Florida Mortgage : Learning Center

Well its June 30th and we are half way through the 2008 year.  And I thought last year was a tough one for Florida Mortgage Professionals.  This year has been riddled with new problems that affect everyone in the mortgage arena.

These include Florida home buyers, sellers, Realtors, Title companies, Florida Appraisers, home inspectors and Florida Mortgage Professionals.  Most of the calls over the past few months have been for new  Florida home buyers – which is great.  But most are looking at the fantastic discounts apparently available through foreclosed homes and short sales.  Are that is where the system gets bogged down.

The problem is most short sales are contingent upon finding a buyer, having them get approved for their Florida fixed rate mortgage, and then asking the sellers bank to approve the short-sale.  If they say no the buyer is out of luck and must start searching for their new home again.  Many clients are jumping from contract to contract in hopes to meet the sellers bank’s criteria. 

And foreclosures are causing havoc with turn around times to meet loan closing dates.  Florida buyers must obtain mortgage approval, get an appraisal, lock-in their fixed interest rate and  then wait for the REO bank’s chosen title company or attorney to close.  Some of these attorney’s are so behind they cannot even meet scheduled closing dates.  Extensions are being pushed so far back that some Florida buyers give up and start searching for a new home all over again.

Several first time buyers get pre-approved for their VA Home Loan or new Florida FHA mortgage and are excited about finding that dream home at, of course, a newly realized dream price.  The reality is that most banks are seeking the current fair market value for these Florida homes. 

That is, some homes are selling for what the current market value dictates already.  There is no real discount, the home simply is selling at market value.  Once our first time home buyers move in they must start doing home improvements to bring the home back to life.  A bargain?  Maybe.

If you are working on buying your first home and considering foreclosed homes or short-sales; make sure your Florida Mortgage Profrssional can obtain your approval quickly and of course work with a short-sale specialist (ask for references).  For more information please call our office at 888.399.0520.

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