Florida cracks down on loan modification firms - South Florida Business Journal:

 

The days of simply hanging out a shingle and opening up a loan modification business are coming to an end in Florida.

As of Jan. 1, individuals or companies providing loan modification services must be licensed by the Florida Office of Financial Regulation (OFR).

The law was sparked by hundreds of complaints filed with the state attorney general’s office. In 2008, there were 59 complaints filed. But that number has skyrocketed to 3,680 this year, as of Dec. 15, according to the Florida AG's office.

Click here to read the entire story:   Florida cracks down on loan modification firms - South Florida Business Journal:

Fla. Supreme Court requires mediation in foreclosures - South Florida Business Journal:

Plagued by an ever-increasing number of foreclosure cases, Florida judges now have guidance on how to deal with them through a statewide mediation program.

Florida’s Chief Justice Peggy Quince signed an order designed to alleviate the backlog. Click here to read the order.

It adopts recommendations by the court’s Task Force on Residential Mortgage Foreclosure Cases that was created earlier this year.

Click here to read the entire story:   Fla. Supreme Court requires mediation in foreclosures - South Florida Business Journal:

Real Estate Outlook: Housing Recovery/Realty Times

The real estate recovery continues to roll along with a big 7.4 percent jump in home resales last month, according to the National Association of Realtors.

The current sales pace is 44 percent higher than it was the year before, including detached single family homes, townhouses, condos and cooperatives.

Equally important: Sales are up in every region of the country. They rose by 6.6 percent last month in the Northeast, 8.4 percent in the Midwest, 5 percent in the South, and nearly 11 percent in the West.

Click here to read the entire story:  Realty Times - Real Estate Outlook: Housing Recovery

Fannie Mae launches program to help purchases of foreclosed properties | The Title Report News | Daily | The Title Report

The First Look program includes several initiatives supporting neighborhood stabilization and promoting home purchases by owner occupants and buyers qualifying for public entity housing programs.

(12/14/2009)

Fannie Mae has launched several initiatives supporting neighborhood stabilization and promoting home purchases by owner occupants and buyers qualifying for public entity housing programs.

To provide owner occupants and public entities an advantage in purchasing Fannie Mae-owned foreclosed properties, the company has created the First Look initiative. With First Look, only offers from owner occupants and buyers using public funds are considered during the first 15 days a property is on the market. Offers from investors will be considered only after the first 15 days have passed.

For more information  go to:  Fannie Mae launches program to help purchases of foreclosed properties | The Title Report News | Daily | The Title Report

New FHA Guidelines Could Amp Condo Sales

From RealtyTImes/by David Fletcher

"FHA approved" may become the most popular condominium amenity in the United States soon, thanks to the new guidelines established by the FHA to take effect February 1, 2010.

The guidelines addressed the two imperatives facing condominium sales: down payments and the financial integrity of condominium associations. Both are equally important to a condominium recovery.

"FHA approved" used to mean a 3.5% down payment. Starting early next year, "FHA approved" will mean 3.5% down plus a financially stable association approved by your lender. This is huge

Go here to read  more of this story:   Realty Times - New FHA Guidelines Could Amp Condo Sales

Investor Report: REO Listings

Investor Report: REO Listings

by Kenneth R. Harney/Realty Times

Fannie Mae calls its latest REO home sales program "First Look," but investors might want to call it "Second Look."

That's because the "first look" at all of Fannie's new REO listings, starting this month, will now go to home buyers who plan to occupy the units they purchase, or to local public agencies participating in "neighborhood stabilization" or community development programs.

When Fannie lists one of its tens of thousands of foreclosed and repossessed houses for sale through a participating real estate broker, investors will be barred from submitting bids for the first fifteen days.

Go Here to see the whole report:   Realty Times - Investor Report: REO Listings

Fed housing program encourages short sales

Well its about time!!!!!!!!

WASHINGTON – Dec. 1, 2009 – The Obama Administration, through the Treasury Department, announced new housing guidelines yesterday. While a series of announcements highlighted different programs, the National Association of Realtors (NAR) focused on changes that will make it easier for real estate associates to deal with short sales and “deeds in lieu of foreclosure.”
The program’s official name is the Home Affordable Foreclosure Alternatives Program (HAFA), and it’s part of an existing initiative, the Home Affordable Modification Program (HAMP). HAFA applies to loans not owned or guaranteed by Fannie Mae or Freddie Mac, which cover over half of all U.S. mortgages; however, Fannie and Freddie will issue their own versions of HAFA in coming weeks.  To Read more……click this link NOW

Fed housing program encourages short sales

South Florida Resale Inventory Plummets 35% In Year

"The South Florida real estate market is showing signs of potentially bottoming out," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC. "Resale inventory is down 35 percent across the region, all of the construction cranes developing condos in Greater Downtown Miami have been down for at least a year, and 19 bulk deals - four in November alone - have closed since July 2008.

"The looming question that remains is whether the South Florida market is at a plateau or a bottom given that foreclosure filings are still rising."

Go here to read the entire story:

Shortsale Foreclosure REO Miami South Florida Las Vegas San Diego - South Florida Resale Inventory Plummets 35% In Year

The new flipping: short sales | HeraldTribune.com | Sarasota Florida | Southwest Florida's Information Leader

 

The new flipping: short sales

STAFF PHOTO / MICHAEL BRAGA

Buy photo

This house in Nokomis was bought on June 30 for $205,000 and then sold the same day for $230,000.

By Michael Braga & Chris Davis
Staff Writers

Published: Sunday, November 15, 2009 at 1:00 a.m.
Last Modified: Saturday, November 14, 2009 at 11:36 p.m.

External Links:

• Investigation: Florida "flipping" real estate

Untold millions of dollars that banks could have recovered from the sale of distressed Florida homes have instead been pocketed as profits by a new breed of property flipper.

These flippers target houses on the verge of foreclosure and persuade banks and mortgage companies to accept lowball buyouts, sometimes by using questionable appraisals and not disclosing that a quick sale at a higher price has already been arranged, experts say.

No one knows how widespread the scheme has become. But a national glut of short sales -- pre-foreclosure sales in which the lender agrees to let the house sell for less than the mortgage owed -- has spawned a small industry of short-sale flippers, some of whom use these questionable tactics, experts say.

The Herald-Tribune examined nearly 18,000 property sales that occurred in Sarasota and Manatee counties in 2009. The review showed that:

• At least 250 properties have been sold multiple times at escalating prices so far this year. Nearly 50 of those properties were bought then resold within 24 hours, suggesting that banks were underpaid for properties that already had a buyer willing to pay more.

• Just the most suspicious sales, where properties flipped within a day, have cost banks $1.7 million in Sarasota and Manatee counties so far this year. On houses bought and resold within a month, the bank short sales were $3.2 million less than the houses fetched just a few days or weeks later.

• Real estate professionals are a key part of short sale flipping. Of about 120 short sale properties that sold twice within a month in the Sarasota area, more than half of the buyers or sellers were real estate agents, real estate attorneys or mortgage brokers.

• Questionable short sales accounted for 1.4 percent of all property sales in Sarasota and Manatee counties this year.

At the peak of the housing bubble, 2 percent of all sales statewide raised suspicions, based on criteria used by fraud investigators.

• Bankers and some organizations that regulate the real estate industry have taken steps to curb the latest form of flipping. But the measures, including restrictions on writing mortgages for flipped properties, have not halted questionable transactions. Experts warn the number of short sale flips is likely to continue growing nationwide.

Short sales are viewed as a crucial part of a real estate market recovery. They allow distressed homeowners to escape huge debts and let banks avoid foreclosure costs and still recoup some of the money they are owed.

And flips involving short sale properties can be legitimate if repairs are made to a property, or the original buyer pays one price in good faith and later finds another buyer willing to pay more.

In fact, some professional flippers are outspoken in defending flipping as aiding both homeowners and banks.

"Who cares if someone is making a spread on flipped properties," said Marc Pelletz, a real estate investor and agent with Hook & Ladder Realty in Sarasota. "Banks are getting money. Someone gets a deal. As long as everything is disclosed to everyone, what's wrong?"

But fraud experts warn that some of the real estate flipping they see today involves the same kind of insider deals and manipulated sale prices that plagued the housing bubble.

The FBI recently added short sale flipping, dubbed "flopping" by some mortgage fraud experts, to its list of recognized real estate fraud.

In a June 2009 report on mortgage fraud, FBI officials described various forms of short sale flipping fraud. Each type involves misrepresenting the value of a house to a lender.

Banking experts point out that those losses trickle down to taxpayers, who have bailed out the banking industry.

"These middle men are making a huge profit at the expense of banks, which means they are often making huge profits at the expense of taxpayers," said Anne Weintraub, a real estate attorney with the Syprett Meshad law firm in Sarasota.

