Florida’s DBPR unveils 2011-2012 unlicensed activity media campaign

TALLAHASSEE, Fla. – Dec. 14, 2011 – The Department of Business and Professional Regulation (DBPR) unveiled its annual media campaign to educate the public about the dangers of unlicensed activity. The ad campaign encourages Florida consumers to check for professional licensure before hiring someone to do any work that requires a license, including real estate representation.
Last fiscal year, DBPR received 969 legally sufficient complaints about unlicensed real estate or unlicensed appraisal activity. The Department also received more than 1,700 complaints about unlicensed construction, electrical and contractor activity.

“Unlicensed activity can threaten the livelihood of law-abiding, state-licensed professionals and can pose serious personal or financial harm to consumers,” says DBPR Secretary Ken Lawson.

Members of the Florida Outdoor Advertising Association are donating billboard space throughout the state, part of a multi-component campaign that will focus on the licensed activities with the highest number of consumer complaints.

Unlicensed activity occurs when an individual offers to perform or performs services that require a state license, and the individual does not hold the required license. Florida law sets specific rules and guidelines for obtaining professional licensure, and the people who have met these requirements are held to professional standards. Consumers can verify professional licenses online at www.myfloridalicense.com.

Unlicensed activity is illegal and can result in misdemeanor or felony charges if an individual is convicted. Floridians should report any suspected unlicensed activity by emailing ULA@dbpr.state.fl.us, or calling the Unlicensed Activity Hotline at (866) 532-1400.

Reprinted by Permission: © 2011 Florida Realtors®

UF survey: Fla. real estate experts still not excited

GAINESVILLE, Fla. – Dec. 2, 2011 – Florida real estate experts and investors were pessimistic for a second consecutive quarter, despite encouraging signs in the rise of occupancy rates and prices in the rental apartment market, a new University of Florida (UF) survey finds.

“The Survey of Emerging Market Conditions,” conducted quarterly by the Kelley A. Bergstrom Center for Real Estate Studies at UF’s Warrington College of Business Administration, indicates the main reason for the third-quarter malaise was the falling market for single-family houses, condominiums and most types of land.

Uncertainty over unsettling economic news at the international, national and state levels provides the backdrop for the declining perspective, said Timothy S. Becker, director of the Bergstrom Center. The Commercial Real Estate Sentiment Index declined in the third quarter, marking the second consecutive decline of the year.

The survey takers anticipate a sluggish recovery for the real estate market in the coming years. A large inventory of home foreclosures partly explains their gloomy expectation. Respondents also worry about employment. Since January, 70,000 new jobs have been created in Florida, but they were offset by 63,000 lost positions, keeping the unemployment rate at 10.6 percent since April.

Respondents also believe that a weak economy continues to discourage the private sector from adding new hires. Companies instead are likely to squeeze more productivity from workers and store profits to sustain them through future tough economic times. Concern over stock market turmoil, ongoing gridlock in Washington and the upcoming presidential election added to the overall pessimistic outlook.

Survey respondents also said that they’re worried because a securities-backed mortgage for commercial property was harder to get in the third quarter. There was also wariness over the newly enacted Dobbs-Frank Act, which expands federal regulation of banks.

“The problem is that individuals involved in banking don’t yet know what the rules are under the new law, and whenever there’s uncertainty, people tend to drop from the investment horizon,” Becker said. “What we’re hearing from the respondents is that because of this uncertainty, there’s a freezing up of capital that should otherwise be going to construction projects.”

That lack of capital, however, is good news for the rental apartment market, which, according to the survey, is real estate’s “best performing asset.” Becker said widespread home foreclosures have forced displaced homeowners to rent apartments. In addition, many young job seekers who want flexibility are seeking rental units. That trend helps to drive up occupancy, allowing owners to charge more rent.

The survey also identified bright spots in Florida’s economy. Condo projects are under way in Miami, which is also enjoying an influx of investment from South America. Respondents are also somewhat cheered by prospects for Florida ports as the Panama Canal expansion project continues.

Still, the overall perception of Florida’s real estate market is glum.

