How many people try to short-sell their house, before getting foreclosed?
Those on the default list get bombarded with save-your-credit and extend-your-free-rent offers from realtors – plus kickbacks too. To resist, a defaulter must be really committed to NOT short-selling.
Of the 41 SFRs that were foreclosed in North SD County Coastal since June 1st:
Tried short-selling: 14 (34%)
No attempt to short-sell: 27 (66%)
I guess there could be a few who thought that their loan modification still had a chance of succeeding, but the bank foreclosed on them prematurely. But the vast majority of the 27 who didn’t try to short-sell must have been determined to let that house go.
On a side note – having just 41 foreclosed in almost two months, in an area that closed 410 detached sales during the same period, is discouraging news for buyers waiting for additional REO inventory.