Short sales have become popular options among homeowners facing foreclosure troubles in Coachella Valley in California. This development is expected to affect the number of people buying home auctions for sale.
In an effort to lower the number of foreclosure listings in the state, real estate agents and homeowners are collaborating to promote short sales as an alternative to foreclosure and repossession. Real estate analysts have stated that the drive to push short sales at the forefront of the residential property buying market was fueled by increasing number of multiple bids on homes priced at $250,000 and lower.
According to city realtors, investors and out-of-town homebuyers are flocking to the area to purchase homes priced within this range. With California being one of the top regions in terms of foreclosure by state and with home prices continuing to drop, agents and analysts agree that short sale will be a better option for homeowners.
Local market observers have asserted that buying home auctions for sale transactions will soon diminish and short sales will become the standard in the city and the whole state. They claimed that another factor that would drive short sales is the participation of lending institutions and major banks in the Home Affordable Foreclosure Alternative program.
The initiative aims to help borrowers avoid foreclosures through deed in lieu and short sales. It also offers relocation assistance in the form of cash to homeowners who undergo short sales or deed in lieu process. These efforts are expected to lessen the number of foreclosed properties in the city, which in turn, could offer fewer choices to people who wish to purchase foreclosure homes.
The initiative also provides incentives to the short sale servicer in the form of $1,500, while the holder of the underlying lien can receive up to $6,000. The short sale option though, is not offered to everyone. Sellers or homeowners need to qualify first and prove that they are suffering from financial hardships.
Real estate market analysts believe that short sales will soon replace buying home auctions for sale as a primary method in acquiring residential properties. They stated that short sales will become the standard, mainly because the U.S. administration is promoting them.
Author Resource:-> Original Post: Short Sales Competing With Method of Buying Home Auctions for Sale on EForeclosureMagazine.com.
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