Vero Coastal Homes
                                                            Vero Beach Foreclosures & Short Sales

Is the Foreclosure Paperwork Fiasco a Great Opportunity?

Public Perception & Reaction Doesn't Fit the Facts

The latest in a long list of revelations to affect the recovery of the housing market, is lender processing of the paperwork when filing foreclosures. Overwhelmed by the number of case files, some processors were signing off on documents they had not even read or reviewed.

Other irregularities with title                   work and original notes missing can delay issuance of title insurance and lender transfer of the property.  The public’s reaction has been to wait and see - and to delay home purchases. This has resulted in a 35% decline in  family sales in the Vero Beach Real Estate market compared to the same time last year. Condos sales on the other hand, have remained stable and posted a slight increase.

Out of the 2685 active listings in the Vero Beach FL MLS, only 153 homes & condos are bank owned with only 28 listings being temporarily off the market. The perception is that there is a risk in buying a home at this time. In reality, less than 1% of homes for sale are affected, and most of the paperwork discrepancies are being resolved.

This temporary setback has resulted in a longer period on the market for sellers and a decrease in final selling price. This provides an opportunity for the educated home buyer who is virtually unaffected by this situation. The delay in processing mostly affects the homeowner facing foreclosure and buyers who have a bank owned home under contract.

Even if irregularities arise when you are buying a lender owned home, your only risk is a closing delay. If you don't grant the seller an extension on the term of the offer, the contract becomes void and all deposits are returned. Buyers who have paid for inspections may want to give the lender a chance to correct any deficiencies.

The perception of risk in a Vero Beach FL home purchase exceeds any real threat of loss or inconvenience, and presents an opportunity for home buyers in the next few weeks.