“Where we go from here depends on macro-economic forces, ranging from the debt crisis in Europe to the many we have here at home,” Becker said.

A total of 231 Florida professional real estate analysts and investors, representing 13 urban regions of the state and up to 15 property types, participated in the survey.

Reprinted by permission: © 2011 Florida Realtors®

The State of Miami Real Estate – October 2011 Statistics

Well…the October numbers are finally in. This time, I’d like to not only share the sales data but also pricing trend throughout Miami-Dade county and in Miami Beach.

Based on the newest statistics, Miami-Dade’s October Closed Sales are decisively down and Pending Sales are just a nudge up from Sept. Pretty much, a continuation of recent trends.

Similarly, Average Sold Prices were also down once again between September and October, while the disparity between Asking Prices of properties For Sale and the Average Price properties are Actually selling for continues to widen.

Sales of all property types in Miami Beach in general, did not do much better between September and October, 2011 that the rest of the county did. In fact, prices were, well…they were actually quite wild, probably due mostly to the sale of properties valued between $500k and just under $3M, which is quite hot and helping distort these averages.

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It is worth noting therefore, the marked improvement in sales from a year ago in Miami Beach as compared to the rest of the county. Obviously, the beach continues to be “the beach” and buyers (mostly foreign buyers), continue to pursue beach bargains over anything else. Actually, it seems as though if a property is not being sold in Miami Beach, it’s being remodeled. There’s just a lot of activity throughout the beach.

As a matter of fact, take a look at the beach condo market numbers below. Sales between Sept. and Oct. were not terribly bad and were actually solid as compared to Oct./2010. Beach Condo prices also dropped much less than the overall drop of prices for all beach properties in the same period. In fact, condo prices in Miami Beach were 20% better than the price of all properties sold throughout the beach between Sept. and Oct., down just over 7% for condo sales as compared to the over 27% or so overall price drop for all beach sales.

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In general, we can continue to see the market fluctuations and deterioration, mostly due to the continued uncertainty on the market, changes in the strength of the dollar vis a vis other currencies, the political turmoil in other countries which is still helping drive sales in the USA and the still weak employment and economic environment we’re in.

Miami and the Beaches – Real Estate Sales & Pricing Stats – Sept./2011

No…not much progress was made in Miami-Dade county’s real estate since August. It seems we’re rolling downhill….backwards.

Even as compared to national activity as featured in this article: http://www.housingwire.com/2011/10/13/yearly-housing-inventory-down-20-home-sales-up

Yes, total inventory of properties For Sale continued to drop by just shy of 2% from August/2011 to September/2011 and reflected a robust drop of 38.7% year-to-year (Sept./2010 to Sept./2011) and 37% from the same Quarter in 2010. This is good…but it is reaching a plateau.

Luckily, New Listings, though it has been going up and down in the past few months…like a rollercoaster, it also dropped in Miami-Dade by 5.8% from Aug. to Sept, 2011, and by a healthy 20.2% between Sept./2010 and Sept./201,1 while also experiencing a 22.1% reduction in new listings taken as compared to the same quarter in 2010.

HOWEVER, the place where we want to continue seeing advancements in (Closed Sales), continues to drag showing 20.8% fewer closings between Aug and Sept/2011 and 7.5% fewer closings as compared to the same month in 2010 although, we did see a modest 7.3% improvement in closed sales comparing the three months ending in Sept. 2011 to the same period in 2010.

Fortunately, Pending Sales continue to improve by all measures. Short of seeing these pending sales actually close, the mere fact contracts continue to be signed in record numbers month-to-month and year-over-year, is a great sign. It means that buyers are hot and sellers are coming to terms with the reality of today’s market.

Below, we can see that as compared to
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,
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continues to shine in pretty much, all counts.

Note especially the number of Pending Sales as compared between Sept./2010 and Sept./2011 – a 85.7% increase in the number of properties under contract. Fantastic. Also, even with more than 48% more properties listed in Sept./2011 over Aug./2011, there were also almost 34% fewer properties for sale in the same period.

Now, when we brake
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from the rest of the beaches, we notice things slow down even more and yet…this is where almost half of everything happening in all the beaches happens.

