Sarasota County Real Estate

Foreclosure Bargains Are Disappearing

2009-08-10T07:11:00.000-07:00

Buyers of foreclosure have to be quick these days. Some houses go under contract fewer than 90 minutes after they are put on the market, says Brad Geisen, founder of Foreclosure.com.

"For every listing that comes out, we have 10 buyers," says Cesar Dias, an associate with Approved Real Estate Group in Stockton, Calif.

Dias had 15 minutes of fame after introducing foreclosure sales tours last year. Now the tours are defunct because there are not enough homes to show.

"We had a lot of inventory last summer. Now we're down to 1,500 listings — from more than 5,000," Dias says.

In Florida, real-estate investment companies, buying in bulk and paying cash, face competition.

Even in the hard-hit Detroit area, bargains are disappearing.

"For a good house that's not too beat up, in a good neighborhood, there's no lack of buyers in this market," says Andy Sakmar, founder of Century 21 Sakmar in Rochester, 20 miles north of the city. "There are a lot fewer of these properties than a year ago, and the super buys get multiple offers."

Source: CNNMoney.com, Les Christie (08/06/2009)

Economists Optimistic That Market Is Upward Bound

2009-07-31T13:09:00.001-07:00

Economic recovery is still a few months away, say economists surveyed by USA Today, but two-thirds of them think existing-home sales have bottomed out.

Both housing and automotive markets “have the potential to generate some quite large percentage increases,” says Bill Cheney, chief economist at MFC Global Investment.

Overall, economists say unemployment won’t peak until the first half of next year and credit markets will remain tight.

"I think (the recovery) is going to be anemic," says Allen Sinai, chief economist at Decision Economics. "I don't think consumers have the wherewithal to buy a lot of cars and a lot of houses."

Source: USA Today, Paul Davidson; Barbara Hansen (07/27/2009)

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Housing Experts: Now Is a Perfect Time to Buy

2009-07-27T12:00:00.000-07:00

Don’t forget to remind potential buyers of something that is obvious to real estate professionals: Now is the time to buy, but that opportunity may be slipping away.

For people who have a job and money, a dream house is within reach, writes Marc Roth, founder of Home Warranty of America and a columnist for BusinessWeek.

He points out that mortgage rates remain low, prices are still at historic lows, and the government is offering incentives for first-time homebuyers.

He also adds that the inventory of homes to buy is still large, but it is shrinking. According to the NATIONAL ASSOCIATION OF REALTORS®, the housing inventory peaked in November 2008 at an 11-month supply. At the end of May 2009, it had fallen to a 9.6-month supply.

Roth says anyone who dallies will miss a good opportunity to buy a first home at a terrific price or go shopping for a move-up property that is a great buy.

Source: BusinessWeek.com, Marc Roth (11/17/2009)

Rent plan may keep people in homes

2009-07-22T13:16:00.000-07:00

TAMPA, Fla. – July 22, 2009 – Losing your home to foreclosure may no longer mean you have to leave.

Congress and the Obama administration are considering a controversial plan that would allow homeowners to rent their foreclosed home for at least five years. The proposal is setting the real estate community abuzz.

“It’s clear that the modification plans have not been as successful as Congress had hoped,” said Dean Baker, co-director of the Center for Economics and Policy Research. “We need something that will make more of an impact.”

The program could reshape Florida’s real estate market and the overall economy. Experts disagree on whether the effects would be positive or negative. One thing everyone agrees on is this: Florida doesn’t need any more vacant homes.

The Sunshine State’s foreclosure rate remains the third highest in the nation. During the first six months of the year, foreclosure filings jumped 50 percent from the same period last year. One in every 33 households received a default notice, auction notice or bank repossession.

Details of the rental plan are sketchy, but the idea is gaining momentum, according to U.S. Treasury Assistant Secretary Herbert Allison. He told the Senate Banking Committee last week that the proposal was being considered for homeowners whose mortgages did not qualify for modification programs to make them affordable.

Some versions of the plan involve lenders selling foreclosed homes to approved professional landlords. In other versions, the lenders would sell to private investors or keep the home and hire a management firm to handle the rental arrangement.

The rent would be determined by the market-rate rent in the area, determined by a professional appraiser.

Jack Rodriguez, president of the Greater Tampa Association of Realtors, said the plan would “tinker with the free-market enterprise.”

