The only thing that would be different is that consumers will not be able to change their bid once it’s been made so you guys that wait until the last minute to bid a few cents more than next guy would be out of luck.

I’m not entirely sure how the responsibility to liens will be handled on EBAY but it could mean a big savings to Lee County as well as freeing up government workers to do what they do best… hanging out.

Perhaps other counties in Florida will follow suit and the foreclosures will get processed more quickly meaning we’ll get rid of foreclosures more quickly out of the real estate inventory.

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My impression of the way banks are handling the mortgage crisis is that they are not equiped to handle the situation and I hope this time off will help them get better organized.

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Whenever anyone hears foreclosure associated with a home for sale, they automatically think it’s a better deal. The fact is foreclosures are not always a great deal especially after you factor in renovations, but buyers are attracted to the idea of buying a foreclosure. Appraisers often include them in valuations these days bringing values down for all the homes around them. Banks don’t pay any attention to homeowner’s associations, so foreclosures in a neighborhood often cause assessments and increases in dues. That’s because the homeowner’s associations can not collect delinquent fees and maintain lawns that are overgrown and shabby looking. Besides bring values down, foreclosures also affect our homeowner’s associations. It’s especially true for condo and townhouse developments.

A check on Realtytrac shows that the Metrowest zip code of 32835 consistently has had the most foreclosures in Orange County. It saw 249 foreclosures in September 2008 alone. My guess is that the majority of these foreclosures are the numerous condo conversions that investors purchased during the boom years. They were bought in buyer lotteries and you literally couldn’t buy one unless you were on the waiting list very early on. Now you can’t give these things away. To make matters worse, many of these associations are in sad shape because they can’t collect dues on many of the units. So the people who are responsible with paying their mortgage and their dues are punished. It’s a sad reminder that life isn’t always fair.

Some of the other areas in SW Orlando suffering from high foreclosure rates are Hunters Creek and Dr. Phillips. Hunters Creek saw 187 foreclosures in September 2008 which is the fifth worst and the two Dr. Phillips zip codes of 32819 and 32836 had 105 putting them in the middle of the pact. 22,645 foreclosures have sold this year as of July 2008 in Orlando.

Foreclosures not only punish those unable to pay their mortgages, they also affect everyone around them. They’re also a great buying opportunity and the cause of our nation’s financial crisis. Most of all, they’re affecting the responsible citizens who pay their mortgages.

He points out the normal person off the street has no chance of getting one of these properties because the banks flex their bidding muscle and scare off other bidders. It’s just a way for the banks to lower their tax obligation.

The banks intend to sell the property as close to the mortgage as possible or something close enough.

Another thing to consider is that the federal government forgives any and all liens to financial institutions when these properties are purchased at auction. They’ve been doing this since the Great Depression to protect the stability of financial markets in this county.

So even if you luck out and outbid the bank when they’re sleeping, you may be buying yourself into a bunch of liens. Now liens are public record and should be recorded, but the government doesn’t guarantee they have them all recorded so there could be some hidden liens.

It’s definitely an interesting system we’ve got here. Perhaps it’s fair or perhaps not. What do you think?

He says the new bill will bring stability to Fannie Mae and Freddie Mac which is quite important in my opinion. We learned during the Great Depression how important the stability of financial institutions are to the economy and I guess that’s why many of the policies that originated from this struggle still exist today. On the other hand, the creative and loose lending standards administered by these guys led to the collapse of the financial and real estate markets.

Bishop also feels it’s a positive to provide options for homeowners facing foreclosure. I personally don’t see the economic stimulus in this part of the bill, but I like the fact that they’re lending a helping hand even with my tax dollars.

Probably the coolest part of the bill is the first time home buyer credit which can be up to a $7,500 credit. I wish I had this when I was buying my first home. Either way, it should spur on at least some of the buyers that are sitting on the fence. Right on. There’s a website set up to answer questions on how to qualify for the tax credit at http://www.federalhousingtaxcredit.com/index.html

Finally, Bishop and other famous economists are predicting a bottom half way through 2009. I just can’t figure out why they couldn’t predict our most recent boom or collapse. I can recall so many interviews where they couldn’t see an end in sight so I wouldn’t bet the farm on Bishop’s prediction.

Prices are down to 2004 levels, but prices are still surprisingly up if you look back 8 years. It goes to show ya, real estate is a long term investment. Buyers should look at a home with at least a 5 year time horizon, but preferably 10.

First of all, prices on short sale properties don’t mean anything unless the price has been approved in advance by the bank. A short sale means the seller owes more money to the bank then what they can sell for in the current market, so the seller is essentially asking the bank to take less than what is owed.

Say for instance you owe $100,000 on your mortgage and the current value of your home is $80,000. In a short sale situation, you’re essentially asking the bank if $80,000 is close enough. Banks will agree sometimes because it’s better than the alternative, foreclosure.

Unfortunately, banks will not give any indication of which price they will take until the seller gets an offer. The bank then orders a Broker’s Price Opinion and an appraisal to determine which amount they will take. I just can’t figure out why the banks don’t do this ahead of time. Anyway, this process usually takes about 2 months and from my experience, banks often come back with an offer that’s higher than the original listing price.

If you need a home in less than 90 days, it’s tough to buy a short sale property unless the asking price has been approved already. Always ask the agent if the price has been approved or not and you’ll have a pretty good idea on when you’ll get an answer.

Properties that have already been foreclosed on are often a much better deal than short sale properties at least from what I’m seeing out there. While the bank often counters higher than the asking price on short sales, banks are usually willing to negotiate a fair amount on foreclosures.

While you can find a good deal either way, foreclosures are far less taxing emotionally. The bank responds surprisingly quickly to offers and will consider anything within reason.

My advice is to stick with the foreclosures if you’re looking for a deal. Oh by the way, if you see a home that’s being foreclosed on, it’s nearly impossible to get in on the property until the foreclosure process is complete so you gotta wait.

One great place to search for foreclosures is http://bidselect.com/. It’s really easy to use, it’s free, and some great deal can be found here.

I’ve also added a foreclosure search tool on the far right column of this blog. Hope you guys enjoy it.

For investors seeking to cash in on the sub prime crisis, here’s a list of 148 foreclosure, pre-foreclosure, and bank owned properties in SW Orlando. I’ve limited the list to single family homes but if this post finds popularity, I can do a list for condos and town homes as well. Really in the big scheme of things, single family homes are less cyclical than multifamily housing and a safer bet in times of recovery. The zip codes utilized for this report are as follows: 32819, 32835, 32836, 34786, 34734, 34787,34761. These areas are commonly known as Dr. Phillips, Windermere, Gotha, Ocoee, Metrowest, and Winter Garden. The foreclosure list includes everything I could find on the Mid Florida Regional MLS as of today. This file is pretty big and may take a little time to download depending on your connection speed and hardware but it’s a pretty comprehensive list that you’ll have your hands on. Let me know what you guys think.

download pdf: Foreclosure List for SW Orlando