Problem is…Closings and Pending Sales have been lack-luster at best.

With the economic, employment and political insecurity where it’s at, the slow season and other factors, it seems the real estate market is starting to show signs of second-thoughts. Hopefully, not something more sinister brewing like…a recession do-over?

Now, for all the negatives in sales, prices in South Beach have gained healthily

Well…Miami Beach as a whole also saw great improvement in prices

Unfortunately, the rest of the county did not enjoy the same price improvement as seen in the beaches. A sign that demand for beach properties continues to be high.

So…what do YOU think is going to happen next in our market? How do you think sales and prices are going to show for October?

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Your opinion and comments welcomed

National Real Estate News – September 2011 Market Update

September2011 Market Update

The U.S. housing market has shown notable stability in 2011 compared to the previous two years when the tax credit made a clear impact. Although recent economic indicators have been less than expected, including a downward revision of GDP and consumer confidence that mirrors early 2009, owning a home is still valued by the majority of Americans. 72% of renters say owning is a top priority for their future, up from 68% a year earlier.

However, most aspiring homeowners are held back by two main factors: funds for a down payment (82%) and confidence in their job security (80%). Federal Reserve Chair Ben Bernanke emphasized the importance of a healthy housing market to a robust recovery. He stressed the adverse effects of tighter credit conditions for borrowers, urging Congress to take tax and policy measures to help stabilize the market. He also noted the significance of addressing long-term fiscal policies including debt levels, upcoming expenses to support an aging population, and taxes.

Buyers continue to benefit from historically favorable buying conditions, and sellers are encouraged by increased market stability. Although the Fed made a commitment to keep its interest rate at the current level until mid-2013, mortgage rates can, and often do, still fluctuate. In the midst of these reports, it is important to keep in mind the path to recovery was always expected to be a long and uneven road. As we progress toward a stronger recovery, economic improvement typically spurs rising interest rates in order to keep inflation in line.

Home Sales

in millions

Home sales in July were up by 21% from the same month last year when the expiration of the tax credit resulted in a significant drop in sales. However, they were down 3.5% compared to June. This could be due in part to NAR’s report that 16% of members experienced a contract failure from issues in underwriting and appraisals during July. NAR President Ron Phipps states, “For both mortgage credit and home appraisals, there’s been a parallel pendulum swing from very loose standards, which led to the housing boom, to unnecessarily restrictive practices as an overreaction to the housing correction.”

Home Price

in thousands

Home prices dipped by less than 1% in July with median home price at $174,000. This is 4.5% below the year-ago level which followed a strong spring season of sales driven by the tax credit. Median home prices remain close to 2002–2003 levels. Distressed sales continue to count for almost 1 in 3 homes sold. The combination of low prices and record-breaking low interest rates means that home affordability is extremely favorable.

Inventory- Month’s Supply

in months

The supply of homes measured in months on the market at their current pace of sales was up slightly during July compared to June. This is in keeping with historical trends, which show that inventory levels typically rise during the summer months. The month’s supply remained 25% below the peak of 12.5 months in July 2010 and 13% above April of 2010 when the home buyer tax credit was in full swing.

Source: National Association of Realtors

Interest Rates

Mortgage rates hit a new record low in August of 4.15%, primarily due to uncertainty in the global and domestic economies. While these incredible rates represent a significant savings for home buyers, experts note that for the benefits to be fully realized, lending conditions must loosen to enable more buyers to take advantage of them. As overall economic activity gets back on track, rates will likely rise to keep inflation in check. In other words, the window of opportunity for buyers to lock in these historically low interest rates will not last forever.

Source: Freddie Mac

This Month’s Video

Topics For Home Owners, Buyers & Sellers

As the weather gets cooler, some homeowners could be considering undertaking home renovations or updates before the holiday season. Here are a few findings about updates and home sales:

1. Homeowners typically spend considerably more on updates to their home when planning to live in and enjoy it, with an average of nearly $9,000.

2. In contrast, they only spend an average of $3,400 when making updates in preparation to sell.

3. The most common updates sellers performed before listing were paint, flooring, and light fixtures.

4. Although the majority of buyers were least likely to compromise on the location, 16% were least likely to compromise on updates.

