Fact or Crap about Short Sales

fact-or-crap

Are the following statements fact or crap:

“A large percentage of Short Sales never Close”

“Short Sales take too long to Close”

“Banks will receive less money after a Foreclosure than with a Short Sale”

It was these three statements that made me do research and search for the truth about Short Sales and Foreclosures.

The following chart examined only closed transaction for the past 12 months in five different communities in five different counties in Illinois.

The Average Sale Price Sold is the average of lowest price and higest price sold during the 12 months.

The Average Market Time is the average time of lowest price and highest price sold during the 12 months.

City, County # of Sales Avg Sale Price Avg Market Time
Skokie, Cook Co.
Short Sales 36 $249,000 173
Foreclosures 6 $238,000 53
Round Lake, Lake Co.
Short Sales 104 $131,000 115
Foreclosures 79 $105,000 63
Woodstock,Mchenry Co.
Short Sales 19 $139,500 55
Foreclosures 10 $161,500 68
Naperville, Dupage Co
Short Sales 40 $288,000 164
Foreclosures 15 $202,500 21
Joliet, Will Co
Short Sales 123 $103,000 176
Foreclosures 77 $97,000 11

“Short Sales Do Not Close”- This statement is Crap. In all five communities more Short Sales closed than Foreclosures.

“Short Sales Take Longer to Close”- This statement is Fact. In four out of the five communities it did take longer to close a Short sale than a foreclosure.

“Banks will receive less Money from a Foreclosure than a Short Sale”- This statement is Fact. Four out of five communities surveyed banks did in fact receive less money after the foreclosure.

Woodstock, IL was the only community where a foreclosure commanded a higher sale price than did a Short Sale. There are many reasons why this could happen and would need to be further explored before any conclusion can be made about this community.

  1. David Leibowitz

    Great information – I’ll be linking this at my website – we defend people against foreclosure so that they have time to either sell or get mortgage modification agreements – throughout Northern Illinois and Southern Wisconsin.

  2. Jack Lewitz

    David,

    Thank you for the comment and FYI I encourage other people to contribute articles on this site and since I see that you are an attorney what do you think about writing an Article about Bankruptcy, Foreclosures, and Short Sales.

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