Where are all the Foreclosure properties??

Contrary to popular belief, as well as numerous overblown media reports, the number of actual foreclosure listings on the market is surprisingly low. Many prospective buyers are under the impression there are hundreds of these in our local beach area.
From a professional point of view, it seems to be a confusion of terms, as MANY real estate agents consider SHORT SALES (aka "Pre-foreclosure") to be the same classification as FORECLOSURES, when, in fact, they are very different. I cannot stress this often enough.
From my recent tracking of local distressed properties in the MLS (Multiple Listing Service, used exclusively by licensed real estate agents), I consistently find FOUR TIMES AS MANY SHORT SALES as FORECLOSURE listings!
For the past several months, the weekly list of ALL BEACH FORECLOSURES in Pinellas County (from Clearwater Beach to Tierra Verde) numbers from 12-20 properties TOTAL.
So....WHERE ARE ALL THE FORECLOSURES??

The most obvious reason pertains to the lenders themselves. (I am not the most un-biased person to comment on this, given my 15-year career in mortgage lending.) Lenders have a backlog of pending foreclosures, short sales and pending loan modifications, as well as overworked and underpaid/under-trained personnel, creating a frustrating experience for those depending on them to move the properties off the market.
Also, lenders are in no rush to take over the maintenance of these properties, paying for lawn care, **HOA fees and other securitization services, not to mention paying property taxes!

** non-paymentof HOA fees is causing problems also- look for upcoming blog on this subject!!

Another, related, factor is the court system. In Florida, foreclosures are judicial, meaning the courts are backlogged as well. In a normal environment, a Florida foreclosure takes about 5 months. Right now, the average time is 10 months or even longer.

A third factor? Various "foreclosure moratoriums" set forth by FNMA (Federal National Mortgage Association) and both the Bush and Obama administrations, all of which are currently expired. The moratoriums were put into place to allow distressed homeowners an opportunity to take advantage of numerous plans to modify or refinance their home loans.

Only when and if lenders and courts can streamline the process will more foreclosures enter the marketplace. In the meantime, the current inventory I track is moving from listing to SOLD in a very timely manner. Foreclosed properties (aka Bank-owned) seem to be priced right and ready to move at this time.

For a weekly list of FORECLOSURE properties, all you have to do is visit my website and click on the "Foreclosures" link to access the documents.

www.MyPinellasParadise.com

Have a great week!