“I know where Congress is coming from,” he said. “But my gut tells me investors would shy away from this, and banks will end up stuck in the real estate market.”

Baker, who first proposed the plan two years ago, said it has evolved and continues to be tweaked. Even though people who take advantage of the plan would still lose their homes, Baker said, the plan could keep that from happening to others.

“The lender would have more of an incentive to work something out through a modification because the home would be worth less,” Baker said.

Under the plan, the lender still could sell the home but, Baker said, “The homeowner would come with the home.”

The homeowner, turned renter, would be allowed to stay until the lease runs out, which could last as long as 10 years.

One potential problem, however, is that many homeowners who lose their properties aren’t interested in staying as renters, according to William Apgar, senior mortgage advisor for the Department of Housing an Urban Development.

The program could have an unintended consequence, Rodriguez said. Lenders would feel pressure to shed properties to avoid becoming a landlord. Investors, who would have to give up some property rights, would low-ball lenders. The result could drag down housing prices even more. (The median sales price in the Tampa, St. Petersburg, Clearwater area was $141,100 in May, down 20 percent from $176,100 in May 2008, according to the Florida Association of Realtors.) Others think the plan is a win-win for everyone involved.

Don Burnham, a real estate investor in the Tampa area and co-founder of the Wealth Restoration Institute LLC, said the plan could be a hit.

Investors, he said, would want to buy the homes because they will know they have a long-term tenant and a steady revenue source. Lenders will like the plan, he said, because they’ll be able to find buyers faster. Homeowners would be happy because they’ll have a secure lease and not have to foot the bill to move.

Mike Larson, a real estate analyst with Weiss Research in Jupiter, said the plan is one of several the Obama administration is hoping will keep more homes from becoming vacant.

“We don’t yet know fully how the plan would work,” he said. “But if you have a warm body in the house who will keep it from going into disrepair and keep the lawn mowed, that will be at least somewhat helpful.”

Copyright © 2009 Tampa Tribune, Fla., Shannon Behnken. Distributed by McClatchy-Tribune Information Services.

Renegotiating home loan requires patience, prep work

2009-06-15T13:21:00.000-07:00

FORT LAUDERDALE, Fla. – June 15, 2009 – If you know you’re headed for trouble with your mortgage or you already are there, brace yourself.

It’s a mess for borrowers trying to renegotiate the terms of their mortgages right now. That’s despite a highly publicized, $75 billion, Obama administration program that pays lenders to modify loans.

If you need to get a new deal on your mortgage – as millions of people do – the best thing you can do is to arm yourself with information, about the problems you’ll face and what you can do to get around them.

“People are confused,” said Kevin Walker, president and chief executive of MortgageReport.com, a new website that helps borrowers learn whether they are eligible for loan modifications. “Frankly, lenders are still trying to figure out the procedures they’re supposed to follow to implement these programs.”

Not many loans are being modified under the Making Home Affordable program, which was announced in February.

By mid-May, the Treasury Department reported the program had resulted in 55,000 loan modifications so far.

Lenders can modify loans on their own, not using the program. Hope Now, an industry coalition trying to combat the flood of foreclosures nationwide, said its members had independently modified 127,000 loans in April and made 143,000 new repayment plans, a record number.

But even those figures combined are a drop in the bucket against the Obama program’s stated goal of helping as many as 9 million homeowners refinance or modify their loans.

Nothing has turned back the tidal wave of foreclosures. About 1 million new foreclosures were filed in the nation between January and the end of May, the Center for Responsible Lending estimated. Moody’s Economy.com expects 1.54 million new foreclosures this year, after 1.44 million foreclosures last year.

In South Florida, Allen Robinson, managing partner of First Trust Mortgage Corp., said lenders don’t seem interested in drastically altering mortgages. They aren’t reducing the principal owed, he said, but are cutting rates or extending terms.

And there’s the problem of loan servicers handling a flood of applications. Jessica Cecere of the Consumer Credit Counseling Service of Palm Beach said she thinks fewer than 2 percent of loans are being modified.

Lenders say they’re trying to keep up with the demand, but the number of troubled borrowers is huge and still growing. In April, almost 3 million home loans nationwide were 60 days or more delinquent, according to the Hope Now alliance.

“The pipeline of people requesting loan modifications has grown tremendously since March,” said JP Morgan Chase spokeswoman Nancy Norris.

