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Archive for the ‘Wenceslao’ Category

I Can’t Pay My Mortgage and I Don’t Know What To Do :-/

In Distressed Sales, fannie mae, FHA, First Time Sellers, florida, forclosure, foreclosure, foreclosure moratorium, foreclosure prevention scam, Freddie Mac, government, HAFA, HAMP, home sellers, homeowner, HomePath, HomeSteps, HUD, Industry trends, IRS, Market Report, miami beach, Miami-Dade County, modification, mortgage, NAR, National, option-arm, real estate, REO, scams, Sellers, Short Sales, South Beach, Tax Matters, Trends, Wenceslao on December 22, 2010 at 4:05 pm

About 75% of folk who lose their home to foreclosure, do so because they either do not seek help, or they get the wrong kind of help.

I am often asked legal questions to which I must invariably reply…I am not an attorney. The best I can do is speak from personal experience and remind them that it is imperative to seek competent and relevant legal and tax advise from active professionals.

In real estate for example, not all real estate agents are even Realtors.  Realtors are agents who as members of the National Association of Realtors(c) (NAR), they must adhere to NAR’s strict Code of Ethics. In addition, many are no longer in the business full-time nor are they truly keeping up with all the industry changes.

Homeoners looking to sell must always seek the assistance of full-time professionals. When in distress, they must take extra precautions in order to avoid falling victims of scams and even, downright fraud.

Below are some of the most common Frequently Asked Questions (FAQs) about foreclosure avoidance.  If you have further questions not addressed below, or would like additional information and resources, feel free to Contact Us.

Do I qualify for a short sale?

The qualifications for a short sale include any or all of the following:

  1. Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
  2. Monthly Income Shortfall – In other words: “You have more month than money.” A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
  3. Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

What is a mortgage modification?

A mortgage modification is a process through which your mortgage lender changes any or all of the following:

  • Your interest rate
  • Your principal balance (through a reduction)
  • Your loan terms (example: from an adjustable to a fixed rate)

This process can allow borrowers to stay in their property when they can no longer afford their current mortgage payments.

Why would a lender modify my mortgage?

Lenders have realized that in some cases it is better for them to work with current borrowers to lower payments or possibly improve terms in order to keep homeowners in their properties. The average foreclosure can cost a lender from 35-50% of the value of a property, so keeping borrowers in their homes is a good option for everyone.

What do I need to qualify for a mortgage modification?

According to the Making Home Affordable Web site (www.MakingHomeAffordable.gov), you will need the following information for your lender to consider a modification:

  • Information about your first mortgage, such as your monthly mortgage statement
  • Information about any second mortgage or home equity line of credit on the house
  • Account balances and minimum monthly payments due on all of your credit cards
  • Account balances and monthly payments on all your other debts such as student loans and car loans
  • Your most recent income tax return
  • Information about your savings and other assets
  • Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources

If applicable, it may also be helpful to have a letter describing any circumstances that caused your income to reduce or expenses to increase (job loss, divorce, illness, etc.)

How do I qualify for a mortgage modification?

The first call you make should be to your lender, have the information above ready to discuss with them and call your customer service line to ask them what options you have available. If the person you speak with does not understand what you are asking, you can ask to be referred to one of the following departments (different lenders have different names for these departments):

Prior to contacting your mortgage lender you can quickly complete an eligibility test atwww.MakingHomeAffordable.gov. This test will let you know if you are eligible for a modification through the government-sponsored Home Affordability and Stability Program (HASP). For a list of mortgage lenders and servicers, visit www.HopeNow.com.

What if I don’t qualify for a mortgage modification, can’t afford my home, and owe more than it’s worth?

You are not alone and foreclosure is not the only option. If your mortgage lender or servicer will not work with you to reduce your payment, you may want to consider a short sale. Agents like me, with the Certified Distressed Property Expert® Designation, have undergone extensive training in how to process and negotiate short sales. A short sale allows you to sell your home for less than what you owe and avoid foreclosure. Speak to your market expert to see if you may qualify.

What is a Home Affordable Refinance?

If Fannie Mae or Freddie Mac owns your mortgage, you may be eligible for a Home Affordable Refinance. This will allow you to refinance your home and often lower your payments.

