As Foreclosure Numbers Fall, Short Sales Rise

Federal Report Shows Increasing Number Of Short Sale Transactions

In an interesting change of pace, the trend of the past few years for foreclosure rates to continue rising has actually reversed in 2012. A report issued by the federal court system shows that the number of filings and resulting repossessions have all decreased in the fiscal year 2012. As a possibly related effect, the number of short sales has been increasing to compensate.

The numbers are a strange reversal of the past few years, which have seen foreclosure rates continually increasing as a result of the troubled economy. With recent events, however, this trend is changing. The report from the federal courts indicates that initial foreclosure notices have dropped by around 8 percent from the previous year, while the number of completed foreclosures has decreased by as much as 19 percent. In many hard-hit west coast states, this trend is a fortunate reprieve from their economic woes.

Some financial experts have attributed the change to the robo-signing scandal that rocked many of the countries largest real estate firms. Many foreclosure agencies were forced to settle in connection with the case, which alleged that the firms were improperly handling paperwork and foreclosing on homes without following the necessary procedures.

Due to this litigation, sources claim, real estate firms have become increasingly wary of processing foreclosures, preferring to be more cautious in hopes of avoiding another scandal. This has had the result of making those firms much more likely to accept short sale deals with homeowners instead. In the last quarter of 2011, short sales jumped up by 15% from the previous year.

In a short sale, the real estate agency agrees to sell your home to another party for less than the value of your current mortgage, with the bank absorbing the loss. When completed properly, this can free you from your debt, while also ensuring that the lender receives at least a portion of the money owed in the transaction. With the help of a skilled bankruptcy attorney, both parties can leave the negotiating table satisfied.

Let A Skilled Attorney Negotiate On Your Behalf

If you, like many Americans, are stuck with a home that is worth less on the market than the mortgage you owe, a short sale can be the ideal solution for you and your family. By undergoing this process, you get out of a losing situation and begin the process of starting fresh. At Price Law Group, our legal team offers you the benefit of our extensive experience in bankruptcy law, both inside the courtroom and at the negotiating table. With one of our top-notch attorneys on your side, you can end your debt woes today! Visit our website right away and begin your free consultation immediately.