Chase has opened five offices in Florida, including one in Aventura and one in Miami, devoted only to loan modifications. Norris said Chase can modify loans from Chase, Washington Mutual and a small lender named EMC. Those loan offices are open evenings and weekends.

Wells Fargo, which owns Wachovia, has put details of the program on a website, www.wellsfargo.com/homeassist.

What can you do if you need to rework your loan? Here’s some advice:

Get informed
This is easier than you think. Start at makinghomeaffordable.gov, the official Treasury Department website for the program.

You can refinance your loan using the program if you are current on your payments, but if you have fallen behind, you will need to seek a loan modification.

The site notes that loans that are “under water” – where the value of the home is less than the current mortgage – can qualify, for loans that are as much as 105 percent of the home’s current value. Moody’s Economy.com estimates that as many as 15.9 percent of all home loans are “under water” to some degree this year.

Get help
Some websites will show you the terms of the loan modification program and figure out whether you qualify.

One is MortgageReport.com, which comes from the same firm that created SimpleTuition.com, a student loan comparison tool. MortgageReport.com gives borrowers a “diagnosis” for their loans. There is no charge to borrowers, who input their loan amounts and other debts.

Users who qualify for a modification will be provided with a list of lenders. Borrowers can then decide whether to send on their own information.

Another site gives borrowers a free credit score. Fair Isaac, the company that produces the FICO credit score that is commonly used for mortgages, started MortgageReliefOnline.com in April. The site, also free to users, allows you to see whether you qualify and then refers you to mortgage counselors

You also can get help the old-fashioned way, by talking to someone.

You can find thousands of counselors trained by the U.S. Department of Housing and Urban Development by calling the local consumer credit counseling service or through the federal Hope Now program, 888-995- Hope (4673).

Get organized
“Be prepared,” said Dale Vermillion, a mortgage industry consultant and author of Navigating the Mortgage Maze. “Have your credit report available and know your credit score.”

Expect to be asked for copies of recent tax returns or pay stubs, information on your loan and any other loans, including a car loan, student loans and personal debts.

Don’t give up
“The first three or four people [you speak to] don’t have any power at all,” said Ryan Smart, vice president of RightTrack Financial Services, a Delray Beach firm that negotiates loan modifications. “The whole system exists to keep people away. They give you ‘negotiators’ who have no power to negotiate the loans.”

Keep going until you get to someone who does have the authority to change your loan.

Copyright © 2009 Sun Sentinel, Fort Lauderdale, Fla., Harriet Johnson Brackey. Distributed by McClatchy-Tribune Information Services.

The Two Latest Signs Housing Is Recovering

2009-06-06T10:53:00.001-07:00

Here’s more evidence that the housing market is recovering.

Two major home builders, Toll Brothers Inc. and Hovnanian Enterprises Inc., say their losses were shrinking compared to last year because buyers are coming back to the market.

Other encouraging news came from HIS Global Insight, a research firm, which said home prices fell on average at an annual rate of 2.2 percent in the first quarter in 199 of 330 metropolitan areas. That compares with a 12.5 percent decline in the fourth quarter of 2008 in 312 metropolitan areas.

"While it's too early to see a bottom of this housing downturn," the report said, the latest data "may signal that the market is beginning to stabilize."

Source: The Wall Street Journal, James R. Hagerty and John Spence (06/04/2009)

Uniform process for short sales will help struggling homeowners, say Realtors

2009-05-20T14:49:00.000-07:00

WASHINGTON – May 20, 2009 – Help is on the way for many homeowners facing foreclosure, thanks to new details under the Making Home Affordable Program announced by the U.S. Treasury and the U.S. Department of Housing and Urban Development (HUD).

The Making Home Affordable Program is designed to help homeowners modify their loan so they can afford to stay in their home. Where a modification is not possible, new incentives encourage the “quick private sale or voluntary transfer of property, which will save homeowners money and protect their financial future,” according to U.S. Treasury Secretary Timothy Geithner. The National Association of Realtors® (NAR) believes that a uniform process for handling short sales will facilitate the process.

“NAR is pleased that the government is stepping in to help prevent foreclosures by streamlining the short-sale and deeds-in-lieu process,” says NAR President Charles McMillan. “NAR has been calling for uniform short sales procedures and other initiatives that will help today’s homeowners in a challenging economy.”

Short sales occur when a bank agrees to let homeowners who have fallen behind on their mortgage to sell their home for less than they owe on the mortgage. Go to www.treasury.gov for detailed information on the program changes.

