A look at Florida Short Sale Statistics and how a short sale attorney can help you achieve better results
Florida and Nevada still top the nation for having the largest percentage of homes underwater.
In Florida, home sales are rebounding slightly, up roughly 9 percent in the past year.
St. Petersburg recorded the most home sales of all cities in Pinellas County.
And according to recent July 2013 statistics from RealtyTrac, Florida had the second highest percentage of short sales in the nation, with the number gradually increasing since 2012.
However, with the real estate market slightly rebounding, and the number of home sales on the rise, the nation has seen the number of short sales slowly begin to decline.
Near the end of 2012, short sales accounted for nearly 23 percent of Florida's residential sales. But a year later, that number has dropped to 14 percent. Daren Blomquist, vice president of RealtyTrac confirms that the numbers represented in Florida mirror the national trend as well.
"After a surge in short sales in late 2011 and early 2012, the favored disposition method for distressed properties is shifting back toward the more traditional foreclosure auction sales and bank-owned sales," Blomquist said. "The combination of rapidly rising home prices — along with strong demand from institutional investors and other cash buyers able to buy at the public foreclosure auction or an as-is REO home — means short sales are becoming less favorable for lenders."
As home prices continue to rise, the number of short sales will more than likely continue to drop. Across the nation, the number of short sales went from 11.2% in October 2012 to just 5.3% a year later.
As of 2014, Florida still ranks 2nd in the nation for the most short sales annually.
Short sales are still a very common choice for many homeowners who are underwater on their mortgage. And we're finding that the banks have been increasingly willing to accept short sales over the years. One of the factors in Florida that may be helping to achieve high short sale numbers could be the fact that Florida also comes in way ahead of the national average for the percentage of cash home sales.
These cash home sales aren't making it easy for would-be first time home buyers trying to qualify for a mortgage, especially with the tighter lending rules and restrictions put in place after the housing crisis.
Most of these cash sales can be attributed to investors, many from out of state, who have been able to acquire some of the properties on the market at discounts of up to 30% off versus the rates for those who secure lending to purchase the same property. These investors are scooping up properties, investing in the repairs, then often putting the properties back up for rent or flipping them altogether.
How do cash sales in the housing market put me at risk when doing a short sale?
Cash sales are one of many reasons why it is important to hire a skilled foreclosure defense attorney to represent you throughout the entire short sale process. While cash sales are enticing for the lender for a quick settlement, cash sales are often offered by investors with expectation of a substantial discount.
Losing money on a home is a common issue many people have faced, often times through no fault of their own. You shouldn't have to take the risk of losing any extra additional value when it comes to your short sale and the purchase price. Without an attorney, the lender may pressure you into taking a lower offer than necessary.
Having a lawyer represent your interests will ensure that proper and thorough negotiations between the lender and the best potential buyers takes place. And here at Fernandez Law Group, we provide a number of additional short sale services, such as getting your listing properly submitted with a realtor and associated networks. We also perform a comparative market analysis to help maximize the fair market value of your property. If you are at risk for deficiency upon completion of sale, we can help mitigate the loss or see if you qualify for HAFA, in which you would avoid any deficiencies.
The number of cash sale real estate transactions in Florida is declining
This is good news for would-be short sale candidates. With home prices on the rise, investors are being forced out of the equation as cash deals have dropped to just 40% of total sales - down from nearly 69% at one point. In Tampa Bay, the number of traditional mortgaged home sales is slightly higher than it was in 2012 as well.
The rise in home prices is creating equity and helping homeowners get out from underwater.
With the rise in home prices, we're also seeing a shift in options for many of our clients.
Those who were once in a better position to qualify for a short sale may actually now be better qualified for loan modifications instead, as homeowners are slowly gaining more equity and becoming less underwater.
At the end of 2012, nearly 45% of Florida homes were underwater, and that has now dropped down to 30% according to data from CoreLogic.
How does Fernandez Law Group protect my interests during a short sale?
- We conduct a detailed evaluation of your particular situation during the application process, and assist you in gathering all information required for your case.
- We perform a comparative market analysis to determine the approximate fair market value of your property in the current market and determine what, if any amount of deficiency would remain upon completion of the short sale.
- We contract a realtor in your area and submit your property for listing immediately.
- We manage offers between the homeowner, real estate agent, and lender.
- We handle all negotiations and documentation with your lender(s) to obtain approval for the short sale and options for minimizing residual deficiency liability.
- We provide title insurance for your short sale and conduct closing.
Call us today at 813-489-3222 for a FREE consultation.
Additional Foreclosure Defense Information:
Additional information about Loan Modifications:
Additional information on Short Sales:
Content authored by Gaston Fernandez
Our Tampa Attorneys are ready to provide you with a detailed consultation for FREE!
GET HELP NOW!
Call us today at 813-489-3222 for a FREE consultation and case evaluation.