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Residential and Cheap Land Foreclosures Lose Buyers

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By : John Cutts    99 or more times read
Residential properties and cheap land foreclosures remain unsold in most areas of Jacksonville, Florida with hundreds of ongoing transactions hindered by the moratorium imposed by several major lenders. Chase, Bank of America and Ally Financial implemented a temporary freeze on foreclosure sales in various areas of the U.S., including Florida.

According to local realtors, the moratorium has frozen sales transactions involving a huge number of repo homes in Jacksonville and most housing market observers are expecting at least a third of the city's real property sales to be put on hold for at least 90 days.

Some home sellers are hoping that buyers will pursue their plans to purchase Florida repossessed homes and will be willing to sign extensions on their purchase contracts and wait out the moratorium. However, most of them believe that majority of buyers will simply abandon their purchase plans and will not be willing to waste time waiting for the freeze to be lifted.

In September, more than 50% of houses sold in Jacksonville were properties under repossessed houses listings or foreclosure listings. REOs reportedly comprise as much as 30% of single family dwelling sales in the city since last year. The moratorium, home sellers have stated, will hurt the house selling market and the whole residential property industry of the city judging from these percentages.

Most realtors believe that the temporary suspension of the sale of foreclosed residences and cheap land foreclosures will have a huge negative impact on the city's residential property market, particularly since even short sale transactions will not be allowed to close. In addition, more foreclosed properties are coming in to the market and adding to the pile of unsold properties in the city.

The number of distressed properties in the market is projected to rise in the coming fourth quarter as Jacksonville has some of the highest number of delinquent mortgages. Properties of borrowers who own these loans are expected to lose their homes to foreclosures, which will further increase the number of distressed property supply.

Realtors and home sellers have stated that they have no choice but to wait until the moratorium is lifted. While they are waiting, the number of foreclosed residences and cheap land foreclosures remaining unsold continues to rise in Jacksonville.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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