“Many families are finding themselves with a mortgage that is higher than their current home value, and they are struggling,” says McMillan. “As Secretary Geithner noted, and as NAR has been advocating for many months, stemming the foreclosure crisis and stabilizing the housing market are critical to our economic recovery.”

“We have heard from Realtors that the extensive delay in the short sale process caused many buyers to go elsewhere and left many would-be sellers with no option but foreclosure. We are all pleased that the government has stepped in to help homeowners and those wishing to buy a home,” McMillan says.

© FLORIDA ASSOCIATION OF REALTORS

Obama administration expands housing plan

2009-05-15T13:07:00.000-07:00

WASHINGTON – May 15, 2009 – The Obama administration expanded its $50 billion mortgage aid program on Thursday, announcing new measures that would help homeowners avoid a foreclosure if they don’t qualify for other assistance.

The initiatives are intended to streamline the process of selling a home that is worth less than the mortgage, or transfer ownership of a home to the lender. Both options will still ding the homeowner’s credit score, but less than a foreclosure.

Since the program, called Making Home Affordable, was launched in March, Mortgage companies have made more than 55,000 offers to modify borrowers’ loans.

“We’re seeing a lot of progress in a very short period of time,” Treasury Secretary Timothy Geithner said.

Officials estimate up to 4 million borrowers will get their loans modified, but housing experts like Mark Zandi of Moody’s Economy.com expect the number will be less than half of that.

And while the number of success stories is growing, it pales compared with the rate of new foreclosures, and many housing counselors across the country are complaining that the program has been slow getting off the ground.

“Our experience at the ground level has been, so far, frustrating,” said Michael van Zalingen, director of homeownership at Neighborhood Housing Services of Chicago, a counseling group. Entry-level employees at mortgage companies, he said, are either steering borrowers away from the plan or are entirely unaware of it.

There are, of course, lucky homeowners like Daniel Iturriaga, 45, a warehouse worker from Compton, Calif. Working with a counselor from Springboard, a nonprofit counseling group, Iturriaga was able to get JPMorgan Chase & Co. and mortgage finance company Fannie Mae to modify his home loan.

He’s going from a monthly payment of about $2,300 to about $1,275. After a three-month trial period, it should be final in mid-June.

“It’s a long process, but I still have a little hope to stay in my home,” said Iturriaga, who bought his home for about $400,000 in 2005 and has seen houses on the same block sell for about half as much. “I’m pretty happy.”

Nevertheless, Guy Cecala, publisher of trade publication Inside Mortgage Finance, doesn’t expect to see large volumes of loan modifications before July or August. “The basic problem is that the program is very complicated and involved to set up,” Cecala said.

The government program requires numerous changes to how the mortgage industry does business. To get a loan modification, borrowers must provide proof of their income and send in a letter stating why they need help.

Since the program involves taxpayer dollars, the lending industry needs to make sure it sets up the program correctly, said Faith Schwartz, executive director of Hope Now, a mortgage industry group formed in response to the foreclosure crisis. “This is a very well-thought out plan,” she said. “People have to be a little bit patient.”

But Rose Inman is out of patience and out of time. Aurora Loan Services is set to foreclose on her home overlooking Seattle’s Puget Sound on Friday.

Inman, 58, has lost two jobs, one with a manufacturing company, the other with the City of Seattle. Since then, she’s been working as a human resources consultant, but making much less money.

Despite numerous calls, e-mails and letters, she says she’s only been able to have one phone conversation with a company representative.

“It’s like this huge, concrete thick wall that you cannot get through,” she said.

Last week, Aurora joined the Obama administration’s loan modification program. The Colorado-based company is in line for nearly $800 million in government incentives to modify borrowers’ home loans.

“We offer a wide range of foreclosure prevention options to our customers,” Deborah Munies, an Aurora spokesman, said in an e-mail, while declining to comment on Inman’s case. “In cases where the customer has the ability and willingness to make a reasonable monthly payment, we make every effort to avoid foreclosure. Foreclosure is pursued only when a variety of other workout options have not been successful.”

So far, 14 companies that serve about three quarters of the mortgage market have signed up and will be paid for each loan they modify.

The initiatives announced Thursday are aimed at ineligible homeowners. For borrowers who are unemployed or owe significantly more than their homes are worth, there are generally two options to avoid foreclosure.