LUCRATIVE BUSINESS

The evidence that short sale flippers are finding ways to benefit from bank losses can be found in deed records filed along Florida's Gulf Coast.

Some individual investors and small groups of flippers have bought dozens of properties at discount prices and resold them within days, each time for thousands of dollars in profit.

Since September 2008, Tampa real estate agent Joe Wright and accountant Kevin Byrne have worked together to buy more than 30 pre-foreclosure houses and condos, with Wright's brokerage as the listing agent and Byrne's company as the buyer.

In each case, the men arranged a short sale and quickly resold the property at a higher price. Of their 33 deals, 22 properties resold within 24 hours of purchase. The median one-day price increase was $25,000.

Byrne and Wright did not return repeated calls seeking comment.

Their purchases, including nine in Sarasota and Manatee counties, involved properties that ranged in value from $50,000 to $800,000. They also included four properties owned by Wright.

Court filings show that all four were on the brink of foreclosure when Byrne bought them from Wright at reduced prices and resold them for a profit.

In one deal last year, BB&T filed a foreclosure action against Wright and moved to seize a three-bedroom house he had built on Fielder Street in Tampa.

Mortgage documents show Wright had a $545,000 mortgage, but BB&T agreed to sell the house to Byrne's company for Click here to see the rest of this interesting story

The new flipping: short sales | HeraldTribune.com | Sarasota Florida | Southwest Florida's Information Leader

Market Conditions continue to RISE

Market Conditions by Realty Times

Most states continued to experience rising existing-home sales in the third quarter, with prices moderating in many metro areas, according to the latest survey by the National Association of Realtors®.

Sales increased from the second quarter in 45 states and the District of Columbia; 28states and D.C. saw double-digit gains. Year-over-year sales were higher in 32 states and D.C.

Lawrence Yun, NAR chief economist, said the tax credit is a significant factor. "We can't underestimate just how powerful a catalyst the first-time home buyer tax credit has been for the housing sector," he said. "It's given buyers the confidence they needed to get off the fence and take advantage of extremely affordable housing conditions. The buying conditions this year are the most favorable on record dating back to 1970, but the tax credit is allowing buyers to set aside any reservations about waiting for a better deal."

The national median existing single-family price was $177,900, which is 11.2 percent below the third quarter of 2008; the median is where half sold for more and half sold for less. Distressed sales – foreclosures and short sales – accounted for 30 percent of transactions in the third quarter, which continued to weigh down median home prices because they sell at a discount relative to traditional homes.

"The decline in the national median price has moderated recently, and a shrinking supply of unsold inventory suggests we are getting closer to price stabilization in many areas, but we need a steady stream of financially qualified buyers to further reduce inventory and get us to a self-sustaining market," Yun said. "Foreclosures will continue to come on the market, but rising sales from the expanded tax credit should stabilize home prices by next spring and help to stem future foreclosures."

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said he is encouraged by recent actions in Congress. "Extending and expanding the tax credit to more buyers through the middle of next year is the right medicine," he said. "Congress understands the impact of housing on the economy, so consumers who aren't able to complete a transaction before the end of this month now have a second chance but must have a contract in place by April 30."

Regionally, existing-home sales in the Northeast surged 16.7 percent in the third quarter to a pace of 930,000 units and are 6.9 percent higher than a year ago.

In the Midwest, existing-home sales jumped 13.2 percent in the third quarter to a pace of 1.20 million and are 5.2 percent above a year ago.

In the South, existing-home sales rose 11.3 percent in the third quarter to an annual rate of 1.97 million and are 5.9 percent higher than the third quarter of 2008.

Existing-home sales in the West increased 5.6 percent in the third quarter to an annual rate of 1.19 million and are 4.6 percent above a year ago.

For more information on your local market, visit Local Market Conditions.

Published: November 11, 2009

Real Estate Outlook: Pending Sales Rise

Real Estate Outlook: Pending Sales Rise
by Kenneth R. Harney/Reaty Times

A record jump in pending home sales -- pointing to higher numbers of closed transactions in the next two to three months -- tops the housing economic news this week.

Pending sales rose by 6.1 percent nationwide during the month of September, pushed in part by consumer concerns that the $8,000 tax credit might expire at the end of the month - and we now know that won't happen.

The pending home sale index, compiled monthly by the National Association of Realtors, was up 21 percent higher this September compared with September of 2008. That's the biggest year-over-year increase in the history of the index, dating back to 2001.

Plus the September gain in pending sales was the eighth straight month of higher numbers -- and that's also a record for the index. Pending sales were up by 10.2 percent in the Western states, 8.1 percent in the Midwest, 5 percent in the South.

Only the Northeast saw a decline, and that was by 2 percent.

Those numbers are pretty robust, but some economists caution that the index is likely to see a tapering off during the winter and holiday months, when fewer people are shopping.

David Semmens, an economist with Standard Chartered Bank in New York, said "we expect a far slower growth rate going forward."

But other economists question whether that seasonal pattern might be overridden by the short term extension, and expansion, of the tax credit through next June.

That extension not only continues the $8,000 credit for first time buyers, but allows people who've owned their homes for the past five years to qualify for a $6,500 credit if they sign a contract by April 30th 2010 and go to closing by June 30.

In other key economic developments affecting real estate this week, the Commerce Department reported that spending on construction, both residential and commercial, was up by eight tenths of a percent during September. That's a further welcome indication the recession is over.

Also, the Clear Capital "HDI" home price index rose by 3.7 percent on a national average basis between September 26th and October 28th.

Meanwhile, mortgage rates got even a little better last week, according to the Mortgage Bankers Association. Average 30-year fixed rates slipped just below 5 percent, while 15-year fixed rate loans dropped significantly -- and now average just 4.3 percent.

Not surprisingly, given all these positive indicators, new applications for mortgages to buy homes were up again last week -- this time by 3 percent.

The recovery looks like it's well on track.

Published: November 10, 2009

Flipping Properties

Flipping Properties Require Margin and Fixed Expenses
by M. Anthony Carr/Realty Times

Ah, yes. The flipping of houses. What better way can a common man build his millions? Well, not many. It really can be a quick way to create wealth as long as the flipper doesn't let the flippee house take over his life and bank account.

The number one equation to take into account on this project is the margin. What is your cost to get into the house and the average sales price of a house in the selected neighborhood on a remodeled home? Obviously, you want this margin to be as high as possible. The challenge in today's market, when looking at it nationally, is that many of the diamonds in the rough are located in areas where prices are still declining, so the investor must be sure to purchase the house, gut out the old, insert the new, and get out of the house before the declining price catches up with him and his profit.

Successful flipping is all about your margin. I would love to give you a set equation with fixed expenses, but every house is different. One house may need a kitchen, another, the kitchen and two baths. Here's a pretty cool calculator online that can help determine your cost at www.RemodelingMySpace.com. With the flipping I've seen done in our market, it seems to be pretty accurate on its estimation of replacement costs.

Understanding that all homes are different, the sample below works for our hypothetical house only. Not for every potential flipper on the market. So here's your calculation.

Let's say the asking price is $199,000 for the house in its current condition. You see that it needs a new kitchen, 2 new baths, a new furnace, carpeting, painting inside and out and finally, some landscaping.

After your bids from your work crew come in, your fix up expenses come up to $47,000. Add the $47,000 to the $199,000 for your net expense: $246,000. Now you have the Realtor of choice calculate the price homes are selling for in the community that are remodeled or in excellent condition (because by the time you get done, yours should be in excellent condition). Let's say it's $285,000. Wow, it looks like you just picked up a cool $39,000. Well, not exactly.

First, you have to determine how long it will take to sell the house and calculate your carrying costs (monthly payment, construction loans, etc.) If you're in the same situation as most foreclosure markets, you need to figure about 4 – 6 months carrying costs of preparation and marketing time. If your costs is about $1200 per month (for the mortgage plus utilities), you're now out $4800 (and your take has dropped to $34,200).

And don't forget your 7 percent selling costs for commission and closing expenses, which is roughly $19,950. So now your margin of profit is about $14,000 give or take a $1,000.

As you can see, this is how a lot of people get into trouble thinking that if they pick up a house for $85,000 under market price they'll be rolling in the dough quickly. Most experienced investors are looking for a margin of 50 percent of the value or $100,000 on a higher priced home.

The challenge of a profit margin of $14,000 is that it can be quickly removed in a declining market or the negotiation process in a buyers market.

Published: November 9, 2009

Have We Finally Hit Bottom?????

Investor Report: Have We Finally Hit Bottom?
by Kenneth R. Harney/Realty Times
It's a question that's relevant to investors in just about any once-hot market that's gone from boom to bust: Have prices finally bottomed out? Or could they be poised for still further declines?