5. 75% of homes sold were either fairly updated or very updated.

6. Sellers began repairing their home 1 to 8 weeks in advance of listing.

Source: KW Market Navigator and KW Research

Miami Real Estate – 5 Years Ago and Today

For all the doom and gloom of an economy that refuses to get back on a growth track, be it as a result of a poor economic environment inherited from others or as the result of poor policy decisions or execution or a combination of a lot of factors, real estate is doing much better in Miami. However, the situation is fragile and on the brink.

Don’t believe it? Just take a look at the following glimpse of an era gone wild…

Below is a chart depicting our progress over the last 5 years:

I mean…can you see a time when there were over 40,000 properties for sale in Miami-Dade while maybe 1000 buyers and sellers were closing a deal? A time when inventory levels were so high that, even if no other property came up for sale, it might have taken over 6 years to get rid of existing inventories?

Now, by all indications, we have about the same number of properties for sale as we had 5 years ago in August, 2006 (just shy of 20,000 units). Also, the number of new listings in August, 2011 is down some 27% from the number of new listings that came to market on August, 2006.

In addition, last month (8/2011), Miami-Dade saw a 21.3% improvement on the number of properties for sale as compared to 8/2006. More impresive still, Miami-Dade has seen a 55% boost to the number of properties under contract (Pending Sales – a forward indicator of closings to come), in 8/2008 as compared to 8/2006.

Below is the trend for the past 3 years…

Yet, as shown in the graph below, in spite of all this progress, the last 12 months have been nothing short of bland. Yes, inventory levels in Miami-Dade have declined over 37% between Aug/2010 and Aug/2011, as have New Listings (down almost 18% in the same period).

However, inventory levels between July/2011 and Aug./2011 dropped only a dismal 2.2%, while New Listings grew almost 13% in the same period.

By the same token, we can see that there was a meager 1.4% improvement in the level of Closed Sales (Sold), between Aug./2010 and Aug./2011 while enjoying a much weaker 16.5% increase in the number of Pending Sales (properties under contract), in the same period.

Add insult to injury when we notice a 2% drop in Closed Sales between July/2011 and August/2011, coupled with a meak 7.8% increase in Pending Sales between July and August, 2011. Most certainly, not the trend we need.

So, where are the opportunities in Miami-Dade county? Are they in buying Single Family Houses, Condos or Townhomes or are they in Multi-Family housing like duplex, triplex or fourplex?

The charts below depict the trends for each of these property types. As follows:

Single Family Houses (SFH)

Condo units and Townhomes

Multi-Family (all types)

As you can see from the above charts, it seems that special attention is beginning to turn to the Multi-Family housing sector and for good reason. After all, other than financing, I feel here’s where an owner can truly leverage him/herself.

So, I wonder, is owning a duplex (2-family unit), better than owning a triplex (3-families) or a fourplex (4 families)? For the small investor or anyone looking to leverage him-herself, this form of ownership in my opinion, is well worth exploring.

One reason I advise would-be investors (especially those who intend to hold on to their properties), to consider owning multi-family instead of buying individual condo, townhouse or SFH units, is that when a tenant moves out, your vacancy level is greatly affected.

An empty house or condo means 100% vacancy. An empty unit in a duplex represents a 50% vacancy, while the other half of that duplex may be either covering debt-service or greatly contributing towards it while minimizing costs during this vacancy period.

So, let’s take a look at the charts below and see how each of these residential multi-family unit types have performed during the past 12 months.

Duplex

Triplex

Fourplex

The top performer among these is by far, the fourplex. I mean…a 900% improvement in the number of fourplex units closed (even if the actual number was 9 more buildings sold than there were in the same period in the previous year), this is a great improvement.

In general, as an investor I would much rather prefer to spread my risk. The likelyhood of having more than one tenant move out at the same time means that it is highly unlikely to have more than 2 tenants or a 50% vacancy at any time. It is more likely to have one tenant move out at any given time, reducing your vacancy to only 25% (a 75% occupancy). This leverages the investor and insulates him/her more than most other property types.