The homeowner can sign the property title over to the lender in what is known as a deed in lieu of foreclosure. Or, with the lender’s permission, the homeowner can sell the property for less than the value of the loan a so-called “short sale.”

Mortgage companies would get up to $1,000 and borrowers would get up to $1,500 in relocation costs.

For months, real estate agents have complained that it’s difficult to get lenders to agree to a short sale, and the process takes so long that many deals fall apart.

“They do not have their institutions staffed properly, that’s the problem, “said Lisa Gregory, a real estate agent with Prudential California Realty in Del Mar, Calif. “I don’t think encouraging these processors with an extra $1,000 will help because they aren’t motivated,” she said, but added that “this certainly sounds better than nothing.”

Copyright © 2009 The Associated Press, Alan Zibel (AP Real Estate Writer). All rights reserved. This material may not be published, broadcast, rewritten or redistributed. AP Real Estate Reporter J.W. Elphinstone contributed to this report from New York.

Short Sale vs. Deed-in-Lieu: Best Choice?

2009-04-29T10:32:00.000-07:00

Homeowners facing foreclosure often have the option of selecting a short sale or a deed-in-lieu of foreclosure as a possible solution to their financial difficulties. But are they? Which is the best choice? Like most alternatives, both have their upsides and their downsides. Understanding these options is the only way to make a truly informed decision.

In a short sale, your lender takes the loss
When you decide to use a short sale to prevent foreclosure, you should understand that the sale must have the lender’s approval and that lenders don’t always agree. What the lender is doing when he accepts, is permitting you to sell your home for less than you owe him and taking the loss himself. If he does go along with the short sale, it will relieve you of the burden (arrearages) as well as the cost, emotional strain and embarrassment of a messy foreclosure procedure. On the upside, a short sale is far less destructive to your credit rating than a foreclosure, as it is supposed to be listed as a “settled debt” on your credit report. However, it is still harmful to your credit score and can reduce it by 200 points or more.

On the downside, the lender could always go after you to collect the difference between the short sale price and what you owed him by getting a deficiency judgment against you. However, more often than not, this doesn’t happen simply because he knows that there is no money to recover and that he will have to pay all the costs of the legal action.

deed-in-lieu may be your fastest way out
A deed-in-lieu of foreclosure is when you give your home back to your lender, take your losses and thereby prevent the foreclosure. Lenders will frequently accept this because it is a less expensive and time consuming process for him than a full foreclosure action. The upside is that a deed-in- lieu is a faster solution than a short sale and that it is more likely to be acceptable to the lender. The ramifications to your credit score are about the same as the short sale.

On the downside, if the lender eventually sells the home for a price that doesn’t pay off the original mortgage amount, he can get a deficiency judgment and try to collect it from you. Once again, however, he knows that you can’t get blood out of a stone and probably won’t proceed if there doesn’t appear to be any money to recover.

Select either Short Sale or Deed-in-Lieu as early on as possible
The sooner you act on either a short sale or a deed-in-lieu the better. Once the foreclosure process is activated, you will not be in a strong position to negotiate with your lender because payment arrearages, interest and penalties have piled up. He can hold you financially responsible for his losses and seek a deficiency judgment that will appear on your credit report even if you don’t have the money to pay it. In either case, however, avoiding foreclosure is always a better choice in terms of the effect on your credit.

First-time homebuyers must close by Nov. 30 – contract not enough

2009-04-25T18:04:00.000-07:00

WASHINGTON – April 24, 2009 – If first-time homebuyers wait until November to sign a sales contract, it’s probably too late to get the $8,000 tax credit. To qualify, buyers must close before Dec. 1 – a signed contract is not enough. New construction should be started by mid-summer to qualify.

According to the National Association of Realtors, a “home is considered as ‘purchased’ when all events have occurred that transfer the title from the seller to the new purchaser. Thus, closings must occur before December 1, 2009 for purchases to be eligible for the credit.”

Noting that deadline, the National Association of Builders kicked off a campaign notifying buyers that if they want the tax credit, they should plan to sign a construction contact soon.

Mike Dishberger of Sandcastle Homes Inc. in Houston, Texas, says that building a home from scratch can take anywhere from four to six months depending on the floor plan and location. Assuming it takes the full six months, first-time homebuyers should sign a new-home construction contract no later than May 31, 2009.

