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Henri Frank Group at RE/MAX Preferred – Fort Lauderdale Realtors
Short Sales vs Foreclosure
The Henri Frank Group at RE/MAX Preferred have been successfully getting properties in South Florida sold through a short sale. Learn more about the short sale, the process of a short sale and the experience that the Henri Frank Group has completing short sales for homeowners throughout the region. https://henrifrank.com/short-sales.php
Located in Fort Lauderdale, Plantation, Hillsboro Shores, Wilton Manors. Serving Miami Beach, Boca Raton, Pompano and all of the region of South Florida.
Lenders are leaning more towards the short sale versus the foreclosure. Therefore more borrowers in Florida are choosing the option of short selling their properties and not having to default on their mortgages. This is a drastic change from the times when this option wasn’t as readily available and desperate homeowners simply stopped making payments. According to a new scope introduced by RealtyTrac, 29% of all Florida home sales throughout end of summer and early fall seasons were short sales completed before the homeowner reached the foreclosure stage. This growth represents an increase of 32% over the last 12 months.
In Miami-Dade County, Palm Beach County, and Broward County, 21% of home sales were from property owners that were not yet in the foreclosure stage but still owed more to their lenders than the worth of the home. This is a 49% increase compared to 12 months prior. In the South Florida region, the balance between unpaid mortgage and the sales price was a median of $106,712.
Vice President of RealtyTrac, Daren Blomquist stated that these findings are proof a new trend that demonstrates current federal changes that can be classified as financial troubles and efforts to reduce the short sale process. Its also been mentioned that lenders are more apprehensive to start the foreclosure process as they want more than anything to skip the months in court required to finalize a foreclosure.
RealtyTrac’s Vice President also said they’d witnessed more short sales occurring in non-foreclosure properties. The short sale process is when a lender sells the home for less than the mortgage balance of the current owners. The new federal regulation modifications only apply to mortgage loans endorsed by Freddie Mac and Fannie Mae. These changes were announced during the summer of 2012 and were not active until November 1, 2012.
These new guidelines indicate that borrowers that are current on their mortgage loans but have experienced a financial issues such as death, divorce or loss of employment which causes them to relocate more than 50 miles from their home may be eligible for a short sale by their lender without having to get approval from Freddie Mac or Fannie Mae. Lenders all across the nation have been attempting to respond to the amount of foreclosures by any means necessary.
In Palm Beach County, roughly 28% of all homes purchased throughout the third quarter of 2012 were at some degree of foreclosure. Based on data from a recent analysis released from RealtyTrac, the majority of homes sold in Palm Beach County during the third quarter were short sales instead of the typical bank-owned homes. Distressed sales or short sales increased 12% compared to last year and 28% in comparison to calculations from the second quarter of 2012.
This notable increase was probably brought on by the National Mortgage Settlement and the then potential elimination of the Mortgage Forgiveness Debt Relief Act. Our group, the Henri Frank Group of RE/MAX Preferred in South Florida had over one dozen pending short salesthat we closed before the year’s end since we were unsure whether or not the Mortgage Forgiveness Debt Relief Act ended.
We were pretty certain Congress would extend the Mortgage Forgiveness Debt Relief Act which was important to homeowners needing to short sale. The amount of distressed short sales have surpassed the number of bank-owned sales, growing 22% over the last 12 months and made up 10% of all home sales in the 3rd quarter of 2012. Over 63% or $2.2 billion of Florida’s portion of the Mortgage Forgiveness Act settlement has come from deficiency waivers for short sales. Roughly 60% of the debts pardoned were via short-sale deficiency waivers.
If you are searching for a Realtor who has the experience and the knowledge to short sale your property, contact the Henri Frank Group at RE/MAX Preferred. Together with the law office of Nugent and Ground, the team of experts that we’ve assembled can help you. For a FREE consultation, contact the Henri Frank Group either by calling us at 954-604-9999, emailing us at firstname.lastname@example.org or going to our website and completing the Contact Form. https://henrifrank.com
The Henri Frank Group at RE/MAX Preferred is located in Fort Lauderdale, Hillsboro Shores, Plantation and Wilton Manors, Florida. Meet the Henri Frank Group, click here: https://henrifrank.com/Henri-Frank-Group.php