In the Miami-South Dade area of Florida -- ground zero for the worst boom and bust cycle -- prices have actually increased for the third straight month, according to the Case-Shiller Home Price Index.

Pending sales contracts are up, according to the Florida Association of Realtors, and the entire South Florida listed inventory has dropped from 108,000 unsold units in November of 2008 to 70,000 condos, townhouses and single family houses as the end of October 2009, according to realty consulting firm CondoVultures.

Looking at these numbers, you might say: Conditions in one of the most overbuilt local real estate markets in the U.S. are on the upswing.

And some investors agree. One bulk condo buyer reportedly has marked up prices by $300 a square foot more than he paid for his units just months ago. Sounds like the bottom is over.

But there's an alternative view taking shape among some investors: The supposed "bottom" may be nothing more than a temporary plateau, they say, with more declines ahead.

Why? For the same reason that Dr. Laurie Goodman, economist and senior managing director of research for Wall Street's Amherst Securities thinks lots of boot-to-bust metropolitan areas will see price declines in the months ahead: There is a massive 7 million unit "shadow inventory" of delinquent and distressed properties in banks' foreclosure pipelines that haven't been put on the market and haven't yet affected prices.

For instance, in South Florida, lenders expect to take a total of 29,000 units into REO by the end of the year, up 9 percent over 2008, and almost triple the repossessions in 2007, according to Condo Vultures.

When these are finally listed, they're going to be a wet blanket, and depress prices. Goodman forecasts price declines of another 8 to 10 percent in the coming months, just when the conventional wisdom is that we've already seen the worst.

However, Peter Zalewski, head of CondoVultures, says the key to South Florida pricing in the coming year will be location. Condos near or on the water are selling well to investors and second home buyers from the U.S. and abroad.

Demand is likely to keep their prices stable at least.

But in the inland suburban submarkets, which are less attractive to investors and second home buyers, Zalewski sees definite problems -- and vulnerability to further price declines in 2010.

Published: November 6, 2009

Homebuyer Tax Credit Extension May Pass this Week

RISMEDIA, November 5, 2009—After two weeks of delay, the Senate cleared the way to pass a seven month extension and expansion of the tax credit for homebuyers. By an 85 to 2 roll call vote, the Senate voted to cut off debate on a package of measures that includes the homebuyer credit, making it virtually certain that the legislation will reach President Obama for his signature this week.

The homebuyer tax credit, due to expire at the end of November would be extended through April 30 of next year. First-time buyers who are in the process of making a purchase would not need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline.

For the first time, the legislation that was recently cleared makes move-up buyers as well as first-time buyers eligible for a credit. The $8,000 maximum first-timer credit will continue and will now be available to couples with income up to $225,000, a nearly $55,000 increase above the level in existing law. A new $6,500 maximum credit would also be available to move-up homeowners who have lived in their current residence for five of the prior eight years.

For homebuyers across the country, the expanded tax credit would allow more people to qualify for the credit. While two-thirds of American families own their own home, and most earn less than the income limits that have been established within the extension, more buyers may be eligible. Move-up buyers don’t have to sell their current home to qualify for the new credit, but the money cannot be used to buy a vacation home. “It’s only for a primary residence,” said Regan Lachapelle, a spokeswoman for Sen. Harry Redi (D-Nev.), who helped engineer the deal. “In expanding the tax credit, we are helping first-time home buyers, as well as homeowners looking to move up to a new home, but we would exclude from the credit speculators who may have recently purchased a home intending to flip it for a fast profit,” said Senator Max Baucus, Democrat of Montana and chairman of the Finance Committee.

The tax credit has fired-up the housing market, driving existing home sales to the highest level in over two years. The National Association Realtors reported sales jumped 9.4% to a seasonally adjusted annual rate of 5.57 million units in September and are 9.2% higher than the 5.10 million-unit pace in September 2008.

The legislation included provisions added to address complaints of fraud as well. The Internal Revenue Service is given greater authority to oversee the process to root out fraud, and provisions are added in response to past abuses of false sales or underage buyers. An investigation by the Treasury Department’s Inspector General for Tax Administration found that more than 580 children, some as young as four years old, had received $627,000 in first-time homebuyer credits. The IRS has identified 167 suspected criminal schemes and opened nearly 107,000 examinations of potential civil violations of the first-time homebuyer tax credit.

For more information, visit www.realestateeconomywatch.com

- RISMedia - http://rismedia.com -


Posted By susanne On November 4, 2009 @ 5:36 pm In Home Buying 101, Homeowner's Toolkit, Real Estate, Today's Marketplace, Today's Top Story, Today's Top Story - Consumer |

Time is Running Out for First-Time Home Buyer Tax Credit

By Bob Huntfor Realty Times:

The clock is ticking. Time is running out. To be exact, time runs out midnight, November 30, 2009. Many readers will know what I am referring to. Under the American Recovery and Reinvestment Act of 2009, November 30 is the last day for a home purchased by a first-time home buyer to qualify for the $8,000 tax credit. The purchase must be closed and title transferred by that date. It will not be sufficient simply to be under contract or in escrow.

By way of a brief refresher:


1.The tax credit is for first-time home buyers only. For the program, the IRS defines a first-time home buyer as someone who has not owned a principal residence for the past three years.

2.The credit does not have to be repaid.

3.The tax credit is equal to 10% of the home’s purchase price, up to a maximum of $8,000.

4.The credit is available for homes purchased (closed) on or after January 1, 2009 and before December 1, 2009.

5.Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

6.The credit can be taken for either 2008 or 2009 taxes. In the former case, an amended return can be filed.
By all accounts the program has been extremely popular – which is to say, successful. The National Association of Realtors® (NAR) estimated that, by September, about 1.1 million first time home buyers had used the program; and another 700,000 are expected to do so. Already, the Treasury Department has reported nearly 315,000 people have claimed the tax credit after filing an amended 2008 return.

As enacted, the program is set to expire at the end of November. A number of bills have been introduced to extend and/or expand it. Representative Eddie Johnson (D-Texas) introduced a bill to extend the program through 2010. Another would also expand it to all home buyers. In the Senate, a bill co-sponsored by Johnny Isakson (R-Georgia) and Chris Dodd (D-Conn.) would expand the tax credit to $15,000 and make it available to any buyer regardless of income.

One would think that at least the modest proposal for an extension would be a no-brainer. It is a government program that is working, for goodness sakes. But even that legislation is in doubt. Two obstacles are cited. One is the cost. Extending this program would result in reduced future revenues. The second problem is that such a bill will have a hard time receiving any attention while the Congress is – for the next foreseeable months – focused on considerably higher profile items such as health-care and Afghanistan.

The first so-called problem seems just crazy. Suppose an extension generated an extra 1 million sales. That would result in $8 billion in unrealized tax revenues. Now that is a lot of money; but it is chump change compared to the amounts that have been lavished on financial firms and auto makers, with yet to be determined beneficial effects. The tax credit program only costs money if it works. Its cost is proportional to its success. If it didn’t work at all, it wouldn’t cost a dime. Imagine that for a government program.

The second problem is realistic. There’s a lot of heavy-duty stuff going on. But, it would seem a simple extension of the program could be achieved with very little ado and virtually no distractions from the “big issues.”

Meanwhile, what should interested parties do?


1.If you are a first-time home buyer, you had better get off the dime. There’s certainly no guarantee the program will be extended.

2.If you are a real estate agent, pass #1 along to every potential first-time buyer that you know.

3.Whether you are a Realtor® or not, if you believe in extending the program, let your representatives know.

4.If you are a member of the Realtor® organization, respond to NAR’s call for action, supporting its lobbying efforts.
Published: October 27, 2009

Home Foreclosures: When the Right Price is NOT Correct!!!

by Bob Schwartz/Realty Times

The San Diego housing market is once again hot! (Then again...so is So Florida)!!!! Selling quickly and at above listed prices are the bank-owned foreclosure properties, both detached homes and condominiums. Alan Greenspan's term "irrational exuberance" is once again characteristic of the San Diego home buyer's behavior. Any property description using "bank-owned," "lender repossession," "foreclosure sale," etc., is drawing a crowd to see the property. If the property is in decent condition, there will be offers and multiple offers, at that.

Sounds like déjà-vu? Not quite. Adding my observation to the above facts, a number of lenders have hit on a marketing ploy to create a buying frenzy which guarantees an almost instant sale. In the majority of cases the offer(s) exceed what may have been realistically expected if the property was marketed the traditional way.

Here are some actual examples of this technique for San Diego home sales. (This rings true in So Florida also)!!!