While it’s possible to rush an existing-home sale and go from contract to closing in only a few weeks, that schedule could cause a problem for last-minute buyers who wait until November. If an onslaught of buyers hope to beat the clock, title agencies and others involved in the closing process could get backlogged during November, and the IRS does not consider “planned closing dates” for the tax credit – only actual closing dates.

To qualify for the tax credit, home buyers must have not owned a home for three years prior to the purchase and have a modified adjusted gross income (MAGI) less than $95,000 for single tax payers and $170,000.

Dont' Be Afraid of the Short Sale

2009-01-06T14:02:00.000-08:00

Here is some great news for people you are looking to purchase a short sale property.

MFRMLS has joined forces with Fannie Mae to launch a Pre-Approval Pilot, beginning in mid-December 2008. All MFRMLS members are invited to participate in the pilot, which is intended to help streamline the pre-foreclosure process – and facilitate quicker closings. It’s a Win/Win for both members and consumers!

Preserving homeownership is our number one priority. When homeowners become distressed and have exhausted all means to preserve homeownership, they will look to you for assistance with a short sale. For many, this may be the most graceful exit to help prevent foreclosure.

This pre-approval pilot can offer a more transparent, streamlined short sale process by:
Taking the guesswork out of price negotiations, thereby minimizing the timeframes for approval and closings!

Under this pilot, if a buyer makes a full-price offer on a pre-approved property, the lender will accept the offer if the transaction meets other standard requirements (e.g., asset check, fraud detection, no second liens, etc.). The pilot will test a new process by which Fannie Mae pre-approves the list price for a property that is secured by a Fannie Mae loan.

For the purposes of the pilot, Fannie Mae has validated a specific list of properties that have already met the following criteria:
The property must be secured by a Fannie Mae mortgage.
The mortgage must be serviced by Countrywide Home Loans.
The property must be a potential short-sale (i.e., the list price is less than the unpaid balance on the mortgage).

2008-12-17T14:01:00.000-08:00

THE TURN AROUND IN SARASOTA COUNTY IS COMING.

I CURRENTLY AM WORKING WITH REO PROPERTIES THAT ARE PRICED TO SELL. THESE PROPERTIES WILL NOT STAY ON THE MARKET LONG. THE BANK SAYS SELL THEM AND THAT'S WHAT WE INTEND TO DO. INVENTORY IS HIGH BUT IT WILL DROP IN THE NEXT TWELVE MONTHS. IF YOU'RE LOOKING TO MAKE A DEAL THEY'LL NEVER BE A BETTER TIME.

EXAMPLE: WE JUST GOT A REO 2 DAYS AGO, 2 BEDROOM 2 BATH CONDO IN SARASOTA IN A GOLF COURSE COMMUNITY SIMILAR UNITS SOLD FOR $150,000 JUST TWO YEARS AGO. IT WHEN UNDER CONTRACT TODAY FOR $65,000.

SIGNS OF A REBOUND?
Sales are picking up in markets where prices are deflated, but the business is different than it was before the bubble burst, observers say. The housing market in deflated states - like Arizona, California, Florida and Nebraska - show signs of a rebound. Analysts say that prices have fallen to the point that those with average salaries can afford to buy once again. "The buyers are returning," says Lawrence Yun, National Association of Realtors (NAR) chief economist. "And in such a strong way that, now, we are hearing in some cases there is multiple bidding, which hints that maybe pricing is reaching a bottom point. But inventory remains high."
Source: The Christian Science Monitor, Ben Arnoldy (12/16/08)© Copyright 2008 INFORMATION, INC. Bethesda, MD (301) 215-4688

FHA is still out there writing mortgages!

2008-10-27T07:35:00.000-07:00

Contrary to popular opinion, there are mortgages being written. FHA has been approving mortgages for qualified buyers throughout this financial crisis. There has never been a better time for first time home buyers to get out of their apartments and buy their own homes.

Click on the link below to learn more:

http://realtytimes.com/rtpages/20081020_washingtonreport.htm

2008-10-21T19:04:00.000-07:00

Although the recent economic news has been shaky, there still is some optimism regarding Florida real estate. Keep in mind, Florida, specifically Sarasota county was one of the first areas to experience the pain of the current real estate market. It only stands to reason that it will be one of the first to rebound. If we see the financial crisis in the stock market start to settle we should see some improvement this winter. Check out this article reprinted from Florida Association of Realtors' web site.

