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
Monday, June 29, 2009
Thursday, June 25, 2009
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
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 $8,000 tax credit expires in December are expected to turn out in strong numbers for the upcoming Condo Vultures® seminar. The free seminar will feature a series of industry experts discussing every aspect of a real estate transaction including the essentials for qualifying for the Obama tax credit. The seminar is scheduled from 5.30 pm to 8 pm July 28 in Greater Downtown Miami. Print copies of Condo Vultures® newly published First-Time Home Buyers Guide To South Florida™ will be available for purchase at the seminar. This 18-page guide features a collection of articles about the process, pointing out the essential dos and don'ts in making a first home purchase.
For more information, please contact John Fakler, executive editor of CondoVultures.com, at 800-750-0517 or by email at JFakler@condovultures.com.
Published by Peter Zawleski/Condo Vultures
Company Presentation
Check out this SlideShare Presentation: on our firm
Co Presentation
View more documents from maria elena arias.
Fannie Mae Anti-Flip Restriction on REO Conveyances
It has come to the attention of the Company that Fannie Mae has begun requiring agentswho market its REO to include provisions in sales contracts providing that certain antifliplanguage will be included in deeds. The language may vary, but is generally alongthe following lines:
Grantee herein shall be prohibited from conveying captioned property to a bona fide purchaser for value for a sales price of greater than ($_______=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 ($_______=120% of sales price) for a period of one hundred andeighty (180) days from the date of this deed. These restrictions shall run with the landand are not personal to grantee.
Title Examiners should examine any deed conveying Fannie Mae REO and, if it contains such a restriction, raise an appropriate exception on the commitment and policy. Title Closers should be aware that closing transactions within the specified time periods will be a violation of that restriction and must consider the consequences of that violation to the escrow. Title Closers handling the first sale of the REO from Fannie Mae should also beaware that the contract for sale may require that the deed contain an anti-flip restriction such as this. If the contract states that the deed shall contain the restriction, but the deedreceived from Fannie Mae inadvertently omits the restriction, the closer should see to it that the restriction is raised on Schedule B of the commitment and policy nonetheless.
UNDERWRITING BULLETIN from Fidelity National Title
Grantee herein shall be prohibited from conveying captioned property to a bona fide purchaser for value for a sales price of greater than ($_______=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
Tuesday, June 23, 2009
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
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
Thursday, June 18, 2009
South Florida Real Estate market at bottom
South Florida Real Estate Market at Bottom
NAR Chief Economist: 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®
"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®
Thursday, June 4, 2009
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->
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’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 $$$$$ today. Here’s what agents and brokers have to say: Wow!
Thank you so much for bringing Mike Husson to our office. What a powerhouse! What a shot of optimism! What a great presentation! He is inspirational, believable, and empowering! Thank you for your caring and your professionalism.
Paula Mark
Luxury Homes Inc. GMAC
Just a note to say thank-you, Your message was well received by all. It just goes to show you how people are searching for a message that is clear and understandable, something they can relate to and apply to their lives.. A great meeting that was appreciated by all.
Bob Elliott Executive Vice President/
Broker Luxury Homes Inc. GMAC Real Estate
Short Sales
We will make you sit up and take notice…..these programs are designed to teach….learn….and start making $$$$$ 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.
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.
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