Most short sales bought by 1st time buyers with FHA financing – study

I recently participated in an audio conference sponsored by Campbell Communications. Representatives from Wells Fargo, Bank of America and Freddie Mac discussed trends in the short sale segment of the market.

The session was packed with interesting information. Nationwide, short sales have become the #1 distressed property segment, surpassing move-in ready foreclosures and damaged ones alike. Short sales make up nearly 16% of all buy-side transactions, compared with 13.4% for damaged foreclosures and 13.8% for move-in ready foreclosures.

But one of the most interesting facts was that most short sales are bought by first time homebuyers using FHA financing.

If you’re a first-time homebuyer, now is the time to make a move on a short sale. Interest rates are low (but are expected to rise soon), selection is great, and you can still take advantage of the first time homebuyer tax credit, which is set to expire on April 30, 2010. That means you have to have a signed purchase agreement by that date, and close by June 30, 2010. The short sale process can take longer, so hurry! The credit applies to traditional properties, of course. Regardless of the type of property you’re considering, it’s a great time to buy. I'm a Certified Distressed Property Expert, and can help with any questions you might have. Please contact me at vicky@vickynann.com.


Posted by Vicky Nann on 02/25/2010
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