Recent financial crisis fails to hurt confidence in Florida real estate

GAINESVILLE, Fla. – Oct. 21, 2008 – The national economic crisis has failed to rattle Florida real estate experts, who, despite serious concerns about the availability of financing, remain surprisingly calm about market conditions within the state, a new University of Florida survey finds.

The most recent quarterly survey of Florida real estate trends, which was completed in September, shows the investment outlook for various types of properties remains steady, according to Wayne Archer, executive director of UF’s Bergstrom Center for Real Estate Studies.

“People who have responded to our surveys have not lost their faith in Florida as a place to be and a place to invest,” he says. “We have 40 pages of comments from our respondents, and although the dominant theme is the disruption of financing, perhaps the second theme, as one person put it, is people being on the sidelines with full pads and helmets just waiting to jump back in.”

Although Florida’s housing crisis is worse than other states, over the long term Florida stands to benefit from the migration of new residents, particularly as baby boomers age, Archer said. The Sunshine State’s mild climate and outdoor amenities make it an attractive retirement destination, despite high property taxes, insurance rates and hurricanes, he said.

Unfortunately, the plunging stock market combined with the fall in housing prices and tightening of home financing requirements will likely temporarily delay plans baby boomers may have to retire and move to the state, he said.

For the state’s real estate market to recover at all in the short term, banks and other financial institutions must ease credit restrictions, Archer said.

“If the financial crisis continues, that would really change the picture,” he said. “Our respondents, I think, are keeping the faith that they may have seen the worst and the shock will not be overwhelmingly severe.”

One sign of optimism is the trend in the latest survey toward a more favorable view of new single-family home development, Archer said.

“The respondents actually moved in a somewhat guarded but positive direction,” he said. “It suggests to me that they believe we may have already reached the bottom in that category.”

Although the survey does not include the market for existing single-family homes, one respondent said houses were beginning to sell in Lee County, once dubbed the foreclosure capital of the world, indicating perhaps the market is beginning to stabilize, he said.

Several neighboring counties in southwest Florida are likely to be in trouble for a long time, however, along with the Miami condo market, where an estimated 40,000 units are for sale, Archer said. Prospects are particularly bleak for higher-end condos in the city’s downtown, he said.

The weak dollar and general confidence in the United States as a safe harbor for investment could lure international investors to Miami, but that would be unlikely if the economic crisis deepens into a worldwide recession, he said.

While condo markets throughout the state face problems, which are likely to persist in the foreseeable future, the outlook for apartment rentals bounced back a little from the last survey in June, Archer said. “There was an expectation that occupancy rates would be falling, and while they’re not great, they are viewed as stable,” he said.

The weakest rental markets are in retail, which has been particularly hard hit by the economy as consumers spend less money, Archer said.

“After seeing what’s happening to their home values and watching the news, they are deferring purchases,” he said. “As a result, most retail organizations are curtailing their expansions and consolidating their operations and stores, which is creating higher vacancies.”

Perhaps the most negative survey result was that respondents’ perceptions of their own business outlook, which has declined steadily for 11 quarters, took an even larger downturn this quarter, Archer said.

“This is in marked contrast to their views of the market as a whole,” he said. “Although keenly aware of the downturn in the availability of capital, they remain surprisingly calm.”

The latest survey is based on 392 responses and is 12th in a series. It is the only Florida-centered survey of leaders and professional advisers in the real estate industry. The largest group of respondents was appraisers, about 51 percent, followed by brokers and other service providers.

© 2008 FLORIDA ASSOCIATION OF REALTORS®
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Pending Home Sales Up 7.4% for August

2008-10-08T15:34:00.000-07:00

Here is some good news today from the NAR. It's nice to hear some positive news these days! The pending home sales were up 7.4% in August, considering that the expectations were for -1.5%, this is great!

Contrary to what folks believe, there are banks making loans and now is a great time to negotiate a great deal. Sellers are looking at the market right now and when they get an offer on their property, they realize right now that they need to make a deal.

If your renting right now, FHA is still writing loans at 97% loan to value. You now can own for what you're paying for rent. For example, a 95,000 loan including taxes and insurance would be a monthly payment of $768.00/month.

There hasn't been a better time for first time home buyers than now. There are even programs that will help you with the 3% down payment. Give me a call to see if you qualify.

