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Are distressed homeowners making the right decision?

One of the most talked about subject you read or watch on television today is the housing crisis.  Homeowners walking away from their homes they can no longer afford.  Are distressed Lakeland homeowners making the right decision? As I was reading an article titled: “To walk or not to walk: underwater homeowners face dilemma”, I asked myself what I would do when faced with the decision of walking away.

The rise in foreclosure filings in Florida and around the country were first blamed on mortgage fraud and predatory lending practices. That is not the only case any longer.  Here in Florida, especially in Polk County, folks are faced with lay off’s resulting in double digit unemployment rates and now folks who still have a job, like my husband are faced with less than 40 hours work week reducing their income by 20% or more.

My parents never owned a home and when my husband and I purchased our Lakeland home in 1993, it was our American dream. When we signed the promissory note that states: “I promise to pay” we and most homeowners here in the United States have good intentions to keep this promise.  However, unexpected circumstances such as job loss, divorce, illness, reduced income, relocation, business failure or even death of a spouse can derail the promise once made.

I want to point out that I’m not an attorney and the tips outlined below are for informational purposes and not legal advice.  Please seek the advice from a qualified finance, tax, and legal professionals.

I am a real estate agent in Lakeland, Florida working with homeowners every day who are faced with this dilemma educating myself regularly by taking classes, talking with fellow real estate agents and researching available options.  I’m also a homeowner asking myself this very same question, “to walk or not to walk”.

Would I walk away?

Assuming there is a job loss or an enormous reduction in our income. I would not walk away from my home, at least not as a first step! I have to live somewhere. Making a budget should be the first thing a homeowner should do not only when faced with such a decision but on a regular basis.  People are stunned when they discover they can have an extra $100-$200 a month by eliminating going out to dinner, reducing their cable bill, installing a few energy efficient items to reduce their light bill, and reducing their cell phone bill.

Walking away from your Lakeland home will result in foreclosure. It will definitely hurt your credit rating by as much as 200-300 points and you will not be able to get another mortgage for number of years.

What would I do?

First of all, each homeowner has to make the decision by themselves and at their own best interest and while each homeowner’s situation is different here are the steps I would take:

I would not ignore the letters from my lender – I would call them immediately explaining my situation and take notes of the conversation.

I would try to work out an arrangement with my lender – For example, forbearance may be considered by the lender, if a new job is in sight, upcoming bonus or a tax refund.  Tell the lender about it and ask if you could make a partial payment, skip payments and tell them about your plan to catch up.

I would seek professional legal and financial advice – each homeowner’s situation is different and therefore I strongly recommend that you seek the counsel of an attorney and accountant experienced in foreclosure and bankruptcy.

If my lender would ignore, not communicate or decline my plea to a workout – I would try to sell my home as a Short Sale.  While the time of a Short Sale on your Lakeland home process can be long and stressful for the homeowner and their family, the buyer and their Realtors®, Lakeland Short Sales do get approved!

Despite all of the suggestion you hear from relatives or friends, read in the newspaper and online or watch on television; it is ultimately your decision and should be based on educating yourself, your options and discussion with family members.

Would you walk away?

Lakeland Harrison School for the Arts presents “The Three Musketeers”

Lakeland Harrison School for the Arts presents “The Three Musketeers”

Did you miss this wonderful play of Micah Ariel James adaptations of Dumas’ renowned novel of “The Three Musketeers” this past weekend?

Great reviews of past performances! At last weekend’s almost sold out performances and raving reviews by patrons, you sure don’t want to miss this exciting production of “The Three Musketeers” that is being showcased by the Harrison School for the Arts’ talented group of theater students.

For another weekend, you are encouraged to see this performance in the new Black Box Theatre located on 750 Lakeland Hollingsworth Drive, Lakeland Florida 33801 on Friday, March 12^th @ 7:30 p.m.; Saturday, March 13^th @ 7:30 p.m. and Sunday matinee, March 14^th, 2010 @ 2:00 p.m.

Under the direction of Ilene Fins, Dean of Harrison’s Theatre Department, “The Three Musketeers” explodes onto the Harrison stage with fast and furious duels in the dangerous streets of Paris! James’ version of this classic story follows the renowned adventures of country bumpkin d’Artagnan as he seeks entry into the prestigious King’s Musketeers.  Together they fight with courage to combat the malicious cardinal and save France.

“All for One and One for All!” Chock full of political intrigue, romance and exciting sword battles, this world premiere is not to be missed. En garde!

The troupe is lead by Britt Michael Gordon as d’Artagnan, Corinne Townsend as Aramis, Lance Taylor as Porthos, Amelia Marler as Athos, Demonte Cheeks as Treville, Justin Nipper as Bonacieux, Katie Ward as the Queen, Erika Williams as DeWinter, Jenna Creamer as Rochefort, Kevin List as the King, Chris Holseth as the Cardinal, Brooke Dixon as Constance,and Nicole Richard as the Innkeeper, with Courtney Lang, Beth Rousseau, Camila Araujo, and Annie Jaynes as the Fight Corps.

