February 22, 2010
Most Homeowners In The Inner City Neighborhoods Are Never Contacted To Have Their Options Explained To Them
FORT LAUDERDALE, FL. – Drive through an inner city neighborhood in Fort Lauderdale and you see little activity in the form of homes for sale, yet check the public records and there are hundreds, if not thousands of homes in some stage of foreclosure.
In the Progresso subdivision of the city there are presently over 500 homes mired in the foreclosure process yet there are only 76 homes for sale. Many of the homes are tenant occupied and the owners are simply walking away.
One such owner, who wished to not be named, said he owed over $400,000.00 on a new townhouse he bought in 2007 only to find it worth less than $150,000.00 in today’s real estate market. “It’s just not worth it, with what I owe, and the taxes, insurance and upkeep, it just doesn’t make financial sense to pour good money after bad.”
Most homeowners in his situation say that loan modification programs don’t work, principal reductions aren’t being offered, and giving the home back to the bank can be an ordeal if there are other encumbrances on the property.
What these homeowners seem not to understand is the viability of something called the short sale. A short sale is a method that will help the homeowner avoid foreclosure. The process involves negotiating with the bank to take less than what they are owed in order for the property to be sold.
Although the sale will mean the homeowner will have to vacate the property, it is a classic “win-win” for both the homeowner and the bank.
A recent survey by Washington, D.C.-based business research firm Campbell Surveys and mortgage industry publication Inside Mortgage Finance confirms this.
“Short sales typically result in lower lender losses and houses left in more saleable condition. Moreover, borrowers that agree to a short sale can often buy another house with mortgage financing after only two years. For borrowers going though the foreclosure process, mortgage financing can be unavailable for a period of five to seven years,” said Thomas Popik, the survey’s research director, in a release.
“Banks don’t want to own houses. They want their money. A short sale allows the bank to recoup a good portion of their investment without having to pursue a costly foreclosure,” said Barry Johnson of Real Estate Radio USA host of a real estate focused talk radio show.
“If more homeowners knew how easy it was to get out from under a foreclosure you probably would see a lot less bank owned properties hitting the market and driving values down.”
The statistics support Johnson’s statement. In fact stopping foreclosure by the means of a short sale are about to get even easier. While short sales have traditionally taken months to settle, new federal guidelines that go into effect in April require banks to respond to short sale offers within 10 days.
However that’s only part of the problem. Most real estate agents who are needed to help with the facilitation of a short sale, don’t like to do short sales, and those that do want to do short sales won’t do them in the inner city neighborhoods.
Many agents feel that the commission that they receive isn’t worth the effort. As the homes in the inner city Neighborhoods of Fort Lauderdale may fetch prices as low as $40,000.00, an agent would only stand to earn $1,200.00 and many just see that as not worth the hassle.
“We find that to be intolerable”, said Johnson, “so we’re teaming up with a local real estate agent, and a prominent foreclosure defense attorney, and we’re going to help any homeowner who wants to stop their foreclosure and it won’t cost the homeowner a dime!”
Not only will it not cost the homeowner any money, in some cases the property owners will actually receive a cash payment.
“I have cash buyers waiting for deals to buy and these inner city neighborhoods are actually where they want to buy”, said local Fort Lauderdale real estate agent, Robin Sing-Cunningham of Access USA Realty.
“My buyers email me and call me asking specifically to see distressed properties in these neighborhoods and it’s hard to find the inventory. Most homeowners have not sought out the help and I think that we have to reach out to them as the buyers are definitely out there.”
According to renowned market analyst Jack McCabe of McCabe Research and Consulting in Deerfield Beach, residential foreclosures and other distressed sales have become the barometer and standard driving residential prices the “tsunami of foreclosures” will continue in South Florida for at least the next two years, possibly longer.
“We feel that we are seeing a unique opportunity in the Fort Lauderdale real estate market”, said Johnson of Real Estate Radio, “that opportunity is that homeowners can be helped, and the wave of foreclosures in these areas can be remedied”.
Next week Real Estate Radio USA will be announcing “Operation Short Sale”.
“With our expert team of short sale professionals we are going to offer inner city homeowners the opportunity to stop their foreclosure and sell their home via the short sale method. All they have to do is sign up and our team will handle the rest.”
“I look forward to working with Barry and Robin to assist those homeowners who have been ignored and who need the help to have their foreclosures avoided by expertly facilitated short sales,” said prominent foreclosure defense attorney, Erik Wesoloski of the Miami based law firm of Wesoloski Carlson.
“What really makes the banks stand up and take notice is short sale buyers with cash,” said Sing-Cunningham, and we have no shortage of cash buyers to make these short sale transactions go smoothly.”
If you are a homeowner in Fort Lauderdale and want to take advantage of this opportunity to have your foreclosure stopped by participating in a short sale, simply go to the Fort Lauderdale Real Estate Blog at www.robinashley.com to register or for more information send an email to shortsales@realestateradiousa.com
Related posts:
- Short Sales In The Fort Lauderdale Real Estate Market Made Easy
- How To Ensure That The Short Sale On Your Fort Lauderdale Home Is Approved
- Fort Lauderdale Real Estate Short Sale Information – Avoid Losing Your Fort Lauderdale Real Estate Home Or Condo To Foreclosure
- How To Stop A Foreclosure The Ed McMahon Way
- Fort Lauderdale Real Estate Home And Condo Foreclosure Auctions
- An Open Letter To All Fort Lauderdale Real Estate Area Homeowners In Foreclosure
Facebook comments: