Ronda Densford, REALTOR Jacksonville and Northeast Florida

It appears that most major lenders have frozen all foreclosures until at least the end of March. A formal announcement is expected Wednesday from President Obama concerning the foreclosure crisis we're in. I think that this is a great time for the lenders to step up and get their act together! The short sale situation is one of the main reasons that there are so many foreclosures. If the lenders would beef up the staffing of the short sale loss mitigators, we could close on a lot more short sale home sales instead of having them end up in foreclosure. I applaud the freeze on foreclosures. I just hope that the lenders will continue to work diligently on the short sale files sitting on the desk of the loss mitigators!!

Great news concerning renters of foreclosed properties! I have been complaining and worrying about these tenants for months! I am so relieved that SOMETHING is finally being done. I hope they follow through with all of this and really protect these families caught in the foreclosure mess. This is not fair to the tenants that have been paying their rent and playing by the rules.

I found out today that Fannie Mae has decided to allow renters to remain in their homes even if it is going into foreclosure. Right now, Freddie Mac hasn't followed suit but they say they're working on it.

Supposedly, the "bailout" money doled out to lenders was supposed to be, in part, used for this very purpose. Fannie and Freddie said last week they will extend a suspension of foreclosure sales and evictions from single-family homes through the end of January. The companies had suspended foreclosures through the holidays.

Based on further information in the article, it placed the burden on the real estate agent to notify the tenants that they don't have to leave. What a mess! How in the world are we supposed to know all of this? I personally have found it to be a nightmare to show an occupied home when it's gone into foreclosure. Let's just say that the tenants are grumpy--with good reason! I guess that we're supposed to find out from the lender if that particular home qualifies for the tenant protection!

I don't know about all of this. I think the intentions are very good--but the end result may be MORE aggravation, more empty homes, more displaced family's, more stressed out/confused Realtors and more PAPERWORK! Is it my imagination or is the situation getting much worse instead of better??

Comments welcome.

After sharing several posts about the peril of renters caught up in the mess of home foreclosures, I am happy to report that help is on the way. Fannie Mae is coming to the rescue! I read the following article on the Florida Association of REALTORS web site today and was thrilled to see that this problem is FINALLY being dealt with. I have seen several families displaced through no fault of thier own and it is heart breaking. I think that the plan outlined below will help a LOT of families. I hate that it took this long for some action to be taken, but every little bit will help.

From the Florida Association of REALTORS site. Fannie to help renters stay in foreclosed homes

NEW YORK – Dec. 16, 2008 – Fannie Mae said Monday it’s finalizing a plan to help renters stay in their homes even if their landlord enters foreclosure. The mortgage giant said it’s working on a national policy to allow renters living in foreclosed properties - and who can make their rental payments - to sign new leases with Fannie while the property is up for sale or get cash to help move into a new home. Last month, Fannie and sibling company Freddie Mac suspended foreclosure sales on occupied single-family homes and evictions from those properties through the holidays until Jan. 9, 2009. Fannie said these actions helped an estimated 7,000 to 10,000 families to remain in their homes. The company said the new renter policy will go in effect before Jan. 9. Last week, New Haven Legal Assistance Association Inc. in Connecticut, which represents several tenants facing eviction on properties held by Fannie Mae, raised the concerns about renter evictions and discussed the situation with Fannie on Friday. “Fannie Mae had the tendency to empty these properties with no attempt before or after the foreclosure to contact these tenants,” said Amy Marx, an attorney at the legal aid group. “A lot of these renters are low-income and an eviction wreaks havoc on their lives due to moving costs and the lack of affordable housing.” Despite the suspension on foreclosure sales and evictions, some Fannie evictions were still going forward, Marx said. Fannie said Monday it contacted its lawyer and broker network to halt those evictions. Fannie and sibling company Freddie Mac own or guarantee about half of the $11.5 trillion in U.S. outstanding home loan debt. The government seized control of the pair in September. Company spokesman Brad German said Monday that Freddie Mac also aims to have a similar plan in place by early January. “Clearly, renters are caught in the crossfire,” German said. “The goal is to provide them some stability and not evict them as a result of another’s foreclosure.”

Thank goodness!!!

The number of short sale properties in the Jacksonville area continue to cloud the market.  A quick update of MLS indicates that 21% of all residential listings are either a short sale, REO or a preforeclosure.  The condo market fared a tad better.  The stats show that 16% of all condos currently listed in MLS are in some state of distress. The sale of these properties continues to drag the price of all listings down.

This is a great time to be a buyer or investor in Northeast Florida.  There are some unbelievable deals out there and it doesn't appear that we're any closer to reaching the bottom. 

There are LOTS of programs available to first time buyers to help with down payments and with the affordability of the home you buy.  Contact me today for more information about how to get up to $39,000 to help with the purchase of your first home.  Don't forget--if you haven't owned a home in 3 years, you qualify as a first time buyer!

Approximately 19% of the homes currently active or pending in MLS are either REO homes or PreForeclosure homes. In the condo market, the picture is a little worse. Of all condos currently active or pending approx 27% are distressed listings. This continues to pull the price of ALL homes down. This is a GREAT time to be a buyer! The prices continue to drop and I just don't see a bottom yet. I think things are going to continue to be very "quiet" until we get this election behind us. There were almost 1800 homes sold in the last two months in North Florida so SOMEBODY is buying! The market continues to putt-putt along and I know that we're not hurting as bad as a lot of markets...thank goodness! I am working with buyers right now that are very hesitant to commit to a contract when they feel like the price of the home is going to drop even more! I feel their pain and uncertainty. It's just a crazy market right now... I am going to continue to watch the numbers very closely for any sign of a bottom. In Jacksonville, the median price of a home dropped $20,000 in ONE MONTH!! That's unbelievable.

If you haven't talked to your lender lately--please go see them and get RE-Preapproved for your loan. The entire game rules have changed when it comes to home loans! I continue to hear horror stories about closings that have been postponed or canceled because buyers can't get financed. They HAD financing 4 weeks ago--but not today. Please see your lender for confirmation that you still qualify for the same amount of funding...just to be sure.

If you need any help with your house hunting or are considering listing your house, give me a call and I'll be happy to help.