WaterSound has had some excellent distressed buys in the past 18 months. 97 West Yacht Pond just sold on April 9th for $1.75mil as a short sale. It was a beautiful 4,061sf home. 189 Gulf Bridge Lane was a bank owned property and had 3 contracts in the first 24 hours of being on the market! This week there is another incredible buy in WaterSound Beach…90 S Founders Lane and it is a short sale!

There are some great buys…but they are going fast. If you want premium property in WaterSound for an incredible price, you need to move quick!

Short Sale in WaterSound Beach 90 S. Founders Lane

Homes in WaterSound Beach

Bank Owned Property and Short Sales in WaterSound Beach

90 S Founders Lane in in a very desirable location just steps from the beach! This home features 5 bedrooms, 5 baths, 3819 square feet, two car garage and more! Large open living area! Incredible kitchen, Wolf, Sub-zero, and Bosch appliances! 3 bedrooms on the main floor each with their own bath! Living, Dining, Kitchen and master on the 2nd level! 5th bedroom/bunk area on the 3rd level leading to the tower with spectacular gulf views! Central vacuum and large closets! Australian Cypress floors! Carriage house over the 2 car garage with private porch area! The home is also very close to one of WaterSound's largest pool areas! Watersound Beach is situated on 1 mile of private, white beach, offers a gated entry, 24-hour security, lush landscaping, the finest Beach Club in Northwest Florida, tennis, pools & walking trails. Property is being sold fully furnished!

WaterSound Beach Short Sale 90 S Founders Lane
Offered at $1,795,000
3,819sf
5 Bedrooms, 6 Full Baths, 1 Half Bath
Built in 2006

If you are interested in buying a distressed property on Scenic 30-A or if you are interested in Team Baranowski listing your home. Please give Tracy Baranowski a call at 850.259.4270 or Craig Baranowski at 850.259.1788 or email  us info@teambaranowski.com.

76 Chelsea Loop in Summer's Edge Was Just Reduced to $469,000!

Summer's Edge is a quaint subdivision on the South Side of Scenic 30-A and Eastern Lake Road. 76 Chelsea Lane is 1-Tier Back from the Gulf of Mexico and is truly a hop…skip…and a jump to our sugary white sand beaches and Emerald Green waters. This charming home in Summer's Edge experienced the height of the real estate boom originally selling for $900K in 2005 and then again for $1.3mil in 2006. This quaint community brings excellent rental income and its location is touch to beat.

Short Sales on Scenic 30-A

REO's on Scenic 30-A

Homes in Summer's Edge

Summer's Edge 76 Chelsea Lane

If you are interested in buying a distressed property on Scenic 30-A or if you are interested in Team Baranowski listing your home. Please give Tracy Baranowski a call at 850.259.4270 or Craig Baranowski at 850.259.1788 or email  us info@teambaranowski.com.

Short Sale: Reduced to $525,000 call 850.259.1788!

Seanest Village is a small coastal community located in the heart of Seagrove Beach on Scenic Highway 30-A. The subdivision borders the State Park and has one of the most gorgeous community pools on 30-A. 

215 Sand Oaks Circle is a short sale in Seanest Village with gulf views and is nestled on Scenic 30-A.  At it's current offer price of $559,000 you are getting 30-A frontage land for free!

30-A Short Sales

30-A REO and Bank Owned Property

215 Sand Oaks Circle

 

215 Sand Oaks Circle in Seanest Village

Currently offered at $559,000

2,759sf

$202/sf

4 Beds

4.5 Baths

If you are interested in buying a distressed property on Scenic 30-A or if you are interested in Team Baranowski listing your home. Please give Tracy Baranowski a call at 850.259.4270 or Craig Baranowski at 850.259.1788 or email  us info@teambaranowski.com.

Under Contract 07/19/2010! Short Sale Reduced to $799,000 call 850.259.1788!

Rosemary Beach is one of the most exclusive and premier developments on the Emerald Coast. If you are looking for the best in Luxury Coast Living, Rosemary Beach is the place to be…and with historically low home prices it is the place to BUY in 2010. Home sales in Rosemary Beach were stagnant the first half of 2009 as home values adjusted to rock bottom prices. January 2010 saw a surge in home sales in Rosemary Beach that topped home sales in all communities along Scenic 30-A and had more homes sell in January then in the first 6 months of 2009!

