Foreclosure Market Update for 3rd Quarter of 2011
Foreclosure Market Update for 3rd Quarter of 2011
If you have been following the News, you have heared that 
Foreclosures have declined dramatically here in South Florida during the first half of this year’s housing market, however some analysts say that it is not a good indication that the market is improving.
The reason for the decline is that banks are having a difficult time processing the many Foreclosures due to many “Foreclosure attorneys” “robo signing” and falsify foreclosure documents.
Banks have a huge amount of inventory of “stalled” foreclosure cases, and this is what I call the “shadow” inventory.
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These are the inventory of foreclosure housing that have yet to hit the market which will cause another real estate bubble perhaps later in the year.
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Another reason for the predicted downturn in the market is the major price declines in the past five years which have left many borrowers owing more on their mortgages than the homes are worth. That is the legal definition of a Short Sale. .When the borrower’s mortgage amount is more than the actual market value of the property, a short sale is one of the options a seller may be forced to enter into based upon various hardships that the bank considers acceptable.
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Some attorneys believe that Short Sale Properties are here to stay and that the Market will continue to slide until the shadow inventory is sold off.
Homeowners who find themselves in a short sale or foreclosure situation, for whatever the reason should obtain legal council and should avoid relying on real estate professionals to negotiate a short sale. Real estate professional are professionals who market the property to the multiple listing service and various other marketing sources to obtain a buyer who is ready willing and able to purchase the short sale.
The benefits of a short sale are that the home owner is in control of the sale and not the bank. The homeowner is still the owner of the property and signs the listing agreement and agrees to market the property at fair market price.
When the homeowner receives an offer on the property and signs the buyer’s purchase agreement contract, the contract is therefore submitted to the bank’s negotiator to process the transaction. This is a complicated and time consuming process which is better handled by an attorney
For more information on how to successfully close a short sale property and be released from any deficiency of debt give Kathy a call, you don’t want a collection agency hounding you a few months after the closing. Trust me I have heard all of the nightmare scenarios.
Choose a Professional Realtor who has an understanding of the short sale process and an attorney who has experience in negotiating shorts sales. It is good to have the right team representing your side for a change.
Interested in Buying or Selling Real Estate, give Kathy a call and visit Kathy’s Website of www.KathyHyatt.com