What are the qualifications for a Home Affordable Refinance?

According to the resources released by the government, following are a list of qualifications:

  • You are the owner occupant of a one- to four-unit home
  • The loan on your property is owned or securitized by Fannie Mae or Freddie Mac (see Useful Links)
  • At the time you apply, you are current on your mortgage payments (you haven’t been more than 30 days late on your mortgage payment in the last 12 months, or if you have had the loan for less than 12 months, you have never missed a payment)
  • You believe that the amount you owe on your first mortgage is about the same or slightly less than the current value of your house
  • You have income sufficient to support the new mortgage payments, and the refinance improves the long-term affordability or stability of your loan

Courtesy:  ©2009 Distressed Property Institute, LLC. | All Rights Reserved

The Distressed Property Institute LLC is behind the Certified Distressed Property Expert (CDPE) designation that over 29,000 professionals now hold.

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MIAMI’S CLOSED PRICES UP FOR SECOND MONTH IN A ROW

In Buyers, First Time Sellers, First-Time Buyer, florida, Home Buyer, home sellers, homeowner, Industry trends, Interest Rates, Investing, Investor, Kiyosaki, miami, miami beach, Miami-Dade County, real estate, second home, Self-Directed IRA, Sellers, Short Sales, South Beach, Trends, Wenceslao on December 10, 2010 at 3:16 pm

Not surprisingly, Miami-Dade county’s Average and Median Closed prices were up again, for the second month in a row.

Recently, you read my blog post “LISTENING TO NATIONAL REAL ESTATE NEWS MAY BE DANGEROUS TO YOUR FINANCIAL HEALTH” where in response to recent news claiming that national resale prices were down 2% in Q3/2010, I reported that these were already stale reports that were 2-months old and that by contrast, in October, 2010, the Average Closed Price in Miami-Dade had gone up 6.3% while the Median Closed Price went up 5.5% from September, 2010.

As it turns out in November, 2010 and for the second month in a row, the Average Closed Price in Miami-Dade went up another 5.7% and Median Closed Prices also went up another 3.8% from Oct./2010.

Although the number of properties Sold went down 9.4% from October, 2010, and 1.1% from October, 2009, the number of Pending Sales was up again by 4.1% from October 2010 and up 38.3% from October, 2009.

So, is this proof certain that we’ve hit bottom? I don’t know.

What I do know is that, if you are looking to buy in Miami-Dade county, and you are looking to close before the 12/31/2010 deadline so you can get the deductibility and Homestead Exemption, you must hurry.

Although you do not need to have the deed recorded by 12/31/2010, all documents must be executed by then.

Also, waiting may already cost some people about 12% more based on the recent increases in the Average Closed Price since September, 2010 and 9.3% more based on the Median Closed Price since September, 2010, which stood at $125,000 then and stands at $135,000 as of November, 2010.

Sellers must also understand that, this is NO time to play or allow greed to take over. It is time however to get serious about discussing your marketing with your Realtor.

There are several components of marketing and Sellers control one of the most critical: PRICE

Although a buyer’s ability to have easy access to see the property and how the property shows (is it staged or cluttered), are also two-critical components sellers control, price is a function of almost everything else, including property condition, market condition and other factors we cannot control.

Your professional Realtor controls the promotion and marketing of the property. However, when a property does not show very well or making showing appointments becomes inconvenient for buyers, your Realtor’s best efforts to get the property sold at the highest price, within the shortest time and the least hassles, may be (at least to a degree), negated.

Buyers on the other hand are competing for deals with other buyers and investors. This is no time to hesitate, over-analyze or waste time before looking at the potential deals your Realtor is sending you. It is also no time to second-guess prices if you are at risk of suddenly, being priced out of the market.

With prices on the rise and interest rates also on the rise (even if marginal), the combination of higher prices and higher rates could be lethal to a border-line buyer.

If you are looking to make a purchase or selling decision in the next 15-30 days, don’t hesitate to contact a professional Realtor (remember, not all real estate agents are Realtors – members of the National Association of Realtors who adhere to a strict Code of Ethics), and one who is additionally trained in helping you navigate through the idiosyncrasies of distressed properties*.