Rosemary Beach currently has 7 Luxury Homes under contract at the time of this post. This week's Top Distressed Property Pick is a Short Sale in Rosemary Beach and is 10 Scout Lane. This a Bank Approved Short Sale where the price has already been approved by the lender.

Rosemary Beach Homes and Condos for Sale

Rosemary Beach Distressed Property for Sale

Rosemary Beach Market Analysis and Market Snapshot

10 Scout Lane in Rosemary Beach

10 Scout Lane is one of the best distressed deals on Rosemary Beach. This home is on the North side of Rosemary Beach near the Butterfly Park and close to the Cabana Pool and Kingsbridge Park. The home is brand new and ready to go. The interior finishes are somewhat understated for Rosemary Beach, however, they can easily be upgraded and enhanced by a savvy buyer that gets this property for a steal.

If you are interested in buying a luxury home in Rosemary Beach or if you are interested in Team Baranowski listing your home. Please give Tracy Baranowski a call at 850.259.4270 or Craig Baranowski at 850.259.1788 or email  us info@teambaranowski.com.

As a Realtor it is always a challenge to sift through the media hype, buyer and seller sentiment, analyze market data and trends, and derive a forecast as to what will happen to the Real Estate market in 12 to 36 months. As we are all well aware we had a horrific Real Estate Market crash and then experienced a softening of the crash and began to define a bottom to the market in late 2009.

An interesting article by Jason Simpkins, Managing Editor or Money Morning believes the perceived market rebound is pre-mature and the market will continue to languish. I believe we are facing a very long road to recovery and South Walton Real Estate has defined the bottom for single family residential homes as evident with a steady increase in Real Estate transactions in 2009 and a strong start in 2010. Distressed Real Estate including foreclosures and short sales will continue to impact the market and we will see continued price reductions in land sales.

Read the article and let me know what you think…

By Jason Simpkins, Managing Editor, Money Morning
Reports of a rebound in the U.S. housing market have proven premature – just as we warned.

Home sales surged 28% from September to November, giving hope to prognosticators who declared the housing crisis over. But as Money Morning Contributing Editor Martin Hutchinson pointed out in a Dec. 31 article, sales plunged sharply the month after the government's new homebuyers tax credit was originally set to expire.

Existing home sales plunged 17% to a 5.45 million annual rate in December, taking the wind out of a housing market that was just beginning to show signs of life. The decline in December sales was the biggest since the National Association of Realtors (NAR) began keeping records in 1968.

Existing home sales surprised the markets in November – when the $8,000 tax credit was originally set to expire – by zooming 7.4% to an annual rate of 6.54 million units, the highest since February 2007. But that increase proved unsustainable as ineffective government programs and high unemployment continue to hamstring the housing market.

The homebuyers tax credit has been extended to include deals signed by April 30 and closed by June 30. However, Money Morning's Hutchinson believes that will hardly be enough to salvage future home sales.

"What you will see is another spike in home sales leading up to when the tax credit is set to expire again in the spring," Hutchinson said in an interview. "There will be a small blip around April, but that's all."

The market will languish after that, Hutchinson said, as the U.S. Federal Reserve stops its purchases of mortgage-backed securities and mortgages become harder to obtain. The Fed is scheduled to end its purchases of mortgage-backed securities on March 31.

Indeed, the government initiatives that effectively propped up the housing market last year will come up an abrupt end in a matter of months.

The government's Home Affordable Modification Program (HAMP) last year failed to stymie foreclosures, which instead spiked to a record 2.8 million. That was a 21% rise over 2008 and a 120% increase over 2007. RealtyTrac expects that lenders will repossess some 3 million homes this year as the U.S. jobless rate clings to the 10% mark.

The U.S. has shed 7.2 million jobs since the recession began more than two years ago and the national unemployment rate stagnated at 10% in December.