Example 1: On 4-8-09, a bank owned home in east Carlsbad was listed at $499,900. Based on the location, age and size of the home, I estimated the current value at $575,000 to just over $600,000. Within one day of the listing, the listing agent had multiple offers. According to the agent, the lender required it to be on the market one week before they would look at any offers. The agent speculated that based on the number of inquires, she would have 40 to 50 offers in the one week period. This home sold for $597,000. The sales price was almost 20% over the listed price. Doesn't a sale of $97,100 over the listed price suggest that it was listed way under the market?

Example 2: A bank-owned Little Italy one bedroom condominium was listed in March for $234,900. The estimated fair current value for this condo was approximately $275,000 to $280,000. The listing agent stated that within 3 hours of the MLS listing being submitted, he had an offer. Again, the lender would not look at any offer until the condo was on the market one week. This San Diego property generated 21 offers within the 1st. week, of these, 11 were at or above the $234,900, listed price. This Little Italy condo sold at $295,600, or $60,700, approximately 26% above the listed price! I was told the accepted price was $15,000 above the next highest offer.

Example 3: A San Carlos planned-unit-development, bank-owned 4 bedroom was listed at $344,900. The estimated fair value for this condo was approximately $410,000 to $425,000. Inside of one week, this San Carlos property had an accepted offer at $410,000. This was approximately 19%, or $65,100, above the listed price! Banks are purposely under listing property with the strategy of creating a buying frenzy to result not only in a very quick sale, but, a sale at or above the fair market value. Is this practice fair or even legal? It is on both counts. If the bank does not list it properly, they could end up with a sale way below the current fair market value.

On the other hand, it isn't fair to neophyte buyers/agents. Buyers and/or their agent who do not recognize the ploy, may be wasting quite a bit of time writing offers that in some cases, will not even be considered or countered. Also, what about shattered expectations? A number of buyers/agents may honestly believe that their full price offer has a chance of being accepted. In reality, they not only have zero chance of getting their offer accepted, but in the majority of cases, they will not even get a counter-offer.

This is not the time for buyers to be represented by neophyte agents. Bargains are available and buyers can position themselves to be one of the lucky ones by selecting an experienced agent familiar with the areas in which they are interested. A good agent will have reasonable advice about structuring offers and which properties are worth the work and wait. Follow that advice!

Published: October 19, 2009

Washington Report: $8000 Tax Credit Extension???

by Kenneth R. Harney/Realty Times

Realtors, home builders and consumers hoping not just for an extension of the $8,000 tax credit, but an expansion to all buyers in 2010, shouldn't hold their breath.

That's because it's looking more likely that Congress will only agree to a continuation of the current credit beyond its scheduled November 30 termination date.

But that's not bad news. Just a few weeks back the key question was: will Congress extend the credit at all? Now that looks like a pretty safe bet.

When it comes to tax issues, you've got to follow what New York Congressman Charlie Rangel is saying. He's the chairman of the Ways and Means committee, and no tax legislation has a even a chance of getting anywhere without his say-so.

On the other hand, bills he supports, they just about always make it at least to the House floor, and usually beyond.

Here's what Rangel told reporters last week about the housing tax credit: "There's no question I think it should be extended," he said. How long, I haven't discussed." Rangel also said he doesn't thing that "eligibility should be expanded beyond the first-time home buyers," according to Dow Jones Newswires.

That's probably the kiss of death for lobbyists pushing for an increase in the maximum credit to $15,000, and expansion of coverage to nearly all buyers of homes in 2010, and an increase in the income limits for eligible purchasers.

The National Association of Realtors and the National Association of Home Builders have been the most outspoken advocates of a year long extension and expansion of the credit, up to a maximum $15,000.

Informed of Rangel's comments, home builders president Jerry Howard said he's no longer as "optimistic about expansion" as he once was.

But, on the other hand, chairman Rangel's endorsement of an extension of the credit -- for a yet-to-be specified period of months -- has got be a lifesaver for thousands of buyers who've been worried they'd miss out on this year's credit because they can't close their transactions by November 30.

The politics of the tax credit, and the likely rejection of a bigger credit, are all about the budget deficit. Lawmakers on both sides of the aisle are looking for ways to cover the multi-billion-dollar revenue costs of an extension of the credit. Some estimates go as high as $15 billion.

One idea advanced by Georgia Republican Sen. Johnny Isakson: tap into some of the unspent economic stimulus bill money still sitting in the $800 billion economic stimulus bill.

Published: October 19, 2009

Where Are All the REO's???

Foreclosure Fundamentals by Rick Sharga Print Article
RISMEDIA, October 5, 2009—

Certain things in life are simply meant to be mysteries. There are ages-old philosophical questions that have kept philosophers busy for millennia: What is the sound of one hand clapping? If a tree falls in the forest and no one is there, does it still make a sound? Other mysteries hang heavy with intrigue: What really happened to Amelia Earhart? And who really kidnapped the Lindbergh baby? And still others simply defy logic: If Denny’s is open 24 hours a day, 365 days a year, why are there locks on the doors?

Now we can add another question to the list of ongoing mysteries: With foreclosure activity breaking records nearly every month, where are all the REOs?

It’s a fair question. In normal market situations, a bank will repossess a home and usually process it through to a listing agent to put on the MLS within 30 days. In a relatively short period of time, virtually every marketable REO property finds itself listed for sale on the local MLS. Today, that’s simply not the case; it’s likely that between 450,000 and 500,000 properties repossessed over the past year are still not on the market. And with buyers hungry for housing bargains, and agents and brokers chomping at the bit ready to sell the properties, it begs for a reasonable answer.

Lenders and servicers admit that it’s taking longer to process REOs than it has in the past, and they offer a number of legitimate reasons:

-Many of the properties have title issues that need to be resolved.

-Many of the properties are in states of utter disrepair.

-A number of states have strict redemption-rights periods, which prevents the lender from reselling the property.

-A few states have extended the length of eviction proceedings.

-The sheer volume of REO activity has created a “pig in the python” phenomena, (to put this in perspective, there will be roughly 10 times the number of REOs this year as in the last “normal” year, 2005).

What else could be slowing things down? A popular theory is that many banks are holding the properties off the market in order to defer losses. There is some accounting logic to this theory, as in most cases, banks aren’t required to adjust asset prices until the actual resale of the property. Another idea is that the industry is holding back the inventory to create leverage with the government in order to force the creation of a “toxic bank” or RTC-like entity that would buy the distressed assets at 50 to 60 cents on the dollar rather than the 30 to 35 cents available on the market today. This theory suggests that, seeing the threat of a massive inventory of distressed homes being released all at once, the government would “blink” rather than risk another housing market meltdown.

Whatever the reason—process issues or conspiracies—we’re going to continue to see record-breaking numbers of REOs for at least the next year, and we’ll all be watching to see when these sought-after homes finally make their way to the market.

Rick Sharga is senior vice president at RealtyTrac. For more information, please visit www.realtytrac.com.



Read more: http://rismedia.com/2009-10-04/where-are-all-the-reos/#ixzz0T3kmYjGF

Miami, Las Vegas, San Diego....a Tale of 3 Condo Markets

By Peter Zalewski/Market Intelligence Report

As the Miami real estate market shows signs of stabilizing in certain submarkets, the situation could not be more different in the two other U.S. condo markets that experienced a similar volume of vertical construction during the boom: Las Vegas and San Diego.

This is the assessment of Condo Vultures® founder Peter Zalewski after spending 10 days in Las Vegas and San Diego visiting more than 30 new condo projects that have failed to sell out. Zalewski visited the projects unsolicited and unannounced to gather market intelligence on pricing, product quality, and local professional insight.

"We see a lot of similarities in the Las Vegas condo market today that reminds us of market conditions in Miami in autumn 2008," said Zalewski, who is a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC. "Our impression of San Diego - where some of the new towers are just now opening - reminds us a lot of Miami in late 2007. Overall, we think the price declines that have already been realized in Miami will be experienced in the near future in Las Vegas and San Diego."

Consider that many Miami developers in summer 2008 were seeking $300 per square on a bulk basis and $400 per square foot on a retail basis for unsold units in any one of the numerous new condo towers that were standing empty at the time.
Compare that to now where bulk asking prices are currently about $300 per square foot in Las Vegas and $400 in San Diego. Retail prices are generally about $100 per square foot more than the bulk asking prices. Replacement costs in Miami, Las Vegas, and San Diego are about the same $250 per square foot but land costs vary dramatically, Zalewski said.

In retrospect, December 2008 was a turning point in Miami's condo market. This is the time when the first arm's length bulk deal closed at $200 per square foot, forcing the entire South Florida market - bulk buyers, individual purchasers, developers, and lenders - to take notice and begin adjusting prices.
Added to the pricing change was a series of bank failures, a foreclosure action against a new condo tower, an unwillingness by buyers with preconstruction contracts to close on units, and a virtual freeze on condo financing.