If you are looking to sell (not list for sale but list to sell), you may request a Free Market Analysis at FreeMiamiHomeValuation. There is no cost or obligation and you will also get two special reports with your Free Valuation report and will also entitle you to a 30-minute, no cost or obligation consultation.

For Miami Beach, the numbers are even more staggering.  Closed sales in November, 2010 were up 5.9% from October, 2010 and up a whopping 38.5% from October, 2009.

At the same time, Pending Sales in November, 2010 were up 42.1% from October, 2010 while up an incredible 80% from October, 2009, clearly demonstrating that the beaches, as a localized location, is quite more attractive and continues to produce strong results.

More on Miami Beach on a separate post.

*Visit www.CDPE.com and find a Certified Distressed Property Agent near you.  With about 29,000 CDPE’s nationwide, this is the largest professional association of its kind in the nation.

Beacon Economics: Housing most affordable in more than 40 years

In Buyers, Distressed Sales, fannie mae, First Time Sellers, First-Time Buyer, florida, forclosure, foreclosure, foreclosure moratorium, foreclosure prevention scam, government, Home Buyer, home sellers, homeowner, lenders, miami, miami beach, Miami-Dade County, modification, mortgage, new rules, real estate, REO, scams, Short Sales, Wenceslao on October 15, 2010 at 3:51 pm

Beacon Economics: Housing most affordable in more than 40 years SAN FRANCISCO – Oct. 13, 2010 – Beacon Economics’ new Beacon Economics Home Affordability Index finds that in August homes were at their most affordable level since data became available (1969). Beacon Economics developed the Beacon Economics Home Affordability Index based on the percentage of income an average family would need in order to make mortgage payments on an average priced home.

The August estimate shows the cost of homeownership (mortgage interest plus principal payments after a 20 percent downpayment) falling to 16.9 percent from 17.1 percent in July. Overall, the Beacon Economics Home Affordability Index has remained below 20 percent for the past twenty-one months.

“Home affordability has reached an historic high,” says Beacon Economics Founding Principal Christopher Thornberg. “Nationwide, prices are down approximately 25 percent from their peak, and mortgage financing rates are at all-time lows.” Moreover, the high level of affordability is likely to drive demand and reduce the stock of excess inventory, ultimately resulting in the need for new housing, a rise in prices, and a pickup in new construction, according to Thornberg.

“While prices may fluctuate modestly over the next several months, we believe the worst of the housing crisis is behind us,” adds Beacon Economics Research Manager Jordan G. Levine. “We expect prices to stabilize around current levels and likely be higher in the next twelve months.”

Thornberg agrees. “Although there could be some modest volatility over the next several months, our research indicates the housing market is at or near the bottom,” he says.

The Beacon Economics Home Affordability Index is intended to help homebuyers and policymakers alike understand the current state of the market.

Reprinted by Permission: © 2010 Florida Realtors®

Open Letter to Obama and Congress

In bank-owned properties, Buyers, credit, Distressed Sales, First Time Sellers, First-Time Buyer, florida, forclosure, foreclosure, foreclosure moratorium, government, Home Buyer, home sellers, homeowner, Industry trends, Investing, Investor, IRS, lenders, Loan Program, Market Report, miami, miami beach, Miami-Dade County, mortgage, NAR, National, new rules, Obama, real estate, REO, Sellers, Short Sales, South Beach, Wenceslao on October 15, 2010 at 11:08 am

With our economy draging (in spite of the recession being over according to “experts”), it is more important than ever to find common ground, leave politics aside, get comfortable, get friendly and come together to find answers, compromises and solutions.

The recent foreclosure fiasco is absolutely appalling. The government and oversight entities, failed; banks and investment houses, failed; borrowers failed and everyone in between, failed; while those who were never even interested and stayed in the sidelines,  are all paying for it.

Some title insurers are already issuing statements refusing to insure recently litigated foreclosure properties.

If we want to see this country come out of the ashes and be the beacon of financial opportunity for everyone again, we need to start coming up with ways to incentivise certain bahaviour and dis-incentivise other.

For instance…for prices to begin to stabilize, even increase, real estate needs to improve. For this to happen, we all agree that jobs must improve.

