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Five things that can be done right now to stimulate Pinellas County real estate sales (and real estate sales everywhere)

We’re around five years into the recession, and the real estate market has been suffering all of that time. There were a lot of reasons for the downturn, just as there are lots of reasons for the slow recovery.

While I don’t have a magic bullet to right the ship and make everything okay real estate-wise, I think there are some things that could be done right now to stimulate sales and make things better, here in Pinellas County and really everywhere. Nothing is going to make up for nine percent unemployment or for the under-employment of millions more people, but I think we could do a lot for the national and the Pinellas County real estate markets to make home ownership more possible for thousands of would-be home owners by taking a few simple steps.

Here they are:

1. MAKE CREDIT STANDARDS MORE REASONABLE: Much of the problem in the first place resulted from very easy-going credit standards when it came to home mortgages – things such as incomes that didn’t have to be verified or 100 percent (and even 110-percent) financing. Lenders have reacted to those transgressions by tightening credit requirements to a ridiculous level. So let’s find a happy medium that works for buyers while protecting the interests of lenders.
2. BRING BACK THE 90 PERCENT MORTGAGE:  Where we once saw no-money-down mortgages, we now see lenders who want 20 or 25 percent down. There are many very qualified buyers with good incomes who should be able to buy homes with 10 percent down. Let’s make that possible for the right buyers.
3. STREAMLINE THE UNDERWRITING PROCESS:  Underwriting has become extremely tight and difficult, and it is not unusual for lenders to come back repeatedly for additional documentation. That takes extra time, and deals can fall apart during those long waits. Good, effective underwriting shouldn’t have to take weeks or months.
4. GENERATE MORE JOBS: Probably the biggest impediment to a housing market recovery is a lack of good-paying jobs. If people can’t earn adequate incomes, they can’t afford to buy new homes. This is something the government can help with by instituting encouraging policies; the private sector can contribute to it by investing in themselves in ways that encourage job creation.
5. CLEAR OUT THE FORECLOSURE INVENTORY: Banks have been slow to clear out the inventory of foreclosed homes. Short sales can take forever, and lenders seem to be in no hurry to get their foreclosed-upon properties off their books. Some observers even say that banks have withheld significant numbers of foreclosed properties in order to keep home values from falling even further.  If banks want to get back to the business of lending money for home purchases, they have to do their part, take the hit, and get that inventory back into the hands of private owners.

Got any ideas of your own? Send them along and I’ll post them on the blog.

In many ways, this is a great time to buy Pinellas County real estate, especially in certain market segments. Give me a call and we’ll discuss: 727-643-7100, or e-mail me at beth@bethfrederick.com .

Tags: First time homebuyers, Foreclosures, home sales, pinellas county, Pinellas County real estate, real estate, short sales

Pinellas County short sales require patience and a good agent

Pinellas County short sales vs. foreclosures, last 10 months

   If you own a property in Pinellas County that you would like to sell, but you owe more on it than it’s worth, you may have thought about doing a short sale.
     A couple of years ago very few people had even heard the term “short sale.” A short sale is where the net proceeds from the sale of the property are not sufficient to cover the mortgage or mortgages and assorted other closing costs –homeowner association fees or property taxes or real estate commissions.
     Although the seller is definitely a party to the transaction, the sale itself requires third party or lender approval.  That approval is based on current market value that the lender determines once an offer is received on the property, along with other documentation provided by the seller as to need and eligibility for the short sale.
     Here’s the biggest question that every seller asks regarding short sales: Who pays all the fees associated with the sale of the property?
     The answer: The lender!
     The process can be lengthy and tedious; to date, the lenders have been slow to respond, but new incentives by the U.S. Treasury Department have caused lenders to reconsider, especially in instances where there may be multiple liens involved.
     Keep in mind that there are other factors involved in doing a short sale, including credit and tax implications. Short sales will not be the answer for everyone.
     Sometimes refinancing alone will work. The Obama Administration is working with lenders to make refinance requirements more reasonable for the current market place.
     Loan modifications are another possibility, and they are growing in popularity and availability.  Finally, foreclosure may be your best or only option.  You need accountants and attorneys to give you that advice, ultimately.
     Lenders know it is in their interest to negotiate short sales and loan modifications rather than allow more foreclosures to take place.
     The graph from the Pinellas Realtor Organization for April shows that bank owned properties are selling for far less than pre-foreclosed properties or short sales.
     Know that you have options if you are thinking about selling, but inaction should not be one of them.
     I have spoken about selling a short sale property, but buying a short sale has its advantages, a lower- than- market –price being the most obvious. But conditions and updates on a short sale property compared to a foreclosure can be significant.
     Short sales for buyers can be arduous.  Finding an agent who is experienced, patient, and willing to lead sellers and buyers through this complicated process is critical.  It can truly make the difference between a successful outcome and being just another one of those short sale horror stories.
     I can help you through the short sale process, whether you are a homeowner interested in selling or a buyer interested in making a short sale offer.
     To explore the possibilities, call me at 727-643-7100, or email me at beth@bethfrederick.com. And make sure you keep visiting www.pinellasnewsboy.com. There’s bound to be new short sale information coming on a regular basis.

Tags: Add new tag, pinellas county, short sales