A recent article in the Herald Tribune discusses the increase in foreclosure filings and the expected increase in foreclosure filings.
We have seen a substantial increase in the number of short sales we have been asked to handle for borrowers over the same period last year. Whether or not that is related to the increase in mortgage foreclosure filings is subject to debate.
However, it is not uncommon for borrowers to consider a short sale as the better “exit strategy” once foreclosure proceedings have been initiated. One might reasonably surmise that the foreclosure filing becomes the catalyst for the consideration of a short sale. If true, the increase in foreclosure filings could lead to a substantial increase in short sales.