Are short sales the new foreclosures? In a word — YES.
Banks are no longer in the business of selling foreclosed homes for pennies on the dollar. In fact, most banks spend a sizable amount of money to clean, repair and even renovate foreclosed homes prior to resale. After the cost of the litigation to reclaim the home and the expenditures made to successfully market the home, banks are looking for the full market value. Unlike many sellers, the banks are not inspired to overprice; and as such, the homes often receive multiple bids, close quickly and well above the asking price.
Short sales, on the other hand, are a buyer’s gold mine. The banks are inspired to “stop the bleeding” and sell a home at a reasonable price prior to the onset of the costs of foreclosure.
If you have the patience to wait 3-6 months to have your short sale bid approved by the bank, you can make a great purchase with built in equity.
Right now, there are 9 short sale and 1 bank owned properties on the market in Greenwich. There are a number of homes in various stages of foreclosure so I do expect there to be more short sales coming onto the market.
Here is the link to the current short sales. I had to pull them from two MLS services for a complete list so the format is a bit different for each link:
Here is the link to the current bank-owned home on the market:
I do a great deal of short sale work and the best advice I can give is HAVE PATIENCE. Again, you have to have patience. But, when the short sale concludes it often a blessing for both the seller and the buyer. Granted, the realtors and attorneys are close to nervous breakdowns by the end (LOL !!!) — but they are always happy that the deal has closed and has allowed all parties to move into a better phase of life.