The Real Estate Professional

While the current recession languishes on, some states are suffering from a huge backlog of foreclosures in the process and large numbers of foreclosed homes on the market. Florida is one such state, having the third highest mortgage payment delinquency rate behind both the sunshine state of California and the silver state of Nevada.

Florida’s foreclosure rate for 2009 was up by 29% over the previous year, which was in itself up over 100% from the previous year. There are almost half a million pending foreclosures in Florida currently and the court system is clogged with them.

The Supreme Court of Florida has recently issued an order which will require foreclosures to go through a managed mediation process that will help to alleviate the pressures on the court system and provide some solutions to many home owners.

When managed mediation is ordered the program is paid for by the complainant, up to approximately $750. The success rate for cases that go to mediation is around 75%; a successful mediation is generally one that results in a mortgage modification. Mediation is helping to settle many cases, many within 3 months, clearing up the bottle neck that’s become such a problem in the court system.

Until such time as the waves of foreclosures that have swamped the Florida market subside though, there will be many foreclosure properties available in the Florida area, particularly in south Florida. At this time read more

The economic climate of the past year or so has led to the proliferation of homes in distress, facing short sales and foreclosures; many of these homes have made it to market where buyers are hungry to snatch up deals. While many prospective home buyers are eager to lay claim to one of these possible bargains, the fact is that not all of these homes will be a bargain.

What is important to remember though, is that not all foreclosures or short sales are a good deal.

Properties that haven’t yet progressed to the foreclosure stage are called short sales. Short sales are homes that are worth less than what is left owing on them and are subsequently sold for less than what is owed on their mortgage. A short sale can free a homeowner from their debts from the home, but can leave them still owing if their lenders won’t negotiate a settlement on the funds owing. Short sale homes may have liens on them from more than just mortgages as well; sometimes they’ll have debts connected to them based on unpaid utilities or taxes as well. Short sales can also take a long time to complete, so if you’re in a hurry to buy a home they are likely not a good choice.

Foreclosures, in contrast, are bank owned properties which can be a faster and more straightforward purchase. There are a few dangers in purchasing a foreclosure; foreclosures are usually sold as-is and consequently there is no option to have any problems repaired before read more

Feldman Law Center – News by Feldman Law Center — Unfortunately, California homeowners are being overwhelmed by foreclosures, and many people feel there is no end in sight to the situation. Legislation from California and the federal government has helped some people, but it is not enough. Loan modification attorneys are working with people everyday who either do not have access to the right information, or who feel left to deal with lenders all by themselves. While the legislation can be helpful, President Obama and the California legislature are not there to help make phone calls and negotiate loan modifications. Foreclosure sales in California rose about 32 percent in the month of May of 2009, and 35 percent in April of 2009. Just the California foreclosures from the month of May represent more than $8 billion in total loan value. That means $8 billion worth of homes were foreclosed upon. However, the good news is that lenders continue to voluntarily postpone the majority of foreclosure sales. Lenders, such as banks and mortgage companies, are doing everything possible to delay foreclosures, and that includes working with California loan modification attorneys and homeowners on loan modifications. In fact, of the foreclosures scheduled, lenders postponed 40 percent at their own request and another 33 percent at the mutual request of the lender and the borrower. This means that lenders are absolutely willing to renegotiate the terms of mortgages, and read more