destin florida foreclosure

What does shadow inventory mean in real estate?

Jun 13th, 2012
by edsmith.
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Shadow inventory generally refers to distressed properties that are not yet on the market for sale. These properties “shadow” the active inventory in that they will (or should) be on the active market sometime in the near future. For statistical purposes, shadow inventory is included as a segment of the “unsold” properties.

Shadow inventory consists of those properties in some stage of default or foreclosure, as well as properties already owned by the foreclosing lender. Because many lenders are now accelerating their foreclosure actions against delinquent borrowers, the actual shadow inventory is expected to decline as such properties graduate to the “active for sale” market.

Year-to-date, foreclosure filings are up 142 percent in Okaloosa County and 63 percent in Walton County. Destin, Ft. Walton Beach, Sandestin and 30-A are all represented in the equation.  

For more on this topic, visit www.FloridaBrokers.com or email us at smith@realtor.com

Foreclosure and Delinquincy Rates Still High

Mar 14th, 2012
by edsmith.
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According to Lender Processing Services (NYSE: LPS),  there are now more than 6 million delinquent mortgages in the U.S.  A delinquent loan is any loan that is at least 30 days past due, which of course includes those currently in foreclosure.  LPS is a loan servicing conglomerate that maintains a database of roughly 40 million mortgage loans at a given time, which gives them considerable perspective in terms of national trends and statistics.  According to their calculation, the mortgage delinquency rate (MDR) is nearly 8 percent, which does not include mortgages that are in the foreclosure process. Therefore, the national  foreclosure inventory is now estimated to be nearly 2.1 million. The actual mortgage delinquencies then total 4 million.  Of those delinquencies, a staggering 44.3% are more than 90 days delinquent.

Florida Lottery Sales Surge

Dec 5th, 2011
by edsmith.
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Not all sales numbers are gloomy in the Sunshine State …  According to state officials last week,  The Florida Lottery is expecting a record year in sales, to the tune of $4.26 billion!  After many years of consistent growth,  Florida Lottery sales declined as the economy faltered in 2009.  

 

So what is behind the surge in ticket sales? Some say it is a sign that the economy is recovering. Others contend that consumers are simply feeling more desperate. One thing is certain … With retailer-giant Wal-Mart jumping on the Florida Lottery bandwagon, Lottery officials must be giddy. 

 

You would be hard-pressed to find a convenience store in Florida that does not sell Lottery tickets today. Supermarket chains in Destin, Ft. Walton Beach and South Walton like Winn-Dixie and Publix have long been on board, and most independents have jumped into the fray as well. The sale of a winning ticket can mean huge rewards for the vendors. In fiscal year 2008-09 Florida retailers earning a staggering $220 million in Lottery sales commissions.

 

The Lottery is not likely to go away any time soon. With states around the nation scrambling for dollars, shortfalls abound. Florida Lottery officials claim that the Lottery generates a whopping $1 billion per year toward education and college scholarships. That equates to 5% of Florida’s $20 billion annual education budget.

PMI Group, Inc. Files Chapter 11

Nov 25th, 2011
by edsmith.
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According to PMI, their Chapter 11 bankruptcy filing is in response to the seizure of two of its subsidiaries by their primary regulator in Arizona last month. The subsidiaries include PMI Mortgage Insurance Co. and PMI Insurance Co., who make up a significant share of the private mortgage insurance market in the U.S.

 

According to PMI, they now wish to “raise additional capital from new investors in order to allow a third subsidiary, PMI Mortgage Assurance Company, to serve as a platform to write new mortgage insurance nationwide”.

 

The Arizona Department of Insurance said that PMI will be making claim payments “at 50 percent”. Presumably, that means that the unpaid balance of the claim will become part of the bankruptcy creditor claims. It is interesting that none of PMI’s subsidiaries themselves filed bankruptcy, only the parent company. While PMI states that they will continue to operate in the ordinary course of business, as a debtor-in-possession, their operations will be under the scrutiny of a Federal Bankruptcy Court.

 

Sitting on approximately $735 million in unsecured notes that are now due and payable, it is yet unclear as to how PMI’s move will impact the many lenders around the nation who are presently seeking claims reimbursements. Also in question is how this may impact the many tens of thousands of short sales that PMI has insured. If bankruptcy court approval will now be required for claims authorization, the short sale process nationwide and along the Emerald Coast as well could be dealt yet another unwanted setback. Time will tell.

