MyOwnFloridaHome

Robo-signed foreclosures have recourse

2011-11-02T07:46:00.000-04:00

WASHINGTON – Nov. 1, 2011 – The Federal Reserve Board announced today that some borrowers who think lender robo-signing hurt them during foreclosure can complain directly to the Federal Reserve.

The independent reviews apply to ex-homeowners who went through foreclosures serviced by four large mortgage service firms: GMAC Mortgage, HSBC Finance Corporation, SunTrust Mortgage and EMC Mortgage Corporation.

The four lenders must hire independent reviewers as part of enforcement actions issued by the Federal Reserve in April 2011. In addition, they must compensate borrowers for any “financial injury” that resulted from paperwork problems used during the foreclosure process. Borrowers are eligible for a review if their primary residence was in the foreclosure process in 2009 or 2010, even if the foreclosure wasn’t completed.

In addition to the four banks, a number of other services must conduct similar reviews, though the Office of the Comptroller of the Currency supervises them.

The review will specifically look for the impact on homeowners resulting from errors, misrepresentations or other deficiencies. The Federal Reserve will monitor the program and the servicers’ outreach efforts. Review requests must be received by April 30, 2012. There are no costs associated with a review.

To apply for a review, individuals may call (888) 952-9105, Monday through Friday from 8 a.m. to 10 p.m., and Saturday from 8 a.m. to 5 p.m. Individuals can get more information about the review through a website set up by the servicers, www.IndependentForeclosureReview.com. In addition, servicers will run an advertising campaign and contact borrowers who may be eligible to participate.

© 2011 Florida Realtors®

2011-11-02T07:30:00.000-04:00

Keep Your Home Sale from Falling Apart
After finding a buyer, all you have to do to make it to closing is to avoid these five traps. Read
Appeal Your Property Tax Bill
To successfully appeal your property tax bill, you first need to do a bit of sleuthing into your real estate assessment. Read

Visit houselogic.com for more articles like this.

Demand for rentals increases

2011-06-20T14:38:00.000-04:00

SAN ANTONIO, Texas – June 20, 2011 – The downturn in the economy has changed the way people live and think about real estate, forcing many to become renters and sending adult children back home to live.

Three economists at the National Association of Real Estate Editors conference last Friday said those trends could affect the residential real estate market for years to come.

And that double dip you’ve been hearing about in the housing market? Never happened. The market’s still on it’s way down, they agreed.

The sluggish job market, falling home prices and persistent foreclosures have driven up demand in the rental market, especially in hard-hit areas such as Tampa Bay, said Stan Humphries, an economist with Zillow.com.

Foreclosed homeowners are often forced into the rental market. More adult children are moving back home with their parents and more elderly are moving in with their kids, Humphries said.

There’s also an uptick of multiple families moving in together to help make ends meet, he said. This increase in rental demand will translate to higher rental rates this year, said Humphries who predicts rental rates will increase 3.5 to 4.5 percent in 2011, compared to the previous year.

At the same time, Humphries said 1.2- to 2.2-million people will transition from owners to renters over the next couple of years.

Humphries’ other panelists, Jed Smith, an economist with the National Association of Realtors and Mark Dotzour, an economist with Texas A & M Real Estate Center, agreed.

Housing prices are now falling, after a brief period of what looked like stabilization late last year, but all three economists said the nation isn’t experiencing a double dip.

“We never hit bottom in the first place,” Dotzour said.

Dotzour and Smith, with the Realtors, said government intervention, such as tax credit incentives for buyers and failed mortgage modifications, actually made things worse in the long run.

“We like capitalism on the way up and socialism on the way down,” Dotzour said. “And we’re paying for it now.”

Humphries said the government spent $15 billion to $20 billion on tax credits, and “we’re paying all that back.”

The bright side of this continued downturn is that multi-family developers will benefit, the economists said.

Multi-family housing starts are up, and developers are preparing for additional increase in demand, Humphries said.

As foreclosures increase and are resold to people who want to live there, rather than to investors, prices will stabilize. When that happens, he said, single-family demand will increase, too.

But it’s unclear how long it will take for that to happen, Dotzour said.

“Why would a bank wait 24 months to start the foreclosure process?” he said.

Banks are still taking too long to foreclose, he said, adding that the market won’t be stable until all the foreclosure inventory is reabsorbed into the market.

When things have improved, though, Humphries said, the housing landscape in most metros will look different. That’s particularly true, he said, in areas like Tampa Bay, where builders constructed thousands of new homes on the outskirts of the city.

