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Is a Foreclosure Freeze a "Good Thing" for Sarasota, Florida?

By
Real Estate Agent with Allison James Estates & Homes, Sarasota 941-957-3737

Last week came the big announcement that Bank of America, was halting foreclosures in all 50 States.  With this recent news, it is expected that more lenders will follow the decision to temporarily freeze foreclosures.

Is this Good News for Sarasota, Florida?   Currently in the Sarasota Real Estate market, it is estimated that approximately 17% of the mortgages on homes in our area are in default.   As a result, Bank-Owned Properties and Short Sales are the majority of the market place and have been consistently driving property values down as a result of an oversupply of distressed properties for sale.  As property values have continued to decline, the number of foreclosures in our area has also continued to increase, making the problem much worse.  

The Foreclosure Freeze should temporarily help the imbalance of supply and demand of real estate in our market area, which should prevent further devaluation of property values.  However, the Foreclosure Halt is just a temporary fix.  Unless homeowners facing foreclosure and their lenders can come to a solution to prevent foreclosures, properties in foreclosure will need to be foreclosed.

Here is the Good News, if someone is facing foreclosure, this could be one of the best times possible to complete a Short Sale.   Lenders have come a long way in working with homeowners to successfully complete a Short Sale and with the decision not to foreclosure at this time, this gives a homeowner more latitude to get their Short Sale completed.   The best part about completing a Short Sale for a homeowner is that they could avoid a foreclosure, they can potentially eliminate their negative debt and may be able to secure financing to purchase another home in as little as 2 years.   Also with the Foreclosure Freeze, we may experience Short Sales being approved quicker and selling faster.   For more information on Short Sales, contact Troy Funk with Keller Williams Realty at 941-365-8769 or visit his site at www.TroyFunk.com

Troy has been a licensed Real Estate agent in the Sarasota Area for the past 24 years and has sold over 100 bank-negotiated sales in his market area in less than and year.  Troy leads the Troy Funk Team at their own Keller Williams Realty location in downtown Sarasota and is CDPE and SFR certified in handling Short Sales. 

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For more information on Short Sales in Sarasota and Foreclosures in Sarasota, please CONTACT USWe have over 25 years experience in real estate, and have been highly successful in negotiating short sales in Sarasota County & Manatee County, Florida.

Troy Funk, CDPE, SFR
Sarasota Certified Distressed Property Expert
Sarasota Short Sales & Foreclosures Resource
Florida Licensed Real Estate Agent

Allison James Estates & Homes
665 S. Orange Ave. #2
Sarasota, FL 34236
(941) 365-8769
Troy@FunkFL.com

SarasotaShortSaleNEWS.com

WATCH this Sarasota Short Sale Testimonial Video

Comments (2)

Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Troy, like your post.  IMO the temporary halt will help short sales.  If anyone is looking to buy a short sale, now may be the time, as well.

Oct 13, 2010 09:17 AM
Ellie McIntire
Ellicott City Clarksville Howard County Maryland Real Estate - Ellicott City, MD
Luxury service in Central Maryland

Having the banks concentrate on getting short sales done quicker would be a GREAT boost to the economy. Stuffing the pipeline with foreclosures is NOT a good idea!

Oct 14, 2010 03:22 PM