Florida is well-known for being a hot market for buying second homes, as people often enjoy vacationing in the state. However, this may be part of the reason that the residential real estate market in Florida ranks highest in the number of short sales nationwide. Short sales transactions involve selling a home where the amount of money owed on the mortgage is higher than the home is worth.
The short sale count has dropped since 2010. However, it continues to be a major issue. During the years 2005 and 2006, many people bought second homes near the beach, and investors also purchased homes. However, when the economy plummeted, the property owners could not keep up with the mortgage and tax payments.
A short sale has to receive bank approval before a new homebuyer can close on the property. This process can last a couple of months to two years, depending on the number of banks involved and whether or not they are local. The fact that short sales continue to drop is a sign that more homeowners are holding onto their properties.
With the Florida housing market continuing to rebound and grow, investors and homebuyers may be interested in taking advantage of today’s residential real estate opportunities. A transaction, however, can go belly up quickly if one doesn’t take the proper steps at each stage of these complex transactions. Understanding real estate laws may help people to properly negotiate with lenders and sellers when purchasing property, and it can also help sellers to secure favorable deals in our state.
Source: wjhg.com, "Florida Real Estate Market Ranks Highest in Short Sales", Sanika Dange, June 27, 2014