Cash Is King in the Housing Market

Current homeowners looking to downsize, upsize or relocate are increasingly using more cash to purchase  their next home.

Despite near record low mortgage rates, homebuyers are finding it advantageous, in the current housing  market to shop with cash. Low returns on money deposited in banks as well as mortgage approval hassles also are pushing homebuyers to consider all cash or mostly cash transactions.


Using cash is a definite way to get discounts when buying distressed properties such as foreclosures or short sales and it's unlikely that the proportion of distressed property will be declining anytime soon.
An enormous number of foreclosures remain in the pipeline and the artificial suppression of that inventory by mortgage servicers has kept the proportion of distressed property lower than it otherwise would be.
Hassles with slow underwriting, accentuated by tardy appraisals, cause some homebuyers to give up on mortgages.

It takes about 60 days to close a ‘non-troubled’ FHA loan. About 30 days longer than it had prior to the housing bubble bursting. Other government insured Fannie Mae and Freddie Mac loans are taking about 45-60 days. Appraisals are also holding things up.

These are the average prices reportedly paid for various types of properties in Florida over the past 12 months :

                              Foreclosure
                    Damaged        Move In Ready               Short Sale                  Non Distressed

Florida         $92,765         $166,155                         $148,716                      $248,575

National       $105,247        $187,415                         $198,054                     $257,338



Looking at these statistics makes you wonder why more buyers and sellers aren't taking advantage of the current opportunities to buy and sell short sales. Many properties that are foreclosed could have been sold earlier as a short sale. In many instances faulty processing of the short sale file by either the borrowers agents or the lenders servicer still make them difficult to embrace. Lack of acceptance by 2nd mortgage holders also contributes to the inability to close a short sale. Typically if Fannie Mae or Freddie Mac are the 1st mortgage holder they will allow a small percentage of the 2nd mortgage balance to that lender. If the 2nd demands more the deal will likely die, opening the door again to foreclosure. Closing a short sale is not impossible. Sometimes the stars align. It requires diligence, communication and patience. Three virtues that actually work.

If you have any questions please call me directly at 561-306-6736 or email me.  I'll be glad to help in any way that I can.

Mortgage Debt Relief to Expire

The Mortgage Debt Relief Act of 2007 was enacted for 5 years during the last year of President Bush's administration in order to relieve homeowners being forced out of their homes of any additional financial nightmare from the IRS relating to the debt forgiveness.


"The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief. This provision applies to debt forgiven in calendar years 2007 through 2012."

Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.

The Mortgage Debt Relief Act of 2007 is due to expire at the end of 2012. In other words, the amount of debt that a lender forgives through a short sale or foreclosure can be taxable in 2013, after the Debt Relief Act expires. So if a house sold $50,000 short of what is owed on the mortgage, then the selling homeowners will owe federal income taxes on that $50,000.

Anyone considering a short sale or walking away from an under water primary residence may want to consider these potential consequences and act accordingly. Short sales take time as do foreclosures in Florida. A typical short sale can take 6 months or longer to close, although recently we've closed several in under 6 months. Lenders have begun to accept short sale contracts more readily, consequently the process can be faster depending on the realtor, servicer and lenders involved.
Contact me directly for a confidential discussion and for more info.

George Sinacori
GES Real Estate, LLC
ges.rellc@ymail.com

ges-realty.com

Why Struggling Homeowners Get No Help

The administrative mistakes of the largest lenders is surpassed only by their arrogance.

With all the rhetoric spewed on American homeowners by banks and politicians about "continued efforts" to help struggling homeowners you would think that the now depressingly familiar stories of lenders unwilling to help would have stopped. People who deal with mortgage lenders and borrowers hoping for help know that the horror stories continue.