Looking at the stabilization of real estate, there are certain actions that can be taken with government policy/legislation that will motivate lenders to act in a way that will, in my view, improve market conditions.

The now on-going foreclosure fiasco, has investors/first-time buyers in the sidelines or competing for less properties. An unintended consequence of this may be that prices may begin to rise as buyers/investors compete over remaining inventories, raising the bottom to new highs during this period.

Temporarily, this may also drive investors across the proverbial fence if they insist in avoiding Short Sales and feel that they don’t want to compete at higher prices for the REO inventory now in play.

The higher prices go, the more diluted their returns can be if they feel that the increases are still unsustainable until the employment/ tax situation is sorted.

Lenders must be given a choice to either continue to pay more attention to the REO area of their business, rather than to actually begin to pay attention to short sales and to divert attention and resources that lead to the settlement and conclusion of these, less costly deals.

To continue to ignore this cheaper, friendlier and still competitive alternative that helps save money in legal and other REO related expenses and legal responsibilities and liabilities, while helping to stabilize neighborhoods further, would be a shame.

Worst still…for the government to continue to incentivise rather than dis-incentivise lenders to take the REO route with pain – pleasure oriented programs that help lenders “choose” to continue rather than to abandon the REO alternative (unless absolutely necessary), in favor of the short sale route, would be aweful.

Leadership, starts with our government and the policies they create on behalf of and to help the citizens they represent. If the policies implemented create an environment where sellers can get their property sold with dignity, while keeping a gleam of hope for some future chance of home ownership again, then we are helping multiply the blessings in the future.

Otherwise, foreclosed home owners loose their chance of buying again while required to answer whether they’ve ever had a property foreclosed on or gave it back to the bank in lieu of.  Lenders in the future will be reluctant to lend to these folks.

To create policy that “overlooks” the foreclosure / character side of the mortgage application process in the future as a patch to address the needs of these borrowers 10 years from now, will be in that future, a hindrance to good lending practices. Instead, those borrowers should be allowed to sell with dignity today so they can perhaps buy again tomorrow.

Diverting resources and creating policy that “encourages” lenders to make a deal in a short sale rather than foreclose, will help stabilize prices, will help buyers get into good properties, and will help those outgoing homeowners get their act together so they can consider buying again in 3 to 5 years.

In the meantime, investors will consider buying short sales (once expediently processed), so they can enjoy rental income and then sell to future home owners when things improve, or continue to repair and resell to end-users and other investors as they have. Again, only if they can avoid the pain of the current short sale process.

I’m not coming up with anything that hasn’t been thought of. However, it is time for simple, sensible leadership, NOW.

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OPINIONS WELCOMED

Americor / Vacation Finance Lunches New Lending Product

In Buyers, credit, Distressed Sales, florida, forclosure, foreclosure, government, Home Buyer, Industry trends, Investing, Investor, IRS, lenders, Loan Program, Market Report, miami, miami beach, Miami-Dade County, Military, mortgage, National, Qualified Retirement Plan, real estate, Roth-IRA, second home, Self-Directed IRA, South Beach, Tax Matters, Trends, vacation home, Wenceslao on October 13, 2010 at 7:51 am

Using your IRA to buy Investment Real Estate

Posted: 12 Oct 2010 09:35 AM PDT

Americor Mortgage is launching a new loan program for investors who are buying investment property with their self directed IRA. Our mortgages will be NON-RECOURSE, and the individual does not need to qualify, the property does.

So even borrowers with recent credit challenges, low or retirement income, can get a mortgage through their IRA.

IRAs can buy condos, single family residential, and commercial income producing properties.

Contact Americor-Vacation Finance for more info: info@vacation-finance.com

To learn more about Self-Directed IRA rules visit http://www.IRS.gov

You may also contact Jason DeBono at Entrust Florida (www.EntrustFl.com) at JDeBono@EntrustFl.com who are qualified administrators for Self-Directed IRAs

MILITARY: NAR’s HouseLogic Launces effort to help You

In Buyers, events, Facebook, First Time Sellers, First-Time Buyer, florida, government, Home Buyer, Industry trends, miami, miami beach, Miami-Dade County, Military, NAR, National, real estate, South Beach, Wenceslao on October 12, 2010 at 4:48 pm

NAR’s HouseLogic launches to help military families WASHINGTON – Oct. 12, 2010 – The National Association of Realtors®’ (NAR) HouseLogic launched Operation Home Relief, a Facebook campaign to increase awareness, rally support and raise funds for USA Cares, a nonprofit organization that provides counseling and financial foreclosure assistance to post-9/11 active duty U.S. military service personnel, veterans and their families.

