What's Really Going on with Short Sales & REO's in Naples?

By
Real Estate Agent with Hudson Realty Executives SL3099118

I've done some digging in the Naples Real Estate Market to try to find out what is really going on with Short Sales & REO's as it relates to the following questions.

  • Is there another wave coming through & if so when and how small or big will it be?
  • How many seller's are still in trouble or behind on their mortgage payment?

Here's what I found at the end of all the digging. First to clarify the process, an LP (Lis Pendens) is filled once your 3 mortgage payments behind then later an FJ (Final Judgment) which states when the bank is going to sell at public auction or become an REO which then a CT (Certificate of Title) will be issued. Now based on that info here's the numbers behind the questions I have.

Here's the number of Certificate of Titles issued in each year.

  • 2006 had 87 CT
  • 2007 had 677 CT
  • 2008 had 2,388 CT
  • 2009 has 2,613 CT not including this month

Now here's the Lis Pendens that have been filed in each year.

  • 2006 had 1,246 LP
  • 2007 had 4,078 LP
  • 2008 had 8,793 LP
  • 2009 has 8,540 LP not including this month

Here's what it all means, the pre-foreclosure process on average takes 18 months to foreclose and some up to 24 months so that means 2006 and 2007 LP's most likely became REO's in 2008 & 2009 based on the CT numbers. So that first wave that came through for the most part was only 2006 & 2007 LP's. So in 2010 we'll see most of 2008 LP's become REO's and 2011 will be 2009 LP's.

So get prepared now because there's another wave coming, either get on or get out of the way the next years are going to be whatever you make it. Goodluck & stay positive, hmmm... now where did i leave my surfboard at...

Comments (3)

Drick Ward Property Management / Broker Assoc
NEPTUNE REALTY - Virginia Beach, VA
"RealtorDrick" - Experienced Representation

You left your surfboard right in front of the "at..."  Great pic for the topic and nice summary of the situation.  Thanks for sharing, the next couple of years are going to be fantastic!

Dec 10, 2009 01:45 AM
Tony Perez
Hudson Realty Executives - Naples, FL
"Serving You & Your Needs"

LOL... yes it is i'm prepared and ready for it, let's have some fun...

Dec 10, 2009 01:49 AM
Jackie Cross
Real Living All Florida Realty - Port St Lucie, FL

Great post.  I have heard the term shadow market recently, the dark shadow of homes the banks are holding onto and not yet marketing.

Dec 14, 2009 03:02 AM