Within the course of the next six months after the first bulk deal closed, a new retail price range for unsold condos in Greater Downtown Miami emerged at between $200 and $250 per square foot depending upon view, quality, and size. Another trend to emerge, all-cash buyers suddenly became the only inquiries that were taken seriously by sellers given the difficulty in obtaining financing.

"Today, as soon as a new condo tower in Greater Downtown Miami reduces its price to $200 per square foot, the project is swarmed by investors and first-time home buyers looking to purchase a unit," Zalewski said. "Inevitably, the Greater Downtown Miami condo tower sells off a majority of its units in a period of eight weeks or less. The remaining product - typically the least desirable of the lot - is then bundled up by the developer and sold off to a private equity buyer at an even lower price."
Some bulk buyers, facing competition from individual buyers who are depleting the inventory by purchasing one or two units each, have begun paying prices that are closer to the retail asking prices out of concern about the shrinking inventory.
On a bulk basis, there have been 14 bulk deals to close in South Florida since July 2008, and nine transactions since June 2009. At least three additional bulk deals are scheduled to close or already completed but not recorded in government records.

Bulk buyers have acquired a total of 806 units with 946,000 square feet for nearly $199 million, or $210 per square foot. A dozen of the 14 closed bulk deals have occurred in Miami-Dade County, according to the Condo Vultures® Bulk Deals Database.
The failure of Corus Bank, a Chicago lender with 2,300 unsold units in South Florida, is expected to further impact the market. The Federal Deposit Insurance Corp, which insures deposits at U.S. banks up to $250,000 per account, collected bids this week from institutional investors for the Corus Bank portfolio, which is comprised of condo construction loans on new towers located in South Florida, Las Vegas, San Diego, and other places.

The winning bidder, whichever one is ultimately selected, is expected to immediately resell a portion of the units acquired from the FDIC at a deep discount
.
Even without a government induced discount, buyers are purchasing real estate product including even land. A Boca Raton company paid $39 million, or $130 per square foot, on Sept. 21 for nearly 300,000 square feet of vacant land situated on nine parcels in Downtown Miami, according to a new CondoVultures.com report.
The seller paid a combined $32.3 million, or $108 per square foot, for the land, which was acquired between August 1999 and March 2006, according to Miami-Dade County records.

"South Florida has provided many of the opportunistic buyers a laboratory of sorts to figure out how to buy distressed product whether it be on an individual or bulk basis," Zalewski said. "We are encouraged that the skills and experience we have accumulated in South Florida will serve us well when widespread capitulation occurs in the other overbuilt condo markets."

Washington Report: On Modifications and Short Sales

Kenneth R. Harney for Realty Times:

Congress got back to work last week after its summer break, and immediately took up two key real estate questions: Are the Obama administration's efforts to keep financially distressed families out of foreclosure working?

And are major lenders doing their part, helping modify loans and restructure homeowners' debts, or are they dragging their feet?

At a House Financial Services Committee hearing, chairman Barney Frank, a Massachusetts Democrat, didn't hold back: Not only are the administration's results “disappointing,” he said, but major lenders are performing so poorly that Frank plans to push legislation allowing bankruptcy court judges to slash consumers' mortgage debts and payments - the so-called “cram down” approach that lenders hotly oppose.

On the other hand, Obama administration representatives at the hearing said lenders and servicers are picking up the pace of loan modifications, and that a new program to facilitate short sales will be rolled out shortly.

FHA Commissioner David Stevens said that since the start of the White House's “home affordable” efforts, lenders and servicers have offered 571,000 loan modifications to delinquent home owners, and that 360,000 borrowers are now in three-month trial modifications involving sharply lowered payments.

If those owners successfully complete their trials by paying on time, their loans will be permanently modified at the reduced payment levels.

Stevens predicted that the administration's goal of having more than half a million modifications completed or underway by November 1st will be achieved.

He also said the government is starting a “second look” program, whereby auditors double-check cases where modifications were turned down by loan servicers in error. The program will reopen borderline cases and possibly lead to additional modifications.

Stevens didn't provide much detail about the upcoming short-sale and deed-in-lieu effort, but did use the word “incentives.” That was interpreted by industry analysts as suggesting the government could provide financial incentives to lenders - especially those holding second liens on properties - to encourage them to speed short sales rather than stalling them.

Second lien holders often demand significant payoffs as the price of agreeing to short sales, even when the property is deeply underwater and the value of their collateral has been totally wiped out.

The Obama administration's plan almost certainly will offer payments or set minimum compensation levels for such lenders. Details of the program are expected within a week or two, and could be good news for realty brokers seeking to list and close short sales, and for borrowers who urgently need to bail out of houses that have lost much of their value.

Published: September 14, 2009

New Loan Rules May Cause Escrow Delays

Under new rules adopted by the Federal Reserve Board, beginning July 30, 2009, mortgage lending will be subject to expanded disclosure requirements. This may well be a good thing. However, until everyone gets used to it, it also may cause occasional delays in closings. First, some background.

More than a few times home purchasers have been shocked at the time of closing to discover that they will have to pay more for their mortgage than they had anticipated. This doesn't necessarily meant that the interest rate on the loan is higher than expected. What is more likely is an increase in the costs associated with obtaining the loan. They may be charged an additional ½ point on the origination fee. Or perhaps a new fee has been added for an "underwriting review" or some such thing. When that happens, the APR (Annual Percentage Rate) changes, even though the interest rate on the loan (sometimes referred to as "the note rate" or "the nominal rate") may remain the same.

Most mortgage loans are subject to disclosure rules under the Truth in Lending Act (TILA). Hence, as most buyers have experienced, early on in the loan process the borrower receives a disclosure showing both the interest rate and the APR. The APR is the important number. It shows the actual cost of borrowing.

Suppose I offer to loan you $1,000 for one year at 10 per cent. At the end of one year, you will owe me $1,100. But now suppose that I modify that offer somewhat. I propose that you will pay me a 5 point "origination fee" ($50) and that I will also charge you a $50 processing fee. Still, at the end of the year, you will owe me $1,100 for the $1,000 dollar loan.

But, have I really loaned you $1,000 at 10%? If I took my charges up front -- out of the loan amount -- then I would really be only lending you $900, even though, at the end of the term, you would still owe me $1,100. Or, if you chose to pay me the $100 in origination and processing fees first, then you would wind up having paid me $200 for borrowing $1,000. Although the numbers will be slightly different in the two cases, you still will have paid substantially more than 10% of $1,000. This is what APR is all about. (Note two things: (1) There is no single universal method for calculating APR. (2) It really gets complicated when an amortized loan is involved.) APR shows you what you are really paying.

When the surprise costs are revealed at closing, probably the APR will have increased. But, what about the disclosures? Doesn't the lender have to comply? No. The disclosures are called a "good faith estimate." There have been no clear rules either for determining when the final figures departed too much from the good faith estimate or what might be the consequences of that happening.

All that is about to change. The Mortgage Disclosure Improvement Act (MDIA) of 2008 (and as amended in October 2008) has caused revisions to Regulation Z of the Truth in Lending Act. Among other things, MDIA makes some specific new requirements regarding loan disclosures. These rules apply to federally-related mortgages under RESPA. They apply both to purchases and refinances.

(1) A borrower must be provided with an initial Good Faith Estimate (GFE) within three business days of receiving a written loan application. No fees, except for a credit report, may be imposed until then .

(2) If the final APR at loan consummation varies more than 0.125% (1/8 of one per cent) from the initial APR on the early disclosure, then the lender must provide the borrower with a new disclosure at least three business days before closing. During that three day period the borrower has a right of rescission. (For these purposes a "business day" is all calendar days except Sunday and legal holidays.) The lender may not close the loan during this three-day period.

(3) The borrower may waive the three-day waiting period if there is some bona fide personal financial emergency, such as a foreclosure about to take place. This would have to be specified by the borrower in writing. It can't be done on a pre-printed form.

As noted, all of this is probably good; but, in many cases, it is going to cause some changes in practices. Until most lenders get in the habit of staying within 1/8 of one per cent APR on their good-faith estimates, we can all expect some closings to be delayed.

Published: September 1, 2009
Bob Hunt for Realty Times

Turning the Real Estate Corner

Take a peek at this commentary on ABC News ....an insiders guide to real estate deals that sound too good to be true: http://abcnews.go.com/video/playerindex?id=8207759

Florida home, condo sales rise for 10th consecutive month - South Florida Business Journal:

Florida home, condo sales rise for 10th consecutive month - South Florida Business Journal:

More Biz in a Tough Market: Vote Yourself OFF the Island!

