January 15,2010
WASHINGTON - In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan today announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. The announcement is part of the Obama administration commitment to addressing foreclosure. Just yesterday, Secretary Donovan announced $2 billion in Neighborhood Stabilization Program grants to local communities and nonprofit housing developers to combat the effects of vacant and abandoned homes.
"As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers," said Donovan. "FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization."
With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.
"This change in policy is temporary and will have very strict conditions and guidelines to assure that predatory practices are not allowed," Donovan said.
In today's market, FHA research finds that acquiring, rehabilitating and the reselling these properties to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time.
The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.
"FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties," said FHA Commissioner David H. Stevens. "This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity."
The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of "flipping" where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:
Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD's website.
For more information, or if you are interested in purchasing a HUD or other REO Foreclosure property in the Central Florida area, contact Joe Bornstein, Broker/Owner, Rock Springs Realty, Apopka, Florida, Ph# 877-333-2811, joe@rockspringsrealty.net, or visit our website for more information, www.rockspringsrealty.net
On January 12, 2010, the MFRMLS (My Florida Regional MLS) which covers most of the Central Florida area released the December 2009 Real Estate Sales & Inventory Report for the Orlando Regional Area (ORRA). The numbers look quite positive and we will have to see if this is the start of a significant turn in the market.
The number of home sales that closed in the month of December decreased slightly to 2,272 units. This brings the year’s total to 23,705, while a total of only 14,880 homes had changed hands by this time last year. Of those December sales, 67.37% percent of the homes were either bank-owned (44%) or short sales (23%). The remaining “normal” sales made up 32.63% percent. While inventory is slowly being absorbed, there still is over 16,500 active homes available in the marketplace. MFRMLS currently shows a 7.3 month supply of inventory or (8,163) units. But in my opinion these numbers are significantly distorted due to the large number of pending short sales which will most likely reenter the active inventory, or end up in foreclosure.
The current average list price of a home has increased 6.8% from November to December, but is still down 20.4% from December '08 to December '09.
In regards to the average sale price of a home in the Orlando Region, we saw a modest increase of 5.7% from November '09 to December '09. This is a very positive indicator. But, over the last 12 months, values have still declined 19.6%, or approximately 1.63% per month. On a $200,000.00 property, this means a home has lost about $3,2600.00 per month in value. Also consider the dynamic between Sellers and Buyers during the negotiating process. As of January '09, Buyers were negotiating an average of 7% off the asking price. As of the end of December '09, that number had dropped to 6%, most likely meaning Sellers are getting much more realistic about the listing price of their homes.
The number #1 selling price range in the Orlando Region is still the $1.00-$49,900.00 range making up over 15.8% of the yearly sale. In this category year-to-date, there has been over 3,764 homes sold. Furthermore, the $0.00-$100,00.00 range accounted for 37.01% of the sales, while the $100,000-$200,000.00 range accounted for 38.67%. Lastly, the $200,001-$300,000.00 range accounted for another 15.01% of sales. Collectively year-to-date, the $0-$300K range made up almost 91% of all sales in the area.
Where is the market heading from here? It's anyones guess. But analyst are predicting significant turmoil in the Commercial sector which is likely to add increased pressure across the board. The biggest challenge is still in the residential lending markets. Until we see a thawing in the credit markets, its unlikely we will see the surplus of inventory get absorbed, thus allowing prices to stabilize and recover.
If you would like a full copy of the Orlando Regional Sale & Inventory Report, please email joe@rockspringsrealty.net and we will email you a copy at no charge or obligation.
Rock Springs Realty is a full-service Real Estate Brokerage working with Buyer, Seller, and Investors throughout the Central Florida Area. We cover all areas of Lake, Sumter, Orange, Seminole, Osceola, and Volusia Counties. Our sales staff has extensive experience Buying and Selling REO (Bank Owned Foreclosures) properties and welcomes the opportunity to discuss your real estate needs. You can reach us toll free at (877) 333-2811 or on the web at www.rockspringsrealty.net
P.S. - If you would like a free list of bank-owned foreclosure properties in your area, please contact us at the toll free number and we will forward a detailed list with no obligation.
Best Regards,Joe Bornstein, Broker/OwnerRock Springs Realty, LLC3780 Rochelle LaneApopka, FL 32712
On January 12, 2010, the MFRMLS (My Florida Regional MLS) which covers most of the Central Florida Region released the December 2009 Real Estate Sales & Inventory Report for the Lake & Sumter County areas. While the numbers are basically flat from November, there are some positive signs which seem to indicate that home values may be beginning to leveling off. We've seen another increase in the number of homes that have sold from Nov-Dec '09 with an increase of 5.6%, or 335 total units closed in the month of December. In finding somewhat of a bright spot, this represents a 30% increase from a year ago (Dec'08). While inventory is being absorbed, there still is almost 4,800 active home listings on the market. MFRMLS currently shows a 14.3 month supply of inventory, but these numbers are significantly distorted due to the amount of pending short sales which will most likely reenter the active inventory, or end up in foreclosure. It is estimated that somewhere between 50%-70% of the current active inventory is in some form of distress.
