Foreclosed Homes Are Being Let Off Through Short Sale
June 16th, 2009
Home prices have hit the floor — small wonder, then these homes have become the target of buyers. Nearly 9 in every 10 homes, that makes for a total of 40,000 houses in Florida, have been foreclosed or on the verge of it. Research firm Xima Real Data revealed that foreclosed homes are being let go through a short sale.
In such a case, the lender and the homeowner accept a lesser sum than the mortgaged amount. Banks are eager to let go off these properties as well. However, buyers need to more patient, because it may take lenders weeks to respond because there are really a large number of homes floating around. Also many homeowners are leaving homes in a dilapidated state and buyers have to spend thousands on refurbishing them.
Eric Sain of the Realtors Association of the Palm Beaches, says that if he is a buyer he will look for a home that is in good condition. But not all people end up being lucky. Take for instance, the case of Mark Summerall who found a home in West Palm Beach for $125,500. He was impressed with the home and the view and entered into a contract with the homeowner. But this seller owed more money than the price of the home. And she needed the approval of the lender, Countrywide Financial Corp, before going in for the short sale.
Countrywide said it wanted $140,000 for the house and Summerall refused to pay it. For Summerall it was a frustrating wait because nothing worked it seemed. But then last December Countrywide finally approved the price of $125,000. After buying the foreclosed property, Summerall is now spending about $8,000 on refurbishing the house. The bank did not fund any money for repairs. They are quite unwilling to pay for refurbishing homes.
Now in another case of conventional sale, buyers Karen and Nice Bruce liked a house that carried an October listing of $359,000. By January, the price dipped to $329,999 but the Bruces wanted to bring it down further to $296,800. The owner was so desperate to offload the property that he offered a one-year warranty on all appliances in the house. This was at least better than what the Bruces had faced last summer when they scanned 100 properties at least. Bruces feel they are lucky that they were able to buy the home of their choice.
Find Foreclosed Homes in Florida by Top Cities
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- Foreclosures waiting in the sidelines have not surfaced as yet
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July 8th, 2009 at 7:01 am
[...] Foreclosed homes have exposed the clay feet of bank and the imposing granite fortress like structure no longer inspires awe and wonder. Even the sense of safety it used to exude is long longer there. [...]