$80 per square foot on foreclosures but $130 per square foot in short sales

[Cees Binkhorst]

REPLY TO: D66 at nic.surfnet.nl

Dit kan ook het enorme fysieke verval van de getroffen huizen voorkomen,
maar doet verder niets voor de verkoop van de betreffende huizen. Er is
nauwelijks vraag omdat de werkloosheid zo hoog is.
Voor wat Las Vegas en omgeving betreft is er ook een enorm water tekort,
en het ziet er niet naar uit dat hier een oplossing komt.
Wie wil een huis hebben, zonder dat water beschikbaar is?

Groet / Cees

Monday, February 01, 2010
"Short Sales Soar"
http://www.calculatedriskblog.com/2010/02/short-sales-soar.html
by CalculatedRisk on 2/01/2010 10:58:00 PM

 From the Las Vegas Sun: Short sales soar while foreclosure sales
slacken (ht sportsfan)

     Short sales averaged about 7 percent to 8 percent of total [Las
Vegas] existing-home closings in early 2009, but averaged 22 percent of
the market by the end of the year and in early January ...

     “We have seen a decrease in foreclosure activity in Las Vegas,
which was puzzling to us,” said Daren Bloomquist, marketing manager for
California-based RealtyTrac, which monitors foreclosures in Nevada.
“Maybe Las Vegas has become somewhat of a test ground for streamlining
short sales. It sounds like it could have an impact in Las Vegas.”
     ...
     Dennis Smith, president of Home Builders Research, said short sales
will be the “story of the year” because of the effect they will have on
the housing market.
     ...
     John Mechem, a spokesman for the Mortgage Bankers Association, said
what is happening in Las Vegas is occurring across the country. It is
costly for lenders to go through the legal process of foreclosing, and
he added that homes can be damaged over time. The return is better on
short sale, he said.

As I've noted, I think short sales will be the story of 2010. It is
probably the best solution for many homeowners and lenders.

As the story mentions, Treasury has started pushing Short Sale and
Deed-in-Lieu of Foreclosure as an alternative to modifications.

     The Treasury Department is offering incentives on short sales by
providing a $2,500 subsidy, $1,000 to the servicer and $1,500 to the
seller for moving expenses. In addition, investors can get $1,000 by
allowing subordinate lenders to get $3,000 in proceeds from the sale.
The program is effective April 5, but servicers can implement it earlier.

This is better than "walking away" for the lender - the losses are less
than for a foreclosure. And this is better for the homeowner too because
Treasury requires that "the borrower will be released from all liability
for repayment of the first mortgage debt", although the borrower will
still take a credit hit.

http://www.lasvegassun.com/news/2010/jan/29/short-sales-soar-while-foreclosure-sales-slacken/

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