It is a pleasure to announce that the Parkland Parrot Real Estate Team just successfully help negotiate a short sale for a client of ours in the Cypress Head community.  Bank Of America agreed to accept almost $500,000 less than was was owed and gave my client a full release for the deficiency.

Our client was ecstatic to be able to successfully short sale his Cypress Head home in Parkland, Florida and now be able to move on with his life. The government implemented the Home Affordable Foreclosure Alternatives (HAFA) program which is in place to help homeowners settle their mortgage debt without going through a foreclosure.  The goal of this program is to help homeowners sell their properties through the short sale process and settle their mortgage debt if they owe more on the mortgage than what the home is actually worth.  With the help of this program, the short sale process is streamlined and also offers financial assistance to help with relocation.  In particular, our client in Cypress Head was even given $3,000 from this program in moving costs.

On Bank Of America’s website, here is the qualification to be eligible for the HAFA program:

1.  The property is your current principal residence, OR the property has been vacant or rented out for less than 12 months, and you have not bought another principal residence during that time.

It is a great pleasure for our team to be able to help someone in need and get them on to the next step in their lives.  In particular, this stressful situation was handled with the utmost professionalism and care.  Our short sale clients truly understand that we have their best interests in mind and are here to help throughout the entire process.  We were able to close this transaction in only 4 months, where most short sales take approximately 6-8 months to get done.

If you know anyone in Parkland or South Florida who is “underwater” on their home, tell them to give me a call directly at: 954-609-0591, so I can help answer all of their questions and concerns and provide them with pertinent short sale information.

Know the neighborhood. Know the value. Know your hometown agents: The Parkland Parrot Real Estate Team. If you are interested in buying or selling real estate in Parkland or South Florida and are looking for experienced local Realtors, please do not hesitate to contact the Squawk at 954-609-0591 or send us a message here.

Decline in distressed homes helps housing market heal

Del DeMarino (left), had to take less money for his Coral Springs home because of foreclosures and short sales nearby. His real estate agent Michael Citron is helping him deal with a difficult market. (Jim Rassol, Sun Sentinel / November 11, 2011)

By Paul Owers, Sun SentinelNovember 14, 2011

Some South Florida homeowners can sell their homes at a better price this year because fewer foreclosed properties are on the market.  “People hear that the market’s terrible,” said Judy Trudel, an agent for Balistreri Realty in Lighthouse Point. “But there are certain neighborhoods that are doing well.”  The values of some homes not in distress are stable, if not rising, real estate agents say.

Although foreclosures and so-called short sales still account for a large part of the region’s housing market, the numbers are declining.  Distressed sales made up 48 percent of all sales in October, down from 54 percent in October 2010, according to the Miami Association of Realtors.  In Palm Beach County, distressed sales represented 23 percent of all transactions last month, compared with 27 percent in October 2010.

Fueling the decline has been a surge in South Florida home sales that is helping shrink the available housing stock, including the number of properties in some stage of foreclosure. Those properties have weighed down the beleaguered housing market the past four years.  Weston’s housing market has been especially robust. There are only 10 bank-owned homes on the market in the entire city, said Chip Rowand, a broker for the Keyes Co. in Weston. Bidding wars are common there.  “The days of coming in 20 percent under asking price are gone,” he said.

Since President Barack Obama took office in early 2009, the upscale enclave west of Fort Lauderdale has led the nation with the highest increase in home values, according to one research firm.  The median value of a home in Weston climbed 15.1 percent to $280,000 from February 2009 to August 2011, according to a survey of the nation’s 1,000 largest cities by Zillow.com for Bloomberg Businessweek.  Other communities also are reporting positive price trends.

In the Shadow Wood subdivision of Coral Springs, Beverly Rothstein of the Christopher White Group listed for sale a four-bedroom home next to a run-down foreclosure.  Regardless, Rothstein’s client had an offer within a week for near the $305,000 asking price — even without a for-sale sign in the front yard. The deal closed last month.

