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Tampa Short Sale Trends
Posted by: | CommentsThe other shoe is about to drop soon, and it will be on those homeowners who took out adjustable rate mortgages and sub-prime loans. The date is coming soon when payment will be due. With so many jobs being lost as more businesses fail, millions will simply not be able to meet their obligations.
Many upside down homeowners in Florida have discovered that a Florida short sale is a far better solution than living through a foreclosure auction and then being evicted from their homes. A professional short sale negotiator can often arrange for a private sale of the home at a fair price, with the owner remaining in the home payment free until close of escrow.
The key is to locate an expert short sale negotiator who understands the complexities of a short sale, and one who can negotiate effectively with big banks and mortgage lenders. It also helps tremendously when the negotiator has close connections with buyers who are qualified and prepared to act quickly when a desirable property becomes available.
One in ten U.S. mortgages is late by at least one payment. Ten percent! And seriously delinquent payments are still higher than last year. There has also been a significant rise in the number of newly delinquent loans in the past few months. The job market and overall economy will determine what happens in the housing market. Mortgage modifications could help if lenders would actually participate. Government efforts at loan modifications have been sadly lacking.
Loan modification efforts seem far less significant than whether home buyers can find income solutions in the future. There seems to be little hope that the job market will improve anytime soon. A recent Wall Street Journal blog post reported that “income growth tends to slow and unemployment remains elevated for a very long time after a severe shock.” The Journal article added that “In ten of the 15 cases they looked at, unemployment never returned to its pre-crisis low in the 10-year window after the crisis occurred. In many cases, unemployment has never gotten back to where it was.
If this should occur here, then even if the recession technically ended last year-which appears highly doubtful- we will experience high unemployment until 2019. Many more homes will be lost to foreclosure during this difficult time.
One team of Florida short sale experts reports a growing number of successful negotiations with lenders and successful short sales of luxury homes in Florida. This allows the distressed homeowner to conduct a private sale rather than a public auction. They can then schedule a move rather than suffer an eviction.
Hopefully we will witness an overall improvement in our economy in the next few years, and increasing values of our homes once again. When people have work, they can afford to live in desirable homes. This is what we have grown to expect in the United States, and what we wish to return to.
Go to the Tampa Bay area Short Sale to learn an ideal remedy for many underwater mortgagees of luxury properties in the Tampa Bay area.. Check here for free reprint license: Tampa Short Sale Trends.
Will The Bank Throw Me Out Of My Home?
Posted by: | CommentsHow long you can remain in your home after you stop paying your mortgage, is influenced directly by the cost of your home. The more expensive your home, the longer you will probably remain. Many people today are still in their homes two years or more after being served with Lis Pendens, or notice of a pending foreclosure action.
One short sale expert in the Tampa Bay area of Florida specializes in luxury waterfront properties. His clients typically remain in their homes 2.5 years after their last payment is made. During this interval, tough negotiations are taking place with lenders until a favorable settlement is reached.
Foreclosure Radar is a site that tracks foreclosures.Their studies indicated that the more someone owes, the longer they can remain in their home while not paying their mortgage. Sean O’Toole, CEO of Foreclosure Radar, said, “The truth is that the larger the loan balance you have, the more upside down you are in the home, and the bigger the loss for the lender, the better your chances are of not being foreclosed on for a very long time.”
O’Toole added, “So while we still think foreclosure roulette is the bank’s game of choice, we now also believe that the number of chambers in their gun, and your likelihood of being quickly foreclosed on, is directly tied to the size of the potential loss that the bank might face. Perversely, this means those who took the biggest loans, on the nicest houses, with the largest lines of credit to buy lots of shiny new toys will also get the most free rent when they strategically default”
O’Toole added, “Specifically we were wondering if banks took longer to foreclose on larger loans, where there tend to be larger losses, than on smaller loans. The answer is clear: Yes. The size of the potential loss absolutely matters. Not only that, but time to foreclose doesn’t diverge until the government intervened in the foreclosure market in early 2009, with, for example, changes to the Federal Accounting Standards Board rules on mark-to-market.
If one follows accepted accounting principles, you record the value of your assets periodically, whether they increase or decrease in value. Treasure Secretary Paulson, after announcing the TARP bailouts in 2008, suggested that banks should not be required to either record or sell assets that had decreased in value.
After Secretary Paulson’s announcement, considerable pressure was put on the supposedly independent Federal Accounting Standards Board (which writes the accounting rules these companies must follow) to ease the rules that require companies to mark assets to current market values. I think there is little doubt that the changes to these rules were necessary in order for the banks to pass the stress tests that were undertaken shortly after this accounting change was pushed through.”
Many ways exist to postpone foreclosure proceedings, or even to stop them altogether. Anyone who is upside down in their home investment, or about to be placed into foreclosure, should consult an expert in such matters. Many attorneys and Realtors don’t understand all of the options because they don’t deal with these matters on a daily basis. Some are sadly misinformed about the latest and most effective strategies to protect the homeowner. Big banks and other major lenders have large teams of attorneys who specialize in finding every advantage for their clients. They often take unfair advantage of unsuspecting or uninformed homeowners or their well-meaning, but under-qualified Realtors or attorneys.
Go to Short Sale Commando to learn you best options if your home is valued at less than what you owe. We specialize in short transfers of Florida luxury homes.. Unique version for reprint here: Will The Bank Throw Me Out Of My Home?.