Polk County’s overall existing home sales still strong for numbers of homes sold for the Month of July with a total of 617 properties sold despite the declining home prices and the end of the first-time homebuyer tax credit. Prices continue to decrease downwards blaming it still widely on discounted distressed sales throughout the county from the previous year and years’ prior.

A look back in history:

• July 2006 – median price $185,000 (-51.41%) – 721 homes sold
• July 2007 – median price $180,000 (-50.06%) – 437 homes sold
• July 2008 – median price $147,575 (-39.08%) – 462 homes sold
• July 2009 – median price $108,000 (-16.76%) – 598 homes sold

617 existing homes sold – a decrease of 23.54% from the previous month (807 sold homes) in Polk County, FL.

Overall sales decreased marginally to $89,000 in Polk’s median price for existing homes from the previous month of $95,000, however, the Polk’s median home price from the previous year is showing a double-digit decline by 16.76%.

Take a look at the city you live in and see what the numbers are for July 2010 for existing home sales – single-family homes, condominiums, manufactured homes, duplex, villas, and townhomes -including distressed properties in Polk County.  Please take note only sales recorded by Realtors® are taken into account. The source for this data is Mid-Florida Regional MLS Service; it is deemed reliable but not guaranteed.

City         Average Sold Price            Median Sold Price           # of Homes Sold

Let me break down July 2010 Polk County existing homes prices into various categories:

• 520 Single family homes – median price $100,000 – 150 Average Days to Closing
• 31 Townhomes, villas and duplex units – median price $55,000 – 138 Average Days to Closing
• 37 Condominiums – median sold price – $70,450 – 119 Average Days on Closing
• 30 Modular, manufactured/mobile homes in park/out of park – median sold price $39,000 – 176 Average Days on Closing

Let’s take a look at the distressed Polk County real estate market!

There were 215 existing Polk County homes sold, not categorized as distressed properties, at a median sold price of $125,000 with 169 average days to closing, which counted for almost 34.85% of our total sales. The distressed properties however; which includes Bank owned, pre-foreclosure, in foreclosure and short sales counted for 65.15% of our total sales in Polk County for the month of July.

• 307 sold homes were Bank Owned – median price $73,000 – Average Days to Closing 94.
• 95 sold homes were Short Sales – median price $95,000 – Average Days to Closing 280

Related posts:

1. Overall Polk County Existing Home Sales for March 2010
2. Polk County Existing Home Sales for January 2010
3. Overall Polk County Real Estate Market for June 2010

Related posts:

1. Lakeland Florida Homes for Sale – Weekly Update for Newly Listed Homes
2. Lakeland FL Real Estate for Sale – Biweekly Update Newly Listed 08/10-08/23/09
3. Lakeland FL Real Estate Update for July 01 – July 15, 2010

Lakeland real estate Update – So far for this year overall Lakeland Home prices averaging around $117,000 and July’s average overall home price was $116,042.  However, only 169 Lakeland Homes sold last month, producing the third lowest numbers of Lakeland Homes sold for this year.  Average and median prices declined sharply from the previous year by double digits.  Distressed properties continue to be a major contributor in determining market values for Lakeland FL homes with over 60% of the market share.

Lakeland Homes sold in July: 169 – previous month:  216 – previous year July 09: 189 sold

July – average sales price $116,042

Previous month: $118,182 (-1.81%) – previous year July 09: $148,233 (-21.72%)

July – median sales price $99,000

Previous month: $109,200 (-9.16%) – previous year July 09: $130,000 (-23.85%)

The graph below represents average and median home prices in Lakeland for various categories. When our media provides us with a real estate market reports, generally these reports outline only Single Family Homes and Condominiums. Lakeland Florida has a variety of homes, such as manufactured homes, townhomes, villas and duplex units.

What are the various average prices in each Lakeland zip code?

Take a look at my spreadsheet below. I’ve separated the report by zip code instead of school zones; it gives you a more accurate report in my opinion. The data and graphs for this report were obtained from the Mid-Florida Regional MLS, it is deemed reliable but not guaranteed. This report does not include “For Sale By Owner”. The numbers highlighted in pink represents the zip codes where average sold prices have exceeded.

A total of 2492 Lakeland homes are for sale and under contract resulting in a 12 months supply, noticing that our inventory increased suggesting that supply continues to be greater than the demand

Let’s break it down for you to see the supply and demand for traditional homes for sale versus the distressed market in the Lakeland real estate market.

Traditional homes only – Inventory active and pending 1427 homes resulting in 24 month of supply.

Distressed properties – Inventory active and pending 1065 homes resulting in a 11 month of supply.

Distressed properties in Lakeland, Florida

For the month of July, Lakeland’s real estate market of distressed homes had a market share of 60%. There were a total of 102 homes sold in July, according to Mid-Florida Regional MLS.

Check back soon for July’s detailed Lakeland Florida Real Estate report that highlights bank-owned properties (REOs) and Lakeland Short Sales.

If you are interested in a specific area or neighborhood, feel free to contact me at petra@petranorris.com or click the search button below.

Related posts:

1. Lakeland Florida Real Estate Market Report for July 2009
2. Lakeland FL Real Estate Update – Short Sale and Foreclosure Market Report July 2010
3. Lakeland FL Real Estate Update for July 01 – July 15, 2010

The phone rings a desperate voice asking me what should I do?  Should I make my mortgage payment or should I stop making my mortgage payment?

This is one of the most toughest question a client or a consumer can ask me and this question comes up every time when talking on the phone, emails or at a listing presentation.

