Homes For Sale: Forclosure and Short Sales: New Legal Tactic to Help Homeowner and Condo Assoc; More Distressed Home Statistics

There is a new mortgage terminator strategy, which is a legal tactic that forces lenders (e.g., banks) to come current with homeowner association dues on distressed homes. The action is a "quiet title action" that requires a lender to prove it owns a property free and clear by foreclosing or giving up its lien.

According to the Community Associations Institute, more than 70% of bank owned houses and apartments are not making regular assessment payments to the boards that operate the properties.

Why would a lender not take title on a foreclosed home and leave it in a "short sale" situation? The answer is in many situations it makes more financial sense for the banks to let things lie. The new strategy will force banks to make a decision as to whether or not it makes sense to hand over title to the homeowners association or come current on fees. The new strategy has been sanctioned by three courts in Florida recently.

Non-payment of association dues puts a financial strain on the community. When not enough funds are collected to pay the bills related to the community, either residents take up the slack or the association reduces the amount of services it provides.

HOA assessment delinquencies doubled since 2005 from 19% of associations reporting delinquency rates of 5% or above, to 65% in 2010. In 2010, 30% of associations have delinquent assessments exceeding 10%. Moreover, 10% or almost 30,000 associations in the US have rates above 20% delinqencies in 2010.

With the new legal tactic in place, associations can take title and force the primary lien holder to initiate it own foreclosure proceeding or release its mortgage so the association can sell the unit to cover the fees owed. This will allow for better upkeep of the communities, help to stave off falling home prices and not place a bigger burden on homeowners who are current with association dues.

I think it is very important for buyers and sellers to understand what is happening in the local markets. As this post discussed, it is important to understand what is happening in individual communities.

As a local Relator, I am aware of what is happening in many of the communities. If you are thinking of selling or buying a home, please feel free to contact me.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

October 2010 Real Estate Sales Information for Florida (Condo and Single Family Homes)

Is the Florida real estate market beginning to show signs of a bottom?

The October 2010 year-to-date unit price per unit sold for single family homes was up 7% over the previous year, according to housing data recently released by the Florida Realtors. In addition, condominium unit sales were reported to be up 33% over the previous year during year-to-date October 2010.

However, when looking at a year-over-year comparison of October 2010 housing results in Florida, the market does not seem to be trending in the same direction.

The statewide existing median condo sales price of $82,400 in October 2010 was 22% below October 2009; unit sales were also down 5% during the same timeframe. The median existing single family home price fell 3% to $136,600 in October 2010, versus October 2009; the number of units sold decreased 21% on a year-over-year basis in October 2010.

What does this all mean-- I think we are still looking at an uncertain housing market in Florida. Buyers still seem to be anxious about the economy and sellers are somewhat hamstrung by the declining home prices.

If you are buying or selling a home, please feel free to contact me.

I have provided a link to a property search engine where you can find and view listings. Contact me for more details on those listings and/or information in the area.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

Bargain Hunting For Condos In South Florida? You Might Be In Luck

The South Florida condominium market may be ripe for investors given the current conditions of the market. The large number of foreclosures should be advantageous to those looking to invest in the South Florida market.

As we discussed in a previous article, there are new Acts in place to help the large scale investors. However, there are still deals for smaller investors and homebuyers looking for a favorable price.

Median condo prices fell as follows:

Broward County: 14% year-over-year slide in August 2010 to $73,000

Palm Beach County: 24% year-over-year decrease in August 2010 to $84,900.

Where do we go from here?

Some analysts expect prices to fall another 5% to 10% before reaching a stage of price stabilization. These analysts believe it will take a year or more before prices increase consistently.

Individual markets and submarkets are important to follow when you are looking to buy or sell a home. A person who understands these markets is very important when taking on a big decision, such as buying or selling a home.

If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

Florida's Existing Condo Sales Rise In July 2010

Housing sales in July 2010 plunged 25.5% from the year-ago level. The volume of single family home sales in the United States declined to the lowest level since 1995. No particular region of the U.S. was immune as the Northeast dropped 30%, the Midwest was down 33%, the West was off 23% and the South was down 20%.

Nonetheless there are some areas of activity. The data released by the Florida Realtors showed sales of existing condominiums in Florida rose by 11% in July 2010 over July 2009. The increase in sales did come at a reduced price. The median sales price of condominiums in July 2010 was 20% lower than the $108,500 in July 2009.

As the Florida condominium sales data indicates, there is still real estate sales activity throughout the state. The combination of mortgage rates being at the lowest levels in a very long time and steep price declines in many areas, makes real estate affordability in the state of Florida at the highest level in decades. Those buyers who can afford to purchase a home, now is a good time.

Please feel free to contact me for all of your real estate needs in South Florida.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

New Act Expected To Help Bulk Distressed Condominium Buyers in Florida

The large amounts of housing inventory needs to be reduced in order to prices for begin rising, in my opinion. The increased number of distressed properties has been a major reason for the enlarged inventory of properties. Investors with large amounts of pooled funds can help balance the housing inventory level back towards a normal equilibrium.


The Distressed Condominium Relief Act that took effect on July 1, 2010 should help increase the number of sold distressed condominiums throughout Florida. The new Act is primarily focused on condominium investors, as it pertains to bulk condominium buyers, which is defined as seven or more units within the same condominium project.


Below are some of the features of the new Act:



- Condominium purchasers as defined by the Act will no longer assume liabilities of the original developer. For those buyers who qualify, there is no need to set aside reserves for potential litigation.


- The new Act makes foreclosing lenders liable for 12 months of delinquent association fees when they take possession of the condominium; previously the lender was only responsible for six months.



- Condominium Associations will also be able to collect rent revenue from tenants where owners are not paying association fees. In addition, delinquent home owners could have their use of common area suspended subject to notice and a hearing.


The new Act should help both buyers and sellers. Despite the expectation of slightly increased prices due to the elimination of potential litigation reserves, buyers still have the opportunity to purchase condos at historically low prices. Current owners should get help with the burdens of association fees through the added collection of fees. This should allow for better up keep and improve pricing.


I am and working with and have worked with investors in the past. My Certified Distressed Property Expert (CDPE) designation should help in the buying and selling process. Those seeking to buy or sell bulk distressed condominiums please feel free to contact me.


Michael Friedman

Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty

561-989-2100