The hard-hit housing markets of California, Florida, and Arizona, along with Texas, are seeing the most activity, CoreLogic said in its 2010 Short Sale Research Study released Tuesday. These four states account for more than half – 55.8 percent – of short sale volume.
Lenders’ financial losses resulting from preventable and unnecessary short sale fraud are estimated to be as high as $310 million by the end of this year, CoreLogic says. According to the company’s study, the risk of ‘unnecessary losses’ occurs in one in every 53 short sales and averages about $41,500.
“By definition, short sales constitute a financial loss to lenders but will continue to be a necessary part of the mortgage industry as it seeks stabilization. The primary objective for lenders is to eliminate unnecessary loss,” said Tim Grace, SVP of fraud analytics at CoreLogic.
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