Appendix C—Short Sales and Deed-in-Lieu-of-Foreclosure Actions

Third Quarter 2008

Overview

Short sales and deed-in-lieu-of-foreclosure actions require borrowers to forfeit the home to pay (partially or in whole) the mortgage debt. Short sales and deed-in-lieu-of-foreclosure actions allow borrowers to avoid foreclosure and lessen the impact on their credit rating. Both short sales and deed-in-lieu-of-foreclosure actions typically have a less adverse impact on borrowers than foreclosures.

New short sales and deed-in-lieu-of-foreclosure actions totaled 14,097 during the third quarter, a 56 percent increase from the second quarter.

Prime loans had nearly 50 percent of new short sales and deed-in-lieu-of-foreclosure actions during the quarter.

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