Miami Short Sales Expected to Increase in 2013

The number of filings for foreclosures has risen dramatically in recent months but this trend is not expected to continue in 2013. DBRS (Dominion Bond Rating Service) expects that foreclosures will decrease dramatically next year in part as a result of the sharp rise in the number of short sales. This shift was evident as early as the first quarter of 2012 as the number of foreclosures reported for the January to March time frame were 36.7% less than a year ago but short sales showed a notable increase of 19.7%. The second quarter of this year revealed similar results.

Preliminary projections based upon these statistics indicate a possible 138,000 completed short sales in the second half of 2012 as well. Due to the fact that short sales are a highly effective means of lowering the severity of loss to mortgage lenders and banks for distressed properties, DBRS expects that more lenders will be increasingly responsive to short sale bids in 2013. Based upon this prediction, it is assumed that foreclosures will continue to decline next year as short sales continue to be the solution of choice for Miami homeowners and banks alike.

 

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Miami Home Prices Rise as Foreclosures Fall

Nationwide the average price of existing homes was 9.5% higher this August than it was the same month of last year.

At the same time new home prices have increased 17% as well. Some economists feel that the marked decrease in foreclosures is one of the reasons for increasing home prices. Continue reading

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Finding the Right Miami Short Sale Agent is More Important than Ever Before

According to industry experts fraud is on the rise and they warn that agents and brokers need to be aware of the latest scams.

One of the more popular schemes is when the real estate agent intentionally tries to obtain the lowest possible sell price from the lender to a “prearranged” buyer and then “flips” the house as quickly as possible, selling it for more money and profiting from the difference. This is referred to as the “flopping” scheme but there are many others used by unscrupulous persons looking to make a quick buck. Continue reading

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U.S. Short Sales Hit the Million Mark

HOPE NOW, the voluntary, private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors, reported that they are using short sales as a means to help distressed homeowners at a rate of 3 to 1 as compared to HAMP loan modifications. In August alone there were 39,559 completed short sales and more than 1 million since December 2009.

Faith Schwartz, Executive Director of HOPE said, “The cumulative efforts of many different parties have made a significant difference in preventing foreclosures where possible. The increase of short sales has been significant and, for the first month since reporting on short sales, we estimate a high of 39,559. Short sales provide another tool to avoid the high cost of foreclosure for families, communities and investors. We are seeing improvement across the board in ‘serious delinquencies’, currently at 2.42 million homeowners.  While this is almost 40% lower than the all-time high of 4 million homeowners seriously past due on their mortgage, we cannot forget there are many more who remain at risk of foreclosure.”

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Miami Banks and Short Sales – New Best Friends?

There was a time that short sales in Miami were rare but that time is long gone. Did you know there are actually more short sales today than foreclosed homes that have actually been resold?

Well, banks are definitely aware of this statistic and as a result the number of short sales is expected to increase in the future. One of the reasons is that it is better for banks and lenders to accept less money now than to foreclose on a home and keep it in their portfolio for years. Some Miami banks are now offering cash incentives to distressed homeowners to execute the short sale of their home; better for the bank and often better for the homeowner as well. Continue reading

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FBI Makes Big Progress in Battle Against Illegal Mortgage Schemes

Federal authorities have charged 530 people with the alleged fraud of more than 73,000 home owners as part of an ongoing crackdown of illegal mortgage schemes by the FBI. The involved parties made false promises to distressed homeowners promising to keep their homes from going into foreclosure. Some homeowners were told investors would purchase their existing mortgage or renegotiate the terms of their loan in return for a hefty fee.

Currently there are 285 pending criminal cases representing more than $1 billion in losses to distressed homeowners as a result of these scams.  According to Kevin Perkins, associate director of the FBI, “Distressed-homeowner schemes have displaced loan-origination fraud as the most common type of mortgage fraud in many areas in the country”. Today nearly 20% of the criminal cases involving foreclosure schemes are directly related to mortgage fraud as compared to only 4% two years ago.

For more information, please visit http://realtormag.realtor.org/daily-news/2012/10/10/530-charged-for-scamming-home-owners?om_rid=AABn5r&om_mid=_BQdZubB8uhEiCj&om_ntype=RMODaily

 

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$20,000 Relocation Assistance to Miami Short Sale Homeowners!

You heard right, Bank of America is now offering up to $20,000 to assist the owners of short sale properties with the expenses incurred to relocate to a new home. The actual amount provided will be different for each homeowner depending upon their unique circumstances, the amount owed on the loan and the current value of the distressed property.

Bank of America requires that you acquire a preapproved sales price before submitting an offer to the bank and the short sale must be started before the end of 2012 and close no later than September 26, 2013. Even if the short sale of your Miami home is already in progress you may still qualify for this offer as long as you have not closed yet. This offer is only being offered on mortgages that are owned and managed by Bank of America.  “Contact us today to see if your short sale qualifies.”

Maggie Dokic REALTOR®,CDPE®,SFR                                                                                         Cell: 305.81.HOUSE                                                                       Maggie@SpecialMiamiHomes.com

 

 

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With All of the Recent Changes, Are Short Sales Still a Good Idea?

We’ve all heard about it, so many changes in the rules concerning the short sale process. It seems like every other day there is a new regulation being developed or an old one about to become obsolete. There’s no mystery as to why people are confused.

Here is something to keep in mind if you are considering the short sale of your home. Yes, there have been a lot of changes, but most of them are to the advantage of the seller! The most recent development is the increased interest in banks to approve a short sale. The process has become more streamlined and it is often better for the bank to accept less than the actual amount of the loan than to simply have a home sitting and vacant. Simple math, something is better than nothing.

Is a short sale good for you? There are many factors to be considered and speaking to a qualified professional (such as a real estate agent that specializes in this area) is a good idea but here is some advice to consider. Overall, it is still a good idea to consider a short sale if you are in a specific situation. Everyone knows that the market value of the majority of homes has dropped. If you are in financial stress and need to get out of your current situation, a short sale may not only be a good idea, it may be the only one.

 

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Banks Begin to Promote Short Sales to Miami Homeowners!

There have been a lot of changes in the rules when it comes to short sales. As you probably already know, short sales have become more and more popular as an option for those of us that need a better alternative than a foreclosure. But were you aware that banks are beginning to appreciate this option more than ever before?

I am an avid on line banker and I noticed something recently that I had not seen before. My bank is actively marketing short sales to its customers on line! There it was right in front of my eyes, an entire page dedicated to short sales and complete with additional links for “How to Get Started”, “FAQ”, “Next Steps”, the works!

It seems to me that the financial institutions are more aware than ever that many times a short sale is the proper choice. This is great news for anyone interested in the short sale of their Miami home!

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Short Sale Helps Delray Beach Florida Homeowner

Alexandra Burns, a 32 year old day care provider and her 4 children are now moving into a rental after the successful short sale of her home. She was 10 months behind in her mortgage and stated that there was no other solution. Burns was quite pleased with the quick closing and said “I was behind on my payments. I have four kids, I’m a single mother, it’s hard”.

Luckily, Alexandra was able to qualify for a federal program that enabled to forgive her of some of her debt and even provided her with $3,000 in the short sale. Many realtors would agree that this is a much better alternative than just having homes sit vacant. Certainly, Alexandra Burns would agree.

 

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