Obviously, when one owns larger buildings of say, 6, 12 or more units, the management becomes more intensive and it will start to feel more like a business. At the same time, there are economies of scale that come to play a part. So, it is no wonder that multi-family sales seem to be outpacing the rest of the the sales in Miami-Dade. They can help build capital through appreciation, generate income from rents (one condo unit may yield $300/mo or more while a fourplex may yield $800 or more every month), reduce the income loss through lower vacancy rates and more.

In my next issue, I will examine how properties in Miami Beach are doing as compared to the rest of Miami-Dade.

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Questions, Comments, Opinions? Go ahead…you are welcomed to share them.

July home sales in Miami – a reflection of the economy at large

Some say our economy will not recover until this or that is changed. Some feel housing must recover in order for everything else to recover. Others blame the low dollar, the amount of money that is printed, Europe, earthquakes and climate change.

I still feel that the key to a recovery is JOBS. Without jobs, folks’ confidence and ability to spend and qualify to buy homes, will remain low – hec…non-existent.

With unemployment stubbornly high above 9% (well over 18% according to experts if one includes the under-employed and all those who just…quit looking), it is no wonder housing can’t seem to recover.

In spite of Miami’s ability to appeal to the affluence of non-residents and investors (and THANK GOD for that), Miami’s home resale market looms.

One great aspect is that Miami’s available real estate inventory for sale has been rapidly dropping from a high of 24,368 units in Sept., 2010 to our July, 2011 low of 15,578 units available for sale. A 63.9% drop in inventory, 4.3% lower than June, 2011’s inventory of 16,272 units, 35% lower than the 23,976 units in July, 2010 and almost 32% lower than at the end of the same quarter in 2010. The drop of New listings has also helped inventory levels continue to drop.

By all accounts, less inventory is great. This generally means that buyers have less inventory to choose from and that prices should begin to pick up. Supply and demand. Yet, low supply continues to be coupled to low demand as reflected by the meek Pending sales number between June and July, 2011 (2.2% lower) and the much weaker Sold (Closed) units which dropped 21% between June and July, 2011.

Thankfully, Pending Sales (an indicator of future closed sales), had been quite strong in July, 2011 as compared to July, 2010 (up 19.4%) and as reflected by the Pending Sales number between the end of Q1-2011 as compared to Q1-2010 (up 21.1%).

Will these numbers improve? Again – I say, not until JOBS recover.

Comparing sectors of our market, sales in properties valued at different price ranges appear to be mimicking the market at large, including market segments under $500,000 and between $500,000 and just under $2M as shown in the two charts below

Under $500,000

Between $500,000 to just under $2M

Between $2M and just under $5M, we begin to see some changes, though Pending Sales – the so important forward looking indicator of future closed sales has completely stalled.

Above, are the numbers for properties valued at between $2M and $5M

However, by the time we get to homes valued at $5M and above, the difference is stark.

Above, properties in our highest market segment – above $5M

As you can see, properties valued at $5M and above are among the only market segment displaying improvement on all accounts. Between June and July, 2011, between July, 2011 and July, 2010 and between Q1-2011 and Q1-2010. Most impressive are the improvements between July, 2010 and July, 2011. I mean, 10 properties Sold and 12 under contract may not seem like much until you are reminded that these are at least $5,000,000 a pop and financing…well…this is not their bag.

So, the $5M and above market segment is where most affluent buyers are doing their bidding. After all this is Miami!

Get your home Sold faster

Many sellers have bought and sold more than one home in their lifetime.  Today, these sellers struggle to understand that this is not the market they bought their current home in, nor the market they sold their previous home in.  They may even be holding on to the hope that the market will recover “soon” and holding on to past selling experiences that no longer work.

In fact, these reluctant sellers could sell their home soon(er) if they could only wrap their head around a few simple selling tricks. These are the same tricks professionals and most successful sellers (those who’s homes are now showing in the “Homes Sold” statistics you receive from your agent), have used to get their home SOLD. What tricks did they use you ask? Simple…

Use Sales Incentives

Incentives are used to market everything, from car insurance, to beds, cars, clothing, airline tickets, etc. Don’t think so? Consider paying attention to the incentives used by pretty much every vendor in almost every commercial on t.v. or radio.

