Short Sales and Foreclosures

About 25% of the properties under contract in the Charleston market are either short sales or foreclosures.  In Mt. Pleasant, a very popular area, the rate is about 35%.  Isle of Palms is at 43%.  Short sales are where the bank agrees to sell the property for less than they are owed.  They are very difficult to close b/c of the banks.  They still believe that the homeowner will find a way to keep making the payments.  So, they don't respond to offers for several months!  As of April 5th, the Treasury Department is requiring banks to respond within 10 days of an offer on a short sale.  Hopefully, this will speed up the process.