"LOS ANGELES – Sales of U.S. homes facing foreclosure are on the rise and are outpacing sales of bank-owned homes, a reflection of stepped- up efforts this year by lenders to avoid foreclosing on homes with mortgages gone unpaid.
In the third quarter, sales of homes
already in the foreclosure process jumped 22 percent compared with the
previous quarter and a year earlier, foreclosure tracker RealtyTrac Inc.
Short sales, when a lender agrees to accept less
than what the homeowner owes on their mortgage, accounted for 65 percent
of those so-called preforeclosure sales in the quarter, the firm said.
have become more amenable to short sales as an alternative to
foreclosure, which can often end up leading to bigger losses and mire
lenders and borrowers in a time-consuming and expensive process. “More
and more, they’re seeing that they’re going to lose less by approving a
short sale than by dealing with the foreclosure process,” said Daren
Blomquist, a vice president at RealtyTrac."