Florida Home Buyers and Investors Blog

I cannot stay quiet any longer on the topic.  From someone on the ground working with Foreclosures and Short Sales every day, and speaking with other agents all competing for the same product, the frustration level has reached its peak.

We hear about the plans, yet nothing about solutions for the FED.  First the FED was going to purchase the bad debt, then realized that was not such a great idea.

Now they offer to insure loans from lender who agree to renegotiate the terms and amount owed by current homeowners in foreclosure, yet no lenders will agree to such terms.

Lenders claim they need to sell the property and willing to negotiate, yet 85% of Short-Sales go unsold.

We are not lacking buyers, on the contrary, I have more buyers than I can handle, and more homes in contract than ever in the boom days, yet we are at a standstill.  Contracts sit idle as we wait 3-4 months for banks to respond with an acceptance or rejection of the offers.  More often than not, the answer is NO, or they want a price greater than current market value for a non-forclosure property.

It appears the lenders are waiting for the FED to buy the debt for a price greater than a buyer is willing to pay.  The FED has 2 things we don't.  Time and Money...

And so it goes.  We are hopeful 09 will bring solutions, not just ideas.