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Short Sales Predicted to Rise - Reyes Law Group

Short Sales Predicted to Rise

Short Sales Should Continue to be on the Rise Throughout 2014

A recent Daily Business Review article published an article by local real estate guru Jack McCabe which predicts real estate prices will continue to rise but at a slower pace in 2014.  And to me, that makes sense.

The uptick in the South Florida market in 2012-13 was driven mainly by large, hedge-based investors buying from homeowners or lenders blocks of real estate condo units and homes in either delinquency or foreclosure status.  Big-scale investment groups were formed, logistics arranged, and realtors & analysts sent out in droves to look for, contract and close on bulk real estate purchases.  And Presto! – hedge funds were now in the landlord-tenant business.  At the same time, major lenders were in a slow-down mode to prevent further inventory from getting to the market as a way of helping drive prices up and … they did!  Remember, its simple economics, “supply & demand” at work.

Then changes started to happen.  Florida’s new foreclosure law, in effect since July 1st, 2013, placed certain challenging obligations on lenders before they can file suit – like actually “having the note they’re suing about!” No lenders had a legal and practical basis for slowly down the case filings.  Plus, now coupled with having to deal with the “rocket-docket” approach – in full bloom across the state – and now we have a basis to see a slow-down where banks are motivated to pursue workouts more aggressively which served to increase the inventory of properties.  And of course, when that happens, the flattening of price appreciation.  Hence, Mr. McCabe’s prediction.

Ahead of this curve have been these very hedge funds and big investors, retreating from the market for some time and instead, sitting back and riding the appreciation that’s been taking place.  All said, this means short sales should continue to be on the rise throughout the year as more of the 25% of South Florida properties that are “underwater” become available for sale as a “way out”.  So whether you’re dealing with or involved in a Real Estate matter of some sort – a Residential Purchase & Sale, Commercial Acquisition & Sale, Short Sale Negotiations, Loan Modifications, seeking Financing, or in litigation over a Contract or Breach of Contract – the fact is a short sale solution may be at hand in 2014.

Carlos J. Reyes  is the Principal of Reyes Law Group. He has been a member of the Florida Bar since 1988 and practices state-wide.  Carlos has been awarded a rating of “AV Preeminent” which is the highest possible rating in both legal ability and ethical standards by Martindale-Hubbell – a well-recognized legal resource. The RLG Legal Team also include attorneys Melissa J. Ulloa and the RLG Legal Support Team to bring you a dedicated, experienced and dynamic legal team to handle your legal needs.

We also assist clients in the areas of: Civil LitigationReal Estate LitigationResidential Purchase & SalesCommercial Acquisitions & SalesResidential Landlord-Tenant LitigationCommercial Landlord-Tenant LitigationShort Sales NegotiationsLoan ModificationsCriminal DefenseCivil Rights ClaimsFamily LawCorporate Work, and Labor & Employment Law.

Call us for a FREE consultation at (954) 369-1993. Se Habla Español.

Visit our firm website ReyesLegal.com and review our credentials.

We are located at 150 S Pine Island Rd #210, Plantation, FL 33324

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Written by Reyes Law Group