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Has the Pinellas County Real Estate Market Stabilized

by Doug & Gwen Campbell at Sun Bay Associates

Has the Pinellas County real estate market stabilized?  That depends on how you interpret the information.  Although these numbers are for Pinellas County, they also apply to the Palm Harbor real estate and the Dunedin real estate markets as well, since these make up a significant part of Pinellas County real estate.

In November 2009, 28% of the houses sold in Pinellas County were distressed properties.  In December, 31% of the houses sold were distressed properties and in January 2010, 40% of the houses sold were distressed properties.  An eye popping percentage of distressed properties make up the pending sales for November, December and January.  In November, 68% of all pending sales were distressed, in December it was 72% and January 69% of ALL pending sales were distressed properties.

Pricing is also being impacted by distressed properties in the Pinellas County real estate market.  In November, the median price for a bank owned house was $85,500 while the pre-foreclosure price was $140,000 and the non-distressed price was $141,000.  For December the bank owned median prices were $74,600 vs. pre-foreclosure at $128,000 and non-distressed houses at $150,000.  And in January, the median bank owned prices were $84,000 while the pre-foreclosure prices were $130,000 and the non-distressed prices were $135,000.  Thus, the numbers show that the disparity between pre-foreclosure and non-distressed house prices is narrowing monthly.  This is partly because the banks want short sales to be at or very near to market value.  The spread between bank owned and other prices is because the bank owned houses are generally in worse condition and the bank has determined what it needs to get out of the deal, with no negotiation. 

The advantage to a bank owned sale is that it can happen quickly.  A short sale can take months.  Non-distressed properties tend to be in better condition and are relatively quick to close - thus can maintain a higher value.  This is changing because so much of the Pinellas County real estate market comprises of distressed properties that these become the market.  The number of houses being sold is on the rise, in the Palm Harbor and Dunedin real estate markets.  At the same time, the prices are at best flat or still going down.  Thus, the Pinellas County real estate market may be nearly stabilized, but still has a little way to go before anyone will step up and state the bottom has been hit and we are recovering.

To learn more about distressed properties, visit www.SunBayStopsForeclosure.com.  This site goes into details about short sales, foreclosure, deed in lieu and other distressed property issues.

Short Sale, Pre-Foreclosure - It's the Market Reality

by Doug & Gwen Campbell at Sun Bay Associates

What is up with this so-called stabilized market in real estate?  The number of houses sold has been increasing recently, although the gross dollars has decreased.  That says very clearly that prices are still moving downwards.  A large component of this in the marketplace is the short sale, or pre-foreclosure.  Many people believe that when a property is in a short sale situation that it is a firesale.  Not true.  The banks are looking to get as close to fair market value as possible.  The better the price a house sells for at short sale, the less money the bank loses when they "forgive" the debt to the homeowner.

Real estate agents who have earned the Certified Distressed Property Expert (CDPE) designation have received rigorous training in the short sale process to come to as good a conclusion as possible for all parties involved.  The homeowner is out from under what is often a crushing debt obligation, the bank can take the non-performing asset off the books and lend money again, and the new buyer is getting a home at a good bargain, often at a price at or just below market value.  Certainly they are buying a home that a couple years ago may have sold for a much as 40% more.

If you are in a short sale or pre-foreclosure situation, or know anyone who may be, find a realtor who has earned the CDPE.  This level of expertise will guide you through the short sale process.  According to the Distressed Property Institute, CDPE agents close 85-90% of the short sales they take.

 

Deed in Lieu of Foreclosure

by Doug & Gwen Campbell at Sun Bay Associates

Basically, a deed in lieu of foreclosure is the action a homeowner takes to give his/her house back to the lender in exchange for being forgiven the debt of the mortgage.  When considering a deed in lieu, be sure that the lender will accept it, and get the acceptance in writing.  As part of the written agreement, have the lender agree to forgive any amount that is not covered when the house is later sold by the lender.  Some experts believe that a deed in lieu looks better on a credit report than a foreclosure. 

 

From a lenders perspective, this is an act of last resort because banks really do not want property that needs to be maintained and hopefully resold.  The banks really want cash so they can continue to issue loans. Some lenders require that the house be placed on the market for at least three months in a good faith effort to sell it.  Many lenders will not consider a deed in lieu if there are other liens on the property. 

 

Another issue to cover in detail with the lender is to see how the lender will deal with the outstanding balance due.  Will the debt be forgiven or will the lender provide, in writing, assurance that it will not sue the homeowner for the balance at a later date.  Some lenders will keep the mortgage and not cancel the debt until the property is resold.  Be sure you know all the details of any agreement concerning the mortgage, your debt and what the lender is, in fact, agreeing to.

 

A short sale is preferable to a deed in lieu because in a short sale, the bank has agreed to forgive the difference between the sales price of the home and the amount owed to the bank, and the property is sold outright, freeing the homeowner from further obligation to the bank.  A short sale also frees up funds for the bank to lend instead of having to manage a piece of real estate.

