It's Short Sale Time.......cont'd part 2.........

More lenders on board...........



Although the process often can be time-consuming, increasing indusry acceptance of short sales as a viable alternative to foreclosure is helping buoy lender buy-in. Francis Martinez Myers, SVP at Employee Transfer Corporation/ETCREO Management, explanins that short sales will reduce overall costs and produce better financial outcomes for lenders and servicers. In addition, "For the homeowner, it is a little easier on their credit and allows them to manage the exit from the property (versus an eviction) in a way that preserves their dignity." Indeed, short sales have been encouraged as a double means of dodging foreclosure: They result in a less severe loss to the lender, give borrowers the possibility of restoring their credit earlier, and facilitate the sale of the property rather than adding it to the already-saturated REO rolls.

"The banks make 25 percent to 30 percent more money on a short sale than on a foreclosure, so the short sale makes sense, " said Tim Burrell, owner of RE/MAX United in Raleigh, North Carolina. Burrell has spearheaded successful short sales since 1992 and has written the book, Create A Short Sale: Your Guide Through the Short Sale Maze. By and large, short sales are reaching new heights. Treasury figures, for example, showed an increase from 9,402 in second quarter 2008 to 23,102 at the end of second quarter 2009. And those numbers are expected to keep ticking upward.