HouseLogic – a free, comprehensive consumer website about all aspects of homeownership – will donate $1 to USA Cares every time someone “likes” the Operation Home Relief Cause page on Facebook and will match individual donations made to the cause, up to $20,000.

“HouseLogic’s Operation Home Relief aims to help sustain homeownership for military families who have already given so much to support our country, and we hope others will join together with us to support this worthy cause,” says NAR President Vicki Cox Golder.

HouseLogic’s Foreclosure Guide highlights personal stories and offers information and tips to help homeowners facing foreclosure make smart, proactive decisions about what steps to take, where to find help and the alternatives to foreclosure. The guide also includes ideas for how others can get involved to combat foreclosures in their community.

“U.S. military service members bravely face danger around the world every day on behalf of all Americans. Yet, some military service members and their families also face financial dangers and hardships at home,” says William H. Nelson, executive director, USA Cares. “USA Cares’ sole mission is to help these service members and their families in their time of financial need. To that end, we’re excited to have the support of HouseLogic and the National Association of Realtors. Their new Facebook Causes campaign highlights the work USA Cares is doing, reminding Americans of the many challenges faced by U.S. military service members and their families, and generates support via Facebook for the help that we’re offering every day.”

For more information on sustaining homeownership, and many other housing topics, visit HouseLogic at www.houselogic.com.

Reprinted by Permission: © 2010 Florida Realtors®

Government moves toward foreclosure moratorium

In Distressed Sales, forclosure, foreclosure, foreclosure moratorium, government, Home Buyer, home sellers, Investing, Investor, lenders, Market Report, mediation, miami, miami beach, Miami-Dade County, mortgage, new rules, real estate, REO, Sellers, South Beach, Wenceslao on October 12, 2010 at 4:43 pm

WASHINGTON – Oct. 12, 2010 – Despite concerns about its impact, some legislators are pushing for a nationwide moratorium on all foreclosure sales.

U.S. Rep. Edolphus Towns, a New York Democrat and chairman of the House Committee on Oversight and Government Reform, says the top 10 mortgage lenders should immediately suspend foreclosure proceedings in all states.

“The implications of ignoring the foreclosure problems are far too great to be ignored,” he said Friday.

Other legislators are moving to revive cramdown legislation, which would give judges the power to reduce mortgage principal to market value in bankruptcy cases. The controversial bill had passed the House earlier but was stuck in the Senate.

But the Mortgage Bankers Association of America and the Financial Services Roundtable said Friday in a joint statement that, after reviewing paperwork, nearly all bank foreclosures are legitimate.

“Calls for a blanket national moratorium on all foreclosures are a bad idea and would cause significant harm to communities at risk, the unstable housing market and the fragile economy,” the statement said.

Source: The Wall Street Journal, Ariana Eunjung Cha, Steven Mufson, and Jia Lynn Yang (10/09/2010)

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So You Want To Buy a Condo, huh….Get Ready Then to Take Some Responsibility

In Buyers, credit, fannie mae, First Time Sellers, First-Time Buyer, florida, forclosure, foreclosure, foreign nationals, Freddie Mac, Home Buyer, home sellers, homeowner, Industry trends, Interest Rates, international buyers, Investing, Investor, Lease-Option, lenders, Loan Originator, miami, miami beach, Miami-Dade County, mortgage, real estate, REO, second home, Self-Directed IRA, Sellers, Short Sales, South Beach, vacation home, Wenceslao on October 6, 2010 at 2:43 pm

Here’s the scary part…I don’t recommend anyone in particular – you must consider the professionals you work with carefully and examine several before you can make the right choice.

