Where Are Families Moving, that are Short Selling or Going into Foreclosure?

By
Real Estate Broker/Owner with M & M Realty of Brevard Inc. BK629999

Where are families moving, that are going into short sale or foreclosureRental applications in many areas are down by about 15% to 20%. It seems that the number of phone calls from prospective tenants has declined quite a bit.  And, I have to stop and wonder why.

In some areas of Brevard county as many as 60% of sales are short sales.   If their short sale is approved, we know that these owners won't be purchasing another home. Or, if their home slips into foreclosure, they won't be able to buy.

So, these families should be out looking for good, clean affordable rental houses, right?

But, the number of empty rentals has increased, and the number of phone calls on rentals has decreased. 

Has the number of empties increased because some rental house owners are still reluctant or unwilling to rent to people with blemished credit? 

As a landlord, I have rented to a number of previous owners that faced short sale or foreclosure. Many are good, hard working people, that got in over their heads.  Next week, I have a family moving into one of my rentals, that has just gone through a short sale.

The number of empty rentals is high, the number of rental calls are low, and we have a high percentage of owners going into short sale or foreclosure in our area.  We have heard that some families are moving in together.  Sons and daughters, with their small children are being forced to move back in with their parents, for financial reasons. 

But, where are the rest of these owners going? 

Sandy Shores REALTOR®, Melbourne/Palm Bay FL Real Estate

Brevard County, Florida's Space Coast Real Estate & Investing

I specialize in Residential, Investment & Relocations. I can help with Short Sales and Foreclosures.

I buy, sell, rent, own and manage Investment Property.

 

 

 

 

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Sandy Shores, Broker   

Melbourne Real Estate

M & M Realty of Brevard, Inc. 

Residential, New Construction, Relocations & Investment

Brevard County FL Real Estate 18 Years

Brevard County FL Resident 39 Years 

Serving Melbourne, Palm Bay, Suntree, Viera, Rockledge, Cocoa,  Merritt Island, Titusville, Cape Canaveral, Cocoa Beach, Satellite Beach, Indian Harbour Beach, Indialantic & Melbourne Beach

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Show All Comments
Rainer
75,559
Joel Prince
The Principle Group, Inc - Hixson, TN
Hixson/Soddy Real Estate Broker

Sandy -

I have a few landlords I am in contact with on a regular basis.  Their theory is families are combining.  Moving in with parents, etc.

Dec 12, 2009 07:43 PM #1
Rainmaker
341,459
Elizabeth Bolton
RE/MAX Destiny Real Estate Cambridge, MA - Cambridge, MA
Cambridge MA Realtor

Hi Sandy ~ I think Joel's right - now entire families are boomeranging back to their parents' / grandparents' homes.  Around here it seems everybody is doing rental sharing - ads for roommates wanted are through the roof.

Liz

Dec 12, 2009 08:42 PM #2
Rainmaker
512,306
Mary Douglas
United Country Ponderosa Realty - Red Feather Lakes, CO
REALTOR, Red Feather Lakes, Colorado

Sandy, I don't have numbers for Larimer County - but it seems if some having difficulty paying a mortgage, the same might be true for rent.  Some get out alive, but others are in serious shape, especially if they have lost their jobs.

Dec 12, 2009 09:10 PM #3
Rainmaker
1,746,105
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
CRB, CRS, CIPS, GRI, SRES, TRC, e-PRO

Sandy

I also agree that many families are moving into their parents homes.

Good luck and success.

Lou Ludwig

Dec 12, 2009 09:43 PM #4
Rainmaker
123,125
Mike Hogan
RE/MAX Commonwealth - Mechanicsville, VA
MBA

Ya know Sandy... when the downturn first began I thought it would be a boom to me as a landlord... Supply vs Demand dictates that rents should increase as more people are foreclosed on and look for rentals. But that never panned out... if anything- our rental rates have declined slightly as more inventory becomes available.

The theory of combining families seems to be the only real explanation that makes sense.

Dec 12, 2009 10:20 PM #5
Rainmaker
1,501,107
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Authentic Feng Shui Expert

Sandy, I came on to see the other responses and I believe they're right.  I did just hear of a woman with two children moving back in with her mother....for an indefinite amount of time.  I'm not a realtor but I do hear this quite often.