As The Market Turns

Oct 27th, 2011
by edsmith.
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According to Realty Trac, foreclosure filings have surged by 17% in what is being interpretedas a possible end to the review process that has hampered and bogged down the process for more than a year.  A review system was initiated by most of the major lenders in response to the robo-signing debacle that they faced last summer.
 
Many in the know do believe that major lenders are gearing up to accelerate the foreclosure process next year. Consequently, many of them are also gearing up to approve higher numbers of short sale transactions. As an example, Bank of America will complete approximately 100,000 short sales nationally in 2011, but has plans to complete 160,000 short sales in 2012.

What makes the better deal today, a foreclosure or a short sale?

Aug 17th, 2011
by edsmith.
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Although either can make an excellent investment, both have pros and cons. The foreclosure inventory has been somewhat depleted this year, making these properties more difficult to obtain. Short sales are much more plentiful, but can take an extensive period of time to complete.

 

The foreclosure inventory is low mostly the result of the robo-signing debacle of 2010.  Many of the nation’s lenders chose to curtail their foreclosure activities while reviewing their processes and procedures. There is a great deal of “shadow”  out there, and it is just a matter of time before these properties start hitting the market. Some lenders are even considering interim options such as long term rental agreements to deal with the issue of abandoned properties.

 

The best advice is to develop a relationship with a Realtor that specializes in such properties because the best deals do not last long. Investors represent more than 50% of the buyers in certain market segments and are rapidly scooping up the best deals.

 

For information on Destin, Ft. Walton Beach, Seaside and Emerald Coast  short sales, bank foreclosures and general real estate topics, please visit www.FloridaBrokers.com  , www.DestinFloridaRealEstate.com  or email us at smith@realtor.com

We are buying a short sale in Destin. Why are we required to agree to not re-sell it for 90 days after we close?

Jun 9th, 2011
by edsmith.
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Many lenders are requiring that such restrictions be imposed on the sale of their distressed properties to help eliminate mortgage fraud. Some lenders are now requiring a twelve month prohibition on the re-sale of their distressed properties.   
 
According to Freddie Mac’s Fraud Investigation Unit http://www.freddiemac.com/singlefamily/preventfraud/spotlight.html , if you contract to purchase a short sale and re-sell it (have it under contract) for more money prior to taking possession, you have committed mortgage fraud.
 
For information on short sales, bank foreclosures and general real estate topics, please visit http://www.floridabrokers.com   or email Ed and Terri Smith at  smith@realtor.com 

If I buy a house at the county foreclosure auction are all the other liens wiped out?

May 23rd, 2011
by edsmith.
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It depends. We have seen quite a number of bad deals resulting from these types of purchases over the years. The county does not warrant the title and certain liens may survive the foreclosure. We have seen cases in which individuals have purchased properties that were foreclosed by the second mortgage holder. They erroneously believed that they then owned the property outright, even though a superior lien existed.

 

You should always consult with an attorney in advance of the foreclosure sale date to help ensure that there are no surprises. Otherwise you could end up being saddled with unexpected liability.

Where are all the foreclosures?

Apr 27th, 2011
by edsmith.
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Many buyers are asking about the lack of inventory in the foreclosure arena today as compared to last year. Buyers are finding fewer foreclosure choices in the market to choose from.  So what’s causing the shift? 

A couple of factors are contributing to the lower inventory levels. First, the market activity in single family homes is up 20% Y-T-D over last year in Okaloosa County. Secondly, foreclosure (lis pendens) filings are way down. Through March, there have been 192 foreclosure filings this year as compared with 573 for the same period in 2010.

For information on short sales, bank foreclosures and general real estate topics, please visit www.FloridaBrokers.com  or email us at smith@realtor.com

What is the “due on sale clause” in my mortgage?”

Mar 30th, 2011
by edsmith.
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The due on sale clause in today’s mortgages basically states that if you sell or transfer all or any part of your interest in the property without your lender’s prior written consent, the lender (at lender’s option) may declare you in default and require immediate payment in full of your entire mortgage balance. Even a lease option is considered transfer of interest and would trigger the due on sale or acceleration clause. 

 
There have been recent cases in which property owners have sold their homes to a “holding company” for some paltry, insignificant sum (perhaps $10 or so) in which the holding company agrees to be responsible for the future mortgage payments. The holding company charges the owner a fee of several thousand dollars for the privilege and then fails to make the payments.
 
As there are few (if any) mortgages today that are freely assumable, owners in such situations are almost certainly in violation of their mortgage agreements and will face foreclosure.
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