“People want to live closer to cities and in smaller homes,” Humphries said. “A lot of the housing stock in the suburbs don’t speak to that demand.”

That may mean more redevelopment near downtown cores.

Copyright © 2011, Tampa Tribune, Fla., Shannon Behnken. Distributed by McClatchy-Tribune Information Services.

What a Difference the HAFA Short Sale Loan Servicer Makes!

2011-06-17T05:40:00.000-04:00

Well, I have found that it really depends on the servicer as to how fast your HAFA Short Sale is going to move. Let's take a look at 2 of my HAFA Short Sales to better understand the process.

PLEASE NOTE: Both of these Sellers have loans with Bank of Ameirca. There are no subordinate liens or mortgages on either property. Also, both had applied for and were denied Loan Modifications.

SHORT SALE #1
Sellers #1 had gone through the HAMP Modification Program and were declined and therefore elected to do a Short Sale.The sellers and I contacted Bank of America regarding a HAFA Short Sale in March 2011. After being transferred 5 times, we finally were connected to the correct department and were provided with instructions to apply for HAFA. One week after our meeting, the Sellers provided me with the completed paperwork and the set of documents were submitted to the loan servicer assigned to the Short Sale. The Servicer instructed me NOT to list the home until I received the Short Sale Approval with all terms and price. A few weeks passed and after some follow up on my part and the seller's part, the appraisal was completed. This was in the latter part of April. After weekly follow up to the Loan Servicer, who told the Seller they would have an answer 3 weeks ago, we still have NO Approval. It is now the middle of June and we have still NOT received a Short Sale Approval NOR do I have permission to list the home as yet. Also to note, this servicer did not instruct the documents to be submitted through the Equator system. All documents were faxed in as instructed. I'll keep you posted on this!

SHORT SALE #2
Sellers #2 approach me the first week of May 2011 with a Bank of America denial for modification. The Seller and I contact Bank of America and are told to Initiate the Short Sale in Equator to determine if the Seller is eligible for HAFA. The system indicates that the Seller is eligible. To note, Short Sale #2 has Loan Servicer #2. I immediately list the home. The documents needed by the Loan Servicer #2 are uploaded into the Equator System. I am given no restrictions on this file for listing. The home goes on the market is shown several times. Two weeks after the initial upload, the appraisal is completed and submitted. The property then goes under contract and the file is transferred to valuation the first week of June. We are now awaiting an approval or counter offer.

What a dramatic difference all because of the different servicer involved!
Watch this video to learn more about HAFA Short Sales.
If you or someone you know is struggling to make their mortgage payments, call or email me. Let me explain their options.

Short sale scam cheats banks, sellers

2011-06-08T16:45:00.000-04:00

SANTA ANA, Calif. – June 8, 2011 – Banks and distressed home sellers stand to lose more than $375 million this year from a short sale scam that has sellers and banks agreeing to sell homes at very undervalued prices, according to a new study by CoreLogic.

In discovering the short sale fraud scam, CoreLogic analyzed 450,000 nationwide short-sale transactions in the last two years.

Here’s how the scam often works: Borrowers who are underwater or in financial distress are approached, often by an investment group, and persuaded to sell the property in a short sale at a low price. Soon after the bank accepts the lowball offer, the investment group then resells the house to legitimate buyers at a higher price.

Sixty-five percent of short sales resold within six months that net profits of 40 percent or higher were flagged “suspicious,” which means there is a high likelihood that the lender accepted a low offer, according to the CoreLogic study. These transactions often go undetected by banks, too.

Source: “A Short Way to Short-Sale Fraud,” The Real Deal (June 3, 2011)

© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688

Property tax break for active duty military

2011-05-17T16:18:00.000-04:00

TALLAHASSEE, Fla. – May 17, 2011 – If you have clients who served in Iraq or Afghanistan during 2010, they’ll want to know about new legislation providing a tax break for homestead owners.

HB 1141 implements a constitutional amendment approved by voters in 2010 and provides a new homestead exemption for military personnel on active duty overseas. The exemption is based on the amount of time the individual served overseas.

How to calculate the tax break

Taxable value of the property multiplied by the percentage of time spent overseas in 2010. (Calculate percentage of time spent overseas by taking the number of days overseas and dividing it by 365).

So, if someone spent six months overseas in 2010, he or she would get a 50 percent discount. If someone spent the entire year overseas (12 months), he or she would get a 100 percent discount.

