More Approvals for Short Sales

Sales of homes in the process of being foreclosed increased to 12% of total sales of homes in the 2nd quarter of 2011 as banks have increased their approvals of short sales.  RealtyTrac reported both an increase in the number approvals and shorter average time to conclude short sale transactions.  They also noted bigger discounts being approved relative to standard sales, indicating that banks are getting more efficient at clearing inventories.

"This is a glimmer of hope that lenders are getting more realistic," Rick Sharga, senior vice president of RealtyTrac, said in a telephone interview with Bloomberg News. "It's a win for borrowers who avoid foreclosure, buyers who get a house in better condition and banks that lose less money, which is also a win for taxpayers."