Is Florida seeing a real estate “boom” again?
There is no indication that we are returning to 2005 levels, but there is no doubt that Florida real estate is moving once again. And we aren’t only talking about Foreclosure and Short Sale deals. Traditional transactions were up 35% in fourth quarter of 2012 while Short Sales were down 16%. Over the past year, median prices have jumped almost 20%. So what does this mean for the future of the housing market? What will happen to the housing value for homeowners who are underwater and cannot sell their home?
Although the housing market is starting to see a slow recovery, homeowners who are still underwater on their mortgages will still have to wait a very long time, if ever, to see the value of their home return to what they paid for it. Therefore, these homeowners continue to remain current on their mortgage, but may want to upgrade their house or may need to relocate. They may have the means to pay their mortgage and don’t want to foreclose on it. In this case, if a loan modification isn’t an option, a Short Sale may be their only alternative.
In addition, with the passing of the new Florida House Bill that speeds up the foreclosure process, homeowners are going to have less time to try to avoid a foreclosure transaction and try to short sale their home. The new bill could allow foreclosure hearings to occur in 45 days.
If you feel that you are underwater on your mortgage and want to avoid a foreclosure, speak to a Realtor or call one of the associates at Adams and Associates, PA at 1-888-724-9860 for a free consultation to discuss your option. We can let you know if a loan modification is an option for you and discuss other alternatives.