Lender Losses Mount From Short Sales, Topping $310 Million in 2010

[mEDITate-OR:

try to keep selling long..., when you should be selling short...

{or something like that}

While these number are still small, compared to foreclosures, the article does explain where this is occurring, and a best guesstimate of how much it is costing U.S.

Once again, the sand states are skewing (sp?) the numbers and the RE economy.

--------
CoreLogic 2010 Short Sale Research Study Highlights
a.   The number of short sales in the market has more than tripled since 2008 with the estimated annual volume at 400,000. Multiple variables indicate short sales will continue to be a frequent and important part of the mortgage industry.
b.   Over half (55.8 percent) of all short sales occur in just four states (California, Florida, Texas, and Arizona).
c.   Approximately four percent of short sales have a subsequent resale within 18 months. Short sale transactions may be deemed risky to the lender when either: 1) the second sale amount is vastly higher than the short sale amount, and 2) the two sale transactions are executed within a very short window of time.
d.   Short sale fraud exists. While the exact definition of what constitutes fraud continues to evolve, CoreLogic analysis indicates lenders are consistently incurring more loss than necessary. Approximately one in every 53 (1.9 percent) short sale transactions was part of an egregious flip and therefore deemed risky.
e.   It is estimated that lenders are incurring unnecessary losses of $300 million in short sale transactions annually
==========
Lender Losses Mount From Short Sales, Topping $310 Million in 2010
http://www.realestatechannel.com/us-markets/residential-real-estate-1/real-estate-news-corelogic-2010-short-sales-research-study-lender-losses-short-sales-california-short-sales-florida-short-sales-texas-short-sales-2980.php
========