The current average list price of a home is showing positive signs by increasing 3.84% from November to December. Whether this is a one month blip or the beginning of a trend, we will have to wait and see over the next few month. During the last 12 months from Dec'08 - Dec'09, the average list price is still down 12.4%.
In regards to the average sale price of a home in Lake & Sumter County, we saw a slight decline just less than 1% (.008) from November to December. In comparing December '08 to December '09, the decline has been over 13.7%, or approximately 1.14% per month. On a $150,000.00 property, this means the average home is losing about $1,710.00.00 per month in value. Also consider the dynamics between Sellers and Buyers during the negotiating process. As of January '09, Buyers were negotiating on average 8% off the asking price. During the year, we have seen this number decrease to as little as 6% offering the assumption that Sellers were listing their property closer to market value, and Buyers were being much more realistic as to what they would pay for a home. As of the end of December '09, that number had increased to 8%, most likely meaning Sellers are negotiating more off their list price to get a transaction under contract. It's hard to predict where the market goes from here, but I'm skeptical that we've not seen the bottom yet or a leveling off of home values.
The number #1 selling price range has shifted downward in Lake & Sumter Counties to the $100,000-$119,999.00 range and makes up almost 12.9% of the yearly sale. Furthermore, the $0.00-$100,00.00 range accounted for 30.63% of the sales, while the $100,000-$160,000.00 range accounted for 37.15%. Collectively, the $0-$160K range makes up over 67% of all sales in the area. This should come as no surprise as first-time homebuyers and step-up Buyers will still be able to take advantage of the updated federal tax credit passed last month.
If you would like a full copy of the Lake & Sumter Counties Sale & Inventory Report, please email joe@rockspringsrealty.net and we will email you a copy at no charge or obligation.
Rock Springs Realty is a full-service Real Estate Brokerage working with Buyer, Seller, and Investors throughout the Central Florida Area. We cover all areas of Lake, Sumter, Orange, Seminole, Osceola, and Volusia Counties. Our sales staff has extensive experience in Buying & Selling REO (Bank Owned Foreclosures) properties and welcomes the opportunity to discuss your real estate needs. You can reach us toll free at (877) 333-2811 or on the web at www.rockspringsrealty.net
December 28, 2009
As reported in the Orlando Sentinel on December 28, 2009, Florida Supreme Court Chief Justice Peggy Quince ordered judges statewide Monday to starting sending foreclosure cases to a new "managed mediation" program in which financially strapped homeowners can try to negotiate a way out of losing their homes. Currently, Florida is facing one of the worst foreclosure crises in the nation,
To date, Florida's court system expects to have nearly a half million homeowners in foreclosure proceedings as of the beginning of 2010, flooding court dockets statewide. Quince noted in her administrative order that "the crisis continues unabated."
The Court's Task Force on Residential Mortgage Foreclosure Cases recommended earlier this year that the state adopt a uniform managed mediation program to deal with the deluge of cases clogging Florida courts. Proposed under the program, all residential-foreclosure cases involving homestead owners would be referred to mediation, unless the plaintiff and borrower agree otherwise or have already gone through pre-lawsuit mediation.
"Referral of the borrower to foreclosure counseling prior to mediation, early electronic exchange of borrower and lender information prior to mediation, and the ability of a plaintiff's representative to appear at mediation by telephone are all features of the model administrative order," Chief Justice Quince wrote.
Florida's high court balked at some of the costlier measures recommended by its experts, such as setting up a Web-based system for mediators to exchange documents, because of budget constraints. Court mediation would need to occur within two to four months after a mortgage case is filed in court, and only nonprofit, court-certified mortgage managers would be allowed to handle cases. The entire article can be read at www.orlandosentinel.com
For more information on purchasing a bank-owned foreclosure, or if you're in need to selling your home prior to foreclosure, contact Rock Springs Realty, Apopka, FL at 877-333-2811 or visit us at www.rockspringsealy.net
Rock Springs Realty, Apopka, FL is proud to announce today that it had successfully closed a short sale transaction in Clermont, FL in only 56 days.
According to Joe Bornstein, Broker/Owner of Rock Springs Realty, getting this transaction closed so quickly is really amazing in the current real estate environment. We listed this beautiful 1,723s/f, 3-bed, 2-bath, lakefront home in Clermont, FL on October 28, 2009. With only one lender involved (Litton Loan Servicing), we were able to negotiate with the lender and get the short sale package processed through the loss mitigation department and approved in only 21 days. From there, we worked with the Buyer's lender and closed the deal on December 23, 2009 for a total listing-to-close timeframe of only 56 days.
Needless to say, the Seller and the Buyer were extremely pleased. With most short sales taking between 60-150 days just to get a response from the lender, closing a short sales this quickly takes experience, knowledge, patience, and good communication skills. As a Certified Short Sale Professional (CSP), Bornstein also stated that you must understand how the system works and submit the initial short sale package with every "I" dotted and "T" crossed. From there, you must be able to effectively communicate with all levels within the loss mitigation department. Once an approval is achieved, it's generally smooth sailing from there.
If you are someone you know is in pre-foreclosure and would like to explore your short sale options, please contact Rock Springs Realty for a no-obligation consultation.
