For about 2 years now my market (Silicon Valley) has seen a steady increase in sales prices. This is finally causing changes in Banks approach to Short Sales.
I just had my 1st experience where a Bank (BofA) cancelled a previously approved short sale when they realized that the current value of the property is now higher than the amount of the loan.
They have now re-started the Foreclosure process where they can expect to get all of their money back and not have to take a loss after all.
This also gives the owner/borrower the opportunity to minimize the Credit hit by selling the property before the foreclosure completes, and maybe even get a little money back themselves.
I firmly believe that the age of the Short Sale Specialist is coming to it’s end and all those useless seminars will disappear with them.
for the home owner who is falling behind if the Banks begin to think it might be smarter to foreclose and lose a lot less than previously, rather than expend time and effort trying to keep the afloat.
The next 6 month will be very interesting.