Big banks like J.P.Morgan Chase, Bank of America & Wells Fargo are realizing unprecedented profits.They measure their assets in trillions of dollars. Helping struggling homeowners is not a priority. They make no mistake about that. Bank of America & Wells Fargo have announced that they are cutting 30,0000 jobs. A move likely designed to appease shareholders and likely detrimental to anyone hoping that they may get help through a mortgage modification or some other "foreclosure alternative" they've applied for.

Together the George W.Bush and Obama administration spent over a trillion dollars of taxpayer money to bail out big banks and corporations with no requirement to utilize any portion of that taxpayer money to help struggling homeowners. No "quid pro quo" as it's called. No responsibility or obligation to help hundreds of thousands of struggling homeowners while these same corporations continue to enjoy tremendous profits. The struggle to hold big banks accountable is somehow delegated to state and local governments. Most of these fights are insignificant. They are merely a nuisance to big banks because of their size and financial clout. NY City officials consider banking as important to them as the auto industry is to Detroit.

The Obama administrations parade of mortgage relief programs have failed miserably, largely due to the lack of any requirement by lenders to adhere to them. Any government program that has been touted by the administration as mortgage relief attaches financial incentives for banks. Like a reward for a good grade. It's like asking banks to choose between record profits or "atta boy"

What does it take for the American people to wake up? What would it take for the American public to say "no more"? I struggle everyday with these questions and I always come away with this. I know that the answers are in the American public, not the politicians, not the power mongers and not the corporate giants feeding off taxpayer money. Unless we Americans regain control of "our government" we will continue to spend days and nights struggling for answers in our own lives.

George Sinacori
GES Real Estate, LLC

No $ No Help For Housing

As the Obama administration and Congress continue to plays politics with the American economy it is apparent that there is no money for any new government program aimed at helping the millions of Americans now facing foreclosure or the millions owing more than their home are worth.



Recently during a Twitter town hall,the President acknowledged that the weak housing market was one of his administrations chief burdens.

According to many economists, the fact is that there isn't likely to be any money or political desire to consider any legislation to address the problem.

In my opinion housing remains one of the biggest drags on the American economic recovery. Solving the housing and employment crisis together could have gone a long way toward avoiding the current standoff in Washington over raising the debt ceiling.

Isn't the reason America is at risk of default on it's debt simply because the administration relies too heavily on borrowing. Haven't they borrowed us into a corner while bailing out large corporations that they've considered too big to fail.

How can our government do so much in so little time, sometimes overnight for others while they stand and watch the American consumer struggle daily with higher food prices, continued rising oil prices, foreclosure, unemployment, out of control health care costs.

Most foreclosure now are caused by economic conditions and not by sub prime mortgages. Unemployment may be the biggest contributor to the foreclosure rate and underwater loans may be the second factor. The foreclosure rate continues to climb nationwide with virtually no end in sight. In fact we may now be living our futures.

The only way that could change would be for lenders to reduce the principal owed on both first and second mortgages in order to coincide with current market values. Lowering the principal would give people a ray of hope that they may again someday have some equity in the homes that they've struggled to keep. It would allow others to sell at market prices avoiding any possibility of foreclosure and it would make the nightmares of short sales go away.

While the politicians posture over how much more to borrow and Americans wonder what will happen to us if Washington fails us again the problems facing the economy go unattended, ignored and left to work themselves out.

I have little faith that our government will do what's right for the us, I have great faith that if left to what once was middle class Americans we would find our own way and someday get our country back on track.

Foreclosure: Know Your Options

Understanding Home Affordable Foreclosure Alternatives may very well help you or someone you know avoid the negative effects of foreclosure and in some cases help keep a family in a home. The federal guidelines HAFA was introduced in 2009 and provides options offering incentives to homeowners, servicers and investors in order to accomplish a short sale, loan modification or deed-in-lieu of foreclosure. This last option is rarely the case however and more commonly a short sale is best allowing homeowners to transition to more affordable housing. This video from the administrations Making Home Affordable website can help.



