Short sales in Florida likely going to increase

I noticed today that the interest rates just hit 7% again.  They briefly touched 6% a couple weeks ago.  For anyone who has locked in a rate closer to that 6%, you might want to take advantage of that now.  Word has it that the Fed may actually increase rates once this year, and leave them unchanged the remainder of the time.  Anyone on the fence waiting for a rate reduction may as well give that up and go ahead with their plans if this outlook prevails.  Or give up on purchasing a home right now and see what next year brings.  There are forces pulling all kinds of directions now as to what the future holds.

Anyone who has bought in the past couple years is likely under water.  While Florida still has an overall increase in population, property sales and corresponding values have dropped over the past couple years.  This means that short sales may come back — if someone needs to move now, but their property is underwater, it’s best to try for a negotiated short sale where any deficiency is waived.  This has to be specifically negotiated; it doesn’t happen automatically.  No one wants to be sued for the balance owed years later after you’ve given up the home.  You also don’t want that reporting negatively on your credit.

We work with local realtors to try to get that deficiency waived, buy time to complete the sale etc.  Reach out if you are facing this kind of situation and see what options may exist for you.