South Florida:In Deep Water

Discussion in 'General Real Estate and Real Estate Finance' started by Julio E. Sune Jr. (FL), May 7, 2009.

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  1. Julio E. Sune Jr. (FL)

    Julio E. Sune Jr. (FL) Senior Member

    0
    Jan 16, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    http://www.miamiherald.com/business/story/1036019.html

    "Roughly 71 percent of owners who bought in Miami-Dade and Broward counties in the past five years were ''upside down'' -- meaning they owed more than their homes were worth -- at the end of March, according to a report released Wednesday by the Web-based real estate services firm Zillow.com.

    There is nothing to address principal reduction in the Obama plan. People who owe more than $300,000 on their mortgage that now own a $200,000 house won't get their loans reduced to $200,000.''

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    Here is what I said in June 21, 2001..........

    http://www.ired.com/news/2001/0106/appraisalbloat.htm

    "At the present time, there is a shortage of available residential properties for sale in certain areas. Therefore, properties could be sold for more than they are worth. In an "over-heated" market, the prudent consumer/purchaser should take reasonable steps to determine the Fair Market Value of a real estate property. Use an experienced, reputable appraiser, whose primary duty is to estimate market value, and not price, to protect your interests. Find one who knows the particular market area very well."
     
  2. Mark A Rewbury

    Mark A Rewbury Member

    0
    Jan 5, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    And I also hear Jacksonville is in the same pickle.
     
  3. chad hampton

    chad hampton Senior Member

    2
    Nov 10, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    Until something is done to the principal amt of these loans, things will never get better.

    I have no idea why anyone would keep paying on a $350k home, on a 95% or 100% loan, when that home is now only worth 200k. Which is the case all over florida and quite a few other states.

    I know several people that are in the short sale process and some in foreclosure, you'd be amazed at the stupid decisions these banks are making regarding these homes. The stupidity of these banks is amazing. People are trying to do the best they can and their banks are making things much worse. Banks need to understand they are going to have to take a hit on these properties.
     
  4. Pamela Crowley (Florida)

    Pamela Crowley (Florida) Elite Member

    3
    Jan 13, 2002
    Professional Status:
    Retired Appraiser
    State:
    Florida
    As the reality of it all hits those that are ready to move, many, many more foreclosures will happen as people walk away. Trying to do any kind of modifications with these banks is almost impossible and include long term negative conditions for the borrowers, so walking away becomes the best choice. Foreclosures are no where near at the high they will be, and the value/price declines will continue. Many of the new houses during these past 10 years will end up being torn down as they are deteriorating beyond repair while sitting vacant. We still don't have new jobs and are losing more existing jobs along with many thousands of vacant houses. Supply and demand show that we have a major gross oversupply and I don't see anything happening any time soon to bring it back to equilibrium.
     
  5. nauthead

    nauthead Senior Member

    1
    Nov 26, 2004
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    Central Florida is in the same boat. I have told a lot of people recently that one of the best cures for the market in my area is to hire a contractor with a fleet of bulldozers. We have hundreds if not thousands of vacant homes that have slowly been picked clean with nothing left but the shell of the home. These homes are in areas nobody wanted to live in when the market was booming, let alone when it's circling the drain. The bulldozers would do two things-reduce inventory and remove neighborhood nuisances. It may not help bring values up, but it should help stop the bleeding.
     
  6. David Dietz

    David Dietz Member

    0
    Oct 30, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    This is probably true for the majority of populated area's of Florida.
     
  7. George Ellerman

    George Ellerman Senior Member

    1
    Feb 21, 2005
    Professional Status:
    Licensed Appraiser
    State:
    Ohio
    With regard to you Florida appraisers, I'm just curious as to how these 1004mc forms are being completed and what they are indicating??
     
    Last edited: May 8, 2009
  8. Betty H Church

    Betty H Church Junior Member

    0
    Oct 20, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Nevada
    It looks to me like Nevada is in the same boat as Florida. Very discouraging. Tuesday's news showed new and partially finished homes being bulldozed in Victorville, CA. In Las Vegas I am seeing REO homes purchased 6-12 months ago at what was thought to be a good deal at the time now being offered as short sales or are pending foreclosure again. :(
     
  9. Vetteman

    Vetteman Member

    0
    Jan 5, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    If I ever receive another order I'll let you know. Been waiting since January.
     
  10. Mirage

    Mirage Junior Member

    0
    Sep 9, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    1004mc forms

    The 1004mc forms are worthless in my market, my own market statistic is more reliable then
    the form.
    I know of home owners who are upside down on the mortgage with an 8 to 10% interest rate, a lot of them are trying to stay in the home regardless, but asking the mortgage holders to refinance to a lower interest rate is a nightmare.
    As long as the banks are getting bailed out from US tax payers, nothing will happen.
    I don't understand this , if a home owner is willing to keep paying the mortgage regardless of being about $ 100,000 in the red, why would the mortgage holder not give them a better interest rate.
    Something doesn't smell right !
     
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