Hec, what incentives have you used to lure your boss, employees, spouse or your kids to do something they initially did not want to do and you “incentiviced” them to?

The incentives don’t have to be big – they can be little – either way, their purpose is to get them (a buyer), to pay attention and to seek you (the seller), out over all other competing homes.

If vendors offers some sort of incentive to get you to call or at least consider their product or service, many of them spending hundreds, thousands, even millions in advertising dollars to make sure they get you to listen or have your eyeballs zoom-in on their advertisement and at least get you to think about and consider them or their product or service, then why would you not consider these tactics yourself to get what may be the largest asset you own ( your home), sold?

Here’s the best part…unlike advertisers who pre-pay for your attention, you often don’t have to spend a dime ahead of closing to get your home sold. So, what did successful sellers use to get their homes sold? Here are four tactics they used – and now, you can too:

1. Buy-down buyer’s interest rate.  Interest rates are at all-time lows. However, if a marginally qualified buyer may be turned off by the fact that, for whatever reason they will have to buy your home with a higher interest rate, then offering to buy-down their rate may make them re-consider and choose to buy your home over a neighbor’s house. In fact, they may even like your neighbor’s house more than they like yours but, your neighbor may not offer this incentive and this “financial” reward, which may save the buyers thousands over the live of the loan, may be enough to get them to commit and buy your home instead.
2. Pay for Closing cost.  Besides the down payment lenders require from buyers, they typically also require buyers to come to closing with an additional 3 to 6 percent of the loan amount to cover closing costs such as loan fees, title and mortgage insurance, prorated charges like taxes, homeowner’s insurance, etc. Depending on the lender or loan program the buyer applies and qualifies for, you may be able to pay all or a portion of these closing costs for the buyer. Again, if your neighbor is not willing or able to do this, this may give you the competitive edge you need to get this buyer to sign on the dotted line and place your home on the SOLD side of the equation.  Think about it.  A 3% closing cost contribution you offer to your buyer on a home that requires a $200,000 loan, represents $6,000 the buyers no longer have to bring to closing and use instead for other things like decoration, moving or just keep tucked-in for a rainy day.
3. Offer to pay their HOA/COA dues.  If you are selling a home or condo that is in a homeowners’ or condo association, then surely you remember how these buyers may feel when that bill comes due after being depleted of cash from down payment, closing costs, moving expenses and personalization (updates, upgrades, decorating, etc). Buyers may put pencil to paper and realize that this incentive alone could get them interested in at least considering your home or condo over your neighbor’s. Obviously, you can offer to pay this fee for a period of time you negotiate – be it 6 months, a year or longer.
4. Brokers are people too.  Smart sellers using the expert services  of real estate professionals typically understand that agents are people too, and that incentives can also move some agents to make sure your property gets shown often.  Offering to pay an extra commission as an incentive to buyer brokers also helps get your home sold. Consider that, most buyers who are ready, willing and able to make the ultimate commitment (well…after marriage), to buy a home are usually represented by a broker.  After all, buyers typically do not pay for the broker’s services and they use them for their expertise and for guidance between contract to post-closing. Since buyer brokers have to sort through dozens, sometimes hundreds of listings to decide which ones to show a buyer, it stands to reason that these brokers may be a key buffer between you and a buyer and that incentives may get them to present your home to their potential client. If the broker sees they will get pay 1% or 2% more in the chance their buyer likes your home, they will make absolutely sure to show your home first – and to as many buyers looking for your type of home they come in contact with. This, in combination with the right price and property condition, helps improve your “traffic” (or exposure), because Buyer-brokers will be sure to include your home in the list of homes they will show to all their qualified buyers.

Remember, your home must be competitively priced, must be kept in “show condition’ every time it is shown and in today’s market, you must also consider “incentives” to get buyers through your door. This increase in traffic will increase the probability of getting an offer – even multiple offers, ensuring a faster sale of your home than your neighbor’s, often at a higher price (in today’s market – property values are still fragile. Not selling today, may mean selling for less tomorrow).

