Broker Marketing: CoreLogic Short Sale Study Signals Investor Buying Spree

Recently, CoreLogic released a study on Short Sales. The objective of the study was to use CoreLogic’s extensive property record database to analyze the level short sales that result in a 20% to 40% resale within months of the short sale transaction.
In this study, CoreLogic examined over 450,000 single-family residence short sale transactions occurring over the past three years. A short sale, as defined by this study, is a real estate transaction in which the borrower, being unable to pay the mortgage on the property, is permitted by the lender to sell the property for less than the total amount due on the loan, at a loss to the lender.

Short sales have been, and will continue to be, a necessary part of the mortgage industry as it seeks stabilization. Historically, the lender foreclosed on borrowers that were no longer able to sustain their mortgage payments. However, during the months that the loan is increasing in delinquency, the property is more likely to become distressed, or wind up abandoned entirely. Either situation devalues the property substantially. In addition, there are legal costs associated with foreclosure process. As a result, investors are flocking into the market looking for great deals.
The number of short sales has tripled in the last two years. Based on industry expertise and analysis of the short sale trends, CoreLogic estimates the number of short sales is expected to increase by another 25% in 2011. This trend represents tremendous opportunities for investors.
As a brokerage, you may want to consider prospecting for investors and market your services to them. CoreLogic has a product called ListSource that will allow you to pull a list of contact information of real estate titleholders who do not occupy the property in your local marketing area. This real estate marketinge list can be further defined to only those titleholders who have positive equity in the properties. The list can be downloaded as a CSV file, Contact List, and Mailing Label. A list like this is a powerful broker marketing tool that allows you to leverage state of the art real estate technology and information.

To read the full Short Sale Study, visit http://www.corelogic.com/About-Us/News/CoreLogic-Releases-2011-Short-Sale-Research-Study.aspx.