SHORT SALES SHORTCHANGE OTHER SELLERS?

Some experts attribute a decline in MLS home listing values to real estate professionals who do not fully understand the short sale process, in which banks accept less than the mortgage balance as an alternative to foreclosing on the home. "The prices they come in with are so artificially low," says Johnson & Associates Inc. broker/associate Kendall Fudge. "If I'm selling my house and I see other homes in the neighborhood that are priced lower because they are short sales, that is going to affect the way a buyer looks at what I'm trying to sell." Some realty firms are specializing in short sales, hoping that the market will stabilize once the inventory of homes is reduced. At the same time, some property agents steer clear of short sales because of the red tape involved; but experts say response times will speed up once lenders' loss mitigation offices begin working at full capacity. Florida Association of Mortgage Brokers President Ritch Workman says real estate professionals can eliminate many of the hassles associated with short sales by knowing how the process works, understanding that they need to get the bank's permission before proceeding with a short sale and ensuring that the paperwork is in order.

Source: Tampa Bay Business Journal (03/03/08) Hinman, Michael
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