There is still a great amount of interest in information regardingShort Sales i.e. Pre-Foreclosure Sales, and Bank Owned (REO) sales.

We would like to be able to report that the situation is getting better however it is not.  Distressed sales (Bank Owned (REO) and Short Sales or Pre-Foreclosure Sales) continue to make up a large portion of sales activity in the market both locally and nationally. 

It's not just about the sub-prime or Alt-A loans anymore.  There is a growing increase in the number of Prime loans that are considered to be low risk to a bank.  This make indicate that the current market make-up of distressed properties may be around for some time and not going away quickly.

Following are the 1st half 2009 statistics by loan type separated into the categories of loans currently in the foreclosure process (Short Sales and Pre-Foreclosure) and loans that have been foreclosed and are now Bank Owned or REO properties.

VA MORTGAGES:

1.93% in Foreclosure

8.21% in Default

Total: 10.14%

FHA MORTGAGES:

2.76% in Foreclosure

13.84% in Default

Total: 16.6%

SUBPRIME MORTGAGES:

14.34% in Foreclosure

24.95% in Default

Total: 39.29%

PRIME MORTGAGES:

2.49% in Foreclosure

6.06% in Default

Total: 8.55%

As we begin seeing more and more low risk borrowers in default it is a strong indication that distressed sales are here to stay for the foreseeable future.