In a short sale the homeowner and mortgage servicer agree to allow the property to be listed and sold for an amount less than what's owed. HAFA is designed to streamline the process and make it easier for a homeowner to work with the loan servicer. A homeowner accomplishing a successful short sale may receive up to $3000 toward relocation expenses. Additionally, mortgage servicers and investors are offered incentives although it should be noted that there is no requirement for them to participate in the program and that ultimately they adhere to their own guidelines.

Deed-in-lieu of foreclosure is another option that homeowners may have. If a homeowner makes a "good faith effort" to sell the property but is not successful a deed-in-lieu may be considered. The homeowner voluntarily surrenders the property and transfers ownership to the lender. Requirements are that the title is clear and there aren't any other mortgages or liens against the property.

In order to participate in the HAFA program servicers are required to evaluate for a loan modification before considering other options. If it's determined that a modification is appropriate the homeowner is entered into a trial modification program.

For more information on Knowing Your Options or for a free brochure call me 561-306-6736 or email ges.rellc@ymail.com

George Sinacori
GES Real Estate LLC

Florida Foreclosure Mills Under Investigation

August 15, 2010
In a bombshell announcement earlier this week, Florida Attorney General Bill McCollums office announced that they have begun investigations into at least several of the largest foreclosure law offices in the state for allegedly submitting false required documents to the courts in order to speed up foreclosures. The law firms, known more appropriately as "foreclosure mills" which have been served with subpoenas are accused of widespread falsification of documents and fraudulent unfair and deceptive trade practices. These firms represent many of the largest lenders in the country and file thousands of foreclosures actions every month. Some have indicated that the unlawful practices are even nationwide.

Under investigation are:
- Law Offices of Marshall C. Watson, P.A.
- Shapiro & Shipman, LLP
- Law Offices of David J. Stern, P.A.
- Florida Default Law Group

Many mortgage loans are bought and sold over and over in "credit swaps". The original or executed notes and assignments must accompany the foreclosure filing in order to obtain a "Final Judgement" by the courts which is basically a foreclosure. The apparent inside joke has been that these documents may never be found at all and fraudulent documents are created in order to accomplish or just speed up the process. The foreclosing lenders and their representatives typically will manufacture whatever may be required knowing that most borrowers have no representation and will never contest the action. A foreclosure can be stopped or delayed by a judge until the proper documentation is produced. Some judges have dismissed foreclosure actions because of false or questionable documentation by the attorneys filing the foreclosure. Widespread reports by attorneys representing borrowers and the courts have finally moved the Attorney General to open an investigation.

Based on the broad scope and the overwhelming evidence of fake documents being submitted, judges should now have no confidence in any of the documents presented to them by these foreclosure mills. Furthermore, in my opinion, this exhausting race to foreclosure should slow to a point where borrowers are actually allowed a legitimate opportunity to accomplish a short sale or some other type of foreclosure alternative.

Homemade Mortgage Modification

An amazing phenomenon is occurring in households all across the nation. Growing numbers of people today are providing themselves with there very own homemade mortgage modifications. This type of financial remedy doesn't beg a lender for permission. With lenders and loan servicers either unwilling or simply not capable of helping with loan modifications, borrowers are just not paying and offering ultimatums. Lenders are being told either help me stay or force me out.

According to statistics published by LPS Applied Analytics, a company that provides services to many of the nations largest banks and financial institutions, the average borrower currently in foreclosure is delinquent some 438 days before being evicted. More than 650,000 households have not paid anything in 18 months and of those the lender hadn't even begun to take any action against nearly 20%. The numbers are staggering. The NY Times reports that 1.7 million foreclosure procedures have been initiated as many borrowers are choosing not to pay for something that isn't worth even half of what they owe on it. Any moral qualms are quickly dismissed by the belief that the banks created the situation and maybe now it's payback time.

