The housing market and home prices remain fairly stagnant in South Florida. Many people are still under or at risk for foreclosure or are turning to short sales to avoid being forced into foreclosure. But consumers are now beginning to scoop up single-family homes and condos across the United States, and that trend is no different in south Florida Confidence in the housing market is starting to slowly come back even if home prices are not going up . A total of 151,290 bank-owned properties were sold in the second quarter of 2010, up 3 percent from the previous quarter but down from the second quarter of 2009. Bank-owned property sales were 15 percent of all property sales in the second quarter of 2010, down a little from the19 percent of all sales in the previous quarter and down from 20 percent in the second quarter of 2009. In Florida, 34 percent of all home sales are foreclosures or short sales. While there seems to be a slight drop in foreclosed homes and short sales from 2009, it is important to keep in mind the home buyers tax rebate that expired in 2009. Throughout 2010, purchases of homes were are the rise and should continue to do so in 2011.
So how does high foreclosure and short-sale rates help home buyers? It means big discounts on homes. Particularly in the current economic climate, banks do not want to foreclose if they can avoid it. Filing foreclosure costs the banks money, and then they have the responsibility of paying taxes on the property and selling it off. All that hassle can be avoided by short-sales. Short-sales occur when the current owner cannot make their mortgage payments and asks their lender to let them sell the home for less than they sill owe on the mortgage. If the bank agrees, it can mean really big discounts for buyers. At the same time, foreclosed homes are properties that have been repossessed by the bank. The only way for the bank to recoup some of its money is to sell the home, and it is usually sold at a deep discount, some times as much as 43 percent off.
If you are struggling to make your mortgage payments each month, contact a Miami foreclosure attorney to see if a short sale might help you avoid foreclosure. People are buying homes again, so a short sale might work for your situation. Only a Miami bankruptcy attorney can determine what your best option is.
Foreclosure Discount — 26% Nationwide, by Peter G. Miller, September 30th 2010