Scroll down below the Foreclosure Auto-Search Form for various articles and updates about foreclosures and the local foreclosure market.

A Game Changer?

The Treasury has new rules beginning April 5 for short sales. By far, the most important thing is a supposed 10-day turnaround on offers. This is huge as we’ve had so many offers on short sales come and go because the banks would take from 6-18 months (yes, 18!) to respond to offers. We'd usually hear nothing and the homes would slip into foreclosure.

Apparently, the new rules only pertain to Fannie Mae or Freddie Mac owned or guaranteed loans. I have to get more details, but this is great news for both buyers and sellers as there are quite a few buyers out there looking for bargains and it’s been a real shame that these banks have dragged their feet on these for so long ...

Nov/Dec., 2009 UPDATE: Foreclosures Are REALLY Selling

MLS statistics simply don't lie - there are less foreclosures available than there were at the beginning of 2009, there are less "new" foreclosures being listed (looking at the past 8-month trend), and - the most important part - many more foreclosures sold during the past 3 months than at any other 3-month timeframe in the last couple years in the Sebring & Lake Placid area.

There were only 28 foreclosure homes listed in Sebring & Lake Placid on November 25, 2009 (we do not track vacant lots). As some of the short sales are finally foreclosed upon, there will be more good foreclosures coming, but that is a VERY telling number (down from couple hundred a few months ago!).

Dec, 2009 Update On Short Sales:

First, what IS a short sale?

The asking price on a home is not enough to pay the bank off, so any offer has to be approved by the bank. The trouble is, most of the "asking prices" on short sales are nowhere near what is owed and banks are not willing to let the homes go at that price until they actually foreclose. We had an offer on a short sale home for nearly a year. No word came from the bank the entire time. Then, they foreclosed and actually listed the home LOWER than our offer (this doesn't happen often, but it does occur). We assume that whoever works with the pre-foreclosures does not have the "power" to price like those who do after the home is foreclosed (most times it's in a different location, totally different people involved, etc.).

How do you know if it's a short sale?

If you see something in the MLS (or any ad) that says something like: "Even at full listing price, sale may be contingent upon third party approval" it is a short sale situation.

They look like the best deals to me; should I go for it?

The answer is: Yes ... or no ... it's totally up to you, but patience is a must! We actually limit the short sales in the home listings we email our clients because even though once in a great while they result in a good deal, mostly they are a waste of time and clients miss out on the best deals - the very best-priced private-seller homes and the actual foreclosures. But we do keep all the short sales on our "Foreclosure Watch List."

During the past year, we've found the vast majority of short sales do not work. Offers sit and sit for well over 6 months with no response from the banks. It wouldn't be so bad if the banks did something eventually, but time and time again most are foreclosed upon at some point and they re-list the home so we then put in another offer on the home. The good thing there is, we and the interested clients "kept watch" on the home so we're quick to go for the foreclosure - if it's priced right.

Most of the banks will list the home higher once it's foreclosed, but some will actually list lower (which seems completely silly, but it happens once in a while). We had clients with an offer on a lakefront short-sale home for eight months. The bank finally foreclosed (which cost the bank quite a bit of money). They also had to clean it up because it was vacant for about 18 months at that point (which cost more money) and they re-listed it for $30,000 less than our cash offer!

The trouble with short sales now is: As long as the agents have that "third party" disclaimer, they can pick any price for a home even if the bank won't even consider it. That doesn't mean the home won't someday be sold near that price, but, as we mention above, until it's foreclosed upon, employees at the bank don't seem to have the authority to lower the price all that much (there are exceptions, but we've found this to be the rule in the vast majority of cases).

Put in an offer ... or three!

One strategy people have used is to put in several offers on the best short-sale homes. Make the offers contingent upon a 7-day inspection period - which you can then cancel for any reason (it's at your absolute and sole discretion in contractual terms). Make any deposit due within 5 days of acceptance (which is when the second party agrees to and signs the contract) so no money is needed. This way, if more than one bank does accept your offer (which we have never seen), you can get out of any other offers with no loss of money and no problems.

It's up to YOU!

So, short sales can be a way to get a good deal (we’ve had a couple work out!), but we’ve found that - by far - the best priced private-seller deals and homes already foreclosed have provided the vast majority of the best deals since 2007. We are about as patient as real-estate agents get (if you've spent some time exploring our Website, you already know we're different than the vast majority of agents). We work hard to get our clients the best deals and provide a lot of information so they can do what's best for them.

Spring, 2009 UPDATE: The Well-Priced Foreclosures Are Selling

As of the end of January, 2009 there were 204 foreclosure & short-sale listings in Sebring & Lake Placid - but many have been gobbled up the past few months. There were 51 under contract then. This makes for a ratio of .25 active listings to listings under contract - a much better number than we've seen in a LONG time. Of course, there are 1559 total (non land-only) listings (most from private sellers) with 121 are under contract for a ratio of: .08 - DISMAL! Come on private sellers - you need to reduce.

(NOTE: This ratio is different than the overall trend ratio we also use - please don't get them confused.)

Look below to find a list of recent foreclosures, and you can also CLICK HERE to go to an automated search page - fill in the short form, and an email will be generated with homes that fit your search - it's a great, secure site and your email address will NOT be used for anything except the list of homes that will be sent. We'll email driving directions so you can swing by yourself, or we can show you as many as you want using our gas!

You can also call anytime. We'll provide you with the best deals on pre-foreclosure and foreclosure properties anywhere in Highlands county (and not just ones WE have listed but ANY). Call: 863-441-2986 or 863-465-9455 OR, TOLL FREE: 877-465-9455. We are also one of the very few area brokers registered & approved with HUD (the Federal government) to sell their foreclosures.

Important NOTE About Foreclosures: Just because a home is foreclosed, that doesn't necessarily make it a great deal, so buyers should be careful. Some banks are still being unrealistic - they gave people 100% financing when the market was at its peak and some still want more than the home is worth. Utilize professionals who understand the local market - we work hard to get our clients the best deals. Also, there are very few agents who list the bulk of the foreclosures, and many people come to us after feeling like the agent was not working in their best interest (we only list a few foreclosures - but we sell a LOT more).

In 2008, many short sales (pre foreclosures) were becoming more attractive - many banks would rather deal with a buyer BEFORE spending the time/money to foreclose. Unfortunately, though this seems logical, most banks - right now are being VERY foolish.

Here are just a FEW recent foreclosures/auctions we're tracking - CLICK HERE to email about any (include street name). We'll send you the full address and driving directions and lots of other information:

109 EASTER COURT 169,000 Lake Placid built in 2007

We have access to MANY more and some really great deals!

We also have a lot of experience working with investors with things like 1031 (like-kind) exchanges, holding real estate in IRAs and, of course, simply finding the best property at the best price.

Click Here if you're interested in purchasing a business or commercial property.

SEARCH LISTINGS - AND WE CAN HELP WITH ANY - FROM ALL BROKERS/REALTORS IN HIGHLANDS COUNTY (LAKE PLACID, SEBRING, ETC.)

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