 

As with short sales, it is wise to determine the impact a deed in lieu may have on your tax obligations before entering into any agreement.

 

For legal advice, consult a real estate attorney in your area. 

 

To learn more about short sales or other solutions to your real estate issues, visit www.EquityOptionsGroup.com or visit www.YourHouseOptions.com.

 

Remember, you have options.

 

Call Gwen at 727-939-1515 or Doug at 727-741-4189.

Or email [email protected] or [email protected]

Short Sales Explanation

by Doug & Gwen Campbell at Sun Bay Associates

Last time we talked about the merits of a short sale vs. a forebearance of mortgage.  Today we will go into the short sale process a bit.

 

The short sale option is something that most borrowers do not know about and many realtors do not want to deal with because of the length of time to complete such a transaction.  Under the best of situations, a short sale can take three months to complete and it is not unusual for a short sale to drag on for five or six months before closing. 

 

In the past, a bank would require that the borrower/homeowner, be behind by several months before even considering a short sale.  However, due to the changing market and the simply overwhelming number of houses in pre-foreclosure or outright foreclosure, some banks are accepting a short sale transaction before the homeowner is actually in arrears.  There are several items that must be provided to the bank to get a short sale approved.  Among these items are the previous two years tax returns, pay stubs for the past 2-3 months, bank statements for the past 2-3 months, a financial worksheet showing all assets and liabilities, including monthly payments, all sources of income and more.

 

A key advantage to a short sale, especially when considering foreclosure, is that a short sale might not tarnish your credit rating, where a foreclosure can affect your credit rating for seven years or much longer.

 

There are short sale specialists available to guide you through the process.  It may take 3 to six months or even longer, depending on the bank, but the time and effort may be worth it for the homeowner whose alternative is foreclosure.  To learn more about if a short sale is the right option for you, contact a reliable realtor and ask for a review.  If you want to get a jump start and find out if a short sale may be the option for you, go to www.YourHouseOptions.com.  Your inquiry will be handled with the utmost respect and integrity.

 

Next time we will address a deed in lieu of foreclosure.

 

Remember, there are always options.  Foreclosure does not have to be the only way out of a temporary financial difficulty.

Merits of forebearance vs. a short sale

by Doug & Gwen Campbell at Sun Bay Associates

 

Last time we talked about the forebearance of mortgage agreement.  Today we will briefly address the merits of forebearance compared to a short sale.  For specifics, be sure to consult a real estate attorney in your area.

 

The biggest benefit to a forebearance agreement is the postponement of the monthly mortgage payment and the potential to keep the house if all agreed payments can be made.  However, if the borrower cannot make the agreed payments, and repay the delinquent balance within two years (or the agreed time frame) the house will still go into foreclosure.  Also, interest continues to accrue on the outstanding loan during the forebearance period.

 

The main benefit of a short sale is having the bank agree to settle the mortgage for less than the amount owed.  This may even preserve the borrower-homeowner’s credit rating.  The greatest disadvantage to a short sale is that because it is dependent on the bank to approve acceptance of an offer for less than the amount owed on the mortgage, this process may take months.  The borrower’s credit rating may be negatively affected, but usually for two years or less as compared to seven years or longer for a foreclosure.

 

Next time, we will address the short sale process in a bit more detail..

 

Remember, there are options to foreclosure.  To learn more about a short sale, visit www.YourHouseOptions.com.

 

 

 

You Have Options

by Doug & Gwen Campbell at Sun Bay Associates

Do you live in the greater Tampa Bay area and love it, but are having a hard time making your mortgage payments?  If you purchased a house in the last few years when the market was hot and now that the market has cooled off you might have a house with no equity that is simply not worth what it cost only a couple years ago.  With the economy in the condition it is in now, people are struggling to make their mortgage payments.  No matter the reason, if you can’t make the mortgage payments you are in a very stressful situation.

 

There are options, however, to avoid foreclosure.  Among the options available are:  forebearance; deed in lieu of  foreclosure; restructured loan;  renting the property, or, there may be an option most people don’t even consider, called a short sale.  This is when the house is worth less than what is currently owed to the bank, based on the current market conditions, there is no chance of selling it for enough to recoup the original investment, and the bank will agree to it. 

 

In the next few blogs we will discuss a little more of each of these options.  In our next discussion we will address a forebearance of mortgage agreement.

 

Remember, there are always options, foreclosure does not have to be the only way out of a temporary financial difficulty.  Visit www.YourHouseOptions.com for more information.

Displaying blog entries 1-6 of 6

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Photo of Gwen and  Doug Campbell - The Campbell Team Real Estate
Gwen and Doug Campbell - The Campbell Team
at Keller Williams Realty
30522 US Hwy 19N, Suite 107 S
Palm Harbor FL 34684
Doug's Cell 727-741-4189
Gwen's Cell 727-741-7260
Fax: 888-447-7908