Call it self preservation, selective foreclosure, or whatever term suits the situation. The fact remains that people are beginning to take charge of their own lives while lenders continue looking for ways to minimize losses. In some states lenders can pursue foreclosure outside the courts which can be a speedier process. In states like Florida, New York and others, judicial foreclosure is required. This slows the process considerably. Lenders seem to be more willing to allow time for some sort of alternative like a short sale in these states and generally, given the numbers on the horizon, may be reluctant to take many properties back at all.

For more info on foreclosures,short sales, buying or selling a property in SE Florida call me directly at 561-306-6736 or email ges.rellc@ymail.com
www.ges-realty.com

Short Sale or Foreclosure Seem To Be The Only Choice

Home foreclosures are accelerating. More than a year after the government launched HAMP (Home Affordable Mortgage Prevention) a program to aid financially distressed borrowers, many more are losing their homes.


Modifications now look like nothing more than a band aid, temporarily stopping the bleeding for a few. Eventually just about everyone who owns a home will either need to sell or will decide that it's beneficial to just walk. People are beginning to ask "is it worth sacrificing health and well being" in order to avoid losing a house. As the housing market continues to struggle, more and more are deciding that it's time to move on. After all if the market isn't going to recover any time soon it may be time for folks to begin considering their own personal recovery.

With foreclosures again on the rise many are attempting to move a property through a short sale whereby a seller will sell for less than what is owed on the mortgage. A tedious and complicated process because the first mortgage lender will decide how much they'll accept after all outstanding debts against the property are considered, including any HELOC or 2nd mortgage. A short sale requires that the property be listed with a Realtor and required documents must be submitted to the lender.

Foreclosure filings in March totaled 367,056, jumping nearly 19 percent from February and up almost 8 percent from March 2009, according to RealtyTrac.
It was the highest monthly total since January 2005, when RealtyTrac began issuing its reports.
Lenders repossessed nearly 260,000 properties in the first quarter – a record for any quarter, and a 35 percent increase from a year earlier, RealtyTrac said.


More than a year after the Obama administration launched its foreclosure prevention program, only 230,000 homeowners have gotten permanent modifications with lower monthly mortgage payments, (according to a report Wednesday by the Treasury Department) while more than 1.4 million homeowners received offers for trial modifications, which typically last for three months. A band aid.

The Home Affordable Modification Program (HAMP) is lagging well behind the pace of the crisis, and most homeowners in financial trouble will never receive help, according to a report this week by a congressional oversight panel.
For every borrower who avoided foreclosure through the federal program last year, another 10 families lost their homes, that report said.

For more info or for a complimentary consult please call or email me at 561-306-6736 or rebuygeorge@yahoo.com

Streamlining the Short Sale Process

Hoping to positively influence the nations housing market by shortening and simplifying the short-sale process, the Treasury Department released new guidelines for borrowers, lenders and loan servicers. Adding another acronym to its list of government-sponsored programs, (this one is called HAFA) Home Affordability Foreclosure Alternatives.

The new guidelines offer incentives to borrowers and loan servicers for utilizing a short sale in order to avoid foreclosure. Some of the key features of HAFA include:
- Seller / Borrower can recieve up to $1500. for relocation expenses
- Borrowers are fully released from any future liability for the debt.
- Treasury Dept. will share the cost of clearing junior liens from 2nd mortgage holders in order to help release any claim that may interfere with the short sale process.


According to the Treasury Department publication,
"The program will publish streamlined and standardized documentation, including a Short Sale Agreement and an Offer Acceptance Letter. Creating one standard set of documents that the industry can use is expected to minimize the complexity of these transactions and significantly increase use of the short sale option."

The property must be listed with a licensed real estate broker and no foreclosure action can take place during the marketing period as long as the seller/borrower is acting in good faith. There is a maximum marketing period of 1 year to ensure that everyone is moving as quickly as possible in order to accomplish the short sale. Currently expiration of the program is scheduled for Dec. 31 2012.