The Obama administration set aside $75 billion to subsidize lenders that successfully modify troubled loans by reducing interest rates, extending loan repayments, deferring principle payments for as long as five years and adjusting other mortgage terms.

However, about 25% of homeowners who received trial loan modifications through the plan are failing to keep up with their newly reduced payments, and at least 196,000 borrowers have missed some or all of their required payments.

HAMP, which was designed to help as many as 4 million Americans, has successfully modified just 66,465 loans. And with the unemployment rate lingering in the stratospheric double-digit range, foreclosures will almost certainly continue to plague the housing market.

"None of these programs have really been a success," Vivek Sriram, a mortgage strategist for RBC Capital Markets Corp. told Bloomberg News. "With the high unemployment rate, it's tough to solve the problem because these people will re-default even if their loan terms are fixed."

Money Morning's Hutchinson believes Congress will consider extending at least some of its housing programs, but that will be difficult to do with a budget deficit of $1.4 trillion expected for the fiscal year 2010.

"I don't think we've hit bottom yet," Hutchinson said. "Artificially inflated bubbles such as the housing market don't necessarily deflate the whole way, because the Fed often steps in and does something maniacal.

"At some point, though, either resurgent inflation or soaring commodity prices will force [U.S. Federal Reserve Chairman] Ben Bernanke to raise interest rates. At that point, reality will return to the housing market, too."

WaterSound Beach has some of the most exclusive and exquisite luxury properties in South Walton Beach and Scenic 30-A. Many of the top homes have been quickly snatched up as short sales and foreclosures. This week we have had 5 homes come on the market in WaterSound Beach. 97 West Yacht Pond in WaterSound Beach just came back on the market as a short sale with lender approval. This is one of the few homes over 3,000sf in WaterSound and will not last long!

81 S Watch Tower Lane – $2.196mil

261 Gulf Bridge Lane – $2.165mil

38 Shingle Lane – $2.295mil

287 Salt Box Lane – $795,000

WaterSound Distressed Property Pick – 97 West Yacht Pond $1.843mil

WaterSound Property for Sale

WaterSound Lots for Sale

Located within the exclusive gated community of Watersound Beach, this luxury home was designed by Geoff Chick and Associates and is a spacious 5 bedroom 5.5 baths. This exclusive WaterSound Property offers a breathtaking view of the Gulf of Mexico and casual beach living within WaterSound's private gated community.

If you are interested in this luxury home in WaterSound and would like to preview it or would like Team Baranowski to list your home for sale, please call Tracy Baranowski at 850.259.4270 or Craig Baranowski at 850.259.1788 or email  us info@teambaranowski.com.

Every week I pick a top investment and distressed property pick. This week I chose a wonderful home in the Preserve At Grayton Beach subdivision. I picked 190 Bartons Way in The Preserve at Grayton Beach. This property is located on the north side of 30A in the wonderful Preserve At Grayton Beach development.  The Preserve has two pools, deeded beach access and low HOA fees. 190 Bartons Way is a short sale.

Homes in The Preserve at Grayton

Short Sales in South Walton Beach

REOs in South Walton Beach

Short Sale in The Preserve at Grayton 190 Bartons Way

This home in Grayton Preserve has a large Master Suite on the first floor, two large guest rooms and an office or bunk room on the second floor. The Preserve at Grayton Beach offers private beach access to one of the best beaches in S. Walton. The master bath has a walk-in shower with large rain shower and a separate whirlpool tub. His and her vanities are separated by custom cabinets perfect for linens. The Preserve at Grayton has two community pools, tennis courts and two club houses with shower rooms. Low HOA fees for wonderful community amenities.

If you are interested in this distressed home in The Preserve at Grayton Beach or would like to preview other homes in Grayton Beach. Please give Tracy Baranowski 850.259.4270 or Craig Baranowski  a call at 850.259.1788 or email  us info@teambaranowski.com.

Calling a short sale "short" is probably the biggest oxymoron for the decade. Anyone that has tried to purchase a short sale or sell their distressed property as a short sale has instantly recognized that short sales are far from being short. I get hundreds of inquiries and discussions about how painfully slow short sales are and for most turn into months of frustration and emotional turmoil.

