Short Sales Are Holding Up The Foreclosure Crisis
It seems as though they may be since it can take up to 4 months just to get a response from the bank. One part of the article that is incorrect is that it talks about banks not wanting to have to write down the asset on their balance sheet. That is incorrect because it has already been written down due to mark-to-market accounting rules.
According to research firm Campbell Communications, only 23 percent of short sale transactions are actually completed. “Three out of four potential short sale transactions fail, principally because the mortgage servicer takes too long to respond to the offer,” said Tom Popik, author of a February survey of real estate agents. “When these same properties are later sold it further depresses real estate prices.”