Florida Home Buyers and Investors Blog

Well the news on the surface does not seem very good, but like all news there are many sides to how information is reported.

Realty Trac in my opinion is the worst possible place to get information.  They report GROSS numbers of people in some form of default, which can be someone who is delinquent on their HOA dues or 2nd lien and has a foreclosure suit against them.  Based on the recent reports, the numbers are staggering, and quite alarming, but we have to get deeper into the mind set of the people in distress.

In the vast majority of the Lis pendens and foreclosure filings, the homeowners are seeking some form of loan modification.  Many of these homeowners are forced into default by the lenders in order to fit the Loan Modification Mold that HAFA,HAMP,MHA, and other programs require.

Although many of these homeowners will end up in serious default that cannot be cured, the numbers are not as bad as they appear.

We continue to see challenges with Short-Sales.  Although the Fed is putting the squeeze on the servicers and investors that own the loans, they cannot force these investors to accept less than what is owed, even if it's in the investors best interests.  As we know it costs approx $25k-$50k+ to foreclose, in addition to deterioration of the property causing additional loss of value.  Investors continue to make poor decision regarding the disposal of their assets.