The property tax discount applies to 2011 taxes, but applicants must apply to their county property appraiser by June 1. If applicants miss the June 1 deadline, they have a second chance, but must apply with 25 days of receiving their assessment notice (TRIM Notice) and demonstrate extenuating circumstances.

“Since many counties do not even have an application form yet, you might recommend (that applicants) send a letter to their county appraiser before June 1,” says

Vicki Weber, an attorney with Hopping Green & Sams in Tallahassee, Fla. “In the letter, they should say, ‘I know about HB 1141, and I was deployed overseas last year. I qualify, and I will submit an application as soon as you send me one. But in the meantime, consider this my application.’”

After 2011, the application deadline is March 1.

Questions? Call Florida Realtors Legal Hotline, an included member benefit for Realtors in Florida at (407) 438-1409 begin_of_the_skype_highlighting (407) 438-1409 end_of_the_skype_highlighting.

© 2011 Florida Realtors®

Listing data not from MLS has more errors

2011-05-11T17:27:00.000-04:00

NEW YORK – May 11, 2011 – Listing data that doesn’t come directly from multiple listing service (MLS) data is more likely to have inaccurate price and status information, according to research by Trulia.

Trulia found that third-party syndicators of listing data that didn’t come directly from an MLS posted a 21.3 percent error rate regarding the listing’s price or status. Trulia says the problem is that real estate professionals submit the data to these syndication sites but often fail to return to the site to update the listing when information changes, which causes a “significant increase of disparate data sources resulting in less accurate data online,” according to Trulia.

Meanwhile, third-party re-syndicators of MLS data had a 10.2 percent error rate, direct feeds from brokers posted a 5.6 percent error rate, and direct feeds from franchises had a 3.9 percent error rate, according to Trulia.

Trulia’s white paper was based on an analysis of more than 430,000 listings between Feb. 15 and April 15 to uncover discrepancies in listing data.

Source: “Trulia: Higher Error Rate in Non-MLS Sources of Real Estate Listing Data,” Inman News (May 9, 2011)

© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688

Florida population: Census summary 2010

2011-05-10T16:03:00.000-04:00

Census Bureau Florida reports

The 52-page “Florida Population: Census Summary 2010” is posted on floridarealtors.org in PDF format.

WASHINGTON – May 10, 2011 – Florida continues to grow. According to the 2010 Census, Florida’s population was 18,801,310 on April 1, 2010, an increase of 2,818,486 since April 1, 2000.

The 2000-2010 period was the fourth consecutive decade to see the Florida population grow by more than 2.8 million residents. Florida’s numeric population increase during the past decade was the third largest of any state, trailing only Texas and California. Its percent increase (17.6 percent) was the eighth largest in the nation.

County trends

Only Monroe and Pinellas counties saw a population decline over the decade, while 65 of Florida’s 67 counties logged an increase. Monroe lost 6,499 residents while Pinellas declined by 4,953.

Twenty-four of Florida’s 67 counties grew by more than 20 percent, and 52 beat the national growth rate of 9.7 percent.

Four counties grew by more than 50 percent – Flagler, Sumter, Osceola and St. Johns – while another eight – St. Lucie, Lake, Lee, Walton, Clay, Pasco, Wakulla and Hernando – grew by 30-50 percent. Growth has no clear geographic border, and Florida’s rapidly expanding counties can be found throughout the state, on both coasts and in the interior.

Only six counties grew by less than 5 percent since 2000: Hardee, Gadsden, Madison, Escambia, Monroe and Pinellas.

More than half of the state’s total population growth occurred in eight counties. In terms of numeric population growth, the largest increases occurred in counties located in central and south Florida. Orange, Miami-Dade, Hillsborough, Palm Beach and Lee each grew by more than 150,000 residents during the decade. Three other counties – Broward, Pasco, and Polk – grew by more than 100,000.

In contrast, thirty counties grew by less than 10,000 residents during the decade.

City trends

Florida is highly urbanized. More than 94 percent of Florida’s population lived in metropolitan areas in 2010, and the state’s population growth over the decade was slightly faster in metro areas. Approximately 55 percent of Florida’s residents currently live in incorporated cities and towns, compared to less than 50 percent in 2000.

Cities and towns show much more variation in population growth rates than counties do. Of the 411 incorporated places in Florida, 16 more than doubled in size between 2000 and 2010; 24 grew by 50-100 percent; 63 grew by 25-50 percent; 165 grew by less than 25 percent; four had no population change; and 130 lost population.