For a complete text of the Treasury Departments guidelines please call me directly at 561-306-6736 or email rebuygeorge@yahoo.com. You can also go to my website at http://www.ges-realty.com/

Foreclosure Trends in Palm Beach County

In today's housing market it's no secret that Florida ranks among the top states in foreclosure activity and in property value decline. After a year of government spending, bailouts and intervention that distinction remains unchanged. Last month Florida received the 2nd highest amount of new foreclosure filings nationally, second only to California. Other than steep declines in home values and drastically reduced sales activity little else has changed in the Florida housing market through 2009. Although the new year promises a (different) housing market, current foreclosure trends indicate that the pace of foreclosure activity will continue.

Information obtained through RealtyTrac shows that foreclosure filings over the past 2 months in Palm Beach County, FL have increased. County wide, home prices have declined since June and apparently remained unchanged since September. RealtyTrac reports that 18,096 homes in Palm Beach County received some form of foreclosure filing. Interestingly the greatest value or savings as indicated by foreclosure sale price to average sale price was in Boca Raton where sales trends indicate an average sale price of $244,300 while average foreclosure sale price was $164,750. A difference of 34-35%.

Changes in the short sale process (selling a property for less than what's owed) now scheduled to become effective April 2010 may help some homeowners. Legislation has already been passed simplifying the short sale process by requiring lenders to make the application process uniform from lender to lender thereby reducing the time involved in closing a short sale and hopefully making them a bit more appealing to a ready, willing and able buyer. Many would be buyers shun short sales due to the lengthy process and lack of response by lenders to short sale requests, although when properly submitted the process does work.

If you or anyone you know are interested in buying or selling a property in South East Florida please call 561-306-6736 or email me for a no obligation discussion of todays foreclosure market and the short sale process.

Free $- Time Running Out For Homebuyer Tax Credit

Free $ Are You Getting Yours?

National Association of Realtors estimates that about 1.8 to 2 million first-time buyers will take advantage of the $8,000 First Time Homebuyer tax credit this year, with approximately 350,000 additional sales that would not have taken place without the credit.



Buyers have little time to act because they must complete the transaction by Nov. 30 to qualify for the credit. Unless extended, contracts signed but not completed by that date will not be eligible – it is taking approximately two months to complete home sales in the current market. If it's a short sale it can be longer.

© 2009 FLORIDA ASSOCIATION OF REALTORS®



contact me at 561-306-6736 for more info or email rebuygeorge@yahoo.com

Short Sale Failures Frustrate Sellers

Home sellers are as frustrated as Realtors when the deal involves a short sale, as most home sales do these days. A recent survey revealed that only 23% of short sale contracts actually get to close. Although buyers come pre approved for financing and prices are market value, a host of problems still plague the short sale process. Rapidly falling appraised values due to neighborhood foreclosures combined with the snail like pace of lenders processing short sale packages are the heart of the problem (in my opinion).

Delays by lenders allow impatient buyers to walk away while values deteriorate to a lesser price than contracted for. A more efficient system may in fact reduce pending sale times with a more workable window and help to hold sales together. Short sales, after all should be seen as a way to prevent foreclosures and related costs to lenders. It's frustrating that with a way to avoid those costs many wind up in foreclosure anyway as a result of prolonged waiting periods. many lender delays are a result of insufficient staff and a lack of short sale experience and processing systems. Delays may also occur as a result of Realtor inexperience in submitting documents or informing buyers and sellers of the length of time involved.

Some lenders are considering or at least examining ways to shorten the process and short sale approval time by getting BPO's (appraisals) and setting bottom line prices in advance of a contract. Ideally this lets a seller and realtor offer a property for a price that has already been accepted by the lender. The Treasury Dept. expects to provide lenders with a standard set of documents as well along with added incentives to help move the process along. Both steps in the right direction and an inevitable step in the evolution of home selling. More and more short sales are becoming the standard for home selling. The need for expeditious systems is now.

If you're trying to sell or buy a home please call 561-306-6736 or email me for more valuable information. Go to GES Realty.com for any real estate searches or click the link in the left margin to search properties.

