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Friday, September 16, 2011

The ‘Best Time to Buy’ a condo?

Every realtor will tell you ‘now is the best time to buy’. Of course that is nonsense, and it won’t make them any commission to tell you that it is next year when the foreclosure market really gets into high gear.

Due to the major banks screwing up with the ‘robo signing’ nonsense the sales of foreclosed units has slowed and banks and mortgage companies have been reluctant to put more homes/condos into ‘lis pendens’ status as they could not handle those they were already foreclosing on.

This situation is now about to change and experts predict that in early 2012 not only will foreclosures rise, but those already filed will be put back on tract to the banks taking possession and marketing those condos. Presently the Florida ‘average’ length of time between filing and taking possession is about 850 days. This gap should be steadily closing and in 2012 it should be a much more reasonable time frame for the banks to take over a unit from a delinquent owner.

This is a mixed bag for condo owners. On the plus side the currently empty condos will be sold and new faces will appear in the previously empty units, bargains will be had by the new owners who will come in at prices 50% of what the original owners paid.

The downside is of course this coming flood of foreclosed condos will make it almost impossible for current owners to sell at any reasonable price. The foreclosed units now available are priced to sell, those coming next year may even be cheaper plus there will be a greater selection for new purchasers to choose from.

More info at:
http://con.st/10022898  and http://www.cnbc.com/id/44533588