Get ‘em before they’re gone!

CNBC Real Estate Reporter Diana Olick today reports that bank-owned foreclosures (also known as REOs) and short sales — both of which fall under the distressed real estate umbrella — accounted for nearly 50 percent of all home sales in Dec. 2010.

The 47 percent share is up from 44.5 percent in Nov. 2010.

Low interest rates, as well as delayed sales agreements that were finally pushed through after “robo-signing scandal” concerns were alleviated, are the primary reasons behind the major spike.

Thomas Popik of Campbell/Inside Mortgage Finance explains:

“There were signed purchase and sale agreements, and those closings were delayed until the paperwork was reviewed. The major servicers pulled from the market houses that had been listed, and buyers were found. Once those transactions went back on, then they closed, and that’s what bumped up these December statistics so much.”

Keep in mind that home sales are typically down during the holidays, which makes this news even more remarkable because real estate business was actually up 12.3 percent (seasonally adjusted) to close 2010.

To search foreclosed homes and short sale listings for sale in your area click here.

Be sure to hurry … the distressed real estate market is fast and furious. The best deals don’t last long!

That’s the assessment from Jamie Dimon, who is the CEO behind one of the largest money-lending financial institutions in the nation, J.P. Morgan Chase

He explains via MarketWatch.com:

“It is a big mess, it has cost us a lot of money. Unfortunately, the only way to do it right is name by name by name…. We will do as many as we can. There is a lot of paperwork. The paperwork is different in every single state…. There were multiple checks and balances and there may be mistakes made in the foreclosure process, but they are very few and boy, when we find them, we try to make up for them right away.”

It’s nice to hear that big banks area learning from their mistakes revealed through the recent robo-signing scandal and are still working feverishly to correct them sooner rather than later. And fix them the right way … even if it means it may cost more.

Each foreclosure case needs to be scrutinized and airtight before heading to the auction block — there’s just too much at stake. That’s the way it should have always been and should remain indefinitely.

But Dimon cautions that because each case needs to be scoured with a fine-toothed comb, and because foreclosure laws are different (and changing) state-by-state, it could take “years before this plays out.” No more cutting corners.

If nothing else that gives distressed homeowners and their families more time to figure out their next moves, perhaps literally, which isn’t a bad thing, at all, considering the difficult circumstances.

Foreclosure is the ultimate contradiction: It’s horrible for those who have to endure it yet fantastic for those who can capitalize on their misfortune.

It’s the way things have always been and will continue to be seemingly forever.

Wall Street Journal today published a great story about the “Faces of the home foreclosure crisis,” which highlights all sides of the process, including the first-time homeowners who were able to buy a home that they otherwise never thought they could afford just two years ago.

The future Mr. and Mrs. Sands of Seattle, Wash., recently scooped up a $300,000 lakefront home, saving nearly $70,000 on the final purchase price. It’s a far cry from their former “cramped $600-a-month studio apartment.”

Mr. Sands, naturally, is thrilled about the buy:

“This is a freaking dream house…. We wouldn’t have been able to afford a house if the market hadn’t dropped…. It should be an inspiration to any other people like us. Being able to buy a home is one of the most important decisions you can make.”

Indeed, the housing nightmare really is a dream for some. And in a struggling economy, which has forced way too many families out of their homes, it’s good to know that it at least opens the door for other deserving folks.

To search foreclosed homes for sale in Seattle and elsewhere throughout the nation click here.

Major banks and mortgage companies are joining forces and giving back in select communities, revitalizing distressed homes and selling them — and in some cases giving them away outright — to nonprofit organizations and local redevelopment agencies.

In turn, according to an Associated Press report, low- and moderate-income families who would otherwise be priced out, or beat to the punch by cash-laden investors, are achieving the American Dream of homeownership at prices they can afford.

Rebuilding Together in Phoenix, Arizona, is just one of many nonprofits that is taking advantage of the $7 billion program, which is part of a federally-funded initiative that returns homes back to local community members.

JPMorgan Chase & Co., as well as Wells Fargo, are among the lenders that are participating in the program. These lenders work with companies like  Honeywell International Inc. to renovate and ensure the homes are in good shape before turning them over to the various nonprofits and redevelopment agencies.

In the past two years, Chase has donated and/or sold about 1,200 homes through the program, while Wells Fargo donated about 200 and sold “hundreds more at a discount.”

For more information about the Neighborhood Stabilization Program click here.