Nine new cities and towns were established during the decade and one (Cedar Grove) lost its official status as an incorporated place.

© 2011 Florida Realtors®

My HAFA Short Sale.....

2011-04-26T22:53:00.000-04:00

I had a home owner call regarding short selling their home a few weeks ago. Once I spoke with the owners, I learned that they has tried to complete a loan modification with their lender, but it was denied. So, I advised them to come to the office so we could contact the lender and determine if they were HAFA eligible. Their lender was on the list of participating lenders, so it was worth a try.

You may be eligible for HAFA if:

•You live in the home or have lived there in the last 12 months.
•You have a documented financial hardship.
•You have not purchased a new house within the last 12 months.
•Your first mortgage is less than $729,750.
•You obtained your mortgage on or before January 1, 2009.
•You must not have been convicted within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction.

*Eligibility criteria are for guidance only. Contact your mortgage servicer to see if you qualify for HAFA.

The benefit of a HAFA short sale is:

You are no longer responsible for the difference between what you owe on your mortgage and the amount that your home sells for.
You will also receive $3,000 in relocation assistance upon successful closing of your short sale or deed-in-lieu of foreclosure***.
In a short sale, the servicer allows you to list and sell the mortgaged property with the understanding that the net proceeds from the sale may be less than the total amount due on the first mortgage.
***With a deed-in-lieu of foreclosure, you voluntarily transfer ownership of your property to the servicer— provided the title is free and clear of mortgages, liens, and encumbrances. Generally, if you make a good faith effort to sell your property but are not successful, a servicer may consider a deed-in-lieu of foreclosure.

Here is the list of participating HAFA loan servicers.

To continue with the story, the owners came to my office in the next few days and brought the mountain of paperwork they had provided to the lender for their loan modification. I explained that we would re-submit all those documents and updated financial documents.

After contacting the lender and being transferred 4 times, we finally got the information we needed and proceeded to put together the "Package" for the lender.
We were instructed NOT to put the home on the market until after the appraisal because the loan was Freddie Mac backed.
So, the appraisal was finally conducted in the past week. Now we wait for the approved price.

Stay tuned to see how this goes.....

Florida Realtors pushed for short sale bill

2011-04-21T16:04:00.000-04:00

WASHINGTON – April 21, 2011 – U.S. Rep. Tom Rooney (R-Fla.) and U.S. Rep. Robert Andrews (D-N.J.) introduced bipartisan legislation last week to speed short sales by requiring lenders to decide whether to accept an offer within 45 days.

“This bill addresses the biggest obstacle for homebuyers and owners in short sale situations,” says Patricia Fitzgerald, president of Florida Realtors and a key contact to Rooney, who lives in Tequesta, Fla.

“We’ve worked with The National Association of Realtors® (NAR) and through Patti as the FPC (Federal Political Coordinator) since last August or so,” says John Sebree, Florida Realtors vice president of public policy. “This federal legislation is one of the goals of our short sale work group.”

H.R. 1498 – the “Prompt Decision for Qualification for Short Sale Act of 2011” – will bring the processing time for short sale price approvals in line with the time required for other types of real estate deals by mandating a quicker response from the lender – at most 45 days after submitting the request for short sale approval.

“Due to the economic crisis, the number of short sales in Florida is rising, but lenders haven’t always been able to keep pace,” says Rooney. “By requiring lenders to make decisions on short sales within 45 days, this legislation would speed transactions and help prevent homes from going into foreclosure.”

© 2011 Florida Realtors®

Existing home sales rise in March, says NAR

2011-04-20T20:44:00.002-04:00

WASHINGTON – April 20, 2011 – Sales of existing-home sales rose in March, continuing an uneven recovery that began after sales bottomed last July, according to the National Association of Realtors®.

Existing home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 3.7 percent to a seasonally adjusted annual rate of 5.10 million in March from an upwardly revised 4.92 million in February, but are 6.3 percent below the 5.44 million pace in March 2010. Sales were at elevated levels from March through June of 2010 in response to the homebuyer tax credit.

Lawrence Yun, NAR chief economist, expects the improving sales pattern to continue. “Existing-home sales have risen in six of the past eight months, so we’re clearly on a recovery path,” he said. “With rising jobs and excellent affordability conditions, we project moderate improvements into 2012, but not every month will show a gain – primarily because some buyers are finding it too difficult to obtain a mortgage. For those fortunate enough to qualify for financing, monthly mortgage payments as a percent of income have been at record lows.”

