South Florida just missed the cut for RealtyTrac's 10 best markets for buying short sales because it takes too long to complete the transactions here.
Lenders signed off on a robust 5,940 short sales in Palm Beach, Broward and Miami-Dade counties from April to June, up 15 percent from the first quarter, according to RealtyTrac, an Irvine, Calif.-based foreclosure listing firm.
And the transactions represent a healthy discount -- 30 percent below other properties not in foreclosure.
But to wrap up a South Florida short sale, it takes an average of 501 days – nearly a year and a half.
“Most buyers are looking to buy within a six-month period,” said Daren Blomquist, a RealtyTrac spokesman. “If you see some place where it takes over a year, it’s not an idea situation for most buyers.”
In general, though, lenders are warming up to the idea of short sales as a way to cut their losses, Blomquist said. Some lenders, including Chase, Wells Fargo and Bank of America, are even handing homeowners thousands of dollars to help with moving costs if they agree to sell for less than they owe rather than drag out the foreclosure proceedings.
RealtyTrac deems Los Angeles the best market for buying short sales – 9,145 were completed in the second quarter. The transactions take an average of 192 days, and the homes sell for a 32 percent discount.
Phoenix was second and San Francisco third.
The only Florida metro in the top 10 was Fort Myers, and it just barely made the list.
Fort Myers had 1,358 short sales during the period. Although the sales take an average of 445 days there, the discount (33 percent) makes it worth the wait, Blomquist said
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