Rock Springs Realty is a full-service Real Estate Brokerage working with Buyer, Seller, and Investors throughout the Central Florida Area. We cover all areas of Lake, Sumter, Orange, Seminole, Osceola, and Volusia Counties. Our sales staff has extensive experience Buying & Selling REO (Bank Owned Foreclosures) properties and short sales. We welcome the opportunity to discuss your real estate needs. You can reach us toll free at (877) 333-2811 or on the web at www.rockspringsrealty.net
On December 10, 2009, the MFRMLS (My Florida Regional MLS) which covers most of the Central Florida Region released the November 2009 Real Estate Sales & Inventory Report for the Lake and Sumter County areas. While the numbers are basically flat from September, there are a few indicators which seem to support that the we have not seen the bottom of this market yet. While we had seen a three month upward trend from Aug-Oct '09 on the number of home sales that closed, it looks like the market has finally turned downward with a decline of 8.5%, or only 312 units sold in the month of November. In finding somewhat of a bright spot, we have seen an increase of 34% from November 2008 in the number of homes that have sold. While inventory is being absorbed, there still is over 4,800 active home listings on the market. While MFRMLS currently shows a 15.6 month supply of inventory, these numbers are significantly distorted due to the amount of pending short sales (1102) which will most likely reenter the active inventory, or end up in foreclosure. It is estimated that somewhere between 50%-70% of the current active inventory is in some form of distress.
The current average list price of a home has fallen another 4% from October to November, and is still down 18.6% from Oct'08 - Oct'09.
In regards to the average sale price of a home in Lake & Sumter County, we saw a decline a little more than 2.2% from October to November. In comparing November '08 to November '09, the decline has been over 15.7%, or approximately 1.3% per month. On a $150,000.00 property, this means your home is losing about $1,950.00.00 per month in value. Also consider the dynamic between Sellers and Buyers during the negotiating process. As of January '09, Buyers were negotiating on average 8% off the asking price. During the year, we have seen this number decrease to as little as 6% offering the assumption that Sellers were listing their property closer to market value, and Buyers were being much more realistic as to what they would pay for a home in the current environment. As of the end of November '09, that number remains at 6%. It's hard to predict where the market goes from here, but I'm skeptical that we've seen the bottom or a leveling off of home values.
The number #1 selling price range has shifted upward in Lake & Sumter Counties to the $120,000-$139,999.00 range and making up almost 12.5% of the yearly sale. Furthermore, the $0.00-$100,00.00 range accounted for 29.97% of the sales, while the $100,000-$160,000.00 range accounted for 37.48%. Collectively, the $0-$160K range makes up over 67% of all sales in the area. This should come as no surprise as first-time homebuyers and step-up Buyers will still be able to take advantage of the updated federal tax credit passed last month.
On December 10, 2009, the MFRMLS (My Florida Regional MLS) which covers most of the Central Florida Region released the November 2009 Real Estate Sales & Inventory Report for the Orlando Regional Area (ORRA). It looks like the small increase we saw from Sep.-Oct. 2009 was taken back by the market, and appears to be just a one month anomaly.
The number of home sales that closed in the month of November decreased slightly to 2,238 units. This brings the year’s total to 21,420, while a total of only 13,435 homes had changed hands by this time last year. Of those November sales, 63.45 percent of the homes were either bank-owned (43%) or short sales (21%). The remaining “normal” sales made up 36.53 percent. While inventory is slowly being absorbed, there still is over 16,000 active homes available in the marketplace. MFRMLS currently shows a 7.5 month supply of inventory, but in my opinion these numbers are significantly distorted due to the number of pending short sales (5,761) which will most likely reenter the active inventory, or end up in foreclosure.
The current average list price of a home has decreased 5.4% from October to November, but is still down 28% from November '08 to November '09.
In regards to the average sale price of a home in the Orlando Region, we saw a modest decrease of 4.8% from October '09 to November '09. Over the last 12 months, values have declined 26%, or approximately 2.16% per month. On a $200,000.00 property, this means your home has lost about $4,320.00 per month in value. Also consider the dynamic between Sellers and Buyers during the negotiating process. As of January '09, Buyers were negotiating on average 7% off the asking price. As of November '09, that number had dropped to 5%, most likely meaning Sellers are getting much more realistic about the listing price of their homes.
The number #1 selling price range in the Orlando Region is still the $1.00-$49,900.00 range making up over 15.5% of the yearly sale. In this category year-to-date, there has been over 3,339 homes sold. Furthermore, the $0.00-$100,00.00 range accounted for 36.61% of the sales, while the $100,000-$200,000.00 range accounted for 38.97%. Lastly, the $200,001-$300,000.00 range accounted for another 15.28% of sales. Collectively year-to-date, the $0-$300K range made up almost 91% of all sales in the area.
These helpful tips are brought to you by Rock Springs Realty in Apopka, FLorida. As one of Central Florida's leading Real Estate Brokerages, we offer all forms of Residential, Commercial, and Investment Real Estate services. Our staff is dedicated to providing our clients with the finest customer service available in the industry today. Visit our corporate website at www.rockspringsrealty.net
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