What percentage of Sarasota sales are foreclosures? Short Sales? Bank Owned?

 Sarasota County Short Sales "closed" exceed bank owned sales for Fourth Month

Basically there are two kinds of foreclosures.  The first type are properties that hat been through the judicial process, are now owned by the lender, the previous owner is gone and the property is listed for sale as bank owned or REO.

The second type of foreclosure is called a short sale.  In this scenario the owner owes the lender more than the value of the property and is no longer capable (or willing) to make payments.  The owner lists the home for sale during the lengthy court process and the lender excepts less than the amount owed to the lender.

Without going into the positive and negatives about each type of foreclosure, the statistics below are painting an interesting picture.  Two years ago most real estate agents did not know what a "short sale" was.  Since July 2009,  real estate agents in Sarasota County are closing more short sales than bank owned properties. The number of short sales "pending" or "written" has been higher than any other type of property for over a year.  However, as lenders are responding quicker to offers, and the court process is taking longer, more short sales are closing than bank owned properties.

The Obama administration has been encouraging lenders to work out loan modifications and short sales, while trying to avoid repossessing homes and forcing foreclosure sales.  The chart below shows the number of active, pending, and sold bank owned, short sales, and total sales in Sarasota county for the last year.  If only half of the pending short sales "close" there will be a huge surge in Sarasota county sales in the coming months. 

Now, look at the number Lis Pendis filed in Sarasota county each month.  A Lis Pendis is the first step a lender takes to foreclose a proeprty.  It means legal action pending and in some states this is called a NOD, notice of default. The number of Lis Pendis filed each month is still far greater than the number of total sales each month.  While not every Lis Pendis is a foreclosure most are, and some properties do get more than one Lis Pendis.  In my experience, less than 35% of properties, with a Lis Pendis (facing foreclosure) are listed for sale as a short sale during the foreclosure process.

The two columns on the right are the number of Lis Pendis and the number of Cerrtificate of Titles filed each month.  Again the Lis Pendis is the first action a lender takes to foreclose on a property.  The Certificate of Title is the final legal action, which allows the lender to own and sell the property.  The difference between the number of Lis Pendis' filed and Certificate of Title issued each month, less the # of short sales and # of loan modifications is the number of properties tied up in the foreclosure process.

The percentage to the right of the nuber is percentage of the total sales. This data is for Sarasota County and was sourced from the Mid Florida Regional MLS for the active, pending, and sold statistics.  The data for the Certificates of Title and Lis Pendis was obtained from the Clerk of the Court for Sarasota County. This data was updated on Nov. 2, at which time 60% of all pending sales are short sales, while only 13% of all listings are short sales.

For more information on Foreclosures, short sales, or bank owned properties contact us at (941) 556 -5500.

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