Team Baranowski has been able to optimize and customize our approach and process for each individual bank and property. This process has enabled us to navigate through time wasting pitfalls and pre-warn buyers and sellers exactly how the short sale process will unfold. This knowledge has made our short sale success rate at 100% in 2009, but has not significantly cut the short sale processing timeline down to a reasonable level. Most of short sale negotiations are done in 3 to 4 months which is good by many standards but pathetic when you consider the amount of time that is wasted by the lenders doing absolutely nothing to the short sale file. In early December of 2009 I wrote about "Sweeping Changes to the Short Sale Process" with a look into what changes are ahead to speed up short sales.

The federal government is setting guidelines for short sales of homes, giving lenders a 10-day limit to respond to offers, freeing borrowers from debt and providing financial incentives to lenders.

The new rules seek to address the many criticisms of short sales and figure to play a significant role in South Walton, where distressed properties dominate the market as the housing slump meanders into a fifth year.

In a short sale, the homeowner unloads the property for less than what’s owed on the mortgage, and the lender forgives the difference. Nearly half of all single-family mortgage holders in Walton and Bay counties are “under water,” meaning they owe more than their homes are worth, according to third-quarter data from Zillow.com, a Seattle-based real estate firm.

While short sales are considered the perfect solution for “underwater” homeowners on the verge of foreclosure, the deals often drag on as lenders take weeks or months to respond to offers. Frustrated buyers walk away during the delays. In some cases, lenders insist that borrowers share in the financial loss, holding up the transactions even longer.

To speed up the process, the U.S. Treasury is calling for lenders to respond to short sale offers within 10 business days. Sellers are eligible for $1,500 moving allowances, and they will not be on the hook for repayment of any debt.

Also, lenders will get $1,000 to cover administrative and processing costs, while investors owning the mortgages will receive a maximum $1,000 for allowing up to $3,000 in short sale proceeds to be distributed to less senior lenders. Loan servicers participating in the Obama Administration’s Home Affordable Modification Program are required to follow the guidelines.

The rules do not specifically apply to loans guaranteed by Fannie Mae or Freddie Mac, which represent about half of all U.S. mortgage debt. The two government-run mortgage companies are working to finalize their own guidelines.

The Treasury plan, which must be implemented by lenders no later than April is expected to streamline the short sale process.

The guidelines are meant to make short sales “a more usable tool" and the rules provide standardized paperwork for all short sales and give buyers and sellers a more reasonable time frame for whether or not the sales will happen.

The government may have to increase the financial incentives. The $3,000 cap on short sale proceeds is not sitting well with second lien holders, who have been demanding more money from sellers, the first lenders and real estate agents in exchange for releasing their claims and allowing the short sales to proceed.

“This is a great program if all these mortgages had only one lien holder,” said Travis Hamel Olsen, chief operating officer for Loan Resolution Corp., an Arizona company that helps lenders complete short sales. “But many of these properties have two liens.”

A spokeswoman for the Treasury says it will hand down “substantial” penalties to lenders that don’t comply. They can include the withholding or reduction of payments and requiring improperly rejected loans to be modified.

Lenders have blamed short sale delays on the complicated nature of the transactions, sheer numbers of deals and on borrowers who don’t submit proper paperwork in a timely manner.

In many cases, the banks are not to blame, said Ward Kellogg, chief executive of Boca Raton-based Paradise Bank. Still, he thinks the guidelines are necessary to force lenders to clear the market of so many distressed properties.

If you are a troubled homeowner, or have a family member or friend facing foreclosure, please give us a call for a confidential consultation about the possibility of a short sale.  Call Craig Baranowski at 850.259.1788 or email  us @ info@teambaranowski.com. Team Baranowski has a 100% success rate for all of our short sales for 2009!

This site, Craig Baranowski or Keller Williams Realty is not providing legal or tax advice. The information provided is for educational and informational purposes only. It is recommended that sellers considering a short sale should consult an independent legal and tax adviser for more information.

