Very interesting that Bank Of America and Wells Fargo are starting the incentive programs after all the stubborn practices they have put in place over the years. Perhaps, they are learning that it is in their best interest to get the shadow inventory off the market.
Florida Leads The Nation For Homeowners Who DO NOT PAY Their Mortgage Payments
More than half of all the Florida homeowners who are in some stage of the foreclosure process havenot made a mortgage payment in 24 months- two years- or more. This latest statistic was for September 2011. In January of 2010 only 19% of the homeowners had not made a mortgage payment in two years or more.
84% of Florida homeowners in foreclosure have not made their mortgage payment in over 18 months, that is 1.5 years.
The estimated time from the lender filing a foreclosure summons and complaint to the sale of that property ordered by the courts is about 676 days.
The Florida courts have over 350,000 foreclosures to deal with.
Even though the court system is slow here in Florida because of the bottleneck- homeowners need to stay diligent in keeping pressure on the Florida Congress not to accept bills from the bank lobbyists to get rid of our right to a court hearing for defenses against foreclosure.
Some of these proponants to getting rid of more of our property rights claim that the longer these properties do not go through the foreclosure process the more the properties deteriorate. This is simply not true. Many of the homes are being lived in and taken care of. More than 90% of ALL the short sales we have listed and sold over the years have been in great shape and the owners keep up their lawns and their homes.
It is also expensive to file a foreclosure in our court system here in Florida. The banks know this and are hesitant to even file foreclosure paperwork with the clerk of the court in a lot of situations. As long as the homes are being occupied, that is good for the banks.
This is why Bank of America started a pilot program JUST here in FLORIDA for homeowners that is like "Cash For Keys" but it is used as an incentive for the homeowner to do a short sale. The incentive can be up to $35,000 with some lenders and many others up to $20,000 at the closing of a short sale if the homeowner promises to keep up the property and leave it in good condition for the buyer.
Of course we know that this has always been the best option- a Florida Short Sale- for homeowners and the lenders- the servicers and the note owners ( investors). Unfortunately the banks knowing that short sales are better for their bottom lines over foreclosure in a lot of instances they are still do not have experienced personel to handle the work load and how are educated enough about real estate to make for a smooth transaction.
While on the one side you have people saying we need to get this going so we can get through all these foreclosures and people not paying their house payments you have the other side of the story.
For the homeowners who are in their situation because of unemployment there is not much benefit to the economy their non payments are producing however those people who are strategically NOT making their mortgage payments are spending those mortgage payments in the local ecnonomy according to some Florida economists. They are saying that instead of handing their money over to the banks they are spending it at the stores, for food, for gas, for other things and that keeps the money locally here.
If you or someone you know is behind in their payments consider a Florida short sale. Contact Nestor or Katerina Gasset at 561-753-0135 today for your private confidential interview to go over your short sale options.
Nestor Gasset and Katerina Gasset- Realtors®, CIPS, ABR, SFR, GRI, REOSInternational Properties & Investments, IncCall us today at 561-753-0135 to get your house sold.