Another of her clients, Erwin Sefton, sold his three-bedroom Coral Springs home in three weeks for $245,000. He’s moving to a new house near Boynton Beach that won’t be ready until January, and his only disappointment is that his house sold too quickly.  “Everybody I talked to said it would take at least six months,” said Sefton, 67.  With buyers attracted to affordable prices, sales of existing homes and condominiums have soared in 2011.

Palm Beach County easily will surpass last year’s total of 9,584 home transactions. Broward County already has eclipsed last year’s home sales total of 7,997. Condo sales in both counties this year already exceed the annual totals from 2005, the peak of the housing boom.  Lenders are starting to resume foreclosures that had slowed dramatically in the past year amid the “robo-signer” controversy.

Some real estate agents and analysts believe these imminent foreclosures make up a “shadow inventory” that threatens to hurt the budding housing recovery. Others are skeptical, saying the onslaught of foreclosed homes predicted for the past two years hasn’t happened yet and won’t be as bad as feared.  “Banks are handling the disposition of distressed properties better,” said Bill Richardson, president of the Realtors Association of the Palm Beaches. “I don’t think we’ll see any significant price deterioration from where we are now.”  But that doesn’t mean neighborhoods hit hard by properties in the foreclosure process won’t face price declines in the months ahead.

Del DeMarino wants to move closer to the ocean, so he put his four-bedroom home with a pool in Coral Springs on the market for $319,900. When he dropped the price by $10,000, he immediately had four offers. It’s now under contract for the asking price, and he expects to close next month.  There are dozens of homes in his Maplewood subdivision that are in or near foreclosure, said Michael Citron, his real estate agent. Without that drag on the market, DeMarino easily could have netted 15 percent more for his house, Citron said.  “The foreclosures and short sales are definitely still a factor,” DeMarino said. “You’ve got to price it right if you want to sell it.”

Copyright © 2011, South Florida Sun-Sentinel

Michael Citron, Parkland Realtor and co-founder of ParklandParrot.com, was quoted in today’s Sun-Sentinel cover story supporting recent statistics showing how Parkland and South Florida bank foreclosure listings are loosing their popularity among current home buyers.

According to RealtyTrac Inc., the Tri-County area (Palm Beach, Broward and Miami-Dade counties) posted that in January, February, & March of 2011, there was a total of 8,878 foreclosure sales, which was a 11 percent decline from the fourth quarter of 2011.  Even more dramatic from a year ago to date, there was a 20% decline in foreclosure sales.

One factor that has slowed down the sale of bank foreclosure inventory is that many distressed homeowners were being unlawfully foreclosed upon.  As a result, many banks slowed down their foreclosure process and even implemented moratoriums on future bank foreclosure proceedings.  This caused a dramatic decrease in available bank foreclosure inventory.  But, will the banks start listing their foreclosure inventory for sale soon?

Another factor is that buyers are not as enamored with buying distressed properties as they were in the past.  Many savvy buyers are seeing that foreclosures or even short sale listings are requiring a lot of out-of-pocket costs to fix damage to properties that were possibly left vacant for many months and even years.  The numbers sometimes just don’t add up, and potential buyers are seeking regular listings, where they can purchase move-in-ready properties.

Finally, regular home sellers are starting to become aware that distressed listings (bank foreclosures and short sales) are their competition and are instead pricing their homes at appealing asking prices in order to compete with the distressed listings.  Among many Realtors, we are emphasizing to our home sellers how appraisers are using distressed sales when appraising properties.  As a result, we are better preparing our sellers to list their homes more competitively in order to beat their competition.  Instead of overpricing, which results in helping to sell the competition, sellers are now starting to price their homes correctly from day one!

In South Florida right now, nearly 4 out of every 10 home sales involve a foreclosure.  Many experts still believe that the drop in South Florida foreclosure sales is due mainly to the freeze from the banks.  Only time will tell, but we definitely see more and more potential home buyers seeing the advantages of purchasing a regular sale over distressed ones.

