Heavy drop of foreclosure in Cape Coral, Florida

Posted: under Real Estate.
Tags: , ,

I saw the big title in the newspaper today. There had been 656 foreclosure lawsuits filed in Lee County in October, the lowest range in a lot more than three years, according to statistics released Monday by the South West Florida Real Estate Investment Association.

It was a rare ray of hope in a grim situation: The Lee County and Cape Coral  foreclosure rate is normally within the top five metropolitan areas nationwide, with only Las Vegas consistently worse.

October’s variety is down 31 % from September’s 953. Yes, you read me: 31% less than the month before. The pace hasn’t been this slow since quite a long time.  555 had been filed in February 2007 as the wave of mortgage failures that followed the housing boom was just obtaining under way.

Experts stated that the decline likely was part of a long-term downward pattern — but that’s not all.

Foreclosures possibly plunged at least in aspect since for the past month, some banks have been holding off on foreclosures whilst they sort out issues including who truly owns the note and whether attorneys basically read all the paperwork, but the holding was only for 1 week and from 2 banks, including a major one though: Bank of America.

But the recent lender troubles alone couldn’t have caused a drop as sharp as October’s. Bankers “did knock some things out, but in the totality with the trend, no. 10 to 20 percent of your mortgages might be affected,” but not enough to account for the whole drop.

County Clerk of Court Charlie Green said that whatever the trigger, the downward pattern has helped whittle away at a daunting backlog of foreclosures within the court system: Public auctions disposing of properties are now outnumbering new filings.

Only about 14,700 cases are from the pipeline now, Green mentioned, down practically half from the 26,000 when the difficulty peaked at the end of 2008.

Still, he cautioned that there’s a substantial “shadow inventory” of houses that banks are selecting not to foreclose on. “I believe we’re clearing some out, but the banks are holding back.”

But we don’t really know how many far more. Next month will give us a better indication as to whether or not it was a normal trend or lenders stopping until they figure out what the issue with their process was.”

Also the pace of foreclosure doesn’t occur in a vacuum: if the winter tourist season is strong, it will reduce unemployment and keep far more people financially able to keep their homes, which is the case in South West Flroida, which include Cape Coral.

I think it will be only in April, May, June of next year that we’ll see how this season’s sales and the economic effect of your season influenced foreclosures.

A big builder in Cape Coral, stated that whatever the short-term pattern, foreclosures can’t sustain themselves at that pace. It’s going to sooner or later start slowing up. And I think it is happening right now.

Also, the issues with the foreclosure process have made some prospective buyers skittish about buying a previously mortgaged house.

However, while I find it easier to sell to prospective renters a house where owners are living in than a foreclosure, that  non distresses market has a hard time to compete with the foreclosures. Plus, new potential buyers have still a hard time to accept the fact that most of the time, there is a multiple offer situation on every foreclosed properties, ending by an accepted offer above the asking price. Often, those buyers go through a 3 step buying process. The first is the below asking price period where the buyer experience the frustration of being outbid. Then there is the full price offers period of time, which is usually shorter than the first one. Most of the time, the buyers learned their lessons and go the third period, the above asking price offers moment where they finally get a property under contract.

It’s now even more difficult with the decrease of the number of foreclosure and with a possible increase of pricing, even for foreclosures.

Incoming search terms:

Post to Twitter

Comments (0) Nov 02 2010

10 Short Sales questions and tips

Posted: under Investments.
Tags: , , ,

Here are 10 frequently asked short sales made questions which are incredibly useful especially if you are just getting started or contemplating quick sales as a means to acquiring pre-foreclosures.

1. What occurs on the seller’s credit rating when they permit an investor to short sell their property?

What typically takes place is the loan will show up as “paid” on their credit report; even so there will probably be a notation that says “settled for less than originally owed” or something along these lines. It’s additional favorable for a homeowner to small promote than to have a foreclosures on their credit report.

2. Where do you find investors for short sales?

Depending on where you live, you may see buyers who advertise with bandit signs or in your local newspaper. Call the investors directly and ask them if they’re experienced in performing short product sales and if they would be interested in working with you. Another good place is your nearby real estate investors club meeting.

3. Define a short sales?

A short selling is really a form of pre-foreclosure sale made and occurs when the mortgagee agrees to accept much less than the loan volume to avoid foreclosure. A negotiated short sale results inside a discounted buy price for the buyer. The buyer would finance the acquisition significantly the same as in any conventional realty acquisition.!. but devoid of the luxury of time.

4. Can an proprietor profit from a short sale?

The seller can’t profit (monetarily) from a pre-foreclosure short sale.!!! But you will find usually exceptions towards the rule.

5. How do bankruptcies affect the possibility of carrying out a short sale?

Most mortgagees won’t take into account a short sale if the house owner is in bankruptcy.!.why? Due to the fact negotiating a short sale made payoff is considered a collection activity. Collection activities are prohibited in bankruptcy.

6. Can somebody tell me what paperwork do I have to include inside a short sale package?

Documents depend on the lender. Each loan company has diverse requirements. It is typical to require hardship letter, buy and sales contract, ECOR, settlement statement (HUD 1), net sheet, pay stubs, bank statements, personal financial sheet (monthly budget), amongst other things.