NAR’s housing affordability index shows the typical monthly mortgage principal and interest payment for the purchase of a median-priced existing home is only 13 percent of gross household income, the lowest since records began in 1970.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 4.84 percent in March, down from 4.95 percent in February; the rate was 4.97 percent in March 2010.

Data from Freddie Mac and Fannie Mae show requirements to obtain conventional mortgages have been tightened, with the average credit score rising to about 760 in the current market from nearly 720 in 2007; for FHA loans the average credit score is around 700, up from just over 630 in 2007.

“Although home sales are coming back without a federal stimulus, sales would be notably stronger if mortgage lending would return to the normal, safe standards that were in place a decade ago – before the loose lending practices that created the unprecedented boom and bust cycle,” Yun explained.

“Given that FHA and VA government-backed loan programs turned a modest profit over to the U.S. Treasury last year, and have never required a taxpayer bailout, we believe low-downpayment loans should continue to be available for those consumers who have demonstrated financial responsibility and are willing to stay well within their budget. Raising the downpayment requirement would unnecessarily deny credit to many worthy middle-class families and veterans,” Yun said.

A parallel NAR practitioner survey shows first-time buyers purchased 33 percent of homes in March, compared with 34 percent of homes in February; they were 44 percent in March 2010.

All-cash sales were at a record market share of 35 percent in March, up from 33 percent in February; they were 27 percent in March 2010. Investors accounted for 22 percent of sales activity in March, up from 19 percent in February; they were 19 percent in March 2010. The balance of sales were to repeat buyers.

The national median existing-home price for all housing types was $159,600 in March, down 5.9 percent from March 2010. Distressed homes – typically sold at discounts in the vicinity of 20 percent – accounted for a 40 percent market share in March, up from 39 percent in February and 35 percent in March 2010.

NAR President Ron Phipps said some renters are looking to homeownership as a hedge against inflation. “The typical buyer today plans to stay in a home for 10 years, while rents are projected to rise at faster rates over the next few years,” he said. “As buyers gain more financial security, the advantages of homeownership become more obvious. Rents will continue to trend up, especially in comparison with a fixed-rate loan which provides financial stability and gradual accumulation of equity over time.”

Total housing inventory at the end of March rose 1.5 percent to 3.55 million existing homes available for sale, which represents an 8.4-month supply at the current sales pace, compared with a 8.5-month supply in February.

Single-family home sales rose 4.0 percent to a seasonally adjusted annual rate of 4.45 million in March from 4.28 million in February, but are 6.5 percent below the 4.76 million level in March 2010. The median existing single-family home price was $160,500 in March, down 5.3 percent from a year ago.

Existing condominium and co-op sales increased 1.6 percent to a seasonally adjusted annual rate of 650,000 in March from 640,000 in February, but are 4.1 percent below the 678,000-unit pace one year ago. The median existing condo price was $153,100 in March, which is 10.1 percent below March 2010.

Regionally, existing-home sales in the Northeast rose 3.9 percent to an annual level of 800,000 in March but are 12.1 percent below March 2010. The median price in the Northeast was $232,900, down 3.0 percent from a year ago.

Existing-home sales in the Midwest increased 1.0 percent in March to a pace of 1.06 million but are 13.1 percent lower than a year ago. The median price in the Midwest was $126,100, which is 7.1 percent below March 2010.

In the South, existing-home sales rose 8.2 percent to an annual level of 1.99 million in March but are 1.0 percent below March 2010. The median price in the South was $138,200, down 6.6 percent from a year ago.

Existing-home sales in the West slipped 0.8 percent to an annual pace of 1.25 million in March and are 3.1 percent below a year ago. The median price in the West was $192,100, which is 11.2 percent lower than March 2010.

© 2011 Florida Realtors®

What You Need to Know When Buying a Short Sale

2011-04-18T11:08:00.000-04:00

There seems to be some level of frustration on the part of Short Sale Buyers out in the Market. So, I wanted to talk about a few things that can help relieve some of this Buyer anxiety when involved in the purchase of a Short Sale.
If you are a Buyer working with a Realtor on a Short Sale OR are considering purchasing a Short Sale, please be aware of the following:

A Short Sale is by no stretch of the imagination, Short in timeframe. Depending where you came into the Short Sale will most likely determine the time, to a degree of how quickly the sale will go.

