Ten percent of the total 4.82 million existing homes sold in August this year were short sales, this according to the latest National Association of Realtors (NAR) report.
According to NAR, short sales sold for an average discount of 13% in August 2012. The nationwide median price of existing homes including single-family homes, condominiums, townhomes and co-ops last month was $187,400.
According to LPS Applied Analytics’ Home Price Index last spring, short sales have been gaining so much boost that they surpassed sales of foreclosed properties.
A short sale takes place when the mortgage lender or bank allows a home to be sold for less than the value of the mortgage. The loss is shouldered by the bank as this is less costly than foreclosure.
Short sale is one of the foundations of the nearly $25 billion National Mortgage Settlement that went to effect last April 5.
According to Joseph A. Smith, Jr., Monitor of the National Mortgage Settlement, between the period of March 1 and June 30, 2012, banks have granted $10.56 billion in consumer relief to borrowers.
Out of the $10.56 billion consumer relief, the big chunk of it went to short sales at $8.669 billion, the Monitor of the National Mortgage Settlement reported.
The Guldi Real Estate Group is consistently ranked as one of the country’s top real estate teams by the Wall Street Journal. The Guldi Group provides outstanding customer service to clients throughout the state of Maryland and South Florida from four locations.