By Brian Hilliard/Realty Times, July 22, 2009:

I was listening to one of my favorite speakers, Brian Tracy, the other day. He was talking about something that I think can really impact your business. According to a recent report he read, there really is only one main difference between people who are successful in life and those who are less so. As a matter of fact, this "secret" is so simple that you'll probably be embarrassed to hear it.

"Education," you might be thinking.

"Successful people have more formal education than their less successful counterparts?"
Not exactly, although I can see how you would think that. While education is certainly an important part of anyone's personal growth and development, the presence (or lack there of) of a formal education isn't the main determinant for success.

"All right, well what about money? Do successful people start off with more money than most people?"

Again, good point, but not the answer. Yes, money can make the road to success a whole lot easier, but there are countless examples of those people who literally started out with nothing, only to retire as millionaires later on in life.

Give up?

It turns out that one of the key differences between successful people and their less successful counterparts is the former's ability to take action.

In other words, successful people survey a situation, make a decision and then take some type of action that will move them forward. While the rest of the people spend their time on what Tracy calls, "Someday Island."

"Someday I'm going to make more money."

"Someday I'm going to lose a little weight."

"Someday I'm going to get serious about growing my business."

You see, the only thing stopping people from being more successful is their ability to do something – anything – to move forward right now.

So take your business as an example. What's holding you back from being as successful in it as you'd like?

"Well the real estate market is bad," you might say.
Ok. But there are certainly plenty of people buying and selling houses right now as we speak, so someone has to be making a living.

"Well, the economy is down. People are losing their jobs and don't have the money to make a move."
Okay, so the unemployment rate is in the 6-9% range. But doesn't that mean that the employment rate is in the 91-94% range as well?

You see, there's always a reason not to do something. But successful people look beyond "some day" and instead and do something right away to put them in the right direction.

Not sure what you can do to move your business forward right now? Read a book, pick up a CD, go to a seminar. There are plenty of great resources out there, and all of them can give you some insight on what you can do right now to get more business right away.
If you'd like some more ideas on how to get more business in today's tough market, just email info@agitoconsulting.com (Subject: Today's Tough Market), and we'll be sure to send out our free report right away.

But whatever you do, just do something to move your business forward. Because in a market as tough as this, "some day" is always one day too late.

On Challenges.............

"If you fall, you get back up and do it again"........ "I will achieve my goal"

Watch this video..... http://vodpod.com/watch/1165857-walk-on-espn-video

Real Estate Outlook: Positive Signs Reported Again

With the stock market still jumpy and investors worried that the global recession may not be ending soon enough, it may seem a little surprising to see strong positive signs in the home real estate market.

But that's what's been happening.
Pending home sales rose sharply, by nearly 7 percent, in the latest month measured by the National Association of Realtors. Pending sales are those where the contracts are signed, but the deals haven't gone to settlement yet.
Pending sales were up in all four major regions of the country -- and that caught the attention of some key industry economists.
Orawin Velz, economic forecaster for the Mortgage Bankers Association, said in a commentary that "the steady improvements in pending home sales are encouraging," and confirm the view that existing home sales hit their cyclical bottom in January and are likely to continue to rise in the coming months.
Since the January low point, she noted, the Realtors' pending sale index is up by 13 percent.
Mortgage rates continue to be favorable, an average of 5.3 percent last week for 30 year fixed rate loans, 4. 8 percent for 15 year fixed, and those rates are pulling in growing numbers of home purchase loan applications.
According to the Mortgage Bankers Association's weekly survey, new applications to buy houses increased by nearly 7 percent in the week ending July 3rd.
Meanwhile a new survey by the California Association of Realtors found sales up in most parts of the state, especially in areas hard hit by price busts following the boom.
More than two out of three buyers polled by the group -- 68 percent -- said affordable prices are the key factor pulling them off the sidelines.
Now, of course, not everything is on the plus side in the real estate sector. Many of the houses being sold at near-giveaway prices are the byproducts of foreclosures and short sales, signs of continuing financial distress among many buyers who purchased at the height of the boom with low equity stakes.
Even the rental market is taking some economic hits in the face of rising home sales. Rental unit vacancies have just hit 7.5 percent nationwide; that's the highest they've been in 22 years, according to the New York research firm that compiles these statistics.
So on balance, real estate market conditions depend on where you're looking.
If it's home sales, the outlook is improving. On rentals, it looks like the turnaround will be a little further down the road.
Realty Times
By Kenneth R. Harney
Published: July 14, 2009

South Florida on Pace for 100,000 Foreclosures in 2009

Lenders have filed more than 52,000 foreclosures actions in South Florida in the first six months of the year, putting the tricounty region of Miami-Dade, Broward, and Palm Beach counties on pace for more than 100,000 filings in 2009, according to a new report from Condo Vultures® LLC.

By comparison, lenders filed about 38,000 foreclosures actions in the first six months of 2008 and more than 75,000 actions for the year. In 2007, banks filed nearly 8,000 actions in the first half of the year and more than 32,000 for the year, according to data from the Condo Vultures® Foreclosure Database™.

"South Florida foreclosure actions are on the rise by 33 percent this year," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures®. "If the pace continues through the second half of the year, South Florida will experience its greatest number of foreclosure actions in a generation."

As foreclosure filings mushroom at a pace of nearly 2,200 per week, the number of South Florida properties on the market for resale is falling at a pace of about 900 per week.
Consider that on July 6, there were about 78,000 single-family houses, condo units, and townhouses for resale in the tricounty area. On Nov. 24, 2008, there were nearly 108,000 properties for sale in South Florida, according to a Condo Vultures® report generated using Florida Association of Realtors data.

"Buyers are hungry for deeply discounted properties," Zalewski said. "Many of the residences that are, in fact, trading are transacting at discounts of more than 50 percent off of their historical high asking prices of 2006 and 2007. Most of these residences tend to priced under $250,000 and located in suburban areas that do not generally appeal to second-home buyers. "
Another factor contributing to the decreasing South Florida resale inventory even while the number of foreclosure filings is increasing is the lengthy legal process necessary before a lender can repossess a residence.

To repossess a South Florida residence, lenders normally anticipate a six month to nine month process that will cost between $40,000 and $80,000 per property. In addition to that, many lenders do not even file the initial foreclosure paperwork - known as a Lis Pendens or a Notice of Default - until a borrower is at least 90 days late on regularly scheduled mortgage payments.
Once a lender finally does repossess a property, the bank inherits the responsibility of settling up outstanding liens on the property that live on after the foreclosure, such as property taxes, past-due condo association maintenance fees, and open permits.

On a county-by-county basis through the first half of 2009, Broward County, where Fort Lauderdale and Hollywood Beach are located, has the highest number of foreclosure filings with 22,730, up 36 percent from 16,773 filings during the same period in 2008.
Palm Beach County, where Boca Raton and West Palm Beach are located, is second for foreclosure filings with 14,959 in 2009, up 37 percent from 10,917 filings in the first six months of 2008.

Miami-Dade County, where Miami Beach and Aventura are located, is third with 14,474 foreclosure filings between January and June 2009, up 40 percent from 10,368 filings in the first half of 2008.

4th Bulk Condo Deal Closes In Downtown Miami
A Miami Beach company headed by Jorge Mattos has purchased 21 units in the Marina Blue condominium tower in Downtown Miami for $5.69 million, or $196 per square foot, in an all-cash deal involving the project's former mezzanine lender, according to a new CondoVultures.com report.

Mattos is a business partner of Carlos Mattos who purchased 31 units for $6.1 million, or $203 per square foot, in mid-June at the 1060 Brickell condominium tower in Miami's Brickell Avenue financial district, according to a recent CondoVultures.com report.
A Carlos Mattos company is in position to own a 1.4-acre oceanfront property zoned for a high-rise condo tower in Sunny Isles Beach that is scheduled to be auctioned off in the next 60 days to the highest all-cash bidder at the Miami-Dade County Courthouse, according to a CondoVultures.com report.

All-Star Panel Set For Free First-Time Home Buyers Seminar
An all-star panel of South Florida experts is scheduled to discuss the "Dos and Don'ts" that every first-time home buyer should know when purchasing a deeply discounted residence at the upcoming Condo Vultures® seminar.

The panelists will be announced in the weeks leading up to the free event (registration is required) scheduled from 5:30 pm to 8 pm, July 28, at the Doubletree Grand Hotel in Greater Downtown Miami.For more information, please contact John Fakler, executive editor of CondoVultures.com, at 800-750-0517 or by email at JFakler@condovultures.com.

Story by Peter Zalewski of Condo Vultures

Richard Langhorne CBRE REO Forum in Miami, July 15

"Are we there yet?" What we should expect in the next two years, and how we got here.