2009 was  a tenuous year for real estate along the Emerald Coast. One key area that everyone has been watch and analyzing is the Panama City Beach condominium market. How the first full summer of Pier Park dining and shopping would influence the condo market in 2009 and how the opening of the new Northwest Florida Beaches International Airport in May of 2010 with Southwest Airlines will increase world wide exposure of Panama City Beach.

Consistent with our 2009 Market Analysis of South Walton Beach, Panama City Beach condos saw a 23% decrease in new inventory from 2008 and healthy increase in pending sales of 31% and sales transactions of 3%. Although the increase of sales from 2008 to 2009 was only 3%, it still was an increase that we are all excited about. Consistent with the real estate market downturn we saw Average list and selling prices of condos drop 37% and 32% respectively from 2008.

2010 is going to be another stressful year for condo sales as condo financing continues to be a significant roadblock for sales. Cash buyers for condos represented less than 30% of all transactions for condos in 2009. Foreclosures and short sales will continue to be a major driving force for condos sales and condo prices and we expect an even great number of foreclosures and short sales in 2010.

There is still excess developer inventory that must be worked through to keep condo prices in check and expect to see rental rates continue to stabalize and demand for Panama City Beach as a top vacation destination increases with the opening of the new Northwest Florida Beaches International Airport in May of 2010.

Gulf Front Condos Near Pier Park                              PCB Gulf Front Condos up to $200,000

PCB Gulf Front Condos $201,000 to $300,000        PCB Gulf Front Condos $301,000 to $400,000

PCB Gulf Front Condos $401,000 to $500,000        PCB Gulf Front Condos $501,000 and up

Download the pdf version of the Panama City Beach Condo Market Analysis for 2009.

In 2009 we had an increase of 309% for short sales and foreclosures sold according to the Emerald Coast MLS and our year end market analysis. With moratoriums on foreclosures ending in 2010, we expect to see dramatic increases in distressed property including short sales and foreclosures. All market segments have been affected by the real estate market crash and along Scenic 30-A there were some very expensive homes sold as distressed properties in 2009.
Most Expensive Short Sales and Foreclosures in South Walton

Most Expensive Short Sales and Foreclosures in Panama City Beach East

#1 Most Expensive Distressed Home Sold in South Walton Beach – 52 S Founders Lane in WaterSound Beach

One of the most exquisite homes in WaterSound Beach. This 5,000sf home was designed by Dungan-Nequette Architects and centers around an exceptionally beautiful heated salt water pool, surrounded by an antique French stone courtyard with dining area. True, rough-hewn cedar shakes clad its exterior walls and roof. Custom cabinetry, eight-inch whitewashed Pine on all of the walls along with four-inch whitewashed pine on the ceilings throughout the house are just a few of the amazing details inside this home. Originally offered for $6.7million in 2007 this WaterSound Beach home was sold for a steal at $2.4 million in September 2009 as a short sale.

#2 Most Expensive Distressed Home Sold in South Walton Beach – 274 Cove Hollow in WaterColor

This amazing 4,601sf home with a Carriage house in WaterColor has breathtaking views of Western Lake and views of the gulf from the over-sized porches.This rare lakefront home resides in the highly sought after Cerulean Landing district in WaterColor.  WaterColor homes have been hot properties for 2009 and this waterfront property with gulf views was one of the best deals to be had in WaterColor for 2009. This home in WaterColor sold for $1,810,000 in April of 2009 as a short sale. $393/sf for waterfront in WaterColor!  

#3 Most Expensive Distressed Home Sold in South Walton Beach – 286 Blue Mountain Beach in Santa Rosa Beach

This magnificent gulf front estate in Blue Mountain Beach was an extreme distressed short sale. At 4,711sf this gulf front home was sold for $1,800,000 in February 2009 for $382/sf! A price that we will never see again for a gulf front home and a home of this quality. With gross rental income of $120K in 2008 this home is truly one of the BEST distressed deals for 2009!

Team Baranowski is the leader in negotiating Short Sales along the emerald coast. We had a 100% success rate with Short Sales in 2009!

If you are a troubled homeowner, or have a family member or friend facing foreclosure, please give us a call for a confidential consultation about the possibility of a short sale. Call Craig Baranowski at 850.259.1788 or email us @ info@teambaranowski.com.

