Reply #5: Condos are especially hot for short sales.

[flvegan]

See, if the lender forecloses, they're still out a couple hundred grand, lets say. Then, it goes into their REO stage where they have to sell it. They have to mark it down anyway to where the market level is for that comparable. Now, while it sits waiting to be sold, the lender (now owner) still has to make the condo association fee payments every month. That's another $200-$2000 each month, depending on the association. Condo sits a year, which is quite possible, that's $24k out of pocket. Plus they're on the hook for taxes and maintaining it. Hopefully, it doesn't get trashed on the prior owners' way out or while it sits on the market.