subject: Foreclosure News: Homes In Fl 5 To 40 Percent Below Market Value [print this page] Foreclosure news in Florida reveals that the number of foreclosed properties that are up for sale is still at almost record levels in August 2009. And while the housing market remained in a state of crisis, home prices continued their downward trend and this was evident in the foreclosure listings. In the month of August, the state of Florida witnessed more than 62,000 foreclosure filings. This was the second highest level for the Sunshine State and represented a rise of more than 10 percent. For this particular month, scheduled auctions jumped by 13 percent while initial default notices rose by 12 percent, compared to the previous month. Thus, foreclosure news in Florida continued to be positive for real estate investors and other home buyers who are in the market for bargain-priced homes. An effective way to search for those homes that have been foreclosed by government-backed agencies and banks and are in the market at bargain prices when compared to their market values, are foreclosure news and listings. These properties are either government foreclosures or repo homes. These developments may be regarded as negative events for those who are losing their properties but they are positive developments for those who could not previously afford the home prices. And on top of the much lower prices, mortgage rates are also staying within the five percent range for fixed 30-year mortgages with fixed rates. Foreclosure news at the moment is good news for home buyers because the values of foreclosed properties have dropped to values that are five to 40 percent lower compared to their actual market values. Therefore, real estate investors have been waiting for such a situation.
However, home sellers may also regard this type of foreclosure news as a positive development because there are many potential buyers who are looking for low-priced homes. However, sellers may have to be contented with a short sale in which the price is less than the outstanding loan balance of the homeowner. For the short sale to work, the lender has to accept the proceeds as payment for the loan balance and forgive the difference. Thus, this kind of foreclosure news may also be positive for the home seller because he can avoid foreclosure after the short sale. Changes in the tax code will now allow him to save on the tax that the IRS would have required him to pay because the amount that has been forgiven by the lender was previous considered by the IRS as income for the seller.
by: Michael Bartonolis
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