Once you’ve chosen which seller type you will pursue (there are at least three and some will argue, four – they are at least, those in distress, REOs and regular sellers), you’ll need to consider what strategy will work for each, and for this, you’ll need at least two professionals: a Realtor and a Lender/Broker

Like you, I have also worked with a number of professionals in different industries and, you get good and bad in each.

One of the first things you need to do BEFORE you find that “ideal” place you want to buy or BEFORE you decide to sell, is to interview several real estate agents. If you are buying, you must also choose, in a close second, a mortgage professional.

Focusing on your financing alternatives, you’ll need to choose between a mortgage broker and a traditional lender (typically a bank), and make sure they will treat you with honesty and a high degree of integrity and professionalism.

Your agent will not (normally), offer you the name of a lender who may have ever done something to jeopardize that agent’s license or relationship with a buyer.  Remember though that each, will have different experiences, access to different resources and each can be an asset to you in their own way. It is up to you however, to discover which among the many, many choices, is right for you and your needs.

In my humble opinion (and you know what they say: “Opinions are like noses….everybody has one”), mortgage brokers often have access to more than one source of funds and this is why I like brokers best. They’re not tied to what their boss says they must provide as an option to their clients/ borrower-applicants and they are actually…not the boogeyman the media has played them to be.

Remember that, a mortgage broker’s main job is to counsel you on loan alternatives, take your application, collect data and “shop” to find the best lender for your needs. In the end however, it is the actual lender who must evaluate the entire package submitted by the broker on your behalf, during a process called “underwriting” when the lender decides if they want to approve the loan.

Therefore, the funds do not come from the brokers, the brokers act as intermediaries. The funds come from the actual lenders who approve the loan.

These lenders then either keep your loan in their portfolio or sell them in the secondary market to any number of investors, including Freddie and Fannie. This is how our economy takes each dollar lent, and turns it into $10 in a process I now forget what is called.

Just the same, buyers must vett these brokers (or any lender for that matter – after all,  look at all the trouble they are ALL in), and ask all the right questions. Choose one, and keep a backup.

In the end, always remember that is not the company (mortgage brokerage or institutional lender), who provides you professional service, it is the broker/loan officer you select who provides you service on behalf of their employer and you need to vett them both.

Let them know a bit about the property you’re looking to buy, they’ll need to know about your financials, and at the appropriate time, they’ll need to pull your credit and obtain your tax returns, etc in order to give you a valid pre-approval/pre-qualification letter (which we’ll need to provide along with your offer).

Ask them how long have they been in business, how many lenders do they represent, how to find out about their company and their personal license (you can check the status and record of their license online), how do they determine which program is best for you, can they provide you more than one or two choices for the purchase you’re looking to make, how do they communicate with you, how do you keep track of your file, how do they handle your questions throughout, etc.

In short, you need to determine if they’re a good fit for you, just like folks may want to know about you and your services before they hire you – you’ll want to know about any service provider, including Realtors(c), attorneys, doctors and CPAs.

Brokers can only control how they qualify “you”, and as a second step, help you determine if a property you like, meets financing criteria. Once they can put a checkmark on both…we have the potential for a deal.

After that, or when they advise, you’ll need to complete a formal loan application (AKA: 1003 application), provide any additional documents they require from you, request a Condo Questionnaire from the association (which will typically cost you between $100-$150), verification of employment and domicile, request appraisal, etc.  In other words…that’s when the fun begins.

Up to the day of closing, they’ll need to re-verify that the building is not in worse financial shape than when the process began, that your credit has not dropped, that your DTI (debt-to-income) ratio is still within guidelines, that there are no new surprises (in conjunction with the title agent), that can affect closing (lien, open permits or other title issues that may come up), make sure property insurance coverage is in place, that you have condo association approval, etc.

In short, there’s a LOT of paper and behind-the-scenes work we all have to do (I also need to keep all parties communicating and all dots or links in the chain connected throughout), and working with a professional that will help you the way you expect them to, is critical.

A professional Realtor(c) (remember that, only a real estate professional who is a member of the National Association of Realtors, and who adheres to their strict Code of Ethics, can call themselves Realtor(c)), will want to make sure to guide you and empower you to make the right decision. By the same token, you nust make sure you are being served by the right professionals along the way, including the lender you choose – and the choice is yours.

