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Are All Florida Real Estate Transactions Halted Until Next Year?
We received something troubling in the tip box.
I contacted several real estate agents today to buy real estate in Florida only to be told that all sales (including properties that have been foreclosed and are actively for sale/auction) are on hold. I asked the agents for how long. They said it appears until January 2011.
Are fellow readers seeing this across other states as well?
If anyone can confirm whether this is occuring elsewhere it sure would generate a lot of story leads for all the other reporters who read Zero Hedge.
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Not sure how this works John. If a house was sold during the bubble (whether it was foreclosed or not ) isn't there just as much a threat of "lost " title for the title insurance company ? Like I ssaid I don't know how this all works and I am curious to get an answer . Being my thinking (to me) seems logical .
What is the difference ,a title is a title , whether there is a foreclosure or not no? wouldn't a cash buyer be at risk as well if someone comes along later claiming title to the property?
If all of the original paperwork is screwed doesn't it also screw the normal sale of a home?
Once a foreclosed house is sold and the title transferred the "transaction in good faith" aspect of contract law takes over. The only recourse for the person illegally foreclosed on will be against the bank or servicers involved and anyone attempting to collect the deficiency payment.
The larger problem will be the recourse of investors on the securitized isntruments (MBS) as if they are settled at 30 cents on the dollar but the entity responsible legally could not settle the instrument due to the foreclosure issues, then that could open up a can of worms which seize up the securitization market not just for RMBS but for CMBS also as the processes though different have similarities in foreclosure processing. The entire securitization markets are well on their way to another heart attack and that will paralyze the markets just like 2008.
Thanks man I appreciate your answer . So there is no way this could affect regular home sales .
so what does this do price of houses in heavy foreclosure states like FL? if no REO for sale, does that make homeowner occupied houses more valuable? does it just make everyone stop buying out of fear of anything til this gets sorted out, does this make banks/servicers prefer short sales?
It freezes it up and forces prices down for existing homes even further because of the percentage of homes in any given neighborhood in foreclosure, REO, or in process. The final 25-30% decline in prices in our state is well underway. I figure we're good for a 12% decline in Q4.
Adverse possession, bitchez!
This is only the beginning, not the "finale". There is far more here than just halting foreclosures. The challenges to securitizations will blow this boat clean out of the water, and the courts in their glacial progress will freeze the entire RE landscape for years (IMHO).
Today I spoke with a residential Realtor who has been working in the industry since the mid 70's. Ther is a big FNMA auction coming up and she said that brokers and their agents who have listings are barred from selling any of their listings that are up for auction... Agents from other companies/brokers can sell the listings. Some concern abou t conflicts of interest.
http://www.palmbeachpost.com/money/real-estate/foreclosure-sales-freeze-...
Sales of bank-owned homes are being called off statewide, leaving buyers with uncertain contracts to purchase properties and, in some cases, scrambling to find places to live.
Fannie Mae spokeswoman Amy Bonitatibus said Wednesday that she couldn't speak specifically to Lachance's case, but in general sales are halted on homes where there may be issues with foreclosure documents.