Foreclosure News: Substantial Drop In Prices Of Homes In FL

Foreclosure news in Florida reveals that the number of foreclosed properties that are up for sale is still at almost record levels in August 2009.'' And while the housing market remained in a state of crisis, home prices continued their downward trend and this was evident in the foreclosure listings.' In the month of August, the state of Florida witnessed more than 62,000 foreclosure filings.' This was the second highest level for the Sunshine State and represented a rise of more than 10 percent.' For this particular month, scheduled auctions jumped by 13 percent while initial default notices rose by 12 percent, compared to the previous month.' Therefore, for home buyers who are seeking very low priced homes, such as real estate investors, foreclosure news in Florida remained encouraging.

An effective way to search for those homes that have been foreclosed by government-backed agencies and banks and are in the market at bargain prices when compared to their market values, are foreclosure news and listings.' These properties are either government foreclosures or repo homes.' These developments may be regarded as negative events for those who are losing their properties but they are positive developments for those who could not previously afford the home prices.' And on top of the much lower prices, mortgage rates are also staying within the five percent range for fixed 30-year mortgages with fixed rates.' Foreclosure news is currently positive for home buyers because the prices of foreclosed homes have declined to values that range from five percent to 40 percent under their market values.' Therefore, real estate investors have been waiting for such a situation.

But on the other hand, home sellers may also benefit from this kind of foreclosure news in which there are a lot of home buyers searching for bargain prices.' However, sellers may have to be contented with a short sale in which the price is less than the outstanding loan balance of the homeowner.' For the short sale to push through, the lender will have to approve the selling price and be willing to forgive the difference between the proceeds and the loan balance.' Thus, this kind of foreclosure news may also be positive for the home seller because he can avoid foreclosure after the short sale.' New tax laws also mean that he can also save on the tax that he would have been required to pay because the amount forgiven would have been regarded by the IRS as income for the seller.

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