Finally, none of these ideas will cost you a dime before closing, and though they may reduce your proceeds at closing, incentives will help ensure you “move-on” with your life and begin to look forward to new opportunities you will now be able to pursue and enjoy sooner – without the looming and persistent effect of a home that won’t sell.

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Your comments and opinion welcomed

Freddie Mac turns to YouTube to dispel common foreclosure myths

McLEAN, Va. – March 23, 2011 – Freddie Mac wants to help consumers separate foreclosure fact from fiction using a new video series launched today on its YouTube Channel.

Each 90- to 120-second video dispels one of five common myths that could prevent people from keeping their homes if they face foreclosure. Freddie Mac based the content on its “Get the Facts on Homeownership” education and outreach materials.

“The videos provide information and resources that just might keep individuals from losing their home,” says Dwight Robinson, Freddie Mac senior vice president of Corporate Relations and Housing Outreach.

The videos each cover one of the following “myths”:

Myth 1: If my house is foreclosed, I can never buy a house again – the foreclosure will stay on my record forever.
Truth 1: Foreclosure can have a devastating effect on your finances and you personally, but you can recover. Use the time after foreclosure to prepare yourself for successful homeownership the second time around by creating a spending and savings plan, and rebuilding your credit.

Myth 2: I should stop paying my mortgage so I can get assistance with my mortgage payments.
Truth 2: Stopping payment on your mortgage only hurts your situation and can expose you to foreclosure and credit difficulties that could require years to rebuild.

Myth 3: If I’m late on my monthly payments, I’ll lose my house.
Truth 3: If you have a financial hardship and fall behind, it’s possible to keep your house and get back on track if you contact your lender as soon as possible to discuss your options. You can also contact a HUD-approved housing counselor by calling the Homeowner’s HOPE Hotline at (888) 995-HOPE (4673).

Myth 4: I am getting many offers for help from a variety of people. They are probably all scams.
Truth 4: Scam artists often target homeowners who are struggling to meet their mortgage commitment or are anxious to sell their home. It’s important to always open and respond to communications from your lender, particularly if you’ve already missed a mortgage payment. In addition, if you are in a financial crisis or facing foreclosure, make sure you work with your lender or a HUD-approved counseling agency to avoid common scams.

Myth 5: My lender is not responding to my inquiries, so I should just give up and face foreclosure.
Truth 5: Whatever you do, don’t walk away and don’t give up. It may take several attempts to reach your lender because their call volume can be very high.

Reprinted by Permission: © 2011 Florida Realtors®

 

Census Bureau: 18% of Fla. homes vacant

WASHINGTON – March 22, 2011 – The U.S. Census Bureau released its Florida report on Thursday, and it included the number of vacant housing units in the state: 18 percent, or 1.6 million.

As a result, a number of media reports have focused on the large number of vacancies, considering it a reflection of homes for sale, and an indication of the time it would take for the real estate market to fully recover. However, many homes the Census Bureau considers vacant are empty by choice – homes in which snowbirds live only a few months out of the year, for example, or homes under construction but not yet inhabitable.

According to the U.S. Census Bureau, the definition of “vacant” means “no one is living in it at the time of the interview, unless its occupants are only temporarily absent” or “entirely occupied by persons who have a usual residence elsewhere.” The latter would include snowbirds or other part-time Florida residents

In addition, “New units not yet occupied are classified as vacant housing units if construction has reached a point where all exterior windows and doors are installed and final usable floors are in place.” Many media reports have not included or explained the Census definition for “vacant” homes, resulting in a misleading impression of Florida’s housing market.

Still, Florida’s vacancy rate surpassed other states. Arizona’s vacancy rate was 16 percent, while Nevada’s was 14 percent. California had 8 percent vacancies.

In Florida, Collier County registered a 32 percent vacancy rate, according to the Census Bureau, though Southwest Florida has a high number of snowbirds that would register as vacant. Lee County’s vacancy rate was 30 percent, while Miami-Dade registered 12 percent.

Reprinted by permission: © 2011 Florida Realtors®