Not even the super wealthy will be immune to foreclosures as short sales set to surge this year.
While most of the foreclosures have hit the middle classes hard the elite will not escape the reaches of the foreclosure outbreak this year. This multi-million dollar Laguna Beach, CA estate was once in escrow for $28 million but fell into foreclosure the same year it was built.
With a 33% increase in short sales seen in some areas of the nation for January, the remainder of this year is expected to set records across the US. Part of the reason why these numbers are expected to increase is due to the improved short sale approval process which typically takes 308 days but could be shorten by 80%. New rules that may be in place by June 1st, 2012 will require lenders to decision a request for short sale within 60 days.
Although these numbers may seem frightening, banks can lose 20% on a foreclosed property and a foreclosure leaves long lasting negative marks on an individual’s credit history, not to mention driving the relative home prices down. Short Sales help preserve capital for the banks and saves credit history for the seller which in turn helps speed-up economic recovery.
If this poor (well not poor, obviously) person had explored some of his options, i.e. short sale, he could have ended this story amicably! Don’t wait until its too late people!
Contributor, designer & admin for JohnHart Gazette.
Learning more and more about the cost effects I am sure there’s a program offering the banks support in finding ways to take a Social Community Responsibility approach I listen to a great speaker Ms. Lawrence on last week she has spoken to the community at large about ways to form a positive from a negative conditions maybe the banks she contact her 980-224-0096