Short Sales are on the rise in some markets but what about Naples Fl?

As I'm sure most homeowners know by now, a short sale occurs when a lender allows a borrower to sell their home for less than the outstanding mortgage. Nationwide short sales accounted for 12 per cent of home sales nationwide in the second quarter, up from 10% the same period 2010 according to RealtyTrac. BofA expects to complete more than 100,000 short sales this year and that's double what it did in 2009.
 
Wells Fargo Vice President J.K. Huey indicated short sales are “steady to slightly up” in recent months because there are fewer bank-owned houses for sale in some markets.
 
It’s better for neighborhood values when short sales occur over foreclosures, as homes often remain occupied until closing day.

Nationally, in the second quarter, short sale homes sold at a 21 percent discount to non-foreclosure homes, while bank-owned homes went at a 40 percent discount, RealtyTrac says. Short sales may also reduce losses for loan owners because they avoid full foreclosure costs. Borrowers may qualify for new mortgages sooner after a short sale than after a foreclosure.

In Naples Fl, 2nd quarter 2010 there were 421 closed short sales and 491 foreclosed properties across all categories. During the 2nd quarter 2011, 404 short sales were closed and 428 foreclosures. Non-distressed sales in the Naples Fl market for the 2nd quarter 2010 were 1674 and for 2011 non-distressed closed sales stood at 1871.

Regarding inventory, 12-14 month’s supply is a healthy resale market - Naples Fl is at a low of 8.83 months.
 
See NABOR's comments on inventory below:

• Since March 2007, NABOR's inventory has been reduced by over 5,000 units. 
• In April of 2007, NABOR started tracking the months of inventory. In the first month of tracking, April 2007, NABOR reported 34.78 months of inventory. Since the first month of tracking, the inventory has been reduced substantially over the years and demand has picked up. As a result, as of July 31, 2011, NABOR is reporting 8.83 months of inventory, which is the lowest since we started tracking months of inventory."

In the past we have lost buyers and of course sellers have been inconvenienced due to the lack of response from banks and the short sale process taking far too long. Now banks are getting their heads around short sales with faster turn around and better tracking systems, such as the Bank of America Equator system.

Check with your bank and ask about the HAFA and HAMP programs.

If you are thinking about short selling your home now might be a good time with such a short supply of homes in Naples Fl. Call Realtors Vanessa and Neil Franklin 239 290 5627 or visit our website www.IWantnaples.com and email us from there if you would like to talk about your particular situation. And remember if you stop paying your mortgage you could lose your home to foreclosure!

 

 

© Parts of this article Copyright 2011 USA TODAY, a division of Gannett Co. Inc., Julie Schmit