Real Estate Market Growth May Be Stunted By Short Sale Delays

The real estate market of the United States of America has been showing signs of revival in the last few weeks. However, while the inventories are going down which shows that the real estate prices are going up, this improvement in the market may be negated by short sale delays from the banks and more foreclosures flooding the American market.

When a buyer puts in a bid for a home on short sale, he has to wait a considerable amount of time before the bank comes back to him. This can easily result in the potential buyers of the foreclosures being disenchanted with the wait and moving on to find other real estate properties that are easier to get. Consequently, the foreclosures and homes on short sale stay on the market for a longer period of time. This, in turn, brings down the market.

Industry experts suggest that even though banks are trying to streamline the process, an approval can take anything from between three months to seven months. Even so, there may be signs of improvement in the future as banks look to resolve the problem of short sale delays through providing preapproved pricing on properties that they decide to put up on the market.

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