South Florida Realtors | South Florida Real Estate News
Based on information from the California Association of Realtors, the Federal Housing Finance Administration has advanced with their REO bulk sales pilot program. This is a program that has been kept under wraps due to economic conditions, the costs associated and the opinion of California congress.
The charge from the California Association of Realtors is only applicable to California but the Federal Housing Finance Administration has also provided massive amounts of properties for sale in the state of Florida.The FHFA offered 775 homes in Florida in which 418 homes were located in South Florida, 190 in Northwest/Central Florida and 167 homes in West Florida. All of these homes have intentions from buyers that will close on the homes within the next few upcoming weeks.
This issue has upset many Realtors in Florida and they have made their issues known to the National Association of Realtors. These realtors are unhappy with these conditions and have asked members of the National Association of Realtors to express their opinions on how these bulk sales from the Federal Housing Finance Administration impact the housing market in Florida.
The REO bulk sales pilot program is in effect for numerous cities throughout the United States but the complaint is geared towards 500 distressed properties in Inland Empire and Los Angeles owned by Fannie Mae that were sold to confidential investors.
The President of the California Association of Realtors has expressed his disappointment with both the Federal Housing Finance Administration and Fannie Mae. He believes that this program will not prove beneficial to the communities that Fannie Mae and the FHFA should eliminate the program.
The California Association of Realtors does not agree with the secrecy of the program and have stated their intentions to request the details from Fannie Mae and the FHFA via the Freedom of Information Act. Sources from both Fannie Mae and FHFA noted that winners of the auctions for these distressed properties have been selected and that contracts are expected to clear this quarter.
Fannie Mae purchased an LLC in the state of California by the name of SFR 2012-1 US West LLC with intentions of shifting the ownership of these distressed properties from Fannie Mae to SFR 2012-1 US West LLC. This now brings the issue of whether or not buyers will purchase full ownership of the properties or merely a portion, sharing ownership with the buyers.
The President of the California Association of Realtors is also wondering if the FHFA utilized dated information from 2011 in order to value properties. Since these properties are only now in the process of closing, the outdated market data could decrease the equity of homes in the Los Angeles and Inland Empire area. Some belive that Fannie Mae’s secrecy is due to the fact they they aren’t pricing these properties fairly and are leaving owners to deal with the deficit.
In March. the National Association of Realtors have expressed their issues to the Federal Reserve Board regarding sales of distressed properties to investors. The National Association of Realtors believes that the REO bulk sales program should only be offered to small regions in need of options other than single investors. The NAR suggests that experienced nonprofit firms, local corporations, and local government agencies should be sought after to assist with the application of this program.
Information from the California Association of Realtors notes that the homes in California are in markets that have balanced out over the last few years. There is a serious lack of inventory in the Inland Empire area has played a part in the increased demand. Distressed listings in the area have been known to sell in less than 1 month and the average length for unsold homes in the Inland Empire area is close to 6 months. This average is considerably lower and is ranked around 3 months in Riverside County and about 4 months in San Bernardino.
This information is pertinent to the FLorida State REO market. Fannie Mae will be doing these bulk sales in Florida. I believe the Florida Realtors and Greater Fort Lauderdale Real Estate Association will have similar views on this means of disposing of the foreclosure properties in our area.
With offices in Fort Lauderdale, Wilton Manors, Hillsboro Shores and Plantation, The Henri Frank Group at Remax Preferred seeks to keep their buyers, sellers and investors of South Florida real estate informed of the International, National, State and Local real estate market. Email firstname.lastname@example.org, call 954-604-9999 or go to their website at http://henrifrank.com.
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