Banks Accused of Delaying Foreclosure

Are banks holding back foreclosures and creating a false or temporary market bottom? According to a July 24,2009 article in the Miami Herald some analysts believe just that. Inventories of foreclosed and short sale homes have dramatically declined over several months as banks have been less inclined to take back more properties. For example, typically in Florida a judicial foreclosure filing takes approximately 6 months. Presently that time frame is more likely to be a year or longer.
I believe that banks are ill equipped to handle this new market of foreclosures and short sales. They don't have the personnel or the resources to actually take a property over and than turn it around quickly to market and sell. That being said it would seem more beneficial to not take on any more than they can handle. It's important for banks to exhibit a healthy or sustainable bottom line these days. Taking in non performing assets like an avalanche of foreclosed properties would not project the image that they need under the scrutiny of the Fed. It only makes sense that they should delay taking these properties back.
How about short sales? Would it benefit banks to process short sales faster than they have? If my analogy is right it seems that may be a good next step. If I have an asset that becomes a liability I sell it if at all possible. I think most people would unless there were some type of emotional connection to it. Why then, if banks are dragging there feet on foreclosures wouldn't they streamline the short sale process and rid themselves of the liability? Is it greed plain and simple? Maybe they're just not that sharp after all.
For more info and recent statistics email me or call me directly 561-306-6736 . Visit my website for info on buying, selling, tax credits, available foreclosures, short sales and existing homes.

Appraisals: Crippling the Housing Recovery

Lower appraisals are one of the biggest problems sellers, buyers and Realtors are faced with today. Because mortgage amounts are based on an appraiser's estimates of value, appraisals are a crucial cog in the machinery of the housing market. That cog may have ground to a halt recently.

Newly enacted federal government guidelines compounded by lenders putting pressure on appraisers to be very cautious of plummeting home values have crippled the already slow housing recovery. When a home is placed on the market, normally the fair market value is considered to be comparable to other homes sold at "arms length transaction" prices. In today's market these transactions are few and appraisers will use distressed, foreclosed or short sale prices as com parables.

An inappropriate approach by an appraiser using sales of distressed properties drives down prices on everything. A person not under water but needing to sell may be subject to the perceived value of an unjust appraisal because of the foreclosure down the street. I and many other Realtors have listed homes that would have closed at list price only to be appraised lower due to a foreclosed or short sale closing occurring during our marketing activity or while we were in contract waiting to close.

I may tweak a few appraisers with this post but I have to say it. Much of the housing bubble run up was directly related to over valued appraisals. Appraisers today are being more cautious. The bubble or run up in values and the low ball appraisal are results of pressure on appraisers from lenders. At some point the dog needs to wag it's own tail and begin to take control of itself.

For more on selling your home, home values, mortgage rates and available properties call me directly at 561-306-6736, email me directly , visit me on Twitter , or go to ges-realty.com

Protections For Renters Living In Foreclosed Homes

A bill passed by both houses and signed by the President on May 20, 2009 titled "Helping Families Save Their Homes" establishes among other provisions, some level of comfort for renters unwittingly caught in the foreclosure crisis. Many renting families have become victims of the foreclosure crisis by not knowing that the home is being foreclosed. Without warning they may be told that the home now belongs to the bank and that they have 48 hours to vacate. A provision of this bill finally addresses the problem and provides some security for renters of foreclosed homes. Helping Families Save Their Homes establishes protections for renters living in foreclosed homes.

According to Senator Dodd of Connecticut and a U.S. Senate publication: "One of the overlooked problems in the foreclosure crisis has been the eviction of renters in good standing from homes that go through foreclosure because owners of those homes, unbeknown to the renters, have not been paying their mortgage. The bill will require the bank that forecloses to honor the existing leases, for renters on a month-to-month basis, provide a 90 day notice. If the bank sells the property to an intended owner occupant, 90 day notice is required. Parallel protection are provided for Section 8 tenants.