If you make an offer and the home owner has been through a loan modification which did not work out OR there was a Buyer who left the transaction and/or there was an Approved Price at one time, your chances are much better that it won't take 8-12 months, BUT this also depends on the lender and the cooperation of the Seller with their Realtor.
If you are the FIRST Buyer to make an offer and there has been NO Loan Modification and this is not a HAFA Short Sale, you are probably in for a long process. I am not saying you should not make an offer, but realize that you will need to be in a position to wait.
If you come across a Pre-Approved, or HAFA Short Sale, you should be able to make an offer and have an answer within 10 business days. Participating lenders seem to be in a much better position to make this happen.

As a Buyer you should:

Have your Realtor find out where the Seller is in the Short Sale process.
Ask for a Buyer Market Report so that you can make a Market Offer.
Discuss with your Realtor how and when to report any updates that come in and by what method. This can eleviate some frustration up front.
Be prepared to wait. If you NEED to be in a home by a certain time, you may want to choose a property other than a Short Sale to make an offer on.
Lastly, know that your Buyer's agent (who is not representing the Seller) CANNOT communicate with the Seller's lender at any time. This is a violation of privacy which the Seller's lender will not allow. Additionally, it can actually hinder the process if you did try to make contact with the lender.

Short Sales are plentiful and are usually in better condition than the typical Bank Owned properties and present MANY opportunities to purchase a home at a great price. Follow this link to view Short Sale properties in Lake County, Florida.

Regards,
Lisa Jones GRI, SFR
ERA Tom Grizzard

Possible legislation to speed up short sales

2011-04-16T08:00:00.002-04:00

NAR: U.S. bill would speed short sales

WASHINGTON – April 14, 2011 – A new bill introduced into the U.S. House Tuesday would, if it becomes law, improve the process for approving short sales, bringing relief to distressed homeowners who can’t keep their homes and hope to avoid foreclosure.

The bill, supported by the National Association of Realtors® (NAR), would impose a 45-day deadline on lenders to respond to short sale requests. The legislation – “The Prompt Decision for Qualification for Short Sale Act of 2011” – was offered in Congress by U.S. Reps. Tom Rooney (R-Fla.) and Robert Andrews (D-N.J.).

“Realtors and consumers continue to raise issues about delays in the short sale process, because lenders are unable to decide whether to approve a short sale,” says NAR President Ron Phipps. “After many months of delays, and with no response from lenders, potential buyers lose patience and cancel their contracts, often resulting in the property entering foreclosure. A short sale minimizes the negative impact on sellers and generally costs the lender less than a foreclosure.”

NAR has pushed the lending industry to improve the short sale approval process, which represents about 13 percent of recent home sales, according to NAR data. Phipps praised Reps. Rooney and Andrews for their efforts on the bill and urged Congress to pass the bill quickly.

“As the leading advocate for homeownership and housing issues, Realtors want to help more homeowners avoid foreclosure by facilitating a short sale when a family is absolutely unable to keep their home; however, that can only happen if lenders and servicers approve short sale offers in a reasonable amount of time,” says Phipps. “Streamlining short sales transactions will reduce the amount of time it takes to sell the property, improve the likelihood that the transaction will close and reduce the overall number of foreclosures. This benefits sellers, lenders, buyers, and the entire community.”

© 2011 Florida Realtors®

4 mistakes to avoid when buying a foreclosure

2011-04-12T11:35:00.000-04:00

ORLANDO, Fla. – April 8, 2011 – Foreclosures continue to flood real estate markets across the country, and buyers are looking to cash in on what they view as some of the best real estate deals. But experts say that while some foreclosures are a great purchase, buyers need to be cautious before jumping in. They must make sure they’re really getting a bargain.

Dan Steward, president of Pillar to Post Professional Home Inspections, advises buyers considering a foreclosure to avoid the following top mistakes:

1. Don’t judge a house by looks alone. A $2 million mansion may look fabulous but have mold hiding beneath the walls or need numerous, costly repairs. A fixer upper, on the other hand, may look rundown but have excellent bones and be repaired at a reasonable cost. A home inspection prior to purchasing a property can help buyers determine if they might be getting in over their head, Steward says. He cautions buyers to not just rely on previous inspections, however, since vacant homes can deteriorate rapidly.

