Lenders/Banks are in the business of lending money and usually don’t want to own and manage residential real estate.
When a lender/bank takes a property back through foreclosure, it’s a lengthy and expensive process (banks lose money) and results in lender/bankers holding the property in inventory as a non-performing asset (while banks lose more money).
Lender/bankers have a limit to the amount of non-performing assets they can hold (while losing even more money). When that limit is reached, lender/bankers have strong incentive to dump properties at discounts (while losing big sums of more money).
4,852 Orange County homes were in bank/lender inventories after foreclosure during June 2011, which is up 21 percent as compared with June 2010 (according to ForeclosureRadar.com).
Lender/banks don’t want more foreclosures and have slowed down their processes.
Notices of foreclosure auctions on Orange County homes dropped by more than a third year in June 2011 as compared with June last year, and number of default notices were down also.
SHORT SALES can indeed be positive as alternative for the borrower (homeowner) and also for the lenders/bankers (and their shareholders).
Harrison K. Long – solutions for real estate and business – REALTOR® and broker associate, GRI – Coldwell Banker Residential Brokerage – 949-854-7747 (phone) – ExploreProperties@gmail.com(email) – CA DRE 01410855 – SFR short sale and foreclosure resource certified by the National Association of REALTORs®