According to the latest reports, the number of homes sales, particularly in South Florida dropped for the month of October. The culprit, it would seem, is the temporary foreclosure freeze lenders implemented during the same month. In Broward County, home sales declined by 28 percent compared to the same month last year while Palm Beach County home sales fell 14 percent, based on a report released by the Florida Realtors. in total, Florida home sales dropped 21 percent from last year’s figures. An economist for NAR believed the decline in home sales activity can be attributed to the foreclosure stoppage. It is expected there was a significant number of almost-completed sales which have been affected when major lenders announced their decision to review their foreclosure process as a response to the claims that foreclosure-related documents are not being reviewed correctly. These “almost” sales most likely include short sale and foreclosure sales. Despite this, it is also believed there is a huge demand for homes but because of the current economic and housing market situation, it is yet to be felt. If lenders are able to resolve the issues surrounding their foreclosure and short sale process and unemployment situation improves, home sales activity can likewise experience an upward trend. Of course, you should not expect this to be immediate since homebuyers can still expect difficulties particularly when it comes to obtaining financing as well as appraisals, which are below the negotiated amount. For sellers, especially those who are in the process of getting their short sale proposal approved, such news is certainly frustrating. You need to understand that the housing market conditions are currently favoring short sales over foreclosure sales. Homebuyers who are looking to enjoy savings know that homes being sold via short sale are in a much better condition than that of foreclosed properties in some cases. Even lenders are favoring short sales over foreclosure since the entire process cost less. You just need to make sure the documents you and the buyer submit are in order and complete. If buyers want to make sure their rights and interest are protected in a short sale transaction, you should work with an experienced short sale Realtor. Reference:
http://weblogs.sun-sentinel.com/business/realestate/housekeys/blog/2010/11/foreclosure_freezes_hurt_south_1.html
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At the forefront of our market right now are short sales. As a Realtor in Florida I have been working with those who need to sell their homes as a short sale.
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