2. Don’t focus on price alone. Buyers may focus on the ultra-low price so much that they forget to factor in other qualities, such as the home’s school district, view, location and local crime rate. Steward cautions buyers not to assume that a previous owner’s financial problems cause all foreclosures.

3. Don’t be tempted to “flip.” Purchasing a home at bargain price, updating it and trying to sell it for a lot more may seem tempting, but Steward warns buyers to be cautious. Unless the buyers are pros at house flipping, they’ll likely run into several novice mistakes in trying to make fast money on flipping a foreclosure. Steward recommends buyers consult a real estate professional, home inspector and contractors before considering a flip.

4. Don’t go over budget. Foreclosures often require some fixes so buyers need to make sure they have the money to afford needed repairs. Steward recommends that buyers have at least half of the money in cash for needed repairs. He says that buyers will want to avoid taking more loans than needed, particularly private loans, because the interest on them will slowly chip away at their initial foreclosure bargain.

Source: “What to Watch Out for When Buying a Foreclosure: Help Your Clients Know Which to Buy ... and Which to Walk By,” RISMedia (April 7, 2011)

© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688

Morningview Lakefront Retreat

2010-04-19T10:22:00.000-04:00

Countrywide Customers Get Court Settlement

2010-04-13T15:52:00.000-04:00

Countrywide customers get court settlement

Countrywide customers get court settlement

LOUISVILLE, Ky. – April 12, 2010 – A notification program begins today in the United States, including Puerto Rico and recognized U.S. territories, as ordered by the United States District Court for the Western District of Kentucky. The program applies to people who provided personal information or made mortgage payments to Countrywide about a proposed settlement reached with Countrywide’s affiliate companies – Countrywide Financial Corporation, Countrywide Home Loans, Inc., Countrywide Bank, FSB, Full Spectrum Lending Division, and Bank of America Corporation – in a class action lawsuit about stolen personal and financial information.

The lawsuit claims that a senior financial advisor once employed by Countrywide took confidential information from millions of consumer records and sold it to third parties. The lawsuit further alleges that Countrywide did not adequately protect the confidential personal and financial information of its clients. Countrywide denies that it did anything wrong, and the settlement is not an admission of wrongdoing or an indication that any law was violated.

The lawsuit class includes everyone in the United States who: (1) received a letter from Countrywide anytime from Aug. 2, 2008, to and including Nov. 2, 2008, notifying them that their personal information was involved in an alleged theft committed by a Countrywide employee; or (2) who obtained a mortgage from Countrywide or whose mortgage was serviced by Countrywide prior to July 1, 2008. Countrywide, for this purpose, does not include Bank of America.

Notices informing class members about their legal rights will be mailed and will appear in U.S. newspapers. The court will consider whether to grant final approval to the settlement on July 19, 2010.

Anyone affected by the settlement can submit a claim for benefits, if eligible; or they can ask to be excluded from, or object to, the settlement and its terms. The deadline for exclusions and objections is June 24, 2010. The earliest deadline to claim any of the benefits is Sept. 7, 2010.

A toll-free number, (866) 940-3612, has been established in the case (called In Re: Countrywide Financial Corp. Customer Data Security Breach Litigation, No. 3:08-MD-01998-TBR, MDL 1998), along with a website, http://www.cwdataclaims.com/, where notices, claim forms, and the settlement agreement may be obtained.

Those affected may also write to:

Countrywide Data Settlement

PO Box 2730

Portland, OR 97208

© 2010 Florida Realtors®

NEW Short Sale Information from the NAR

2010-02-27T09:46:00.000-05:00

HAFA home sale rules impact some commissions

WASHINGTON – Feb. 26, 2010 – A federal program designed to help owners losing their homes – those owners who cannot hold onto their property even with existing federal aid – also impacts allowable commissions for Realtors and a licensee’s ability to offer commission rebates to buyers and sellers.

The U.S. Treasury Department’s Home Affordable Modification Program (HAMP) was designed to help owners stay in homes by lowering principal, lowering interest rates and/or extending the payment period. However, some homeowners still don’t have the ability to hold onto their property under HAMP, and will inevitably lose their homes, either through foreclosure or deed-in-lieu of foreclosure (homeowners voluntarily cede ownership to the lender by mailing in their keys). To help these owners, the Home Affordable Foreclosure Alternatives (HAFA) was created.

HAFA created a standardized process for short sales. It benefits real estate licensees, homeowners and lenders in some ways – including a faster short sale process – but it also creates rules that impact some real estate company policies. If dealing with HAFA short sales, however, buyers, sellers and real estate licensees must accept the terms.

