In an open letter published on March 10, the California Association of Realtors addressed the foreclosure crisis and strongly recommended short sales as a means of saving many Californians from not only losing their homes but damaging their credit irreparably.
The letter, which is about a page long and signed by CAR president Beth Pierce, presents some fairly shocking California housing statistics. For example, approximately 30% of California mortgages are “underwater”, meaning that the balance owed on the loan is greater than the current market value of the home. That’s simply staggering. Furthermore, about 640,000 Californians have actually lost their homes in the past three years.
The letter goes on to say that, while huge numbers of Californians would benefit from short sales as opposed to foreclosures, current industry restrictions and malfunctions have kept successful short sales out of reach for 2 out of every 5 owners in need. The CAR believes that “speeding up and streamlining the short sale process” will make a dramatic difference. The letter ends with a resolution to reach out to local organizations, businesses, and politicians in order to make things happen.
Good for them, we say. With foreclosures, nobody wins – not even the banks. Let’s hope that things change, and soon.