2008 The Year of Foreclosure?

[SHELLY]

sounds like they attended a seminar on how to make millions from foreclosures.

2008..."Year of Foreclosure" AND "Year of the Rat"....coincidence? :shock:


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[InletBchDweller]

Regarding the third paragraph, I fully agree. The ECAR Board of Directors was going to come up with a definition for Short Sales, but I think it is too difficult to define. The MLS Committee toyed with the idea of putting check boxes on listings to identify short-sales, but I understand that they didn't want to do this without having a good definition. Your third paragraph has some good identifiers of a short sale, but it fails to address the short sale, where the seller will eat the difference owed to the bank, and that is one of the problems with the definition.

We were just talking in the office today wondering why ECAR did not put short sales out there. It would make it easier that looking through everything...

 

[Smiling JOe]

IBD, you can run a pro-search and search for the words, "short sale," and you will be able to see ones which are being listed as short sale. However, that doesn't mean that they are really short sales.

On another note, foreclosures are easier to define, and you can now enter listings as foreclosures, as long as they really are. (foreclosure is not pre-foreclosure). You can also run a pro-search on foreclosure, found under financing on pro-search.

 

[SHELLY]

Interesting twist to short sales of properties governed by HOAs/Condo Fees:
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Overdue association fees by short-sellers hold up condo sales

It took weeks, but real estate agent Caroline Lynch got two lenders to agree to take an $89,000 offer on a Howell condominium even though the homeowner still owed $132,000 on the mortgage. All that remained was to negotiate a discount on the $9,500 in delinquent association fees and charges from an attorney representing the association.

But neither the association nor its attorney would budge, said Lynch, who owns a brokerage firm bearing her name in Brighton.

The association and the attorney "were the only ones saying this can't happen because they need 100% payment," said Lynch, who added that two prospective purchasers walked away rather than pay the fees. "They're killing sales. It's just a nightmare."

Short sales -- sales in which mortgage holders agree to take less than they are owed to avoid foreclosing on the property -- are a last resort for homeowners trying to get out from under a mortgage they can no longer afford without the scar of foreclosure on their credit report. Sellers lose all equity.

Short sales often take longer to close, since banks often require mounds of paperwork and can refuse an offer. But condominium owners have an added hill to climb to get to the closing table for a short sale: delinquent monthly association fees.

Those fees are separate from the mortgage payment, but must be paid since, by law, the association can file a lien against the property. Associations use the fees to cover maintenance, amenities and some utilities.

It may sound like hardball, but the associations say they have no choice but to insist on full payment because the remaining homeowners would have to pay higher monthly fees if debts were forgiven.

Some associations may negotiate fees in individual cases, but Meisner said they have little sympathy for mortgage lenders who granted bad loans or buyers who bit off more mortgage than their salaries could cover, many through adjustable rate mortgages that are resetting at higher rates and increasing monthly payments.

"There really isn't any reason for the association to compromise," said Meisner. "The co-owner knowingly entered into a mortgage situation. Why shouldn't they," meaning association officials, "be paid 100% of the fees that they are owed?

"Realtors were making a ton of money," Meisner said. "Mortgage companies were making a ton of money. All of a sudden, because the cookie is crumbling, they expect the condo association to take a bath on it. I don't see any reason why they should."

http://freep.com/apps/pbcs.dll/article?AID=/20080120/BUSINESS04/801200501/1002

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[rancid]

I think I agree with 2008 being the year of the foreclosures but I do notice a trend that is hard not to look at. The A properties seem to be going under contract and leaving the market. I think we have allot of pent up demand in the market. We are getting calls and showing at an alarming rate. The hard part has been converting lookers into buyers. The positive side to this is we are seeing energy entering the market place. I think when the so called bottom bell rings many folks will be surprised at what product is really available.

Here is why: Out of everything listed only about 15% of it is real product. This 15% is good stuff (location,value) and moving off the market. Many folks are spending too much time analyzing the other 85%. The smart buyers are coming in and grabbing this stuff up. They see value down the road and know that when the market returns the A properties will be easy to sell. Current sales trends show this stuff leaving the market. When we finally get to the so called bottom and everyone agrees it is the bottom many of the A properties will be gone leaving the buyer that always wanted in standing once again on the side line wondering what happened.

Anyway, just my two cents..... Gotta run, just got an offer on a Heron's Watch unit we have had listed less the a week! Another A product because of the price and location.

Regarding Grayton Beach , I don't really see anything selling over the last year. No 15%, maybe 2 or 3 properties ,tops.
Why is this? The supply/demand seems more out of whack here than anywhere else in SOWAL if you are correct that the top 15% is selling.
Let the waiting game continue.

 

[Bobby J]

Regarding Grayton Beach , I don't really see anything selling over the last year. No 15%, maybe 2 or 3 properties ,tops.
Why is this? The supply/demand seems more out of whack here than anywhere else in SOWAL if you are correct that the top 15% is selling.
Let the waiting game continue.

Very slow sales in Grayton in 2007. I think 2 to be exact. I consider Grayton an A location but current pricing to be a C. Not falling into my 15% theory. My comment was to the market in general. I do believe the A properties are getting attention(A properties= location,price). I have seen several contracts already this week come through our office. Nice stuff.
On another note, I have had a hard time getting buyer and seller to come to terms because the seller will not meet buyers offer. One reason the seller held out I believe is because the property is being shown almost daily. So this buyer says they are going to wait them out.... Not going to happen. They can wait but this home will be gone. I am sure the buyer will find something but not the one he wanted.

 

[Smiling JOe]

Grayton isn't for everyone, thank GOD! Plus, I think that most of the homes being older homes scares people away. So many buyers looking at million $ homes, expect to see granite and stainless steel. I know of a couple of houses in Grayton with plywood flooring. Grayton is a real gem, and I am so thankful that it isn't shiny in most people's eyes.

 

[Bobby J]

Grayton isn't for everyone, thank GOD! Plus, I think that most of the homes being older homes scares people away. So many buyers looking at million $ homes, expect to see granite and stainless steel. I know of a couple of houses in Grayton with plywood flooring. Grayton is a real gem, and I am so thankful that it isn't shiny in most people's eyes.

Shhhhh.....