Join us for this very special REO Forum.....what you will learn:
What Commercial Agents should expect in the next two years, and how we got here.
Where do you fit?
Note Sales
Bulk Sales
Guaranteed Lease Programs
REO
SalesShort Sales
ForeclosureBankruptcy assignments
The Importance of Asset ManagementConflictsGetting paid in a litigious environment
To Register GO TO: http://archive.constantcontact.com/fs091/1100745353195/archive/1102619980864.html

Fannie Mae Confirms Short Sales Commissions Policy and Establishes Appeals Process

In discussions between NAR and Fannie Mae, Fannie Mae has reconfirmed its short sale commission policy and established a process for REALTORS® to follow if issues arise. On February 24, 2009, Fannie Mae sent Announcement 09-03 to its servicers instructing them not to negotiate commissions on short sales below the amount negotiated by the listing agent, unless the commission exceeds 6 percent. The Announcement reminded servicers that third party approvals (i.e., private mortgage insurers) may be required and can affect commissions. In response to concerns raised by NAR that some servicers of Fannie Mae loans are unaware of this policy or believe it is not binding, Fannie Mae has established a process for NAR members when short sale commission issues arise.
3 Easy Steps

Step 1: Determine whether the loan is owned or guaranteed by Fannie Mae. Only the holder of the loan is allowed to do this, so do so in the presence of your client or after obtaining their written permission. Visit www.fanniemae.com/loanlookup, or If you don't have convenient internet access,
call: 1-800-7FANNIE (8am to 9pm Eastern Time)

Step 2: If the servicer is unaware of or disagrees with the policy, provide a copy of Announcement 09-03 to the servicer and negotiate an appropriate commission based on the listing agreement (up to 6 percent).

Click here for Announcement 09-03
Step 3: Contact Fannie Mae if the dispute is not resolved directly with the servicer. Be prepared to provide the property address, name of owner, and Fannie Mae loan number (if available): Call: 1-800-7FANNIE (8am to 9pm Eastern Time), or Email: Resource_center@FannieMae.com.
Thank you to RAMB for providing this timely information.

The 2009 First-Time Home Buyer Tax Credit: The Basics for REALTORS, Homebuyers, and Home owners from the National Association of REALTORS.

The 2009 First-Time Home Buyer Tax Credit: The Basics for REALTORS, Homebuyers, and Home owners from the National Association of REALTORS.

Shared via AddThis

"Are we there yet?" What we should expect in the next two years, and how we got here.

Join us for this very special REO Forum.....what you will learn:

What Commercial Agents should expect in the next two years, and how we got here.
Where do you fit?
Note Sales
Bulk Sales
Guaranteed Lease Programs
REO Sales
Short Sales
Foreclosure
Bankruptcy assignments
The Importance of Asset Management
Conflicts
Getting paid in a litigious environment

To Register GO TO: http://archive.constantcontact.com/fs091/1100745353195/archive/1102619980864.html

Investor Report: Condo Loan Rules---FHA

FHA has come out with its long-awaited rules on condominium loans, and they're a mixed bag for investors, second home and other buyers and sellers.

On the one hand, the rules allow lenders a lot of more flexibility in reviewing condo project eligibility and documentation. That's good -- it should allow more lenders to increase their condo activity in the red-hot FHA segment of the market.

On the other hand, the agency is imposing a number of important restrictions. To Read the entire article, please go to: http://realtytimes.com/rtpages/20090629_investorreport.htm or listen to the Webcast by clicking on Realty Times above.

By Kenneth R. Harney/Realty Times

Vultures Database Average Discount Reaches $357,500 in South Florida

Nearly 900 residences in the Vultures Database™ have closed in the first five months of 2009 at an average discount of $357,500, or nearly 54 percent, a dramatic change from the average price reductions of 44 percent in 2008 and 29 percent in 2007, according to a new report from Condo Vultures® LLC.

Buyers closed 232 single-family houses, condos, and townhouses in the tri-county South Florida region of Miami-Dade, Broward, and Palm Beach counties in May for a daily average of 7.5 transactions. In April, buyers closed an average of 7.0 properties per day. The running average in the first five months of 2009 is 5.9 closings per day on properties in the Vultures Database™, according to the report."Discount investors and first-time home buyers are having a noticeable impact on the coastal residential real estate market in South Florida," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures®. "Half of the transactions involving properties in the Vultures Database™ have closed in the last two months. We anticipate the pace will continue at the same level, if not stronger, throughout the summer if conditions remains the same."In its third year of monitoring South Florida discounts, the Vultures Database™ is comprised of nearly 3,800 condos, townhouses, and single-family houses actively for sale east of Interstate 95 in Miami-Dade, Broward, and Palm Beach counties that have been reduced in price by at least 10 percent and/or $100,000.

Discounts are proving to be the single-most important factor in determining whether a property is sold or not. With conventional financing difficult to obtain, the majority of today's buyers are selectively purchasing with cash or the assistance of government-backed programs, such as the Obama $8,000 tax credit for first-time home buyers.

The average discount on a residence currently for sale in the Vultures Database™ stands at nearly 41 percent, or $275,518, according to the report. Research shows the average residences will trade once an additional 13 percent is shaved off of the asking price.Condos and townhouses, which account for 71.9 percent of the total inventory, are discounted by an average of 41 percent, or $212,779. Single-family houses, which account for 28.1 percent of the Vultures Database™, have been reduced by an average of 40.8 percent, or $435,694, according to CondoVultures.com.

South Florida Inventory Falls By 1.1% To 81,000 ResidencesAs transactions are closing, South Florida's residential real estate inventory is decreasing. The total number of single-family houses, condos, and townhouses for resale in Miami-Dade, Broward, and Palm Beach counties dropped by 1.1 percent to 81,159 properties, according to a new report from Condo Vultures® Consulting Services.

Residential resale inventory slipped by 888 properties -- an average decrease of 127 properties per day -- between June 15 and June 22 for . On June 1, there were 83,491 residential resales on the market in the tri-county region. (Read More)

Bulk Condo Deal Closes In Greater Downtown MiamiA Miami entity headed by Carlos Mattos paid $203 per square foot for 31 units at the 1060 Brickell condominium in Miami's financial district, according to the Condo Vultures® Bulk Division. Mattos' newly created 1060 Brickell Apartments LLC paid nearly $6.1 million without financing for four studio units, 22 one-bedroom units, and five two-bedroom units with a combined 29,913 square feet of livable space. (Read More)

First-Time Home Buyers Seminar Scheduled For JulyFirst-time home buyers who are itching to get into one of the deeply discounted South Florida residences before the Obama $8,000 tax credit expires in December are expected to turn out in strong numbers for the upcoming Condo Vultures® seminar. The free seminar will feature a series of industry experts discussing every aspect of a real estate transaction including the essentials for qualifying for the Obama tax credit. The seminar is scheduled from 5.30 pm to 8 pm July 28 in Greater Downtown Miami. Print copies of Condo Vultures® newly published First-Time Home Buyers Guide To South Florida™ will be available for purchase at the seminar. This 18-page guide features a collection of articles about the process, pointing out the essential dos and don'ts in making a first home purchase.

For more information, please contact John Fakler, executive editor of CondoVultures.com, at 800-750-0517 or by email at JFakler@condovultures.com.

Published by Peter Zawleski/Condo Vultures

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Fannie Mae Anti-Flip Restriction on REO Conveyances

It has come to the attention of the Company that Fannie Mae has begun requiring agentswho market its REO to include provisions in sales contracts providing that certain antifliplanguage will be included in deeds. The language may vary, but is generally alongthe following lines:

Grantee herein shall be prohibited from conveying captioned property to a bona fide purchaser for value for a sales price of greater than ($_______=120% of sales price) for a period of one hundred and eighty (180) days from the date of this deed. Grantee shall also be prohibited from encumbering subject property with a security interest in theamount greater than ($_______=120% of sales price) for a period of one hundred andeighty (180) days from the date of this deed. These restrictions shall run with the landand are not personal to grantee.

Title Examiners should examine any deed conveying Fannie Mae REO and, if it contains such a restriction, raise an appropriate exception on the commitment and policy. Title Closers should be aware that closing transactions within the specified time periods will be a violation of that restriction and must consider the consequences of that violation to the escrow. Title Closers handling the first sale of the REO from Fannie Mae should also beaware that the contract for sale may require that the deed contain an anti-flip restriction such as this. If the contract states that the deed shall contain the restriction, but the deedreceived from Fannie Mae inadvertently omits the restriction, the closer should see to it that the restriction is raised on Schedule B of the commitment and policy nonetheless.

