Short Sales Florida and Foreclosures

by Jonathan Briggs on January 1, 2012

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.

In the majority of larger cities of more than 200,000 residents, foreclosures went down. Home prices continue to decline, and many neighborhoods are plagued with unkempt properties and declining neighborhoods. Many banks were discovered to be illegally transferring mortgage documents last year. Investigations have further slowed the foreclosure process in many cities because of this.

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.”

Home prices will almost certainly continue to fall until the majority of the foreclosures have been sold. The housing market can’t be expected to recover until this occurs. If we consider the dismal employment scene, we may not anticipate a real estate recovery for at least a year–very likely longer.

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.

Visit SHORT SALE COMMANDO to learn all your choices . Experts in short sales of waterfront homes in Florida. Private and Responsible.. This article, Short Sales Florida and Foreclosures is available for free reprint.

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