That is a great question. Based on the sales of detached homes in 2011, 65% were traditional sales, 25% short sales and 10% were REO’s (foreclosed/lender owned). In addition, if you consider that the first quarter sales in 2012 were traditional sales 66%, short sales 26% and REO’s 8%. It would appear that 66% or 2/3 of the homeowners are not under water. However, when we look at the current active and pending listings totaling 52, we have to reconsider our position, because 46% are traditional sales, 52% are short sales and 2% represent REO’s. It stands to reason that homeowners that purchased in the heat of the market and homeowners that have taken equity loans are possibly in trouble.
Considering selling short? Do you know HAFA?
HAFA, stands for Home Affordable Foreclosure Alternative, which was created in 2009. On March 9, 2012 the Obama Administration announced these updates. This government sponsored program will be extended for another year to December 31, 2013. There are some major improvements to the program, which will be effective June 1, 2012. With these updates, a homeowner can be current on their mortgage, qualify for HAFA, continue to make their payments, and execute a short sale with minimum impact on their credit!
• The removal of occupancy requirements. Previously, HAFA required homeowners to have lived in the property within the last 12 months.
• $3,000 relocation incentives will be limited to properties occupied by the owner or tenant at the time of the short sale.
• Mortgage payments will be allowed to exceed 31% of the homeowner’s gross monthly income. This update will allow a homeowner to stay current on their mortgages and still qualify, minimizing the overall impact to their credit.
• Secondary lien holders may receive up to a maximum of $8,500, up from $6,000 previously.
• The Credit Bureau Reporting will be Account Status Code 13 (paid or close account/zero balance) or Code 65 (account paid in full/a foreclosure was started), as applicable.
This is the best time to either sell or rent your home!
Historically, most homes go pending in May and close in June. This is centered around the school season ending in June. Another reason is that at this moment there are only 9 active listings in Windemere, (7 detached and 2 town-houses). Recently, there was a full price offer for a home in Windemere and the agent was told that he wasn’t even in the ball park. They received several other offers. If your home is going to be a short sale and you can qualify for the HAFA program, this would be a good time to get everything ready for your house to go on the market June 1st.
Regarding rentals, at the present time there aren’t any rentals on the MLS in Windemere. Supply and Demand always sets the pricing. There is a tremendous demand for rentals in Windemere NOW!
