Short sales in recent months have overtaken sales of foreclosed homes in California for the first time since the housing market collapse of 2007, according to real estate research firm DataQuick.
The surge in short sales is partly the result of last year’s national mortgage settlement with the nation’s five largest lenders: Ally/GMAC; Bank of America; Citi; JPMorgan Chase; and Wells Fargo. The banks agreed to certain amounts of debt forgiveness for underwater homeowners. Short sales count toward those commitments.
– California Association of Realtors