San Francisco turns out more Short Sales – Why?
Latest statistics reveal that Short Sales are widely becoming the choice of troubled home owners in San Francisco County of the Bay Area. The reason is simple – a Short Sale is far more advantageous to you, compared to foreclosure and its hassles.
A cursory glance of the housing market reports of San Francisco, gives encouraging figures for the distressed home owners. The median single family home price showed an increase of 7.9 per cent from that of December 2008 by going to $755,608 in December 2009.
The trend of declining foreclosure sales and increased short sales in higher priced neighborhoods is giving hopes in the minds of home sellers. Closed and single-family sales activity also shows an upward trend compared to 2007 and 2008 in December 2009.
Single family supply inventory in San Francisco County fell from 5.8 months in December 2008 to 3 months in December 2009. It is the same case with condominium supply inventory figures – dropping to 4 months from 7.2 months for the same period.
For condominium the median price increased to $672,590 – showing a percent increase of 7.6 – in December 2009 from the same period in the previous year.
All these figures point out that the outlook is totally positive for distressed home owners, to select the short-cut route of Short Sales in foreclosure avoidance.
Thinking of that you will experience a heavy impact on foreclosure of your home. The foreclosure can cause a drop of 70 to 200 points in your credit score. It means virtually you will not be able to buy a home of your own in the next seven to ten years.
Whereas by selecting a Short Sale option – particularly in the present encouraging housing market situation in San Francisco Bay Area – you can buy another home in just two years. This is made possible because of the “forgiven debt” by the mortgage lender, if you are successful with the Short Sales.
Perhaps you may not know – a Short Sale is possible even if you are current in your mortgage loan payments. If you find the repayment is beyond your capacity – you could talk with your lender in arriving at a compromise to approve the Short Sales. Instances of such cases are available in San Francisco Bay Area.
The lending bank may ask for a few thousands as penalty, but it is worth to resort to Short Sales and walk away debt-free, instead of hanging on a repayment, which you could not afford any more.
