Five Reasons Why Short Sales Trump Traditional Foreclosure Deals

FIVE REASONS WHY SHORT SALES TRUMP FORECLOSURES

When the 2008 real estate downturn occurred, the initial reaction from the banks, as in history, has been to foreclose on homes where the owners were not making mortgage payments.

This was not necessarily the best course of action.

As a partner in "Gilman Management", a Great Neck based Real Estate Acquisition/Management Company that has purchased as sold hundreds of properties; I've developed a theory involving five solid reasons why short sales trump the traditional foreclosure process:

1. THE JUDICIAL SYSTEM NEVER MOVED QUICKLY AND MATTERS ONLY BECAME WORSE. CUTBACKS IN COURT FUNDING LED TO REDUCED HOURS, UNHAPPY JUDGES... THIS WITH AN INCREASED VOLUME OF FORECLOSURES CLOGGED THE SYSTEM.
2. WHERE IN THE PAST A JUDICIAL FORECLOSURE COULD BE COMPLETED IN 18 MONTHS, NOW IT CAN TAKE YEARS.
3. FORECLOSURES TODAY ARE FAR MORE COMPLICATED IN THE PAST OWING TO THE
   LOANS BEING SECURITIZED. SIMPLIFIED- DIFFERENT LENDERS "PART" OF THE SAME LOAN.
4. ADD TO THIS THE MISSING MORTGAGE DOCS WHEN FILES WERE TRANSFERRED TO COMPUTERS THE FRAUDULENT PRACTICES WITH RESPECT TO MORTGAGE ROBO SIGNING AND MANUFACTURE OF LOST MORTGAGE DOCS- THE SYSTEM CAME TO A GRINDING HALT. WITHOUT THE CORRECT DOCUMENTATION, A FORECLOSURE ACTION WILL BE UNSUCCESSFUL 
5. WHEN FORECLOSURES ARE COMPLETED, BANK APPOINTED REO BROKERS DO NOT NECESSARILY SERVE IN THEIR BEST INTERESTS, MAINLY FROM THE LACK OF ACCOUNTABILITY

For these reasons mentioned, there has been a shift from investors hounding foreclosure listings to the more "Decentralized Approach" of short sales. This movement can allow banks, investors, and previous owners to bypass the foreclosure process, saving time and money for all parties involved.

Our company has experienced the benefits of going the short sale route first hand and we would like to become an agent of change within the continuous movement.

For more information on our company and the type of properties we buy, go to www.GilmanManagement.com or email us at Lee@GilmanManagement.com