Weston florida short sales

Short Sales Are Around Every Corner

You've probably noticed the phrase "short sale" (pre-foreclosure) popping up in home listings and newspaper advertisements. If you're scratching your head and wondering what this means, you're not alone.

For years, few sellers were stuck in short sale situations because homes were selling like hotcakes, often over list price. But in many areas of the country, the market has cooled. Combine a falling market with over-encumbered properties and rising interest rates, and you have the perfect recipe for short sales to sprout like dandelions in neglected yards.

There were so many short-sale listings in MLS I was practically hyperventilating when I saw so many. Investors are on the lookout for short sale possibilities right now because they believe the time is ripe to make money in those markets. But before you jump on that bandwagon, do your homework .

It is not as easy as it sounds.

Regards

Dave Magua

www.westbrowardhomes.com

Posted by Dave Magua on 07/27/2007 02:28 PM

Comments (8)

8 Comments on Weston florida short sales

JUL

2007

very very true! Also another thing to remember is that some homeowners have more than one loan on the property!

Good post and oh so true

JUL

2007

Remember - price is always the biggest factor in determining a Deal or not... short sale, foreclosure are not "deals" in and of themselves.

JUL

2007

Dave - looks like in your market you may be getting to facilitate more short sales if the Forbes report holds true.

Jack,

It has been quite amazing. One day nobody nows about short sales, now they are everywhere you look.

Dave Magua

On the front page of today's (7/29/07) Sun Sentinel -- please read: Home mortgage defaults, foreclosures may pop S. Florida housing bubble . . .

Perfect foreclosure storm

The number of homeowners defaulting on their mortgages and facing foreclosure is rising steadily across South Florida, according to Realestat.com, a Plantation-based company that provides local housing statistics.

Experts mostly blame the trouble on unconventional home loans made to risky borrowers who bought houses and condominiums that shot up in value during the housing boom from 2000 to 2005.

The number of Broward homeowners behind on mortgage payments hit 1,484 in June, more than triple last June's 461. Palm Beach County's late payments last month topped 1,000, nearly a fourfold increase from 259 a year ago. Actual foreclosures doubled in Broward from last year but were flat in Palm Beach County. Sun Sentinel 07.29.07

It follows yours and Beth's prior blog. I have now taken my home off the market . . . even though I was advised to sell it and just stay here and rent. I am not really willing to do that. I prefer to stay in my home no matter what. RENT is a four letter word, I'm sorry! (unless you are the landlord!!!!)

I have also read in other sources that the market will return in a few years. One of the NEWS channels stated that our population in South Florida is going to double by 2010 -- because there is a plan on the table to create a SUNPASS lane on I-95. Interesting.

Karen,

Good move taking your house off the market. Right now sellers are playing cat and mouse with other sellers pertaining to pricing. one sellers reduces, then the other reduces, just bringing the prices lower and lower, but really not enough to make the difference.

In the long run these 20 to 59K drops are really not solving the problem. The problem is that people can not afford the monthly payments. We need to rather find a way to make the monthly payment more affordable. Then people will buy property.

I agree, but these negative am/1% ARM products + equity lines on top of that are what got people in trouble in the first place. Then you have an increase in your homeowner's insurance . . . .trouble.

I do plan to have an inspection to try to reduce my homeowner's insurance. Marty Smetanka (of EWM) has had great success with that, and I am sure I will ask him for help.

Maybe it's time to reexamine the outgo and do some trimming off the ol' budget. I also plan to get involved in our HOA --our community is in need of a facelift.

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