There are quite a few myths floating around with regards to making mortgage payments when considering doing a short sale. One of them is that you do not need to be in default with your lender in order to do a short sale.

While I am not a lawyer and can’t give you legal advice, I am well versed in Short Sales and this question when asked should be answered by a real estate attorney who specializes in foreclosures and short sales.

Reasons to take into account on whether or not to continue making mortgage payments should you consider a short sale

You may not have a choice because of your financial hardship where you have to put the monthly mortgage payment towards food and utilities.

You may save the monthly mortgage payment for moving expenses.

While it is not required to be behind on the mortgage, lenders may act upon to approve a short sale quicker than if you are current on your mortgage payment.

You may stand a better chance in getting the deficiency waived by your lender due to financial hardship.  Why would a lender spend their resources chasing an empty wallet?

Your credit score will definitely have a major impact whether or not you do a short sale or your home will be foreclosed on.  While a foreclosure has generally the most detrimental impact on your credit score usually 200-300 points a short sale on the other hand drops generally 100-200 points depending on your credit history.

You will not be able to receive a Fannie Mae backed loan for two years now to purchase another home while doing a short sale.

Making your monthly mortgage payment during a short sale

Afford to continue with your mortgage payment during a short sale will able you to protect your credit to some extent while doing a short sale and therefore allowing you to get FHA loan if you were not late on any of your mortgage payments.  Less negative impact on your credit is the most important reason to continue making your mortgage payments.

Lender guidelines constantly changing and getting approved for a new mortgage is much easier when no mortgage late payments on your credit report were reported.

Since short sales require lender approval and there is never a guarantee, your credit is not affected should your lender rejects the short sale or you decide to cancel the short sale because your situation has improved.  No foreclosure if your home does not sell because you stayed current on your mortgage.

Short Sale an emotional roller coaster.  Whether you decide to continue with your mortgage payments or not, make no mistake, the whole short sale process is an emotional roller coaster, your option may be far better than letting the home go into foreclosure.

For a more detailed understanding of the process when buying or selling please visit Lakeland Short Sale.

Do you need to sell your home as a short sale in Lakeland, Auburndale, Bartow, Winter Haven, Polk City, Highland City, Mulberry or Bartow? Call or email me for a personal and confidential consultation.

Related posts:

1. Having a hard time making your Mortgage Payment?
2. Just Sold – Short Sale in Carillon Lakes – Lakeland FL
3. Lakeland Foreclosure Epidemic may be saved by Short Sale Remedy

Are you thinking about walking away because the math don’t add up anymore – Contemplating Strategic Default vs. Strategic Short Sale in Lakeland, Florida?

During the housing boom the lender thought it was a great business decision to provide you with a loan based on your financial situation and the value assessment of the lender’s appraiser so you could purchase your Lakeland FL home. In return you put up your house as your collateral and signed a promissory note – promising that you pay back the mortgage.  More and more borrowers come to the same conclusion that it is their business decision to either strategically default or doing a strategic short sale.

While this decision is totally up to you, I’m not here to criticize or judge your action. I’m here to explain your options and hopefully convince you to look at Strategic Short Sale first.  The lender is only looking at their bottom line and is less concerned with the hardship.

What is a Strategic Default?

A Strategic Default is basically walking away from your obligation to pay your mortgage because your home is underwater; hence the mortgage is more than the current market value of your home.  This may work in Arizona, Alaska and other states because the lender cannot come after the borrowers other assets, since it is a non-recourse state. The State of Florida on the other hand, is a recourse state and the lender has the right to go after the deficiency judgment. Before you decide to walk away thinking you may be eligible for another loan through Fannie Mae in five years, think again!  Fannie Mae recently announced a new waiting period of 7 years and start to crack down on borrowers who elect to strategically default.

Fannie Mae’s filing for a deficiency judgment is the next step it will take.  The news release on June 23, 2010 said, “Fannie Mae will also take legal action to recoup the outstanding mortgage debt from borrowers who strategically default on their loans in jurisdictions that allow for deficiency judgments. In an announcement next month, the company will be instructing its servicers to monitor delinquent loans facing foreclosure and put forth recommendations for cases that warrant the pursuit of deficiency judgments”. Click here to read the whole news release! Not a good option in Florida

What is a Strategic Short Sale?

If you’d asked me a few months ago about a Strategic Short Sale, I would not have taken a short sale listing if there was not a hardship that could not have been supported by documents.  The difference between a short sale and a strategic short sale is the borrower may financially be able to pay for the mortgage but is essentially making a business decision to unload the house.

The process of a strategic short sale is essentially the same as a short sale with a verifiable hardship. The amount of the balance you owe may be negotiated to a smaller amount on which the lenders ask you to sign a promissory note.  Again, if it makes financial sense for the lender that their bottom line generates more money in a short sale than a foreclosure they will more likely approve the short sale.

I’m not an attorney or a tax advisor and therefore highly recommend anyone reading this article, contemplating Strategic Default and Strategic Short Sale to discuss options and ramifications with a real estate attorney and a Certified Public Accountant.

Foreclosure can be avoided through Short Sale! If you need to sell your home in Lakeland Florida as a short sale, hiring an experienced real estate agent who is knowledgeable on both sides of the transaction is basis for a successful closing.

Related posts:

1. Lakeland Florida Short Sale Information – What is a Short Sale?
2. Lenders are more apt to approve Short Sales for Lakeland Real Estate
3. Lakeland Foreclosure Epidemic may be saved by Short Sale Remedy