*Approximate loss to lender does not include, late fees, back payments, etc.
Note: Beulah was a flip gone bad; new construction

In February short sales comprised a little over ½ of the La Canada real estate market.

80% of the short sales sold short but for more than the homeowner’s initial acquisition price. Beulah was a flip, but the other three short sales (60%) were due to homeowner’s taking equity out of their home which ultimately resulted in their owing more than their home was worth.

Just one (20%) of La Canada’s short sales was due to the home being worth less than the homeowner’s initial purchase price.

Not counting late fees, back payments, etc. investors lost nearly $1.5 m in February short sales. Last July, I compared La Canada’s foreclosures and short sales and the loss to investors was just over a million.

Although, the lender can record a Notice of Default (N.O.D.) after just one missed payment, in Los Angeles County, most lenders are waiting three months.  When looking at the graph it is interesting to note how long many homeowners are able to live in their home without making mortgage payments. 

Related Posts:  43% of La Canada homes sales in February foreclosure or short sales
Short Sale Questions and Answers
Foreclosure Timeline
 

Tweet