(JACKSONVILLE, FL) The nationwide credit crisis may have turned “the American dream” into an extended nightmare for many Floridasellers and home buyers. The credit crisis has made it especially difficult for sellerswho are experiencing special circumstances such as their houses need repairs or updates, they are making more than one mortgage payment, they owe more than their house’s current value, loss of income, relocating, they just need to sell fast, etc. There are three main reasons why it has been so difficult for Florida sellers in particular to sell their houses.
Record foreclosures in Florida tops the list for difficulty in selling houses. The state of Florida has the most foreclosures in the country with 1 out of every 425 housing units. These foreclosures are sold for an average of 31% less than the price of a non-foreclosed property according to the website Realtytrack.com, a website that tracks foreclosures nationwide. Home sales for March 2015 were down 48% from February 2015 and down 72% from March 2014. Home prices have been devastated as lenders continue resell their inventory of foreclosed homes below market value. Home owners who need or want to sell have lowered their asking price to attract a buyer that can actually qualify for a home loan. This foreclosure pressure on prices has kept Jacksonville, FL second on the list for cities with homeowners who owe more on their loan than their house will appraise for. In the last quarter of 2014 Jacksonville, FL was second only to Virginia Beach, VA according to housing firm and website Zillow.com.
Banks and mortgage lenders (who have not gone out of business) have tightened up their lending requirements to the point where many home buyers today can no longer qualify for a mortgage. Gone are the days for sub-prime, no-doc, and most no down payment home loans. Therefore, gone are the days for the large pool of qualified homebuyers. New government regulations intended to avoid another market crash of 2008 have eliminated most of these special loan programs originally intended to make getting home loans easier for many borrowers. The remaining pre-approved home buyers who have the highest credit scores in addition to the most down payment funds get to choose the best properties. There is fierce competition from real estate agents for this small pool of buyers as they focus them toward the agent’s best listed properties. Many homes linger for sale or are pulled off the market while sellers continue to search for that qualified buyer or wait out the stagnate market.
Unemployment and underemployment are creating problems for sellers and buyers alike. During the housing and credit crisis, many American workers lost their jobs. In the period between 2008 and 2009 the US Department of Labor’s Bureau of Labor Statistics states that 8.6 million workers lost their jobs. There has been job growth since then but there has been much debate over the quality of jobs created since many businesses have closed. As of September 2014, 6.9 million Americans have just stopped looking for work. They are not counted in the unemployed numbers. The current unemployment rate in Florida 5.7%. The families going from two incomes to one and none or reduced wages have made it difficult to keep home loan payments current. The buyers affected suffer from reaching the incomes necessary to qualify for nice homes. Many continue to rent or stay with relatives until their financial situation improves.
These issues are turning into a vicious cycle –The sellers can’t sell and the buyers can’t buy. Many potential buyers need to sell their current home first -- and many sellers (unless they plan to rent) need new financing to get into their next home. As a result, a sea of real estate agents, mortgage brokers and home builders are out of business or going out of business. These professionals are in the business of serving sellers and buyers. But that’s hard to do with the credit crisis when the entire real estate industry traditionally relies on mortgage lending to finance buyers and get houses sold.
What can homeowners do to sell their homes? How can buyers get financing if they can’t meet the tougher lending criteria on credit scores, income verification, down payment amounts and debt ratios?
There’s one local real estate professional who has found a way to make things work even with the present banking crisis. John McKinley is the president of Noble Property Solutions, Inc.whose website is www.CalltoSellNow.com. His private investment company has been buying houses throughout the Jacksonville, FL and surrounding areas without ever relying on banks.
Noble Property Solutions, Inc. brings in private lenders allowing him to pay homeowners all cash for the properties and/or takes over existing mortgages without ever going through the banks’ long drawn out approval process. That is why John can act fast. He also buys them in “As-Is” condition so the seller can stop fixing it up to please a picky buyer. He then offers his properties for lease or “for sale by owner” using a variety of unique seller financing programs.By taking a long term approach and never relying on banks, business has never been better for John and his company.
“Most sellers are unaware of the options we offer. What they need most is a qualified buyer... and we might just be that buyer. We can buy houses in as-is condition, pay a fair price for both of us and close in just a few days… or whenever they’re ready.”
John says it’s normal for people to think they must be desperate before calling him to buy their house. “It’s a very common misconception. But until I look at a house and do some research, I won’t know my game plan for the property or what I can offer. But after a single visit to the property and meeting with the homeowners I can let them know exactly what I can do. My fair offer is good for 7 days and it’s only at that point, with my offer on the table, that a seller can decide if I’m going to become their buyer.”
“We were tired of tenants, tired of paying two mortgages, tired of mean phone calls, and we're two months late. We even had a lien. We met a couple of people who labeled themselves "Investors", only to discover they had little or no resources. I met Mr. McKinley with [CallToSellNow.com] and we closed in three weeks. Prompt, professional and extremely nice. We were impressed..."
Erroll and Angelina Byrd
As a professional, what’s important to John is the determination of what income the property can produce. “It’s easy to determine. I also do an appraisal and look at the recent comparable sales. Then I can to offer a seller a fair price for both of us -- and about what they might net sometime in the future pursuing a more conventional route. What I can pay depends on the condition, location and financing options available for that type of property. It only takes about 10 minutes to prescreen a property over the phone and to set an appointment. We typically buy 1 out of every 4 properties we see. In fact, for about half of those I have purchased, the seller pursued their other options and then came to realize that my offer was the best all along.”
Are you considering selling your house in Jacksonville, FL and surrounding areas? Sell your house now in the fastest, easiest, and most convenient manner. Visit John’s website at www.CalltoSellNow.com to get a Free Special Report and learn what our customers say or call him directly at (904) 419-3555 to get a guaranteed offer. You may discover the perfect solution.