Recent statistics presented by our local #Orlando real estate board as well as national statistics reflect a decrease in foreclosure sales and an increase in “normal” sales.
According to the Orlando Regional REALTOR Association, “The big news for Orlando housing statistics in May was the percentage of “normal” sales. This sale type has risen for four consecutive months and has increased to 37.47% of all transactions”.
I know these figures sounds like a good thing and I hate to sound pessimistic but the reason that these numbers have increased and foreclosures have decreased is simply because of some serious flaws in the system.
First, the courts have a backlog of old foreclosure lawsuits that they have not been able to work through and finalize. I have homeowners who have been in foreclosure for THREE years with no end in sight as to when they will be forced to return their house to the bank. With State budget cuts (in all of the US) there is a shortage of available judicial staff to process the foreclosure case work.
Secondly, with the former robo-signing legal scandal resulting in illegal processing of past foreclosures – there is now a slowdown in foreclosures until everyone figures out how to properly and legally process foreclosure sales. No more speedy foreclosures with the current judicial requirements.
Finally, the government IS trying to help homeowners stay in their homes by short-term modifications. While they don’t typically work – it does slow down the process.
When added up though – this is not a good thing. Slowing down and in effect, stopping the foreclosure market will only drag out the inevitable for YEARS. It’s the proverbial Band-Aid on a gaping wound. Far better that we fix the system, get all foreclosures through the legal process and move on to a better and more prosperous future. Our economy needs to heal but for that to happen – we have to get these foreclosures finalized so that they may be sold to new credit-worthy homeowners.