The troubled housing loan crisis seemed to begin with the weaker financial borrowers (i.e., sub prime loans). As the sluggish housing market continues, the distressed homeowner seems to fall in every financial category.
To illustrate, in the months after the crash of Lehman Brothers, most of the short sale listings in New York City were outside of the borough of Manhattan. The first step of the foreclosure process is to file a lis pendens. In 2008 there were 334 filings, 724 in 2009 and there have been 382 filed by the end of June 2010.
I am seeing similar trends in the South Florida market as well. The majority of the foreclosure actions are not in what I describe as the "prime" areas. However, there seem to be more short sale listings in the more desirable locations throughout South Florida.
For those seeking to sell their homes in a short sale process, it is best to list the home not too far below the fair market value, provide solid comparables and local market data as support and not submit lowball offers that will most likely waste the lender's time.
As a real estate professional with a Certified Distressed Property Expert and Realtor designation, I can list the home and provide the required back up information. Lenders require listing with a real estate agent for short sales and the homeowner generally does not pay any broker fees (these are most likely being picked up by the lender).
Buyers of short sales should be aware the process may take many months. Therefore, it is adviseable to put a clause in the contact that allows them to nullify the deal after a set amount of time in case the lender drag its heels on a decision.
The short sale process has requirements that need to be met in order for the homeowner to qualify. I have represented both buyers and sellers in regards to distressed properties. Please feel free to contact me for a free consultation.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
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