Luxury foreclosures

I have seen a recent trend lately towards luxury foreclosures in the Manatee County area.

We all knew about the affordable housing range foreclosures under $250k, a market which is quickly drying up. But there are starting to be more and more in the million dollar plus range.

We're talking foreclosures on the Manatee River in upscale communities. Homes that at one point would have commanded more than $2 million that will sell probably just over a million.

Homes that were listed just above a million that will probably sell for half of that.

I have even seen one home that was listed for more than $4 million in Lakewood Ranch that will now sell for probably less than half of that.

The banks want to move them off their books asap.

The market is starting to stabilize but the upper end of the housing market is really just starting to see what the lower end has been going through for several years.

All the best
Greg Owens PA
Keller Williams On The Water
941.932.6343
greg@teamworksfla.com

Knowing your short sale

Short sales maybe the only option for some homeowners and there is a lot of information the homeowners need to know.

Below is a quick overview of some key factors.

When you owe someone money and they cancel the debt, you can be taxed for the cancelled or forgiven debt. For example, if you owe $20,000 and the lender accepts $2000 to “settle” or pay off the loan, you can be taxed on the remaining $18,000 that was cancelled. This $18,000 can be considered taxable income because it was money borrowed that you are no longer required to repay.

The Mortgage Forgiveness Debt Relief Act was enacted December 20, 2007 to assist homeowners with the tax implications that may occur from cancelled debt. This Act applies only to “forgiven or cancelled debt used to buy, build or substantially improve your principal residence, or to refinance debt incurred for those purposes.”

In short, the Mortgage Forgiveness Debt Relief Act generally allows taxpayers to exclude income from the discharge or cancellation of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

What does this mean for you?

If you have spoken with your lender and are unable to save your principle residence from foreclosure, you may qualify for a short sale. In this way you are able to control the disposition of your home and reduce the financial liability it may incur. You are able to then settle the debt with your lender and avoid the devastating foreclosure consequences on your credit. You may also be eligible to avoid the taxation consequences on the forgiven debt through the Mortgage Forgiveness Debt Relief Act.

If you are facing foreclosure and the home is not your principle residence, there are other options to avoid the tax implications. These options will be discussed in the future.
To verify what the legal ramifications or tax implications may be, consult your local CPA and attorney.

For further information regarding the foreclosure process or the short sale of your home you can email: Britt@TeamWorksFla.com or call (941) 526-9341.
We are here to help you with all of your real estate needs.
Britt

The bottom has come and passed

This is the story about the market that was.

If you want to know when the bottom of the market was in Manatee County for single family homes that was between October and November of 2008.

There was more than 20 months of inventory on the market according to Trendgraphix.

Since that point sales and pending sales have continued to climb and available inventory has continued to drop.

You can listen to the nay sayers who talk about a lot more foreclosures coming on the market and doom and gloom or you can look at the cold hard facts.

We are now down to 6.4 months of inventory on the market as of June 8, according to Trendgraphix.

Overall we are now in a neutral market, under 5 months of inventory is a seller's market, over 7 months is a buyer's market.

There is a larger number of homes available as the price point goes up but for those looking for bargains in the lower end of the market inventory level has plummeted.

Lenders it appears are getting smarter also, instead of flooding the market with foreclosures they appear to moving more cautiously.

Market stability for housing in our community appears to have arrived.


All the best
Greg Owens PA
Keller Williams On The Water
941.932.6343
greg@teamworksfla.com

Celebrating our nation

How great is this.

We get to celebrate our great nation.

In addition where we are sitting or standing we get to see a fantastic fireworks display over the Manatee River between Bradenton and Palmetto.

You can walk to the display, you can drive, bike and even boat to it.

You can sit on a dock, on a bridge or at any number of restaurants along with water and watch it.

Just another reason we live here.

All the best
Greg Owens PA
Keller Williams Realty On The Water
941.932.6343
greg@teamworksfla.com

Get ready for the champagne!

There is less than 3,000 single family resale homes on the market in Manatee County.

There is less than a 10 month supply of re sale homes available.

Some price points (under 200k) are quickly moving in to a seller's market.

We have not seen this since the dreaded fall of 05.

What happens next.

Price stabilization first of all, with fewer homes on the market and a continued demand, prices should stabilize before starting to rise again.

Sarasota and Manatee counties were among the first two to get into the housing recession and it looks like they might be the first out.

The light at the end of the tunnel is much, much brighter.

It may be time to put the champagne on ice if you want to celebrate the end of the free fall in housing prices.

Greg Owens P.A.
Keller Williams Realty On The Water
941.932.6343
greg@teamworksfla.com