RealtyTrac.com reports that in the fourth quarter of 2011, foreclosures represented one-fourth of all home sales. This was up from 20% in the third quarter, and down only slightly from a year earlier when foreclosures accounted for 26% of sales.
In total, 204,080 distressed properties were sold in the fourth quarter, down 2% from the same quarter a year ago. For all of 2011, foreclosure sales were down year over year by 2% to 907,138, accounting for 23% of home sales. Though foreclosures were beginning to ramp up, they were still being slowed in the fourth quarter by questions surrounding paperwork errors and abuses related to the robo-signing scandal.
Lenders are expected to begin to accelerate their foreclosures again as the mortgage abuse settlement is in place and they have improved their procedures and paperwork. There is already a glut of foreclosure filings initiated going into 2012, with banks trying to get back to the norm for liquidation of distressed assets.
However, short sales are also increasing. Short sale is gaining ground as a preferred method for banks to dispose of properties in default. Buyers paying less than what borrowers owe on the property is usually faster and less expensive than a full foreclosure process, and many homes are left in better condition as well. During the last quarter of 2011, there were more than 88,000 short sales, up 15% compared with the prior year. Short sales comprised 10% of all sales in the fourth quarter, according to RealtyTrac.com.
At the same time as short sales were rising in number, bank-owned home sales fell 12% year over year to 116,000, comprising 13% of all sales in the quarter. As more lenders recognize that short sales are helping to liquidate distressed assets faster and at lower cost than foreclosure, the percentage of short sales to all sales is expected to increase in 2012.
RealtyTrac.com reports that in the fourth quarter of 2011, foreclosures represented one-fourth of all home sales. This was up from 20% in the third quarter, and down only slightly from a year earlier when foreclosures accounted for 26% of sales.
In total, 204,080 distressed properties were sold in the fourth quarter, down 2% from the same quarter a year ago. For all of 2011, foreclosure sales were down year over year by 2% to 907,138, accounting for 23% of home sales. Though foreclosures were beginning to ramp up, they were still being slowed in the fourth quarter by questions surrounding paperwork errors and abuses related to the robo-signing scandal.
Lenders are expected to begin to accelerate their foreclosures again as the mortgage abuse settlement is in place and they have improved their procedures and paperwork. There is already a glut of foreclosure filings initiated going into 2012, with banks trying to get back to the norm for liquidation of distressed assets.
However, short sales are also increasing. Short sale is gaining ground as a preferred method for banks to dispose of properties in default. Buyers paying less than what borrowers owe on the property is usually faster and less expensive than a full foreclosure process, and many homes are left in better condition as well. During the last quarter of 2011, there were more than 88,000 short sales, up 15% compared with the prior year. Short sales comprised 10% of all sales in the fourth quarter, according to RealtyTrac.com.
At the same time as short sales were rising in number, bank-owned home sales fell 12% year over year to 116,000, comprising 13% of all sales in the quarter. As more lenders recognize that short sales are helping to liquidate distressed assets faster and at lower cost than foreclosure, the percentage of short sales to all sales is expected to increase in 2012.