Fact or Crap about Short Sales
June 3rd, 2009 categories: Market Data
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.
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.
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.