Buyers, sellers becoming frustrated with short sales

Short sales are frustrating to all involved.According to a recent article in USA Today, short sales are quickly becoming among the most frustrating real estate experiences for both buyers and sellers.The average amount of time associated with the short sale process has increased, with some taking longer than six months, while others are not completed at all, the paper reports.Short sales occur when lenders agree to accept an amount worth less than what a property's current homeowner owes. This type of transaction requires homeowners to have endured a financial hardship.According to Ellen Mahoney, president of a title services company in Michigan, homes with multiple mortgages often take the longest to process. Many short sales fall through, or take increased amounts of time, when mortgage insurance is bought after the homeowner closes on the deal and the loan is later sold to other lenders and investors.While sellers who are unable to make a down payment of at least 20 percent must buy private mortgage insurance, lenders buy insurance to minimize their risks associated with the transaction. This proces can be time consuming.Within the Houston real estate market, foreclosures fell by 3.2 percent during June, compared to the previous year, a recent report from the Houston Association of Realtors revealed.Courtesy of 2M Realty News

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