Perfect Storm Develops for Short Sales in Southwest Florida

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Oil spill, economic crisis and lenders’ attitude change towards short sales set the stage for short sales to be the dominate force in real estate sales in Southwest Florida for the foreseeable future with luxury homes accounting for the majority of short sales.

Homeowners with mortgages of more than $1 million are defaulting at almost twice the US rate.

Last December, CoreLogic announced an amazing statistic: “Homeowners with mortgages of more than $1 million are defaulting at almost twice the US rate.” With many people believing that oil from the British Petroleum oil spill has already reached the shores of Southwest Florida, some experts speculate that we are just starting to see the tip of the ice berg with luxury short sales in Southwest Florida as a new element of risk has been added to the mostly high-end coastal real estate pushing down already depressed property values.

Luxury Lifestyle Homes of Southwest Florida ( founder, entrepreneur and real estate broker Robin Speronis reports that, “What will likely make sense in the expected major environmental and economic catastrophe, will be an increase in local short sales of luxury homes. Recently lenders have embraced short sales over foreclosures. Such deals will get owners out from the burden of their homes while lenders would not have to expand foreclosures rosters or endure further losses.” But Speronis warns would-be short sale sellers that, “Still, at the present time only a third of short sale listings actually close. In this complex transaction, a listing agent with the varied skills more like a ‘Real Estate Liquidator’ is key to a successful closing.”

Even before the oil spill there has been a great shift in the real estate market away from foreclosures to short sales. Today, most major lenders have appointed new senior executives to handle the high volume of short sales and implement new systems to streamline the workflow and provide feedback to the various parties to the short sale transaction.

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Robin Speronis
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