While many of us are off playing in the sun, some families are facing tough times fighting off foreclosure through short sales. A recent review of real estate statistics predicts that short sales may peak to all time highs this summer, particularly in harder hit areas like Nevada, California and Florida.
One reason the increase in short sales is expected during the summer months is that most families plan their home selling and buying before the start of the new school year. Summer is one of the busiest times of year for all home transactions and with a large short sale inventory sitting around, many are finding hot deals on homes in their desired neighborhoods. Not only can families gain a great deal on a home, many sellers are finding they can get out from under their mortgage debt more easily than in the past winter months.
Lenders are also jumping on the pro-short sale wagon, which has lead to the increase in short sale supply on the market. Now finding that short sales are more profitable than a foreclosure in most situations, lenders are approving short sales at much higher rates. As far as the market goes, short sales are also more favorable than a foreclosure saturated market, which tends to carry a heavy stigma.