: News

Filed Under:

The Rise of the Short Sale

Play associated audio
Realtor Chris Ann Cleland says half her sales this year were short sales.
Jonathan Wilson
Realtor Chris Ann Cleland says half her sales this year were short sales.

By Jonathan Wilson

One in three Virginia homeowners are upside-down on their mortgage and the number is only slightly better in D.C. and Maryland according to the research firm First American CoreLogic.

That explains all the foreclosures but it also explains the rise in something called short sales.

Chris Ann Cleland is a realtor in Northern Virginia and she says 50 percent of the homes shes sold this year have been short sales.

That's when a lender usually a bank -- lets a homeowner sell their home for less than whats owed on the mortgage.

"Its less of a credit hit for people who sold the home but not everybody qualifies for a short sale," she says.

Cleland says short sales are not for people simply angry about falling property values in their neighborhood banks generally only accept short sale offers if you prove you cant make your payments.

Cleland says short sales are on the rise because the federal government is keeping a close eye on the percentage of foreclosures banks are holding.

"If they go beyond that certain percentage they cant lend money anymore," Cleland says.

For that reason Cleland says even if the number of foreclosures drops in the area rising short sales could put the good news on hold.

NPR

More On Nate Parker And 'Birth Of A Nation': Join Our Twitter Chat, 2PM EST

On this week's podcast, we dug into rape allegations filed 17 years ago against the highly lauded black actor and director. Join Gene Demby and the Code Switch team to continue the conversation.
NPR

Ramen Noodles Are Now The Prison Currency Of Choice

Ramen will buy anything from smuggled fruit to laundry services from fellow inmates, a study at one prison finds. It's not just that ramen is tasty: Prisoners say they're not getting enough food.
WAMU 88.5

Friday News Roundup - International

Italy searches for survivors after a devastating earthquake. Turkey escalates its role in the fight against ISIS. And Colombia and the FARC rebels sign a peace treaty ending a half-century-long guerrilla war. A panel of journalists joins guest host Derek McGinty for analysis of the week's top international news stories.

NPR

After Losing Steam In Smartphones, Chinese Firm Turns To Smart Rice Cookers

One of China's most valuable tech startups, smartphone maker Xiaomi, is getting into networked appliances, in a bid to innovate its way out of trouble, as its core business falls flat.

Leave a Comment

Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.