Senator Chris Dodd is Chairman of the Senate Banking, Housing and Urban Affairs Committee.

Other provisions of the bill reportedly are designed to help prevent foreclosures and increase the availability of consumer and business credit. Some of these are listed as:

- Expand Access to Hope For Homeowners

- Increase funding for Foreclosure Prevention

- Provide New Resources for Homeless Americans

- Increase borrowing authority for FDIC and NCUA (National Credit Union Association).

For more information on this new legislation or answers to questions about buying selling or renting in Southeast Florida please call me directly at 561-306-6736 or email rebuygeorge@yahoo.com.

Free MLS searches and up to date information on how to buy or sell, including short sales and foreclosure are available at ges-realty.com

Foreclosure Trends in Southeast Florida

While the economy continues to struggle, home prices are still falling under the pressure of foreclosures and short sales. Here in Florida a staggering 11% of home loans are in some stage of foreclosure ranking it first in the country for defaults. With home values continuing to fall the foreclosure rate will surely increase through this year. Prices can't stabilize until the oversupply is at least equal to the demand. According to information provided by Zillow.com approximately 71 percent of homeowners in two Southeast Florida counties who purchased homes in the past 5 years are underwater or owe more than the home is worth. Lenders are finding that loan modifications aren't working as many borrowers fall behind again within a year of the modification. These are borrowers who may have escaped the foreclosure process but will return given time. According to information provided by RealtyTrac, preforeclosures still account for the largest piece of the foreclosure pie. This is the time that lenders, sellers and buyers should recognize as opportunity and take advantage of. This is the time to short sell and avoid the whole foreclosure mess.

The pie chart above indicates current foreclosure trends in Palm Beach county. Of almost 15,000 homes county wide in the foreclosure process 89% are in the preforeclosure stage. That of course does not mean that they will all be foreclosed or that they are all currently for sale. What it does mean is that there are still a lot of homes that need to be sold at current market prices.

Statistics provided by RealtyTrac over the most recent 2 quarters show that the largest decline in values in the county occurred in Boynton Beach and Stuart respectively while the lowest average foreclosure sales price was in Delray, West Palm Beach and Boynton. The total number of foreclosures sales in the county was up slightly in April. The greatest value being in a 3 bedroom home between $100K and $200K. These show the largest decline in price and the greatest number of available properties.

Being aware of market trends has always been important to anyone considering buying or selling a home. Today it's more important than ever. Understanding price trends can make or break a buyer. Current sales trends and the short sale process is key to a seller looking to get their life and finances back on track. Lenders need to streamline the process if they expect to minimize the loss. Todays market is primarily a short sale market and will be for the foreseeable future. The real estate market today is complicated. Buyers and sellers need good, solid, trustworthy information from an experienced reliable source before getting into it.

I encourage anyone in South Florida needing assistance with the process to call me at 561-306-6736, email me your questions or go to ges-realty.com for more information..

How Mortgage Relief Options Work

Loan Modification - Short Sale - Deed In Lieu - Forbearance

Forbearance -Temporarily suspends all or a portion of your monthly payment, followed by a formal plan using another option listed here to return your account to a current status. Your hardship is expected to be short term in nature, or you know that you will be able to pay a particular amount on a specific future date and continue with your payments from that point forward.

Repayment Plan - Adds a portion of past due amounts to your regular monthly payment until your account is current. Your hardship is expected to be short term in nature, and may even be over, and you have the ability to make an increased payment for a short period of time.


Partial Claim - Returns your account to a current status using funds from your mortgage insurer or guarantor. Your mortgage is insured and your hardship is short term. Subject to mortgage insurer or guarantor approval.

Modification - Makes your payment more affordable by permanently changing one or more of the terms of your original note and mortgage. Delinquent amounts can sometimes be added back into the loan balance. You can afford a reasonable payment that is less than your current payment and/or you don't have enough cash to bring your loan current.