We just sold another short sale in Driftwood Estates! This beautiful home just closed in Driftwood Estates in Santa Rosa Beach, Florida. It was a Bank of America Short Sale.

This four-bedroom, two-bath home had views of the Choctawahatchee Bay and sat on a large 0.5 acre lot.

Call Craig Baranowski today at 850-259-1788, or search all the listings in the area by using our powerful MLS search engine.

Homes in Driftwood Estates

Santa Rosa Beach Homes Market Analysis and Market Snapshot

Offered At: $249,000

Bank of America Short Sale Successfully negotiated.

Team Baranowski is the leader in negotiating Bank of America Short Sales. We had a 100% success rate with Short Sales in 2009!

If you are a troubled homeowner, or have a family member or friend facing foreclosure, please give us a call for a confidential consultation about the possibility of a short sale. Call Craig Baranowski at 850.259.1788 or email us @ info@teambaranowski.com.

Team Baranowski closed another successful short sale. This was an amazing lot in the heart of Seagrove Beach just a quick stroll to the beautiful emerald waters of the Gulf of Mexico. Located in Gulf Shore Manor on San Juan Avenue this lot has potential gulf views from a second story home and easy beach access to offer the ultimate in casual beach living.

This was a Regions Bank short sale. Lot 15 San Juan saw a peak value off over $700,000 and was a tough negotiation process with Regions and ultimately we were able to come to a win-win for everyone.

Call Craig Baranowski today at 850-259-1788, or search all the listings in the area by using our powerful MLS search engine.

Lots in Santa Rosa Beach

Santa Rosa Beach Distressed Properties

Santa Rosa Beach Homes Market Analysis and Market Snapshot

Offered at $175,000

Regions Bank Short Sale Successfully negotiated.

Team Baranowski is the leader in negotiating Regions Bank Short Sales. We had a 100% success rate with all of our Short Sales in 2009!

If you are a troubled homeowner, or have a family member or friend facing foreclosure, please give us a call for a confidential consultation about the possibility of a short sale. Call Craig Baranowski at 850.259.1788 or email us @ info@teambaranowski.com.

WaterSound Foreclosure! Just Listed for $1.1 million! Call Craig for details @ 850-259-1788 or email me @  info@teambaranowski.com.

WaterSound Beach continues to be one of my favorite developments along Scenic Highway 30-A. The architecture of the homes in WaterSound Beach reminds me of Martha's Vinyard with a Florida Coastal twist. WaterSound Beach's 1 mile of pristine white sand beaches, exclusive Beach Club and other luxury amenities keeps this hot spot as top favorite of mine. Home prices in WaterSound Beach have taken a beating during the Real Estate crash and have created some amazing great buys in this exclusive development. This week we are going to take a look at a lake front home in WaterSound Beach 189 Gulf Bridge Lane.

WaterSound Beach Lake Front Home 189 Gulf Bridge Lane

Homes  in WaterSound Beach

Condos in WaterSound Beach

WaterSound Beach Market Analysis and Market Snapshot

189 Gulf Bridge Lane is a brand new coastal residence in WaterSound Bridges with breathtaking panoramic views of Camp Creek Lake and the Gulf of Mexico!  This exquisite home is designed with a spacious open floor plan, vaulted ceilings, hardwood floors, a gourmet kitchen with granite counter tops and stainless steel appliances. The home was thoughtfully planned to take advantage of the gorgeous views and to maximize outdoor living by incorporating large wrap around balconies, a screened BBQ summer kitchen and an outdoor fireplace atrium constructed with detailed architectural character and outstanding quality. This is a Short Sale in WaterSound Beach. Built in 2008 2,687 sqft 4 bedrooms 5 full and 1half bath.189 Gulf Bridge Lane in WaterSound Beach is currently offered for $1.5 million If you are interested in this distressed home in WaterSound Beach or would like to preview other homes in WaterSound Beach. Please give Tracy Baranowski 850.259.4270 or Craig Baranowski  a call at 850.259.1788 or email  us info@teambaranowski.com.

