The number of foreclosed properties, including Fannie Mae foreclosure properties, continues to increase in Massachusetts as most lenders are reportedly favoring foreclosure over short sales. According to a number of state homeowners, banks are not cooperating despite their best efforts to initiate a short sale and are opting instead to seize their properties.
Properties under Brockton foreclosure listings, as well as those found in various home listings in different areas of the state can undergo a short sale wherein houses are sold for less than what the owner owes a lender. This procedure is believed to be more beneficial for both borrower and lender and also benefits the general community as it helps improve housing values.
However, a number of banks and lenders reportedly prefer to add more properties to Massachusetts foreclosure lists instead of approving a short sale that in majority of cases can benefit them more than a foreclosure. Although lenders can get less from selling a property in a foreclosure auction than from a short sale, most of them allegedly refuse to approve short sale requests from homeowners.
Although most state-based banks have denied this and have asserted that they favor short sales more than foreclosures, bank and Fannie Mae foreclosure properties continue to rise in number in the region as lenders reject a number of short sale applications. According to housing market analysts, this is mainly due to the widespread belief that short sales often fall victim to fraudulent activities. In addition, lenders reportedly find it difficult to determine property values and are concerned about the numerous parties involved in a short sale procedure.
Analysts further added that in Massachusetts, stories of failed short sales have become common. They reported that people trying to find foreclosed homes listings have also become wary of the short sale procedure as reports of confusing transactions spread in the state. In some cases, a short sale was already approved, but the lender still foreclosed on the property and sold it at auction.
Real estate experts have stated that lenders are losing more and more money as bank and Fannie Mae foreclosure properties continue to rise in the state. They added that fear of involvement by shady buyers and investors and inability to value a home properly prevent them from appreciating the benefits of short sales.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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