Wilbur Ross quits Ocwen Financial

Wilbur Ross quits Ocwen Financial

Distressed asset investor bringing his magic to Bank of Cyprus

Dustin Johnson levels blockbuster claims at title attorneys

Is Nat Hardwick the fall guy?

CFPB proposes 7 big changes to foreclosure process for mortgage servicers

Adds guidance on extended borrower protections
W S

RealtyTrac: Short sales hit three-year high in 1Q

Short sales increased dramatically during the first quarter, rising 25% over year-ago figures and reaching a three-year high, according to foreclosure research firm RealtyTrac.

Homes acquired in pre-foreclosure, generally via short sales, grew 16% from the previous quarter to 109,521 pre-foreclosure sales and increased 25% from the first quarter of 2011.

Transactions involving all distressed property made up a larger portion of the homes sold in the first quarter of 2012 — 26% of all U.S. home sales in 1Q, up from 22% in the fourth quarter of 2011 and 25% from the year-ago period.

The average sales price of a home in foreclosure or bank-owned hit $161,214, down 1% from the previous quarter and down 2% from the first quarter of 2011. The price of homes in foreclosure is 27% below the average sales price of nondistressed home sales for the same month. That figure also is down from the 29% discount on foreclosures experienced in the first quarter a year earlier.

"Foreclosure-related sales picked up in the first quarter, particularly pre-foreclosure sales where a distressed homeowner is selling to avoid foreclosure — typically via short sale," said Brandon Moore, chief executive officer of RealtyTrac.

"Those pre-foreclosure sales hit a three-year high in the first quarter even as the average pre-foreclosure sales price dropped to a record low for our report. Lenders are approving more aggressively priced short sales, which in turn is resulting in more successful short sale transactions."

kpanchuk@housingwire.com

Recent Articles by Kerri Panchuk

Comments powered by Disqus