Several areas in Ohio, particularly in the northeastern region, have recorded increased short sale transactions in September 2010. The list of cheap houses going through this form of sale has grown compared with the same month of 2009. For majority of housing experts, this trend is positive since short sales are considered better than foreclosures.
According to housing market observers, short sales contribute to the decline in home foreclosures in Dayton and in other key housing markets of the state. The process involves the sale of houses for less than the amount owed by homeowners to mortgage holders. In the northeastern part of Ohio, 6% of total housing sales were accounted for by short sales in September 2010.
Majority of local realtors have stated that they would rather have a long list of short sales rather than foreclosure listings in Ohio. They asserted that this method of selling houses helps cut down the number of abandoned and vacant homes and also prevent property owners from falling into foreclosures which can affect their credit history and the neighborhood's health. In majority of cases, short sales are also more beneficial to lenders and mortgage holders.
Realtors have also reported that the number of properties under list of cheap houses is also diminished when short sales are conducted. Although properties sold at short sales are still below their real market values, they are not as cheap as those sold in foreclosures. As an example, the average price of a property sold through a short sale in Cleveland during the month of September was estimated to be around 90% of the price of an existing residential property.
On the other hand, a similar property sold as one of the homes foreclosure for sale will have an average price of $54,000 which is considered way below the actual listing price of an ordinary existing dwelling. However, realtors remind homeowners that short sales do have some risks.
For one, majority of short sales fail to reach closing stages since buyers are often turned off by the amount of time needed to process an application. And although they can help cut down the number of properties under list of cheap houses, such transactions are said to be more prone to fraudulent practices than other home selling methods.
For over 10 years, John Evan Miller has provided exceptional information on the foreclosure market.
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