Assumption - Transfers title to a credit-qualified buyer, even if your loan is non-assumable. You can not make any payment but want to avoid foreclosure.

Short Sale - Allows you to sell your home for its current value, even if it is worth less than what you owe when you can not make the payments but want to avoid foreclosure.

Deed-in-Lieu of Foreclosure - Transfers title to the property back to lender to satisfy the amount you owe. You can not make the payment but want to avoid foreclosure and you have had your home listed for sale for at least 90 days. This option is reserved for the most extreme situations and is subject to investor approval.

For more information or help with these options please call me directly at 561-306-6736 or send an email to rebuygeorge@yahoo.com .

The Ups and Downs of Florida's Housing Numbers

Are we beginning to see some light at the end of the Florida Housing Tunnel? According to the Florida Association of Realtors recent MSA (Metropolitan Statistical Areas) reports some areas although still showing declining values are reporting increases in sales. Most notably in South Florida the Ft. Pierce - Pt. St. Lucie MSA which includes St. Lucie and Martin Counties show a monthly increase in sales of existing single family homes through second quarters of 2008 of 34% as compared to sales volume in the same period of 2007. Another MSA that may be on the mend is the Ft. Myers- Cape Coral area reporting an increase is sales of existing single family homes in the second quarter of 2008 of 38% over the same period a year ago. The West Palm - Boca Raton MSAs sales of existing homes is off by only -3% compared to the same period a year ago and may be beginning stabilize into the next half of 2008.

These same areas show similar trends in sales activity for condos with Ft. Pierce - Pt.St. Lucie unchanged, Ft-Myer - Cape Coral an increase of 15% and West Palm - Boca Raton up 6% over a year earlier. Although inventory remains high and prices are still declining some buyers may sense that prices in these areas are now at an affordable level. The MSA numbers include sales of foreclosed homes and of course any short sales that may have been closed as well. Foreclosure sales may account for a good portion of the increases and that may be a positive sign in itself.

Eliminating any of the inventory regardless of how modest the upward trend in sales may be or how it affects prices may be the light that helps lead Florida into a more stable housing market.
Contact me directly for more on the most recent Southeast Florida homes and condo prices, sales and foreclosure activity.

George Sinacori 561-306-6736 or rebuygeorge@yahoo.com

How To Price A Short Sale

Pricing a short sale in order to get a response from the lender is key to bringing the seller, lender and buyer to a successful closing.

Facilitating a short sale requires that the facilitator understand the various guidelines that lenders use. Each lender may have there own unique requirements but there are some guidelines that are consistent from lender to lender. Without being able to obtain a counter offer from the lender a short sale attempt will never go any further than the initial offer.
That being the case the initial offer needs to be good enough to generate a counter offer.
Lenders rely on appraisals or BPO's (Brokers Price Opinion) in order to determine the value of a property and an offer. If the offer is considerably less than the BPO the lender may not respond at all and has no obligation to.

So, the initial offering price is critical to facilitating a successful short sale. How you get to a price that will generate an offer from a buyer and generate a counter offer from the lender is a challenge. Lenders take time to obtain information before making a decision. The lender is dealing with accepting a loss. The more of a loss the lender endures the longer that process will take. So be prepared for a long wait. If the offer is within range of the BPO or appraisal the lender is much more likely to respond with a counter offer that they can live with.

It is absolutely essential that the facilitator of the short sale be present at the appraisal or BPO. This is where the value that the lender is going to rely on is determined. The appraiser should be made aware of the circumstance if they aren't already. Any deteriorating physical neglect or anticipated expense required to resell the property should be brought to the appraisers attention. Lenders will look at these things as marketing expenses and may be more inclined to move the property before foreclosing in order to avoid repair costs.

Having someone knowledgeable in the short sale process facilitate the short sale is the most important part of the process. If you need help or more information on todays short sale process please contact me directly at 561-306-6736 or just send me an email with your question.

George Sinacori rebuygeorge@yahoo.com