Oppenheim Law reports about 80 percent of its Florida foreclosure clients had deficiencies completely waived once they closed their short sale, also known as a pre-foreclosure sale, saving homeowners more than $16 million dollars in 2010/2011.
Attorney Roy Oppenheim believes the lesson learned is by working with the banks, homeowners can craft their own real estate bailout and avoid a deficiency judgment. “The short sale program is not a government bailout, it has evolved through American ingenuity," reminds Oppenheim, “but is one of the only programs that is truly working."
According to Oppenheim, the banks would not be approving these shorts sales if it wasn’t an upside for them too, and it is. Banks have finally realized a short sale will also help their bottom line.
With numbers reported by RealtyTrac for short sales in 2011’s second quarter, the average price for a home sold in short sale was 21 percent below the average price of a non-foreclosed home. Yet a home that went through foreclosure sold for an average of nearly 40 percent lower than a non-foreclosed home.
And more good news for the real estate market, even though there have been a large number of distressed home sales recently, fewer homes are coming on the market.