Short sales sound like a dream: The seller escapes foreclosure. The buyer gets a bargain price. The bank holding the home loan eats the difference. But the deals can be incredibly cumbersome to negotiate, and in a recent survey, 94 percent of the real estate agents who have worked with a short sale say they have had problems. However, a short sale home or condo in the Naples, Bonita Springs or Estero areas could represent an excellent purchase opportunity, as long as the proper extensive research is done by the real estate agent representing the buyer.
Housing and Urban Development Secretary Steve Preston criticized parts of the massive homeowners rescue bill, saying that taxpayers could end up absorbing “preventable and foreseeable losses” if the final bill does not include safeguards for the Federal Housing Administration (FHA). For example, the Bush administration wants the FHA to be able to charge borrowers insurance premiums based on credit risk.
Condo conversions were like a game of musical chairs – the last projects to convert lost out when the real estate market stalled. Now many of those condo-conversion owners find that the developer has retained controlling interest in the property, and they have almost no say in the operation.
Some condo conversions currently in this in between stage are Lugano Bay and Oasis in Naples. I am not aware of any in the Bonita Springs or Estero areas.
PENDING HOME SALES
Existing-home sales should see some modest movement soon with a recovery beginning in the second half of the year, according to National Association of REALTOR’s latest forecast. NAR’s latest Pending Home Sales Index, a forward-looking indicator based on contracts signed in May, stands at 84.7, down 4.7 percent from its April reading.
The overall pending sales for Naples were down about 5.6 percent, Bonita Springs was down 24.5 percent, and the Estero area 21.9 percent from April’s figures.
The Federal Reserve will issue new lending rules next week to protect future homebuyers from shady lending practices. The plan would apply to new loans made by thousands of lenders of all types, including banks and brokers.