Foreclosure rates seem to have declined somewhat around the country. This does not mean that we are out of danger, however, in our real estate markets.
In Florida, short sales are increasing, especially among luxury homes priced over $1,000,000. The reason is that a structured short sale allows negotiations by experts to take place privately. One team of short sale gurus based in Tampa Bay specializes in short sales of waterfront properties throughout the state. Their clients often avoid public embarrassment, remain in their homes during the negotiation process, and schedule their move outs and transition well in advance.
During the first six months of 2011, foreclosure activity, including default notices, home auctions, and repossessions, decreased in 178 of the 211 largest U.S. metro areas compared with the first half of last year, according to foreclosure data firm, RealtyTrac. Among the top 20 largest cities, only Seattle posted an increase in foreclosure filings. Because of job losses in the city, Seattle’s foreclosure rate shot up by 10 percent this year.
Overall, foreclosure activity fell in 84 percent of the country’s areas that have more than 200,000 residents. A glut of distressed properties on the market has sent home prices plummeting for the past five years and has left neighborhoods blighted with unsightly, crime-attracting properties. So any decrease in foreclosure activity is a step in the right direction. Or is it? In this case, the slowdown is simply a prolonging of the painful foreclosure crisis. After several big banks were discovered to be improperly filing their foreclosures last fall, a widespread investigation has made them slow down and double check their work. This has resulted in many new foreclosures being postponed.
A director of communications for RealtyTrac recently reported that the decreased number of foreclosures is artificial, secondary to a slowdown in the process itself. Another confirmed that the cities with the largest decreases occurred in states where judicial foreclosures are required. These include New York, Maryland, Florida, New Jersey, Connecticut, Massachusetts, and Illinois.
“These dramatic decreases indicate the foreclosure pipeline continues to be clogged in many local markets across the country, sometimes by a glut of already-foreclosed properties that are not selling quickly, sometimes by a mountain of improperly-filed foreclosures that are blocking the inflow of new foreclosure filings – and sometimes by both.”
The glut of homes in foreclosure or about to be foreclosed will certainly cause home prices to continue to fall. There’s little hope of a recovery in the housing market until job opportunities and the overall economy improve. This does not appear to be in the cards anytime soon.
When conducted by someone who truly understands the process, a short sale can be a win-win situation for all concerned. The distressed homeowner avoids the embarrassment of a public foreclosure and auction. The lender saves money without having to go to court. And the purchaser obtains a desired property at its current market value. This is very common today for luxury properties in Florida.
Go to private SALE COMMANDO to learn all your options. Experts in private sales of luxury homes in Florida. Private and Reliable.. Also published at Florida Short Sales and Foreclosures.
