Thursday, July 14, 2011

Foreclosure filings down, but experts say it's not good news

Foreclosure filings down, but experts say it's not good news - WWSB ABC 7 Florida

SARASOTA - Here on the Suncoast inventory is down, home prices are up, and across the country, home foreclosure filings are down 29% compared to last year. But despite how it may sound, some say the news isn't all good.

When looking over recent statistics, it may seem as if the economy is improving. But some experts say those stats are misleading, and there's more to the story as to why home foreclosure filings are declining.

Foreclosures come in all shapes and sizes, and for buyers, they're a bargain. “Bank owned properties are priced to sell. They want multiple offers in the first week, they want to sell within 30-60 days, and they want to be the lowest price on the market for what's similar,” says Brooke O'Malley, Owner/Broker at Club Realty.

O'Malley says the Suncoast's housing market is actually quite good. “We're at about a 6 month inventory, which is a very healthy market. We're running into multiple offer situations across the board, in all price ranges, probably about 80% of the time.”

In Sarasota County, only 236 home foreclosures were filed last month, compared to 364 in June 2010. But despite those encouraging numbers, Judge Lee Haworth, who is the Administrative Judge over foreclosure cases, says that news isn't so good. “The cases are not able to get through the court system, so they can be put back into inventory, and that's really one of the issues we're struggling with.”

State funding ran out, and the Rocket Docket, which expedited foreclosure proceedings, ended last month. Judge Haworth says that will stagnate cases. “Before we could get a hearing time 30-40 days out pretty easily, because we had the 3 judges and the 4 case managers to process the paper and get things ready. We don't have them anymore, so that means we're looking at 3-4 months out to get those cases resolved.”

O'Malley says in the end, that could hamper the progress the housing market has made. “Over the time the prices have come down more and more than they may have if they would have just foreclosed quickly.”

Judge Haworth and the Chief Judge plan to approach lawmakers in our area to request additional support for the programs needed to process the foreclosure filings. In the meantime, Judge Haworth is putting on free seminars for homeowners who need help with foreclosures. The next “Hope for Homeowners” seminar is on Saturday at the Venice Community Center.

No comments:

Post a Comment