We want to thank Paul Owers of the Sun-Sentinel for thinking of our team when providing expert advice and opinions in regards to the South Florida and Parkland real estate market.  We encourage all readers to check out his articles as well as his contributions on the House Key Blog site.

Know the neighborhood.  Know the value.  Know your hometown agents:  The Parkland Parrot Real Estate Team.  If you are interested in buying or selling in Parkland or South Florida and are looking for experienced local Realtors, please do not hesitate to contact the Squawk at 954-609-0591 or send us a message here.

To stay updated with all Parkland real estate information, receive our blog posts via email by subscribing here. After registering, you must activate the subscription in a follow-up email.

In general, if you are considering walking away from your mortgage, the major consequences of your actions are as follows:

• Impaired credit Deficiency risks
• Deficiency Risk
• Tax consequences
• Moving costs
• Professional implications

Impaired Credit: Most people are unaware how their credit will be affected if they default on their mortgage payments.  If you instead work with your bank and do a short sale, you may be able to qualify for a new home purchase in as little as 3 years.  If you instead choose to walk away and have your home foreclosed on by the bank, your credit score will be significantly impacted for 7 to 10 years, or more.  Also, by defaulting on your mortgage, you will cause your credit card companies to possibly cancel or lower your credit limits.  As a result, you will have difficulty obtaining financing for large items such as automobiles, furniture, and of course, houses.

Deficiency Risks: If you default on your mortgage, your lender may come after you for the difference between what you owe on your mortgage and and what your short sale or foreclosure proceeds were along with legal fees and interest incurred during the process.  In the State of Florida, there is no anti-deficiency protection laws from banks or lending institutions pursuing the difference between what borrowers owe and what the home sells for in foreclosure. If you are concerned about a deficiency judgment, then it is imperative to consult with a real estate lawyer, who can provide you with the necessary legal advice for your unique situation.  Please do not consult with your neighbor or friend that just sold their home through the short sale process.  Each bank and situation is different, so please hire a real estate attorney, or ask us to refer you to one.

Tax Consequences: Again, each situation is different depending on if the home you are defaulting on is your primary or secondary residence.  There is a chance that you will have tax consequences by defaulting on your mortgage.  It is also important to consult with your tax accountant in order to know all of your options before you consider defaulting on your mortgage payments.

Moving: People sometimes do not realize the consequences of walking away from their mortgage and then having to move into a new property.  Individuals may be living in their current home for many years and now will have to move into a rental community   and then have to possibly explain credit report issues to future landlords.  You will also have moving expenses including deposits, moving trucks, utilities, and more which can quickly add up. Another issue is moving your children to new schools, commuting to work, and moving away from friends and family.  As a result, it is imperative to speak with a real estate professional and your financial adviser before making any decision to default on your mortgage payments.

Professional Implications: By defaulting, you may have professional consequences where your credit report and profile matters.  Remember, you do not want to not only loose your house and your job.

Bottom Line: If you are not fully informed of the consequences of your actions of walking away from your mortgage, you are making a HUGE mistake!  Get educated and call a real estate professional that specializes in short sales and foreclosures as well as your tax accountant and real estate attorney.  After getting all of the facts, you can then make an informed decision.

The Parkland Parrot Real Estate Team specializes in short sales and has helped many Parkland and South Florida homeowners that are possibly facing foreclosure.  We know the numbers, we analyze the market, our clients make better decisions. If you are interested in speaking with a Parkland real estate team member, please do not hesitate to contact us at 954-609-0591 or send us a message here.

To stay updated with all Parkland real estate information, receive our blog posts via email by subscribing here. After registering, you must activate the subscription in a follow-up email.

Now, both the lenders and borrowers on homesteaded Florida properties will have to meet at the bargaining table.  This court order, carried out by Chief Judge Peggy Quince, guarantees an audience for distressed homeowners and the lending institutions to discuss all available options from loan modifications or short sales before foreclosure.

