King County Short Sales Soar 53 Percent According to 2012 Annual Short Sale Statistics Report; REO Sales Drop as Lenders Encourage Sellers to Do Short Sales and Avoid Foreclosure

Short sales soared 53 percent in King County in 2012, according to a new short sales statistics report released today by Washington Property Solutions, a short sale negotiating firm. The increase was fueled by significant cash incentives paid by lenders to encourage sellers to do a short sale and avoid foreclosure, as well as worry over the extension of Mortgage Forgiveness Debt Relief Act.

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"With Congress battling over the budget, consumers have gotten the message that if they don't do a short sale before the end of 2013, they may be hit with a substantial tax bill," said Eastern.

Seattle, WA (PRWEB) January 17, 2013

The number of short sales in King County surged 53 percent in 2012 as compared with 2011, according to a new short sale report released today by Washington Property Solutions, a short sale negotiating firm.

The number of REO sales ("real estate owned" properties owned by the lender) posted a steep decline – down 28 percent over the same period, according to the Washington Property Solutions 2012 Annual Short Sale Statistics Report.

The increase in short sales has been driven largely by major shifts in the way lenders are handling distressed properties, explained Richard Eastern, CEO of Washington Property Solutions. In an attempt to reduce their inventory of REO properties, lenders have made a number of changes to encourage short sales over foreclosure. Those changes include:

  • Offering cash incentives to short sale sellers of up to $35,000 at closing.
  • Making financing easier for those who want to buy short sales properties.
  • Significantly shortening the time lenders take to begin foreclosure proceeding.

Eastern notes that the shortened timeline has created a new sense of urgency among homeowners who are underwater to move forward on a decision.

"A year ago, homeowners who were delinquent on their mortgages just postponed a decision, knowing banks were taking nine months or more before starting foreclosure proceedings," said Eastern. "Now banks are moving much faster with their foreclosure process."

Worry over the extension of Mortgage Forgiveness Debt Relief Ac t provided an additional push to homeowners considering a short sale in 2012. Uncertainty over the future of the act continues to propel the short sale market.

"With Congress battling over the budget, consumers have gotten the message that if they don't do a short sale before the end of 2013, they may be hit with a substantial tax bill," said Eastern.

The full report can be found at http://www.washortsales.com/short-sale-statistics-reports/

About Washington Property Solutions
Washington Property Solutions is a short sale negotiating firm based in Bellevue, Washington. Founded in 2003, the company has helped brokers and homeowners successfully negotiate over 800 short sales with a 90% success rate in closing. Washington Property Solutions also consults with homeowners on qualification for the Home Affordable Foreclosure Alternatives (HAFA) process and the Washington State Mortgage Foreclosure Fairness Act (FFA). Washington Property Solutions negotiators are licensed Windermere Real Estate brokers.

For more information, visit http://www.washortsales.com


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