Are Short Sales Making a Comeback?
For years, short sales were a common feature of the housing market, particularly during and after the Great Recession. As home values plummeted and homeowners found themselves owing more than their properties were worth, short sales became an alternative to foreclosure. Then, as home prices surged and equity levels reached record highs, short sales nearly disappeared.
Today, however, many real estate professionals are asking the same question: Are short sales making a comeback?
What Is a Short Sale?
A short sale occurs when a homeowner sells a property for less than the amount owed on the mortgage, with the lender agreeing to accept the reduced payoff amount. While often viewed as a last-resort option, short sales can help homeowners avoid foreclosure while minimizing financial damage.
Why Short Sales Declined
Over the past decade, strong home appreciation created substantial equity for homeowners across much...
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