Three percent of Denver homes that sold during the first half of the year were short sales, according to an analysis of Metrolist data by Re/Max Professionals.
Re/Max broker Stephanie Fix said it’s an indication that many owners are unaware short sales are an alternative to foreclosure and to turning their houses over to the banks.
A short sale is when real estate is sold for less than what is owed on the property. The lender agrees to the reduced price, and it is possible to negotiate the remaining debt as forgiven.
“A homeowner who goes through a successful short sale can, in many cases, be eligible for another home loan in two years,” according to Fix’s report. “A foreclosure can stay on your credit for up to seven years.”
The average sold price for a short sale was $218,477, and homes stayed on the market for about 168 days.
