[Semiquaver]

I just had an interesting conversation with my Realtor today. According to her, there is a vote on a measure that will make short sales less available to the general public. The idea is to let investors buy up properties in bulk to manage. If this passes (which it most likely will) it will break all existing short sale deals. I asked if a buyer had been working through a short sale for the past 5 months if the whole thing would fall through because of this... she said yes, it will if this passes. Because of all this she said she doesn't work with short sales anymore, and no one in her office is currently showing any short sale properties. It all sounds like nonsense to me...

I do not know if this was a local Orlando measure, on the state level, or nationwide. In fact I can find nothing about it online. HAFA doesn't sound at all similar to what she was explaining. It sounds like just the opposite, in fact.

Was she misinformed? Can someone direct me to where I can find more information about all this?

[skylinet]

I've never heard anything like that...
I heard they were supposed to change short sale guidelines and make them not as horrible to get to close.

[GregTraub]

There is nothing to stop investors from buying up bulk distressed assets and this is done everyday even now.There is no law I know about nor any reason there needs to be any measure that would preclude the general public from buying a short sale, the agent you spoke with is either mistake or outright mis-informed. There are a hundred reasons a short sale can get killed, but there are no measures being put forth to restrict the market and could cause an even greater loss to the value of short sales.


Short sales are getting easier (though still not nearly as smooth as even a difficult normal sale). And there is no reason you shouldn't check out short sales as long as you know what things can happen (or not happen) and know how to protect yourself from the downsides. Talk to an agent that knows more about short sales than just what they hear through the grape vine and actually works the market.

[Semiquaver]

Originally Posted by skylinet

I've never heard anything like that...
I heard they were supposed to change short sale guidelines and make them not as horrible to get to close.

Yeah, that's the HAFA which goes into effect on April 5th.

I'm so lost.

[Broker Dave]

I do a number of short sales and research the topic almost on a daily basis and haven’t come across any information leading me to suspect any reg's like this are on the horizon.

The big change is to take effect April 5th 2010 streamlining the process from a quicker response to the offer to a faster closing time line.

Other changes include a $1,500 walk away for the homeowner and total forgiveness of the debt difference.

Bank of American decided to start the program January 1 2010, I have a seller currently going through the process with them and it is going much smoother.

She may be including the fact the investors are now not limited to the number of homes with FHA loans, its now 10, also the 3 month seasoning rule has been dropped and you can now flip a property in 1 month.


Now the Government is giving money to local agencies and cities to buy up foreclosures in really depressed sections to curb crime and values, maybe she has this mixed up in the bag also.


Hope this helps,

[♥♥PRINC3Ss♥♥]

Originally Posted by Broker Dave

She may be including the fact the investors are now not limited to the number of homes with FHA loans, its now 10, also the 3 month seasoning rule has been dropped and you can now flip a property in 1 month.

I have heard about the latter but not about the limit on FHA loans. I'm expecting another mini bubble real soon from investors flipping properties.

I don't know why the had to deregulate this again. I guess some people got lobbied. There is no way this will help our real estate. The people that actually plan to live in their homes are going to have to buy at a higher price after some investors flips them, and eventually the mini bubble will burst one more time, as people will not be able to afford their homes again. This is never gonna stop. It's a living ghost town hell down here. I'm so sick of this. I'm so frustrated with this nonsense.

[StreetSmarts]

^^^ It's bad everywhere, but FL is definitely one of the worst - if not the worst. Vacant and forclosed homes, squatters, property crime, etc... see it all over Central FL. Especially in the newer communities, but other states in the southeast are doing much better and it's evident.