Is there any market with more FORECLOSURES than MLS Listings? 
Here in Manatee County, one of the hottest markets in 2005, the reported number of foreclosures is over 2400! Our active inventory is about 5500 including condos and homes. From my perspective the number of homes that are in some sort of PRE foreclosure state has to be near 2000. It seems that half of the listing appointments that I go on the seller will have to bring cash to close the deal.
Usually, If the seller bought the home in late 2004 thru 2007 the seller's home value would be lower than what they paid for the home. Also, if the owners had refinanced the property in that time frame using an inflated appraisal than they will be also upside down.
It would be nice if the sellers that are UPSIDE DOWN could roll over the Negative Equity, into another property. Kind of like buying a car with a trade in that is not worth what is owed. The car dealer, and finance company allows for a higher loan amount often well above the new car's value to encourage a sale.
I have had at least 6 deals not close this year because the seller's could not raise, or didn't want to raise the cash needed to close the deal.
It is too easy for real estate owners to allow a property to FORECLOSE. If a lender would allow a roll forward it would lower inventory, save borrowers credit, and help the lenders make more profit. Homeowners that are buried in their home, and have to get out find that foreclosure is the easy road to take.
Joe Murphy
Comments(3)