Friday, November 18, 2011


FORECLOSURE & SHORT SALE ACTIVITY IN THE NORTH COUNTY-  As of 11/18/11 of the 460 unsold homes now on the market in Northern SLO county, 9% are bank owned (REOS) and 10% are "short sales " (where the borrowers  still own the property but the asking price is less then the amount owed on the property and any sale is subject to the lender agreeing to take less then the unpaid balance on the existing loan).   
  Of the 280 homes now in escrow (Pending Sales)  or with accepted offers waiting for final lender approvals,  21% are bank owned and 41% are short sales.  The reason for the higher number for short sales in escrow or waiting for bank approvals, is that the time periods for bank approvals for them and the closing of their escrows is about 4 times longer then a traditional or bank owned sale.   
   What percentage of short sales actually close escrow?  For the past 12 months 56% of the short sale properties listed for sale actually successfully closed escrow.  The main reasons short sale escrows can fail ?-- tune in next week for those answers.  

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