This wonderful home just closed in Driftwood Estates in Santa Rosa Beach, Florida. It was a Bank of America Short Sale.

This four-bedroom, two-bath home had views of the Choctawahatchee Bay and sat on a large 0.5 acre lot.

Call Craig Baranowski today at 850-259-1788, or search all the listings in the area by using our powerful MLS search engine.

Homes in Driftwood Estates

Santa Rosa Beach Homes Market Analysis and Market Snapshot

462 Driftwood Point Road, Santa Rosa Beach

Offered At: $259,000

Bank of America Short Sale Successfully negotiated.

Team Baranowski is the leader in negotiating Bank of America Short Sales. We have a 100% success ratio with Short Sales in 2009!

If you are a troubled homeowner, or have a family member or friend facing foreclosure, please give us a call for a confidential consultation about the possibility of a short sale.  Call Craig Baranowski at 850.259.1788 or email  us @ info@teambaranowski.com.

It has been a very long year fighting everyday to save homeowners from foreclosure. It is a daily challenge to push short sales efficiently and effectively through the short sale process. I have been actively involved in national short sale advocacy groups and we have been demanding changes to a broken short sale process. Two years ago when we started our first short sales, it was a difficult path of paving a road never traveled. As short sales become more prominent we saw changes and guidelines help streamline and encourage lenders to participate in foreclosure prevention programs under the Making Home Affordable Program or Home Affordable Alternatives Program (HAFA). These programs encouraged mortgage modifications and offered some incentives for shorts sales and deed in lieu of foreclosures. However, the program struggled to offer real solutions to an epic problem plaguing our country’s real estate market.

Today’s announcement by the Treasury Department is the next critical and potentially monumental step to making a difference in offering homeowners a real foreclosure alternative. With over 88% of our distressed inventory in Okaloosa, Walton and Bay County being short sales…this is a very significant and much needed change…or as I would call it the necessary lifeline to get through this current real estate crisis. The plan is designed to accelerate the necessary agreements between lenders, real estate agents, buyers and sellers.

Here is a quick break down of the new guidelines…will it change short sales overnight? No. But we have yet to see the bulk of short sales and 2010 will be an epic year for short sales and foreclosures!

The program’s official name is the Home Affordable Foreclosure Alternatives Program (HAFA), and it’s part of an existing initiative, the Home Affordable Modification Program (HAMP). HAFA applies to loans not owned or guaranteed by Fannie Mae or Freddie Mac, which cover over half of all U.S. mortgages; however, Fannie and Freddie will issue their own versions of HAFA in coming weeks.

While HAFA’s goal is simple – increase the number of short sales and “deeds in lieu of foreclosure” by simplifying the process – the rules are complex, and it comes with 43 pages of guidelines and forms. Among other things, HAFA:

• Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).

• Prohibits servicers from requiring a reduction in the real estate commission agreed upon in the listing agreement (up to 6 percent).

• Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed.)

• Provides financial incentives: $1,500 for borrower relocation assistance; $1,000 for servicers to cover administrative and processing costs; and up to $1,000 for investors.

The program does not take effect until April 5, 2010, but servicers may implement it before then if they meet certain requirements. The program sunsets on Dec. 31, 2012.

To qualify under the new guidelines:

• The property must be the homeowner’s principal residence.
• The homeowner is delinquent on the mortgage or default looks likely. Homeowner is insolvent.
• The loan was made before Jan. 1 this year and is less than $729,750
• The borrowers’ total monthly mortgage payment exceeds 31 percent of their before-tax income.

Read the HAMP NEWS RELEASE

Read the complete 43 page SHORT SALE GUIDELINES

If you are a troubled homeowner, or have a family member or friend facing foreclosure, please give us a call for a confidential consultation about the possibility of a short sale.  Call Craig Baranowski at 850.259.1788 or email  us @ info@teambaranowski.com. Team Baranowski has a 100% success rate for all of our short sales for 2009!

This site, Craig Baranowski or Keller Williams Realty is not providing legal or tax advice. The information provided is for educational and informational purposes only. It is recommended that sellers considering a short sale should consult an independent legal and tax adviser for more information.