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Florida Property Market to See Foreign Sales Surge
May 14, 2010Article by Ray Withers
Florida property is to see the surge in foreign sales intensify as lenders and realtors team up to expedite short-sales in the region, international property investment consultancy Property Frontiers has announced. The Miami Realtors Association is currently in talks with the 5 biggest regional lenders, to secure their backing of its ShortSaleSolutions program, which will reduce repossessions by reducing the time it takes the banks to agree short sales.
If the banks agree it will have a phenomenal effect on the Florida property market, says Property Frontiers director David Cox:
“Unlike the government’s scheme, the ShortSaleSolutions program will see investors as well as habitual buyers benefit from an expedited short sale procedure. This could have a phenomenal effect on the Florida property market, not least because it will see the bargain properties selling a lot faster, which will lead to a surge in buyer activity as people act to avoid missing out on the bargains.
“It has been perceived, including by us, that, because there was such a backlog of distressed properties coming up for repossession, that investors had a fair bit of time to make their move, now that window looks set to close a lot faster.”
In explanation of just how much faster distressed stocks could be cleared under the new scheme
RAMB’s CEO, Teresa Kinney said: “When someone submits an offer for a short sale it can be weeks or months before they find out if they are successful. Sellers are sitting on offers waiting for a better one. But banks know their inactivity on these offers is costing them money. The faster they can get a non-performing loan to perform, the fewer foreclosures there will be.”
Florida has been one of the worst affected states in America in terms of foreclosures. This looked set to worsen when it was revealed that the number of people coming into foreclosure proceedings was accelerating at a faster rate, and so undoubtedly something needed to be done. The government scheme was only for those who were buying a property to live in. The fact that investors are eligible for the ShortSaleSolutions plan will undoubtedly see the already surging levels of foreign demand increase further in the coming weeks and months.
This of course assumes that the banks will support the plan. Most analysts believe there is little doubt over this, because of the massive foreclosure problem that exists in the region.
For more information contact Property Frontiers on +44 (0) 1865 202700.
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