Click Here to Search Destin and Santa Rosa Beach, Florida Short Sales and Foreclosures
In recent years, I have managed to stay very busy working with distressed properties in Destin and Santa Rosa Beach, Florida. I have a good understanding of what happens when a person goes into default and what effect it has on the person, the local market, and the overall economy. I feel that short sales are the best current option for all parties involved. Short sales are very complex and they take longer to close but Short Sales make good sense on the Macro and Micro level. It is obvious that our goverment understands this; after all, they created HAMP "Home Affordable Modification Program" and HAFA "Home Affordable Foreclosure Alternatives". Both of these programs take aggressive measures to prevent foreclosures. Foreclosures are just BAD. We need new end users to take ownership of these properties prior to any real recovery. The best way to do this quickly is by approving short sales. Below are some interesting things that I have learned in the past few years working on short sales and REOs.
KEY POINTS
Many Local Home Owners Associations and Condo Associations will not get proper funding until the banks are out of the picture. It is a fact that many banks will not address the back and new association fees until the property is sold to the new end user. Many homes remain in limbo (pre foreclosure) for years and during this time the taxing authority and associations recieve zero from the distressed properties. In many cases, the bank will foreclosure on the property and not pay the association. The association will get a lien but the lien does not have to be satisfied until the property needs to be sold. This really damages the association and leads to things like high dues. Based on what I have seen, high dues lead to decreased values.
REO "Bank Owned" properties take abuse. Many REO properties are neglected and missing appliances, ceiling fixtures, and even landscaping. These damaged REOs sell for below market value and this hurts values.
Foreclosures are devistating to the borrowers credit. Short Sales enable borrowers to work things out with banks and even purchase again in a few years. The short sale saves the bank money because the home does not deteriorate and the bank does not have the legal expense of a foreclosure. Many of these buyers are "uncollectable" and this makes the idea hiring an attorney to execute a foreclosure and a judgement very unprofitable.
We are seeing more and more short sales than REO properties and I have closed many short sales as the buyer's agent and listing agent. I feel that the short sale will play a major role in our economic recovery.
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