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Foreclosures: Will The Dam Now Break?

Posted on Monday, February 13, 2012

I am looking at a property for a buyer and cannot figure out how to help them buy it – why? I cannot find anyone or any instituion yet who claims clear title to the property. What is going on here?  The homeowners have walked away, the bank does not yet claim, the HOA cannot find out who to bill, hmmm.  Seems like this one is headed for foreclosure.

So why doesn’t the bank move on it? Some say the banks would rather wait, as movement will mean a write down, a hit to earnings and lower stock prices (think bonuses).  Some say the banks are just overwhelmed and things take time.

Maybe, just maybe, the banks were waiting for some legislative clarification – which is exactly what we got last week.  CNN/Money reported on the new bank foreclosure program and speculated on future bank behavior.  Their conclusion?  “… the solutions offered by the settlement can only work for homeowners who can afford to make new, lower mortgage payments. Banks will have little choice to foreclose on those who have stopped paying due to prolonged unemployment or other severe economic distress.”  Oh, oh – those are our guys.  Well maybe I will find out who owns this property after all.

Does any of this really matter to Naples real estate?  Depends on supply.  If the market can keep buying up these homes and supply (inventory) stays low then prices should be ok.  Let’s take a look at Naples real estate inventories this morning.  My calculations show 9.57 months – good stuff.  I will take anything less than a year’s supply as a good sign (my math by the way, 6,546 properties for sale in the Sunshine MLS all Naples areas, and 8,209 sold in the last year – or 9.57 months).

Ok we will see if the news last week brings more foreclosures  and if the market can keep up – so far so good.

No legal, investment, or tax advice is being given in this Blog.  Consult with legal, financial and tax professionals before acting on any real estate transaction.  Actual real estate price and sales results are subject to market forces and are not completely predictable. The writings of this Blog are intended for the sole use of our clients.
Mark Goebel, PA is a REALTOR with Coldwell Banker on 5th avenue in Naples, Florida with 35+ years of visiting and living in Naples. After 25 years at Accenture, Mark retired as a managing director and spends his time helping non profits and building a Naples real estate team with his wife Nan. Talk to Mark and Nan about life in Naples and why they chose this place to live full-time over all others and enjoy Naples real estate.
Mark Goebel, PA
REALTOR Coldwell Banker 5th Avenue South
Mobile: 239.595.3921
Facebook: NaplesBestAddresses
Twitter @mcgoebel
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