Dec 12, 2009 11:24 PM #6
Rainmaker
652,646
Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes

We had asked the same question -- a lot seem to be moving back in with family --

Dec 13, 2009 01:32 AM #7
Rainmaker
146,482
Caren Wallace
Premier Property Group LLC - Tualatin, OR
Portland Caren Real Estate

Sandy, I have come to the same conclusion! I have a rental that I have been trying to rent since Oct. and just cannot find a good tenant who wants it!

Dec 13, 2009 06:19 AM #8
Rainmaker
994,183
Gary L. Waters, Broker Owner Waters Realty of Brevard, LLC
Waters Realty of Brevard, LLC - Melbourne, FL
Personal Service, always.

I wonder myself. Once the credit ruined who is going to rent to them anyway?

Dec 13, 2009 08:24 AM #9
Rainmaker
289,458
Nick Zappa
Eagles Wings Realty - Montrose, CO
Professional treatment of our clients, brings awes

I know that quite a few people have left the area, espically those in the building trades as housing starts are way down and the boom in Telluride has slowed to a trickle. I agree with comments above, I think families are moving in together, one of our listings the young family returned to CA. and moved in with parents.

Dec 13, 2009 09:18 AM #10
Ambassador
1,191,105
Paul Henderson
RE/MAX Professionals. - Tacoma, WA
I always put my clients first in any transaction!

Wow, That is an excellent question Sandy! I've seen some that rent back from the investor owner of the property but the blemished credit will be an issue for years to come...
Have a glorious Sunday!
Paul

Dec 13, 2009 09:50 AM #11
Rainmaker
687,032
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

I've had some turnover in my rentals this year.  One of my families, the father (who was retired) got sick so they moved in with their adult son.  Another of my families moved to Georgia because the tenant got a new job there.  My guess is that families are either combining like was mentioned or people are moving to where the work is.  Brevard seems to be mostly a space industry/engineering based county.  If that work isn't around, people need to go where the work is.

Dec 13, 2009 10:48 AM #12
Rainmaker
455,160
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
Destin FL Real Estate

Sandy - Being on the Emerald Coast of Florida, we are seeing the same thing.  There is a school closing in Niceville due to declining enrollment.  People are moving out of state.  My part of Florida does not have much employment other than service industries or military,

Dec 14, 2009 06:37 PM #13
Rainmaker
622,517
Sandy Shores Broker, Melbourne Real Estate
M & M Realty of Brevard Inc. - Melbourne, FL
Brevard County FL Real Estate

Joel, I agree with you and your friends.

Elizabeth, That's interesting that you've noticed renting out rooms has increased dramatically.

Mary, Great point - if they can't pay their mortgage, many couldn't pay rent if it's due to a job loss.

Lou, Interesting, thanks for your feedback.

Mike, I'm with you, I thought the same thing.  I thought that the demand for rentals would go up, but that just hasn't been the case.

Carole, We are hearing about this in so many parts of the country.

Bob and Carolin, I think that many are moving back in with their families.

Dec 15, 2009 10:12 AM #14
Rainmaker
622,517
Sandy Shores Broker, Melbourne Real Estate
M & M Realty of Brevard Inc. - Melbourne, FL
Brevard County FL Real Estate

Caren, I feel your pain, We are in the same situation. We are having a difficult time finding good tenants for some of our empties.

Gary, There are many landlords that are still unwilling to consider an owner that has been through short sale or foreclosure.  It depends on the individual's situation. Are their other payments current? Or have they paid nothing.

Nick, It's interesting to hear what's going on around the country.  Many are moving out of state to move in with relatives.

Hi Paul, Good point -some are doing lease backs.  You are correct, in that these people will be living with the blemished credit for some years to come.

Rob, I have also seen people moving to where the work is.  I have seen several tenants lose their jobs, unable to get a new one. Times are tough for so many.

Wendy, Hmm, we have been hearing that some people are moving out of state.  It would be interesting to see a real "count" on the numbers of people leaving.  It's tough, in areas such as yours.  Hang in there.

Dec 15, 2009 10:19 AM #15
Rainmaker
384,961
John Walters
Frank Rubi Real Estate - Slidell, LA
Licensed in Louisiana

Sandy my guess is a lot of them are moving in with relatives for now.  If you don't have a job you can't pay your bills.

Dec 15, 2009 01:39 PM #16
Rainmaker
710,337
Ann Hayden
Berkshire Hathaway HomeServices Select Properties-St. Louis Missouri - Wildwood, MO
SelectAnn.com

Sandy,

More and more families are getting back together in a good way??

Merry Christmas,

Ann Hayden in Wildwood, MO

Dec 23, 2009 10:42 PM #17
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