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
Foreclosure lawsuit targets DoubleTree hotel near Miami International Airport
Foreclosure lawsuit targets DoubleTree hotel near Miami International Airport
Foreclosure lawsuit targets DoubleTree hotel near Miami International Airport
The Variety Hotel (Getty)
Lender acquires Variety Hotel in Miami Beach following foreclosure suit
Lender acquires Variety Hotel in Miami Beach following foreclosure suit
Branden Muhl, James Vosotas and Hotel Greystone at 1920 Collins Avenue, Miami Beach (Google Maps, Mahaska, Trans Inns)
Hotel Greystone to reopen in September amid partnership break-up
Hotel Greystone to reopen in September amid partnership break-up
Grand Hotel Fort Lauderdale and Sheridan Capital's Aaron Kurlansky (Facebook via Fort Lauderdale Grand Hotel)
Fort Lauderdale hotel resolves foreclosure suit with $11M refi
Fort Lauderdale hotel resolves foreclosure suit with $11M refi
Variety Hotel (iStock)
Miami Beach hotel heads to foreclosure auction
Miami Beach hotel heads to foreclosure auction
Developer Louis Birdman (One Thousand Museum, Getty)
One Thousand Museum developers score $90M refi to stave off foreclosure
One Thousand Museum developers score $90M refi to stave off foreclosure
A rendering of the the property at 3601 North Miami Avenue and HES Group CEO Francisco Arocha (Photos via HES, Francisco Arocha)
Midtown Miami Triptych dev site owner files for Chapter 11 amid foreclosure
Midtown Miami Triptych dev site owner files for Chapter 11 amid foreclosure
Simon and David Reuben with One Thousand Museum (Getty, iStock)
Reuben Brothers seeks to foreclose on Zaha Hadid-designed One Thousand Museum
Reuben Brothers seeks to foreclose on Zaha Hadid-designed One Thousand Museum
arrow_forward_ios

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

Loading...