Seating is very limited and I encourage buying tickets online at www.harrisonarts.com

Pictures are courtesy of Andy Glowgower of Andy Glowgower Photography

Mark your calendar for these upcoming performances of The Harrison Fine Arts Series for 2009/10:

The Three Musketeers

Friday, March 12, 2010 – Saturday, March 13, 2010 at 7:30 PM in the Black Box Theatre

Sunday, March 14, at 2:00 PM

Harrison Wind Ensemble Concert – Tuesday, March 16, 2010 at 7:30 PM

Chamber Music Concert – Thursday, March 25, 2010 at 7:30 PM

Piano Concert – Thursday, April 08, 2010 at 7:30 PM

A Funny Thing Happened on the Way to the Forum

Friday, April 23, 2010 – Saturday, April 24, 2010 at 7:30 PM

Sunday, April 25, at 2:00 PM

Idealistic Notions, Professional Visual Arts Exhibit

Friday, April 23, 2010 – Wednesday, June 09, 2010

Reception at 6:00 PM

String Orchestra Concert – Monday, April 26, 2010 First United Methodist Church, Lakeland at 7:30 PM

Spring Dance Concert – Friday, May 07, 2010 – Saturday, May 08, 2010 at 7:30 PM

Symphony Orchestra Concert – Thursday, May 13, 2010 at 7:30 PM

Lakeland Real Estate Update – 02/16/10-02/28/10

Update for the Lakeland FL real estate market! There are 1912 homes for sale throughout Lakeland, Florida – as of 03/09/10. The inventory of Lakeland homes for sale in the past few months hovers around 1900. Newly listed homes for the period of February 16^th through February 28^th decreased to 135 Lakeland homes for sale. The average sales price of Lakeland homes listed with area Realtors® increased to $165,281 from my previous report.

The types of homes and average prices for sale in Lakeland, Florida according to the Multiple Listing Services (MLS) are as follows:

4 duplex units with a sales price of $138,425

4 condos listed with an average sales price of $61,325

10 mobile homes listed with an average sales price of $56,310

4Townhomes/Villas listed with an average sales price of $177,587

113 single family homes with an average price of $179,119

Lakeland’s newest homes listed! The priciest home on the market in Lakeland is a 2006 Hulbert custom built estate with pool features 5 bedrooms and 4 2½ baths with over 5,100 square feet of living space. This home is located in the Christina community and is offered at $1,899,000.  On the contrary, the cheapest Lakeland home newly listed is a bank owned 3 bedrooms 2baths home listed for $16,400 – just over $12.00 per square foot – located in the Albert Park subdivision.

All data for this report was obtained from the Mid-Florida Regional MLS, it is deemed reliable but not guaranteed. This report does not include “For Sale By Owner”.

Take a look at the breakdown by zip code:

33801 – 14 with an average sales price of $93,598

33803 – 16 with an average sales price of $201,297

33805 – 11 with an average sales price of $88,218

33809 – 12 with an average sales price of $170,942

33810 – 31 with an average sales price of $107,023

33811 – 10 with an average sales price of $173,500

33812 – 06 with an average sales price of $219,667

33813 – 31 with an average sales price of $265,574

33815 – 04 with an average sales price of $39,152

Update on distressed homes in Lakeland

A total of 599 properties are currently actively being marketed that are facing foreclosure. There were 55 Lakeland homes newly listed in the distressed category with average prices of $101,305 or $61 per square foot. Distressed homes are categorized as “Bank-Owned”, “Require 3^rd party approval (Short Sale)”, “Pre-foreclosure”, and “In-Foreclosure”.

February update on Lakeland real estate “Sold & Pending”

So far 146 Lakeland properties have sold that have been recorded in the Multiple Listing. Currently, there are 533 Lakeland homes have gone to “pending”, awaiting closing.

Check back soon for your Lakeland Real Estate Market Report for February 2010!

Polk County Existing Home Sales for January 2010

Slow start of the overall Polk County Home Sales in January when comparing sales history for the past year. Although average Polk County home prices have somewhat been stable in recent months, the number of homes sold in Polk County took a nose dive when comparing the number of sales from the past few months. If you are a person that is visual like me, just take a look at the chart below to see what I’m talking about.  Please keep in mind, the figures reflect all homes as indicated below, not just single family homes you see in media reports.

500 existing homes sold – a decrease of 21% from the previous month (636 sold homes) in Polk County – an increase in sales activity of 111 Polk County homes sold from the previous year. Overall Polk’s median price for existing homes decreased by 1 ¾% from the previous month to $97,950, however remained almost the same from the previous year of $98,000.

