Short Sales are the Salvation of Many Homeowners

Here's a great article explaining why a short sale is the best opportunity for many homeowners.  There's also a little secret I've discovered to be true for many people wanting to get out of their homes and into new ones: You don't have to be behind in your mortgage payments to get your short sale approved by your mortgage holder.  Read the article on MSNBC.

Florida NOT in the Top Five States with the Long Foreclosure Backlog

It will take more than eight years to clear out huge backlogs of foreclosures at the current pace in half of the states. Many states require court involvement in foreclosures, such as Florida, which may further slow the process.

After the robo-signing debacle of last year, lenders are doing more to make sure more proper documentation is in order when processing foreclosures, which have slowed the process of repossessing homes and created larger backlogs. 

But some cities continue to face possibly decades of large foreclosure backlogs. The good news is that Florida is not in the top five! Another indication of Florida’s stabilizing (albeit slowly) real estate market.

The following are the states with the largest backlog of foreclosures, including the state’s “pipeline ratio,” which is the time it would take to clear the supply of seriously delinquent mortgages or homes in foreclosure at the current pace of sales.

New York: 57

Washington, D.C.: 57

New Jersey: 52

Maryland: 21

Connecticut: 20

Source: “Many Cities Face Big Backlogs of Foreclosures,” RealtorMag (November 9, 2011)

Mortgage Rates Plunge to Second Lowest on Record

The 30-year fixed-rate mortgage, the most commonly chosen among home buyers, dropped to its second lowest reading on record. View the full report at Freddie Mac.

Here are how rates fared for the week:

• 30-year fixed-rate mortgages: averaged 4 percent, with an average 0.7 point, down from last week’s 4.10 percent average. The 30-year fixed-rate mortgage is the second lowest on record, just behind the 3.94 percent record reached on Oct. 6. A year ago at this time, 30-year rates averaged 4.24 percent. 
• 15-year fixed-rate mortgages: averaged 3.31 percent, with an average 0.7 point, falling from last week’s 3.38 percent average. Last year at this time, 15-year mortgages averaged 3.63 percent. 
• 5-year adjustable-rate mortgages: averaged 2.96 percent this week, with an average 0.6 point, dropping from last week’s 3.08 percent. At this time last year, 5-year ARMs averaged 3.39 percent.
• 1-year ARMs: averaged 2.88 percent this week, with an average 0.6 point, dropping from last week’s 2.90 percent average. A year ago at this time, the 1-year ARM averaged 3.26 percent. 

Contact me if you would like a recommendation for a mortgage broker for your purchase or refinance.  I’m always happy to assist.

Fed to Focus on Shoring Up the Housing Market

Florida Homeowners Can Get up to $20,000 for Short Selling Property

It seems that Bank of America has reached an epiphany.  The largest bank in the United States understands that it is far less expensive and efficient to allow their distressed mortgage customers in Florida to short sell their properties rather than for BoA to go through the foreclosure process.

Through August, 2012 BoA will give qualifying homeowners up to $20,000 for relocation assistance upon the successful completion of a short sale.  The program applies to Florida residents who have not already entered into a short sale contract on their property.  This should motivate homeowners to engage in a short sale as an alternative to foreclosure.  View the offer from Bank of America.

What Can South Florida Homebuyers Get for $200,000?

Whether homebuyers in South Florida are looking for a single family home or a condo near the beach, there are some terrific deals available at the $200,000 price point.  With mortgage rates at record lows, the average monthly mortgage payment for a $200,000 property would be about $1,300.00.  Here's a sample of what is available:

A 3 Bedroom home with a Pool in Fort Lauderdale

A spacious 3 Bedroom Pool home in Lake Worth

An Ocean and Intracoastal view 2 Bedroom Condo in Aventura

Does Foreclosure Stop the Debt Collectors?

Absolutely not.  Foreclosure basically means you no longer own the property and the mortgage holder can sell the property in an attempt to recoup some of the losses from the defaulted mortgage.  In this real estate market, it is unlikely that the mortgage holder can get back the entire amount owed on the property.  In Florida they're lucky if they get back 50% of what was originally loaned against the property.  Do they eat the difference?  Yes and no.