Tag Archives: selling

Local sales of homes in foreclosure jump 65% in 3Q

http://www.chicagotribune.com/business/breaking/chi-local-sales-of-homes-in-foreclosure-jump-65-in-3q-20121206,0,4437131.story

Local sales of homes in foreclosure jump 65% in 3Q – chicagotribune.com

Sales of Chicago-area homes in the foreclosure process but not yet repossessed by banks soared during the third quarter, RealtyTrac reported Thursday.

The online foreclosure marketplace said 3,531 pre-foreclosure homes in the greater Chicago area sold in the three months that ended in September, up 34 percent from the second quarter and 65 percent year-over-year. Separately, third-quarter sales of repossessed, bank-owned properties rose to 5,731 properties, up 37 percent from June and 45 percent from 2011’s third quarter.

Increased sales of distressed homes are a good sign for the market’s long-term health because overall prices will rise as discounted properties are removed from the market. Also, the increase in pre-foreclosure short sales has enabled homeowners to benefit from the Mortgage Forgiveness Debt Relief Act, which does not treat the forgiven part of the unpaid debt as taxable income. The legislation is set to expire at year’s end.

Natiionally, the 98,125 pre-foreclosure short sales completed during the third quarter just outnumbered the sale of 94,934 bank-owned properties.

“The shift toward earlier disposition of distressed properties continued in the third quarter as both lenders and at-risk homeowners are realizing that short sales are often a better alternative than foreclosure,” said Daren Blomquist, a RealtyTrac vice president.

However, he added, “The prospect of being taxed on potentially tens or hundreds of thousands of dollars in additional income may motivate more distressed homeowners to forgo a short sale and allow the home to be foreclosed.”

On average, Chicago-area homes sold through short sales, a transaction where the homeowner sells the property for less than the amount owed on the mortgage, with the bank’s permission, sold for an average discount of 41 percent from non-distressed sales. Bank-owned homes sold at an average discount of 54 percent.

RealtyTrac said sales of distressed properties accounted for 28 percent of Chicago-area home sales during the third quarter. The company’s definition of the Chicago area extends from southern Wisconsin to Northwest Indiana.

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Jim Gramata
Managing Team Broker
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The Gramata Realty Group
773-270-2474
2214 N Lincoln Avenue Chicago, IL 60614
www.GramataRealtyGroup.com

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Fiscal cliff fears prompt Hamptons’ rich to dump real estate

You would think someone who was intelligent enough to amass enough wealth to afford homes like these would not react out of fear or such stupidity….of course it is the Hamptons and there are no clear answers yet out of Washington….
http://dailycaller.com/2012/12/05/fiscal-cliff-fears-prompt-hamptons-wealthy-to-dump-real-estate-before-jan-1/

Fiscal cliff fears prompt Hamptons wealthy to dump real estate before Jan. 1

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Hampton homeowners are racing to get rid of their properties in the hope of pre-empting the onslaught of higher capital gains taxes that are scheduled to hit on Jan. 1.

A fiscal cliff deal could result in a 39 percent rise on short-term investments and a 5 percent increase on long-term gains. Additionally, the country’s top earners will be slammed with a 3.8 percent Obamacare surtax on all gains.

Enzo Morabito, a top Hamptons-based brokericon1.png with New York firm Douglas Elliman, described the rush to sell as a “frenzy.”

“People know they save money if they sell now. I have very willing sellers and hot buyers who want to take advantage of the low interest rates that might go away next year as well,” Morabito told The Daily News.

Hampton-area brokersicon1.png are anticipating 30 homes to close before the new year, with values varying between $1 million and $25 million.

Morabito’s team have already closed on eight homes, including two mega-mansions for a cool $6.9 million and $14.9 million.

Ernie Cervi of Corcoran Group is also reaping the benefits of the frenzy. He’s seen a $25 million estate close two weeks after it went to contract, and his division has an exclusive listing on a $3.55 million bayfront home.

“It’s off the charts. The feeling here is reminiscent of the market highs of 2005,” Cervi declared.

Homeowners are not taking any risks either, cutting prices to sell as quickly as possible.

Paul Brennan, another broker with Doulglas Elliman, backed this up.

“We had a beachfront seller in Southampton who reduced his home 15 percent to $23 million this week. The window is closing. If you’re anticipating any fiscal cliff, you better sell now.”