7. What percentage of mortgage firms send somebody out for an appraisal on a achievable short sale?

All lenders order a BPO or full appraisal of the asset prior to making their decision to accept or reject the short purchase offer. This is there only way of assessing the worth of your home.

8. How late in the pre-foreclosure procedure can you begin a short sale?

Attempt to allow a window of at least 90 days to effectuate a mortgagee approved, pre-foreclosure Short Sale made.

9. What is a Due on Sale clause?

“Due on Sale” Clause (DOS) Provision inside a mortgage or deed of trust calling for the total payoff of your loan balance inside event of a selling or transfer of title towards the secured genuine asset. A contract provision which authorizes the loan provider, at its choice, to declare immediately due and payable sums secured by the lender’s security instrument upon a purchase of all or any part of the genuine home securing the loan devoid of the lender’s prior written consent.

For purposes of this definition, a sale or transfer indicates the conveyance of authentic house of any proper, title or interest therein, regardless of whether legal or equitable, regardless of whether voluntary or involuntary, by for deed, leasehold interest with a term greater than three years, lease-option contract or any other technique of conveyance of true home interests. Standard language which states that the mortgage must be paid when a house is sold.

10. Will banks enable a short sale when the owner has some or a beneficial sum of equity?

If a asset has what the financial institution would consider a substantial quantity of equity, chances are they would take into account allowing the asset to foreclose and then reselling it closer towards the retail value. Focus on homes that don’t have much equity. Your job will be to create the fairness in the home by negotiating a successful short sale made.

Incoming search terms:

Post to Twitter

Comments (1) Sep 12 2010

Unbelievable strong SW Florida seller’s market!

Posted: under Real Estate.
Tags: , , , , ,

I made a couple of offers this week. Both were full price offers, one on a property in Cape Coral and the other one in Lehigh Acres. Thoses properties were freshly on the market that I put an offer right away. And I said right away, because those offers are number 8 and number 9. I have had no success with the first 7 properties for different reasons: too late or offering a 3% to 10% below asking.

But I learn from my mistake and I was offering a full price, the first day. Well, guess what, My offers are a back up because the banks have accepted what I think are better offers. But again, I will learn from this and will offer more than asking price for the next ones.

The amazing strong SW Florida seller’s market remind me when I was living in Pembroke Pines and had multiple offers the very same day when I put the listing on the MLS. If I was purchasing foreclosures or maybe even short sales, I can easily understand the multiple offer situation. Or maybe I should focus on foreclosed properties and offer twice the price, ending by paying a fair market value. But when it occurs with regular homes, it’s obvious that medias are spreading inaccurate information.

Here in TN, at least East TN, it is still a deep buyer’s market, but without any. I see 20% CAP rate investment properties getting no showing, and therefore, even less offers, or this 3bed/2bath residential with no taker at a mere $25,000, bought from the builder in 2005 for $140,000. Not even investors are showing up to buy those which rent for about $950-$1,100/month!

It seems that few miles will make a huge difference these days…

2207 NE 1st Ave, Cape Coral, FL

2207 NE 1st Ave, Cape Coral, FL

Incoming search terms:

Post to Twitter

Comments (0) Jan 08 2010

What is your percentage closing on your short sales listings?

Posted: under Realtor® Tools.
Tags: , , , , ,

Last week, I answered a question that doesn’t just apply to short sales, but really to any type of property for sale right now…The question is, “What is your percentage closing on your short sales listings?”…

We all know that here in Cape Coral, the short sales are a big part of our business. So I think it is important to understand how to to better with short sales.
My answer to this question is always the same…

“It all depends on how good of an offer you have on the property”. You see, if you have a good offer, then it’s likely your deal will get closed…If you have a crappy offer, then it’s likely your deal will not get closed…

I know there should be more to it, but it really is that simple, money rules here.
The question then is how do you get more activity, and generate more solid offers on your short sales listings?…
I’m about to give you a tip that may have a HUGE impact…
This tip has to do with the remark area in your MLS sheet…
I am often amazed when I see what some short sale Realtors® put in their remarks, like this one for example:

“Subject to lender approval, allow 60 days for lender to respond, commission may be reduced, no reps, warranties, if I were you I would stay away from this property and not show it…”

Okay, I’m a bit pushy about the last part but when you see remarks like that as a buyers agent, are you going to put that
property at the top of your pile or at the bottom?…

Think about it, take a look at your M.L.S. remarks and ask yourself, if I was a buyers agent, would I want to show this property?
Then think about how you can improve it, even ask other Realtors for their opinion…
What if making the slightest change could result in 2 extra showings for your property, which today could be the difference between your property selling or not.

Think of your MLS remarks as the best free advertising you will ever get. Having the right remarks may generate more activity then any marketing $$$ that you spend…If you have short sale listings right now, try a variation of these remarks…Make sure to show your are here to help in anyway, that you are available for anything.

“Offer and commission subject to lender approval, we always submit our short sales for full 6% commission, BPO already completed, can close FAST. Experienced short sale agent, I get them closed, call me for any question you may have, I’m here to help you to close this baby and to get you paid…”

You’ll become more successful in the short sales field, it will be noticed and it will bring you more business…

Incoming search terms:

Post to Twitter

Comments (1) Dec 09 2009

Get Adobe Flash playerPlugin by wpburn.com wordpress themes