For licensees, a contract that does not follow the law could be illegal; more importantly, however, a contract that does not adhere to the terms of HAFA won’t be accepted by a lender, further bogging down the slow short sale process even more and further frustrating buyers and sellers.

HAFA does not impact all short sales. Created to help only the most needy homeowners, the rules apply only under the following conditions:

• The property must be the borrower’s principal residence.

• The loan was originated on or before Jan. 1, 2009.

• The loan is delinquent or a default is reasonably foreseeable.

• The unpaid balance on the mortgage is less than $729,750 (higher for two-to-four unit properties).

• The total monthly mortgage payment exceeds 31 percent of a borrower’s gross income.

For properties that qualify under HAFA rules, real estate licensees and brokers must adhere to the following limitations:

• There can be no agreements to share any portion of a commission after the deal closes to the buyer or seller. This negates any form of commission rebate offered by some licensees.

• The transaction must be “arm’s length,” meaning the buyer, seller and Realtor cannot have a personal or familial relationship.

• A real estate licensee cannot earn a commission through the sale of his or her own house.

• A buyer must agree to not resell the home within 90 calendar days.

• A seller cannot have any expectation of buying or renting the property back after the sale.

HAFA also offers positive changes for real estate licensees. A prime complaint in the past focused on commission changes. Since lenders were not a party to the original contract between buyer and seller, they were free to change the commission percentage as they negotiated a short sale rate.

Under HAFA, lenders cannot reduce a commission if it is 6 percent or less. It also offers other benefits such as pre-approved short sale terms before listing. For sellers, a HAFA sale fully releases them from future liability for the first mortgage debt. The program also offers financial incentives to some participants.

HAFA becomes effective April 5, 2010, but servicers may implement HAFA earlier, providing the servicer is able to collect and report all required information described in the reporting requirements. Borrowers may be accepted into HAFA if the short sale agreement is fully executed by the borrower and received by the servicer on or before Dec. 31, 2012.

For more information on HAFA rules, visit the National Association of Realtors’ website at: http://www.realtor.org/realtors/basics_short_sales?wt.mc_id=rd0041.

© 2010 Florida Realtors®

Best Price in Country Club $148,900 Not a Short Sale!

2010-01-26T11:57:00.000-05:00

Two bedroom Two bath with office. Decorator colors will transport you to Tuscany. Open floor plan with living room, dining area and family room.

Cornices and plantation shutters throughout and convey with home.

Master Bedroom Spacious Kitchen

9036 Saint Andrews Way, Mount Dora, Florida

Call to see this home today! Community has golf course, pools and is well maintained. Close to downtown Mount Dora and a short commute to the Sanford area.

Home with Deeded Boat Slip on Lake Harris only $118,900!

2010-01-19T20:28:00.000-05:00

Fabulous home with access to Lake Harris. Two bedroom, two bath brick home featuring 1493 A/C SF in Rod n Reel Club. HOA includes water for the home and irrigation. Home has been well-maintained and completely updated.

Newer, water heater, A/C unit, appliances, granite counters, double pane windows, upgraded light and plumbing fixtures.19" tile throughout home. Spacious kitchen has Frigidaire stainless dishwasher, range microwave vent hood and stainless recessed sink, tile backsplash and closet pantry. Large utility room with washer & dryer hookup and storage. Living Room and kitchen have lakeview. Fire burning stove in living room.

Deeded lake frontage and boat slip. This home will not last at this price! Call to see it today.

Only 8,405 Permanent Loan Modifications in Florida

2010-01-18T21:37:00.000-05:00

According to an article in the January 16, 2010 Orlando-Sentinel, Orlando had the 11th-highest rate of mortgage modifications of U.S. metro areas in December. 15,516 homeowners are in trial modifications and 1,400 have permanent new mortgage terms, according to a new federal report released this week. Only 8,405 Floridians have been granted permanent loan modifications.

Homeowners who are facing foreclosure received some new help when President Obama initiated the Making Homes Affordable program almost a year ago.

The Making Homes Affordable program gives incentives to banks to modify loans in three ways; reducing interest rates to as low as 2 percent, increasing the life of the loan, and reducing the principal owed on the loan.

To qualify for a modification, a person’s monthly housing expenses must be more than 31 percent of gross monthly income. But you also must prove that you can pay for the modification.

To find out if you qualify to participate in the Making Homes Affordable program, click on the link.