Short sales have gone from being a rare and infrequent occurrence a couple of years ago to a significant number of the real estate transactions in Phoenix due to the number of homeowners with negative equity that need to sell.
Simply stated, a short sale is when the proceeds from the sale are less than the amount owed and the sale is contingent upon an acceptable agreement between the seller and the seller’s creditor(s).
The chart above furnished by The Cromford Report shows the percentage of distressed sales for each city for August 2009. The blue bars represent the portion of total sales that were short sales. As banks are increasingly reluctant to foreclose, short sales are on the rise. For example, short sales accounted for more sales than bank-owned homes during August in Anthem. And in Fountain Hills, short sales were equal to the number of foreclosure sales.