The Miami Herald reports that nearly 50% of the homes are underwater in Miami Dade and Fort Lauderdale Metropolitan area in the third quarter of this year. Although this figure is slightly less than in the second quarter, it appears that the newly extended Tax Credit will do little to solve the problems that are brewing. Homeowners who have tried to get loan modifications are frustrated by the length of time it takes for a response and most of the time the response is negative.
Yet, banks are willing to sell homes at short sale prices to new buyers, while the seller’s credit is damaged for a minimum of two years, making it impossible for them to buy a home or any major purchase. This endless cycle won’t end until banks start to work with owners who want to keep their homes and their credit. It’s time to stop the bleeding.