Banks will be responsible to pay the court costs for each potential foreclosure, which will cost them approximately $750 each. Judges are hoping that this new requirement will help reduce the thousands of foreclosure cases taking over the court systems.

Distressed homeowners must be referred to counseling before mediation.  The mediation must take place no earlier than 60 days and no later than 120 days after a foreclosure suit is filed.  Also, non-profit organizations, such as the Collins Center for Public Policy, must be provied with mediators specially trained in mortgage foreclosure.

According to the Mortgage Bankers Association in the third quarter of 2009, Florida’s 12.74 percent rate of home loans in foreclosure was the nation’s highest. As a result, 441,440 Florida home loans were in foreclosure at that time.

Hopefully, this new policy will help distressed homeowners remodify their loans or agree to do a short sale.  It is important that homeowners call their banks and speak with a real estate agent along with a real estate attorney.  Please give us a call at 954-609-0591 if you are in need of assistance.

To stay updated with all of the current Parkland real estate home information, receive our blog posts directly to your inbox by subscribing to the squawk.

If you are interested in buying or selling a real estate property in Parkland, please give us a call at 954-609-0591 or send a note to the squawk.

Let’s face it!  You hear on every media outlet that Home Foreclosures are increasing throughout the United States causing homeowners to be forced out of their homes as well as drastically decreasing home values!  A study performed by a Florida Supreme Task force has found that approximately 10.5% of the 3.5 million Florida mortgage loans were in some stage of the foreclosure process.

I just read a great editorial from Florida Trend which highlights Collins Center for Public Policy, which is a research organization affiliated with Florida State University.  The Collins Center is taking the initiative in three circuit court districts, including Miami-Dade, to force lenders to try and mediate and do a loan modification before seeking foreclosure.  The Collins Center Mediation Program  has kept over 1/3 of the distressed foreclosure-bound homeowners in their homes at a modified mortgage payment that they can actually afford!

The Collins Center also arranges meetings with distressed homeowners and local financial counselors to go over all of their options including discussing President Obama’s Hope For Homeowners Program. This month, the Florida Supreme Court is also meeting to decide if mortgage mediation should be required by ALL lenders and making foreclosure the last resort for distressed homeowners.

I wish President Obama and Congress would have passed a bill like this last year.  Foreclosures will continue to negatively affect the economy in 2010.  We can help stop the bleeding, as the Collier Center’s program is not costing any tax payer dollars.  As a result, thousands of homeowners are still in their homes because of this initiative!  Can we get the rest of the counties in Florida, as well as the rest of the country, to FINALLY get on board?  I sure hope so!

To stay updated with all of the current Parkland real estate home information, receive our blog posts directly to your inbox by subscribing to the squawk.

If you are interested in buying or selling a real estate property in Parkland, please give us a call at 954-609-0591 or send a note to the squawk.

Currently, there are ONLY 289 active Parkland single family listings on the market, with ONLY 10 being foreclosure listings. Parkland residents should be ecstatic at this exciting news, as the market is showing signs of settling!  Inventory is low and buyer activity has increased in the past few months.

Typically, foreclosure, or bank owned properties, have a very large impact on the current market values of properties.  Banks are trying to sell their inventory quickly at a discounted price.  When a foreclosure sells, appraisers are forced to use these homes as comparable sales when performing appraisals on pending sales.  But, the less foreclosure inventory on the market, the better the values will maintain through the rest of 2009 and hopefully into 2010.  Also, with less than 4% of the active single family Parkland listings being foreclosures, buyers will be forced to look at regular listings.  As a result, current Parkland sellers have been receiving more showings on their homes.  More traffic will ultimately equals more offers!

If you are potential buyer who is still sitting on the fence, waiting to get a better price, think again!  Many Parkland listings are getting multiple offers and are closing close to asking prices.  Potential buyers are starting to smell the coffee!

To stay updated with all of the current Parkland real estate information, receive my blog posts directly to your inbox by subscribing to the squawk.

If you are interested in buying or selling real estate in Parkland, please give us a call at 954-609-0591 or send a note to the squawk.