As usual, we had an interesting speaker at our weekly Silicon Valley Association of Realtors (SILVAR)tour meeting this morning. Ron Ricard talked to us about "Short Sales," which occur when the net proceeds from the sale of a home are not enough to cover the sellers’ mortgage obligations and closing costs, such as property taxes, transfer taxes, and commissions and the seller isn't able to cover the difference.
Next to other areas of the state, these are still pretty rare in Santa Clara County. A few statistics: Last year, there were 960 notices of default issued by area lenders; this year, there were 1870. A year ago, 13 properties went back to the lender; this year, there were 290. Only 74 were sold in foreclosure sales.
Ron asked the crowd at our Sunnyvale/Cupertino tour meeting if anyone currently had a short sale listed...only one agent raised his hand. Compare this to Sacramento county, where of the 2200 properties currently on the market, nearly 1/3rd are listed as short sales!
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