Cape Coral foreclosures at the lowest now

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In the field, we all agree, it’s a seller’s market now. Several major cities in the country show a solid level of activity that increase Real Estate prices slowly but steadily. And Cape Coral is no exception. I see we are headed to a much more normal market now, and the fact that we just got below the 200 foreclosures mark for Lee County is a good sign.

As I often say to my clients over the phone or email, we had a peak of 1,085 foreclosure at any given day in December 2010. Today, we had 196 foreclosures. And that number is decreasing on a daily basis. So we are inexorably entering a much more normal market.

Congratulations to all buyers who bought a property ion Cape Coral or around last year or even in 2010. They officially bought at bottom. And I predict that if they hold for another 3 to 5 years, they will build some great equity in their properties.

And for those who were on the fence, waiting for the best deal to appear to them, that boat has sailed away. We are in a seller’s market and purchase prices at asking prices or higher are not uncommon. I even see multiple offers on a majority of the deal I come across.

Knowing that Lee County in general and Cape Coral in particular have the lowest single family priced in the country, I have a lots of demand for properties under $100,000. But those buyers have a hard time to get in now, hardly finding anything just decent.

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Comments (0) Apr 21 2012

Heavy drop of foreclosure in Cape Coral, Florida

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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.

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Comments (0) Nov 02 2010

Buying a foreclosure in Cape Coral, Florida

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So you want to purchase a property in foreclosure here, in Lee County in general and in Cape Coral in particular? Good move. It’s time to buy. Properties values are increasing little by little, month after month since spring 2010 and you can expect a sweet equity very soon, especially if your purchase a Cape Coral foreclosure.

However, lots of potential buyers I talked to believe that if a foreclosure is price at, let’s say, $100,000, they can offer 10% or 20% less than the asking price, empowered by a solid down payment, and thinking that after all, it’s foreclosure time for everyone.

Well, the reality is not as simple.

So far, 100% of my buyers who actually were successful at purchasing a foreclosure, paid more than asking price.
And, all of them learnt how to get that property after several offers. Some below asking, where they were outbid. A few at asking price, where they were outbid. And finally their own purchase, paid at higher than asking price, like everybody else.

So, contact me if you want to purchase a foreclosure in Lee County, but make sure to be ready:

1) Get your Pre-approval document

A foreclosure’s owner is a bank or sometimes a person or a company who made a private financing for the buyer. You will most likely make an offer to a bank though. Banks are not in the Real Estate business but in the money business. Therefore, they don’t want to waste any time and want to make sure that the next buyer is fully capable of buying. They will not review your offer if there is not a pre-approval document, signed by your bank or mortgage broker even if your offer is twice their asking price. A pre-qualification will not help. Just get your pre-approval in hand.

2) Get your proof of fund for the down payment.

Most banks, if not all of them, required a proof of fund for your down payment or if you plan to pay in cash. If the bank can’t see a proof that you have the money, they will not sign your offer. Period.

3) Be prepare to offer a price HIGHER than the asking price.

For this one, you will have a hard time to believe me. Fair enough. But know right now that 95% of the time, your below asking price or even your asking price offer will not fly. I have seen attractive foreclosed homes sold with an easy 15% higher than asking price. So be prepared.

Now, don’t make me wrong. Ultimately, you will be the buyer, the one who will pay and with the last word. But then again, you’ll be entering in the club of the buyers who need a proof of what I’m saying here.

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Comments (0) Oct 24 2010

Foreclosures in Lee County sharply down from last year

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There were 953 mortgage foreclosures filed in Lee County in September — up from 834 in August but down sharply from the 1,610 filed in September 2009, according to statistics released today by the Southwest Florida Real Estate Investors Association.

That’s a slight increase in the pace of foreclosures, which surged after the housing market collapsed in 2006 but then started to fall after reaching a peak of 2,665 in November 2008.

The increase likely isn’t a sign that a second wave of foreclosures is coming, said Jeff Tumbarello, director of the association.

“I don’t think we’ve got that many more to go through,” he said. “We’ve canceled out the boom.”

Source from The News-Press

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Comments (0) Oct 02 2010

Lee County foreclosure rates increase.

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The rates of foreclosure in Lee County has increased for the month of February over the same month last year.
The Cape Coral-Fort Myers area foreclosure rate is 13.47% for the month of February, an increase of 0.99% compared to February 2009 when the rate was 12.48%.
However, the activity sourrounding the foreclosures in Cape Coral-Fort Myers is higher than the national foreclosure rate, which was 3.17% for February 2010, representing a 10.30% difference.
In Lee county, the mortgage delinquency rate has increased as well. 22.93% of mortgage loans were 90 days or more delinquent compared to 20.05% for the same period last year.
No need to say that Real Estate investors have still some good months ahead by investing today. If you are interested to receive my list of Foreclosures for Lee County, feel free to visit my website at www.1capecoral.com

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Comments (0) Apr 23 2010

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