Help for Homeowners with Subprime Loans

2008-10-02T11:00:00.000-07:00

Republished from Florida Association of Realtor's Web site: October 2, 2008:

WASHINGTON – Oct. 2, 2008 – A new program rolled out by HUD yesterday could help more homeowners avoid foreclosure. Under the program, the lender of an existing subprime mortgage forgives part of the debt as if it’s a short sale, and the balance of the mortgage is rolled into a fixed-rate FHA mortgage. Unlike earlier programs, however, the HOPE for Homeowners program is aimed more at lenders than homeowners.

“For families struggling to keep up with their mortgage payments, this program will be another resource to refinance into a loan they can afford,” says HUD Secretary Steve Preston. “FHA remains a safe and affordable alternative to the high-priced mortgage loans that threaten homeowners’ ability to retain their homes. We strongly encourage borrowers to work with their lenders to determine if HOPE for Homeowners is the right program for them.”

The Economic and Housing Recovery Act of 2008 authorized the HOPE for Homeowners program. The HOPE for Homeowners Board of Directors was charged with establishing underwriting standards to ensure borrowers, after any write-down in principal, have a reasonable ability to repay their new FHA-insured mortgage.

The program began yesterday and ends Sept. 30, 2011. It’s available only to owner- occupants. In many cases, banks will have to write down the existing mortgage to 90 percent of the new appraised value of the home.

Borrower eligibility

Borrowers should contact their lender to determine eligibility. General requirements include:

• The home is their primary residence, and they have no ownership interest in any other residential property, such as second homes.
• Their existing mortgage was originated on or before Jan. 1, 2008, and they have made at least six payments.
• They are not able to pay their existing mortgage without help.
• As of March 2008, their total monthly mortgage payments due were more than 31 percent of their gross monthly income.
• They certify they have not been convicted of fraud in the past 10 years, intentionally defaulted on debts, and did not knowingly or willingly provide material false information to obtain their existing mortgage(s).

How the program works

The Board expects homeowners will participate in the program primarily through their current lender. HOPE for Homeowners includes the following provisions:

• The loan amount may not exceed a maximum of $550,440.
• The new mortgage will be no more than 90 percent of the new appraised value including any financed upfront mortgage insurance premium.
• The upfront mortgage insurance premium is 3 percent and the annual mortgage insurance premium is 1.5 percent.
• The holders of existing mortgage liens must waive all prepayment penalties and late payment fees.
• The existing first mortgage must accept the proceeds of the HOPE for Homeowners loan as full settlement of all outstanding indebtedness.
• Existing subordinate lenders must release their outstanding mortgage liens.
• Standard FHA policy regarding closing costs applies.
• The borrower must agree to share with FHA both the equity created at the beginning of this new mortgage and any future appreciation in the value of the home.
• The borrower cannot take out a second mortgage for the first five years of the loan, except under certain circumstances for emergency repairs.

The costs to the homeowner include the upfront and annual insurance premiums, as well as a share of the equity created by the write-down associated with the HOPE for Homeowners mortgage and any future appreciation in the value of the home. If the home is sold or refinanced, the homeowner will share the equity with FHA on a sliding scale ranging from a 100 percent FHA share after the first year to a minimum of 50 percent after five years.

The lien holder that previously held the highest priority will receive payment up to a proportion of its original interest, not to exceed the amount of available appreciation. This type of delayed payoff will take place until all prior lien holders are satisfied or the amount of available appreciation is exhausted. All remaining appreciation is remitted to FHA.

Read more about HOPE for Homeowners at www.hud.gov/hopeforhomeowners.

© 2008 FLORIDA ASSOCIATION OF REALTORS®

Economic Forcast from NAR

2008-09-24T15:26:00.000-07:00

The latest video podcast from the National Association of Realtors is out and it addresses the latest in our economy. Take a look:

You can also read what Lawrence Yun thinks about the bailout bill that congress is contemplating right here:
http://www.realtor.org/research/commentary_700_billion

What's Happening in Sarasota County Now

2008-09-24T14:12:00.000-07:00

The real estate market is definately in flux right now but there still is activity in Sarasota County. In fact, according the the Mid Florida MLS as of today September 24th, there have been 308 homes and condominiums sold in September. There are 1243 listed as pending.

Although we have a long way to go, as long as the economy can set itself straight and the folks in Washington get their act together. The outlook for Sarasota County is not all doom and gloom if you are a buyer.

It's never been a better time to buy in the county:
http://www.heraldtribune.com/article/20080924/BREAKING/309249997/2055/NEWS?Title=Home_prices_still_falling_in_region