Thursday, September 2, 2010

Short Sales Soar in Denver Metro

In the first seven months of 2010, short sales in the Denver metro area rose by 48%, compared with the same period in 2009, according to an analysis of data by InsideRealEstateNews.  During this time period there were 2,270 completed single-family home short sales, almost a 42% increase from the 1,610 a year ago, according to Metrolist.  Most of the short sales were for single-family, detached homes.  Condo short sales skyrocketed 88%, although the actual numbers were much smaller – 476 in January through July this year, compared with 253 a year ago.  

Month2009 SF2010 SF2009 Condos2010 Condos

What this means for you: 
-Buyers: If you have the time and PATIENCE to purchase a short sale, it could be a good investment. If you do not have the time and TONS of patience (the deal could last 8 months and all fall apart at the end), stay AWAY from short sales. 
-Sellers: Your biggest competition is any short sale in your area, since they will usually be lower priced then yours. Make sure your realtor markets your home as "NOT a short sale", and "quick possession" on the MLS so people will know they won't have to wait to purchase your house.
-Owners in default: A short sale is probably the best decision for you if you are behind on your payments and cant catch up, and cant get a loan remodification. It will be easier on your credit, and you will be able to get another loan for a home even 2 years after your short sale and you repair your credit. And it's totally free (dont use anyone who charges you). 
Read full article