Thank You for all you answers. I do wonder what will be the overall economic impact with so many "short sale"properties on the market.

Asked by Debkepsake, Mount Dora, FL Tue Oct 30, 2012

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Lisa Jones, Agent, Clermont, FL
Tue Oct 30, 2012
I believe we are already seeing what the impact is. Banks are becoming more willing to allow short sales rather than foreclose on properties - they are finally seeing it is in their better interests and less expensive to short sale. Many indicators show we have hit bottom in our local market. I don't expect prices to rise rapidly but I do feel we will be holding steady for a while.
1 vote
Beverly Howe, Agent, Naples, FL
Tue Oct 30, 2012
Shorts sales are perpetuating the foreclosure market. Agents continue to under price properties to get a listing and a buyer. The Government now saying on their loans the sellers of short sales no longer have to stop making mortgage payments. And they will be more aggressive in asking for cash assets from the seller at closing on a short sale. On Jan. 1 2013, the primary homeowner will no longer be exempted from paying taxes on the difference of the debt and the short sale.

Since 2008 the REALTOR organization has pushed short sales. Before that underwater property owners brought cash to closing to save their credit. REALTORS obtained a Stay on the Federal MARS Disclosure Law to exempt real estate agents from telling the seller their credit will be hurt by doing a short sale, they could get future judgments, the seller can cancel the short sale at anytime and the seller does not have to agree to the terms of a short sale when approved by the lender. Therefore, many seller's have been mislead down the path to foreclosure rather than loan modification. Legally in Florida the real estate agent can only do a short sale. It is illegal for them to help a seller with a loan modification.

In spite of short sales, foreclosures and the failed attempts by the government the real estate market is correcting itself. Agents doing short sales need to reevaluate the meaning of the REALTOR Code of Ethics which says we are to protect the individual right of real estate ownership. They will find more short sales backfiring as property values continue to increase. There will always be buyers ready to buy. And there are always good deals via regular sales transactions. I can and other buyer brokers can find great properties in the buyers price range without having to put them thru the grueling process of a failed short sale attempt or foreclosure with no toilet and a shaky deed or title issue.

Read The 20 Things That Listing Agents Don't Tell You About Short Sales and Short Sale Fraud at http://www.FloridaBuyerBroker.com along with:

The #1 Mistake Real Estate Buyers Make

21 Critical Mistakes Buyers Make

Foreclosures - the Wild West of Real Estate

Unrealistic Buyer Expectations

Buyer Beware

Chinese Drywall


Beverly Howe, CIPS, ABR, GRI, TRC
Florida Buyer Broker
Email: broker@floridabuyerbroker.com
Local Direct: 239-601-2013
Toll Free US and Canada: 1-800-283-7393
0 votes
Linda S. Cef…, Agent, Franklin, WI
Tue Oct 30, 2012
In Wisconsin, we are seeing less and less short sales. Banks are working with us much better on short sales and there are many more agents becoming qualified to handle them. A win/win for everyone. We are also seeing an uptick in prices in many areas of Wisconsin. I have a good friend who is an agent in Florida and she tells me that she is experiencing the same thing.
0 votes
Lisa Jones, Agent, Mount Dora, FL
Tue Oct 30, 2012
First of all, short sales are selling for close to market value with consideration to condition. A traditional sale will close at or above market value. The majority of short sales are closing at market or 5-10% below (once again based on condition).
So, overall there will be a slight decline due to the shorts.
However, most well priced shorts in good condition are going under contract for asking price or higher. That is a good sign.
Basically, shorts are just another "correction" to the market.
REO's will still have more of a negative impact on overall market value in a given area than Shorts mainly due to the condition when they come to market.
The more sellers who opt to short sell and the morethe banks cooperate, the better it will be for overall market values.
Hope that was helpful.
Regards,
Lisa Jones CDPE
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