Notes from Charlotte County, Florida

Homeowners facing foreclosure need information, and the U.S. Department of Housing and Urban Development offers a one-stop shop online that can help.  "The Guide to Avoiding Foreclosure is an easy-to-use site allowing users to quickly search information specific to their needs," says HUD Secretary Steve Preston. "The streamlined Web site educates individuals on the many ways HUD can assist them through these trying times and help them hold on to their homes."

The Guide to Avoiding Foreclosure links homeowners to housing counselors, lenders, local resources, refinancing options, FHASecure, HOPE for Homeowners, and information about the foreclosure process and possible alternatives.

The Guide to Avoiding Foreclosure can be found on HUD's home page (http://www.hud.gov) or by going directly to: www.hud.gov/foreclosure

We have all heard the stories of foreclosures or short sales where the home is missing appliances, plumbing, countertops, cabinets, or have been vandalized, sometimes by the owner, out of anger over the loss of their home.  A new FHA program can be a real help to buyers of those properties.  FHA's Streamlined 203(k) program permits homebuyers to finance up to an additional $35,000 into their mortgage to improve or upgrade their home before move-in. With this new product, homebuyers can quickly and easily tap into cash to pay for property repairs or improvements. 

It will help sell some of the foreclosed and short sale properties.  Often the buyers don’t have the money to pay for the repairs.  But more importantly, that could lead to a real boom in jobs for workers doing those repairs, stores selling those appliances, etc.  Think about the contractor, electrician, plumber, etc. who would benefit from these sales (homeowners can’t do the repairs themselves, they have to use an approved contractor, and the money is escrowed by the lender and paid to the contractor).

LINK: Streamlined FHA 203(k) Limited Repair Program

Our local Real Estate Market, which is serviced by the Punta Gorda, Port Charlotte, North Port Association of Realtors, experienced its highest residential sales figures since May of 2008, with 363 residential closing posted in the month of October.

Interesting to note is the fact that 184 of these sales, or 51%, were made up of distressed sales, either Short Sales (homes being sold for less than owed on the mortgage) or Bank Owned properties. Until we see a decrease in the number of these distressed properties coming on the market, we expect to continue seeing their numbers dramatically slice into the non-stressed property market.  The good news, which is tough to find in this market, is that many are taking advantage of these property bargains knowing it will not last.

Other local statistical facts: as of October 7^th, there were 14,743 properties for sale in our association marketing area, which includes all of Charlotte County and the city of North Port, 1133 of these are Short Sale properties and 587 are Bank Owned properties.

The below graph reflects recent month-by-month sales.