UNDERWRITING BULLETIN from Fidelity National Title

90 Day Eviction Notice to Tenants of Foreclosed Residential Properties

NEW FEDERAL LAW: An increasing reality in today’s economy is that tenants of residential foreclosed properties are finding themselves being evicted overnight from their homes immediately after the completion of foreclosures, often losing rental and security deposits in the process.

On May 20, 2009, a new federal law was enacted: Helping Families Save Their Homes Act of 2009 (Public Law 111-22). It is designed to limit the harm suffered by tenants of foreclosed properties by essentially requiring at least 90 days notice be given to tenants before eviction in certain situations, or allowing tenants to finish their lease terms in other instances.

HOW DOES THIS IMPACT THE TITLE AGENT?

Make an Exception for the Tenant’s Rights: When insuring an REO or foreclosed residential property which is currently under a written or oral rental agreement (or even a tenant at sufferance), an exception for the rights of the tenant should be included in the commitment and policy.

Suggested exception language:

Rights of tenants in possession under unrecorded leases.

How Does the Title Agent Determine if an Exception is Needed?

The seller’s title affidavit should be carefully reviewed to see if it discloses the existence of tenants or contains language suggesting that the affiant does not really know if there are tenants. Typically, the person signing the affidavit for the lender/seller will not have personal knowledge of conditions of the property. Frequently, the affidavit will state that it is made “upon information and belief”. In such circumstances, the title agent should obtain a supplemental affidavit from the buyer which states that the buyer has inspected the property and specifies whether there are parties in possession. If there are parties in possession or the title agent cannot obtain an acceptable affidavit, an exception must be made for the right of the tenants.

As posted by our underwriter: Fidelity National Title

South Florida Real Estate market at bottom

South Florida Real Estate Market at Bottom
NAR Chief Economist: South Florida Real Estate Market At Bottom.

The South Florida residential real estate market is at bottom and likely to experience some appreciation within a year, the National Association of Realtors Chief Economist Dr. Lawrence Yun said."I think the prices have already pretty much bottomed in the South Florida market," Yun said.

"The rest of the country is more difficult to say but I think here, given the buyers, the prices have already bottomed in Florida." Yun made the declaration (Watch The Video) on June 11 during a keynote address to a lunch crowd of the International Real Estate Congress and Expo. The event was hosted by the Realtors Association of Greater Miami and the Beaches at the Biltmore Hotel in Coral Gables.

Yun's keynote address preceded a panel discussion on the South Florida real estate market with Peter Zalewski, founder of Condo Vultures® LLC; Rei Mesa of Prudential Florida Realty; Oliver Ruiz of Fortune International Realty; and Ron Shuffield of EWM.Given the growing number of residential deals occurring in South Florida despite no readily available financing, Yun projects that today's buyers could actually realize some home price appreciation as soon as next year when credit is expected to be available once again. "Soon you will reach the point of equilibrium where home prices begin to show growth," Yun said.

"It is always difficult to precisely predict. I think that many people who are buying today in this month - June of 2009 - if they look back a year from now in June 2010, I think many people will see that they have actually gained in equity." Yun cautioned that the South Florida market conditions - a diverse community with limited developable land, attractive weather, and an international appeal - give the region an advantage over many other areas in the United States.

"There will be some premium attached to Miami, in relation to say Atlanta, Birmingham, and others," Yun said. "So the price point in Miami will be much stronger when compared to other, say, southern states across the country or even say the rest of America. For that reason, I am very hopeful that currently it is an undervalued market. "Buyers are recognizing [that]. Sales up about 100 percent from one year before."Yun's comments come a month after national real estate analyst Jack McCabe of McCabe Research & Consulting in Deerfield Beach, Fla., told CondoVultures.com that he thinks South Florida residential prices are within 15 percent of the bottom.

McCabe, who began warning of a Florida housing bust in 2005, projects the South Florida residential real estate bottom will be reached by the summer of 2010. "I think the worst is behind us, but I still believe we have another 10 to 15 percent drop because of the unemployment and the foreclosures depressing prices, and the amount of inventory we have yet to absorb," McCabe told CondoVultures.com.

by----Peter Zalewski of Condo Vultures®

Colonial’s Real Estate Update

Today's Headlines

Real Estate Outlook: Consumer Confidence Rising
If rising sales, rising consumer confidence, and rising new construction are keys to a rebound ahead in the home real estate market, it looks like we're well into recovery mode. FULL STORY->

Emphasis on Social Norms Will Help Brokerages in the Long Run
Sometimes people will work harder and more willingly for nothing than they would for a small amount. Perhaps this sounds odd; but it’s a phenomenon with which we are all familiar. FULL STORY->

G8 Meets "Cottage Country"
Social media rose to popularity through its socializing potential, but it's rapidly gaining recognition for its power in community building for real communities. PJ Wade reveals the methods one town used to attract an international summit. FULL STORY->

Washington Report: HUD Raises Expectations
Under pressure from Congress and its own Inspector General, HUD is beefing up its efforts to weed out unethical lenders participating in its booming FHA mortgage programs. FULL STORY->

Helping Clients Estimate Their Affordability Range
Traditionally, real estate and mortgage professionals have encouraged homeowners to stretch -- to shop for homes at the upper end of their affordability range. We wanted them to maximize their investment, and we were seeing property values and incomes rise, especially for homeowners who were first starting out. It all made for a very sound investment in housing. FULL STORY->

Condo Trends: Come Home to the Mall
There's nothing better than coming home to a fresh meal on the table, a clean apartment right after a good workout -- and maybe a short shopping spree. Such is the lifestyle of residents at the 39-story Miraval Living spa-condo complex on 72nd Street, which just opened a mall on its 28th floor. FULL STORY->

Condos are a great buy, but look before you leap

BOCA RATON, Fla. – May 26, 2009 – Steve Economou last month paid $157,000 cash for a fully furnished two-bedroom condominium at Boca Teeca, a short bike ride from the ocean in Boca Raton.The suburban Boston investor took advantage of plunging prices to buy a second home in Florida.“It’s the greatest feeling in the world,” he said.Bargain hunters such as Economou are driving condo sales as the median prices in Palm Beach and Broward counties have tumbled below $100,000, prices not seen since 2003.

Full Story: http://www.floridarealtors.org/NewsAndEvents/n5-052609.cfm

In Case you Missed it:
U.S. Recession May Be Over, Barclays’ Knapp Says:
May 11 (Bloomberg) --

The longest U.S. recession since the Great Depression may have ended last month, according to Barry Knapp, a strategist at Barclays Capital. “We appear to be in the sweet spot of a recovery,” Knapp wrote in a weekly report on May 8.

See Story: http://www.bloomberg.com/apps/news?pid=20601109&sid=aA7Kx7Je5XeM&refer=news

REO’s
Are you interested in selling/listing REO’s? Take a look at this guide on how to get to the asset managers:
http://colonial.laneguide.com/

REO ASSET DEPARTMENTS, LOSS MITIGATION OFFICES, and LOAN SERVICE CENTERS - 'NOTE DEPT' where loans are held and serviced! ).

Did you know that:

on FNMA and Freddie Mac REO Addendum’s , the Purchaser is allowed to choose their preferred title company, as long as the Purchaser pays for the Owner’s Title Insurance??????? It’s true. If you are selling a FNMA or FreddieMac REO, your buyer does have a choice!!!!!!!!!

Sharpen your Saw/REAL ESTATE AGENT BOOTCAMP
Our Educational Seminars:Special Offering:Brokers/Agents would you like us to bring our team of local professional speakers to your office meetings?

Contact us and we’ll supply you with our vast list of topics that are related to the real estate industry……

We will make you sit up and take notice…..these programs are designed to teach….learn….and start making $$$$$ today. Here’s what agents and brokers have to say: Wow!

Thank you so much for bringing Mike Husson to our office. What a powerhouse! What a shot of optimism! What a great presentation! He is inspirational, believable, and empowering! Thank you for your caring and your professionalism.
Paula Mark
Luxury Homes Inc. GMAC

Just a note to say thank-you, Your message was well received by all. It just goes to show you how people are searching for a message that is clear and understandable, something they can relate to and apply to their lives.. A great meeting that was appreciated by all.

Bob Elliott Executive Vice President/
Broker Luxury Homes Inc. GMAC Real Estate

Short Sales

We negotiate your short sales with NO UPFRONT FEES to your seller. We are Successfully closing short sales!!!!! …contact us for more information on our services. Maria@colonialtitle.us or Mey@colonialtitle.us

Success does not create happiness….Happiness creates success…..be happy!!
Here’s to your success,
Maria Elena Arias, CEO
Meyling Calero, VP of Public Relations
Colonial Guaranty & Title, Inc.