Short sales are quickly becoming a preferred method to dispose of distressed properties and avoid foreclosure, despite having a bad rap for often being slow and problematic.
According to the latest Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions, short sales accounted for a substantial 15.9 percent of home purchase transactions in January. This was well above the share of other distressed property activity – with damaged REO accounting for 13.4 percent of activity and move-in ready REO making up 13.8 percent.
The January figures represent a steady increase in short sale popularity.