Speak to them (there’s no charge or obligation for this process – we all get paid when we close the deal), reach them by email, ask them to call you, see how responsive they are, do they answer all your questions to your satisfaction and like in a beauty contest – you’ll need to then choose a winner  😉

With the situation in condo financing the way it is, you don’t want to waste your time using an agent who does not know how to qualify your buyer (if you are selling), or if you are buying, qualify and guide you as a buyer. Either can kill the deal and potentially cost you money.

Other points to consider is the recent Halt of all foreclosures by some of the major lenders (see previous post), and the fact that condo units in some buildings simply, can only be purchased with cash since no financing may be possible in many of them due to current market conditions.

In short, buying real estate is not like buying a can of beans at the supermarket. You  don’t just pick one, pay for it, and enjoy it. Most people find buying a car confusing. Buying real estate is no different and, being that this is among the largest purchase you’ll make, you should approach it responsibly.

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Your comments / opinion welcomed

Pending Sales Up in Miami-Dade County’s Eastern Corridor by as much as 2,250%

In Distressed Sales, florida, forclosure, foreclosure, Home Buyer, home sellers, Industry trends, Market Report, miami beach, Miami-Dade County, real estate, REO, Sellers, Short Sales, South Beach, Wenceslao on October 4, 2010 at 3:46 pm

Pending home sales show another gain (see further below for Miami charts)

WASHINGTON – Oct. 4, 2010 – Pending home sales have increased for the second consecutive month, according to the National Association of Realtors® (NAR).

The Pending Home Sales Index (PHSI), a forward-looking indicator, rose 4.3 percent to 82.3 based on contracts signed in August from a downwardly revised 78.9 in July, but is 20.1 percent below August 2009 when it was 103.0. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, says the latest data is consistent with a gradual improvement in home sales in upcoming months. “Attractive affordability conditions from very low mortgage interest rates appear to be bringing buyers back to the market,” he says. “However, the pace of a home sales recovery still depends more on job creation and an accompanying rise in consumer confidence.”

Although Yun expects a continuing steady rise in home sales from favorable affordability conditions and some job creation, he cautions any sudden rise in mortgage rates could slow the recovery.

“Current low consumer price inflation has helped keep mortgage interest rates very attractive this year. However, recent rising trends in producer prices at the intermediate and early stages of production, along with very high commodity prices, are raising concerns about future inflation and future mortgage interest rates,” he says. “Higher inflation would mean higher mortgage interest rates. In the meantime, housing affordability is hovering near record highs.”

The PHSI in the Northeast declined 2.9 percent to 60.6 in August and remains 28.8 percent below August 2009. In the Midwest the index rose 2.1 percent in August to 68.0 but is 26.5 percent below a year ago. Pending home sales in the South increased 6.7 percent to an index of 90.8 but are 13.1 percent below August 2009. In the West the index rose 6.4 percent to 101.1 but remains 19.6 percent below a year ago.

Reprinted by Permission: © 2010 Florida Realtors®

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In Miami-Dade county’s Eastern corridor, roughly covering Brickell, Downtown Miami, Biscayne Boulevard and the beaches (from South Beach to Sunny Isles Beach), Pending sales have also shown recilliance.

1 month 1 year
Jul 10 Aug 10 % Change Aug 09 Aug 10 % Change
For Sale 10009 10043 0.3% 11261 10043 -10.8%
New Listing 1747 1760 0.7% 1420 1760 23.9%
Sold 584 523 -10.4% 484 523 8.1%
Pended 793 894 12.7% 762 894 17.3%

To brake it down, here’s how it all looks like by property type/segment and by whether distressed (short sale or REO) vs. non-distressed (regular sales)

Single Family Homes (all)

1 month 1 year
Jul 10 Aug 10 % Change Aug 09 Aug 10 % Change
For Sale 1459 1488 2% 1672 1488 -11%
New Listing 278 301 8.3% 235 301 28.1%
Sold 93 89 -4.3% 81 89 9.9%
Pended 131 139 6.1% 142 139 -2.1%

Single Family Homes – Non-Distressed (not Short Sales or REO)

