure process (which is especially problematic in states that use the judiciary system to sort through the cases), to sidestep the costly legal fees associated with foreclosures and to reap better sales prices from the properties. Short sales trade at a 23 percent discount to non-distressed homes, compared to 29 percent discounts for foreclosures, according to Lender Processing Services.

Some lenders, including Bank of America, Wells Fargo and JPMorgan Chase, have also begun incentivizing short sales, promising payouts to distressed homeowners who take that road. [Bloomberg]


Related Articles

arrow_forward_ios
Moto Capital Group's Marcos Lima with 350 Ocean Drive (Loopnet, LinkedIn, Getty)
Toronto firm picks up Ocean Drive hotel for $39M
Toronto firm picks up Ocean Drive hotel for $39M
Metronomic's Kelly Beam with 3265 Bird Avenue (Metronomic Holdings, Google Maps)
Embattled developer’s Coconut Grove rentals head to auction
Embattled developer’s Coconut Grove rentals head to auction
8000 West Broward Boulevard, Mall
Lender pays $43M for Broward Mall in foreclosure auction
Lender pays $43M for Broward Mall in foreclosure auction
A rendering of the project + a Google street view of the building at 3034 Oak Avenue and  (L-R) Developers Nick Hamann and Jeremy Wacks, with Douglas Elliman’s Jay Parker (Google Maps)
Lender seeks foreclosure of stalled Arbor Coconut Grove project
Lender seeks foreclosure of stalled Arbor Coconut Grove project
Terreno Realty's W. Blake Baird with 8050 Northwest 90th Street (LinkedIn, Google Maps)
Lender sells foreclosed aviation maintenance site in Medley for $20M
Lender sells foreclosed aviation maintenance site in Medley for $20M
Renderings of new Miami Collective site with Gamma Real Estate’s Jonathan Kalikow (The Collective, Gamma Real Estate)
Lender takes control of The Collective’s Wynwood dev site through foreclosure auction
Lender takes control of The Collective’s Wynwood dev site through foreclosure auction
The Collective's Reza Merchant and renderings of new Miami location (The Collective, LinkedIn)
Collective undone: Lender targets planned co-living site in Wynwood
Collective undone: Lender targets planned co-living site in Wynwood
Vivian Dimond with 230 Lincoln Road (iStock)
Vivian Dimond, partners acquire Ross-anchored building on Lincoln Road from lender
Vivian Dimond, partners acquire Ross-anchored building on Lincoln Road from lender
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...