Take a look at the city you live in and see what the numbers are for January 2010 for existing home sales – single family homes, condominiums, manufactured homes, duplex, villas, and townhomes -including distressed properties in Polk County. Please take note only sales recorded by Realtors® are taken into account. The source for this data is Mid-Florida Regional MLS Service, it is deemed reliable but not guaranteed.

City                        Average Sold Price          Median Sold Price           # of Homes Sold

AUBURNDALE	110,675	111,950	16
BARTOW	106,201	80,000	8
CLERMONT	88,000	88,000	1
DAVENPORT	117,716	110,000	122
DUNDEE	75,000	75,000	2
EAGLE LAKE	9,100	9,100	1
FORT MEADE	140,750	106,500	4
FROSTPROOF	64,283	63,000	3
HAINES CITY	91,398	79,900	32
KATHLEEN	40,000	40,000	1
KISSIMMEE	138,545	100,000	11
LAKE ALFRED	92,450	92,450	2
LAKE HAMILTON	60,500	60,500	2
LAKE WALES	64,199	45,000	19
LAKELAND	126,320	112,900	145
MULBERRY	108,136	118,620	14
POINCIANA	85,345	72,000	51
POLK CITY	38,451	47,000	3
WINTER HAVEN	112,701	91,000	63

Let me break down January 2010 Polk County existing homes sales into various categories:

• 447 Single family homes, townhomes, villas and ½ duplex – median sold price $103,000 – 148 Average Days to Closing
• 19 Condominiums – median sold price – $65,000 – 149 Average Days on Closing
• 34 Modular, manufactured/mobile homes in park/out of park – median sold price $56,500 – 233 Average Days to Closing

Let’s take a look at the distressed Polk County real estate market!

There were 183 existing homes sold, not categorized as distressed properties, at a median sold price of $130,000 with 206 average days to closing, which counted for almost 37% of our total sales. The distressed properties however; which includes Bank owned, pre-foreclosure, in foreclosure and short sales counted for 63% of our total sales in Polk County for the month of January.

• 234 sold homes were Bank Owned – median price $79,450 – Average Days to Closing  81
• 83 sold homes were Short Sales – median price $102,000 – Average Days to Closing 247

Lakeland FL Real Estate Update for 02/01-02/15/2010

Update for the Lakeland FL real estate market! There are 1923 homes for sale throughout Lakeland, Florida – as of 02/19/10. While Lakeland homes inventory remains stable, newly listed homes for the period of February 1^st through February 15^th increased by 16.75% to 203 Lakeland homes for sale. The average sales price of Lakeland homes listed with area Realtors® decreased to $160,386 from my previous report.

The types of homes and average prices for sale in Lakeland, Florida according to the Multiple Listing Services (MLS) are as follows:

3 duplex units with a sales price of $48,267

6 condos listed with an average sales price of $141,417

18 mobile homes listed with an average sales price of $62,678

5 Townhomes/Villas listed with an average sales price of $107,440

171 single family homes with an average price of $181,178

Lakeland’s newest homes listed! The priciest and also currently the most expensive home on the market in Lakeland is this 2008 McQuillen custom built pool home which features 6 bedrooms and 5 ½ baths with over 6,700 square feet of living space of the main house and is located in the Crescent Woods community. Its current list price is $2,100,000.  On the contrary, the cheapest Lakeland home newly listed is a HUD bank owned 2 bedrooms 1 baths home listed for $15,000 – just under $15.00 per square foot – located in the Valencia Heights subdivision.

All data for this report was obtained from the Mid-Florida Regional MLS, it is deemed reliable but not guaranteed. This report does not include “For Sale By Owner”.

Take a look at the breakdown by zip code:

33801 – 19 with an average sales price of $73,198

33803 – 21 with an average sales price of $172,362

33805 – 10 with an average sales price of $90,316

33809 – 28 with an average sales price of $132,316

33810 – 41 with an average sales price of $117,315

33811 – 22 with an average sales price of $164,303

33812 – 13 with an average sales price of $180,000

33813 – 39 with an average sales price of $313,188

33815 – 09 with an average sales price of $96,444

Update on distressed homes in Lakeland

A total of 589 properties are currently actively being marketed that are facing foreclosure. There were 95 Lakeland homes newly listed in the distressed category with average prices of $125,841 or $66 per square foot. Distressed homes are categorized as “Bank-Owned”, “Require 3^rd party approval (Short Sale)”, “Pre-foreclosure”, and “In-Foreclosure”.

For more information on the location of these sold homes in Lakeland, price and size of the home click on map picture which leads you to the interactive Community Walk map created by Chuck Welch of Lakeland Local.

February update on Lakeland real estate “Sold & Pending”

So far 73 Lakeland properties have sold that have been recorded in the Multiple Listing. Currently, there are 494 Lakeland homes have gone to “pending”, awaiting closing.

If you are interested in a specific area or neighborhood, feel free to contact me at petra@petranorris.com or click the search button below.

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