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Pre-Foreclosure Sales Increase in Second Quarter

A new report shows that pre-foreclosure sales – generally short sales and properties sold during the foreclosure process – increased by 19 percent in the second quarter.

Analysts say the report from foreclosure tracking firm RealtyTrac is a sign that banks are making a concerted effort to get the properties off their books before they reach foreclosure. It’s good news for real estate investors, as short sales and sales of properties during foreclosure are one of the biggest sources of houses.

James Saccacio, chief executive officer at RealtyTrac, says the increase in pre-foreclosure sales, combined with bigger discounts on pre-foreclosures and a shorter average time to sell pre-foreclosures, are a positive sign of a market trying to clear inventory.

“With average prices on distressed real estate trending down and average discounts trending up, this report is clearly good news for well-positioned buyers and investors looking for bargain real estate that will build them wealth in the long term and often cash flow as rental real estate in the short term,” he says.

Nevada led states with the largest increase in pre-foreclosure home sales in the quarter, up  43 percent. Sales also rose significantly in Washington (39 percent), California (38 percent) and Texas (34 percent).