1 month 1 year
Jul 10 Aug 10 % Change Aug 09 Aug 10 % Change
For Sale 1042 1070 2.7% 1312 1070 -18.4%
New Listing 169 180 6.5% 214 180 -15.9%
Sold 51 49 -3.9% 52 49 -5.8%
Pended 53 41 -22.6% 105 41 -61%

Single Family Homes – Short Sales

1 month 1 year
Jul 10 Aug 10 % Change Aug 09 Aug 10 % Change
For Sale 336 333 -0.9% 316 333 5.4%
New Listing 57 66 15.8% 3 66 2100%
Sold 15 20 33.3% 1 20 1900%
Pended 43 47 9.3% 2 47 2250%

This is by far the best segment of the market with 2,250% increase in Pending Sales year-over-year

Single Family Homes -REOs*

1 month 1 year
Jul 10 Aug 10 % Change Aug 09 Aug 10 % Change
For Sale 79 83 5.1% 44 83 88.6%
New Listing 52 55 5.8% 18 55 205.6%
Sold 27 20 -25.9% 28 20 -28.6%
Pended 35 51 45.7% 35 51 45.7%

*Based on recent developments, this segment should experience a MAJOR SHIFT – see earlier post “Foreclosures Halted! What does it mean to you?

Condo/Townhouse (all)

1 month 1 year
Jul 10 Aug 10 % Change Aug 09 Aug 10 % Change
For Sale 8550 8555 0.1% 9589 8555 -10.8%
New Listing 1469 1459 -0.7% 1185 1459 23.1%
Sold 491 434 -11.6% 403 434 7.7%
Pended 662 755 14% 620 755 21.8%

Condo/Townhouse – Non-Distressed (not Short Sales or REOs)

1 month 1 year
Jul 10 Aug 10 % Change Aug 09 Aug 10 % Change
For Sale 6161 6154 -0.1% 7374 6154 -16.5%
New Listing 838 842 0.5% 758 842 11.1%
Sold 237 182 -23.2% 224 182 -18.7%
Pended 205 234 14.1% 264 234 -11.4%

Condo/Townhouse – Short Sales

1 month 1 year
Jul 10 Aug 10 % Change Aug 09 Aug 10 % Change
For Sale 1940 1927 -0.7% 2021 1927 -4.7%
New Listing 348 308 -11.5% 319 308 -3.4%
Sold 120 92 -23.3% 63 92 46%
Pended 252 255 1.2% 254 255 0.4%

Condo/Townhouse -REO*

1 month 1 year
Jul 10 Aug 10 % Change Aug 09 Aug 10 % Change
For Sale 447 472 5.6% 197 472 139.6%
New Listing 283 309 9.2% 108 309 186.1%
Sold 134 160 19.4% 116 160 37.9%
Pended 205 266 29.8% 102 266 160.8%

*Although to date, the second best segment of Pending Sales in this market and in the areas covered in this report – please refer to previous post “Foreclosures HALTED! What does it mean to you?

All charts copyrighted –  courtesy Trendgraphix, Inc

1 month 1 year
Jul 10 Aug 10 % Change Aug 09 Aug 10 % Change
For Sale 10009 10043 0.3% 11261 10043 -10.8%
New Listing 1747 1760 0.7% 1420 1760 23.9%
Sold 584 523 -10.4% 484 523 8.1%
Pended 793 894 12.7% 762 894 17.3%

New Federal Website Helps Homeowners in Distress Find Reliable Information

In Distressed Sales, fannie mae, government, home sellers, Market Report, real estate, Sellers, Wenceslao on August 24, 2010 at 3:44 pm

Facing foreclosure? New Fannie Mae website helps consumers find options.

WASHINGTON – Aug. 16, 2010 – Fannie Mae launched a new website to help consumers understand their options when facing foreclosure and the possible loss of their home. Called KnowYourOptions.com, it outlines the choices available to homeowners struggling to make mortgage payments, and provides guidance on how they can contact and work with their mortgage company to find a back-up plan.

KnowYourOptions.com provides information in both English and Spanish. Features include:

• Interactive Options Finder helps homeowners identify options.

• Calculators help borrowers understand how many of the options would work in their situation, including calculations about refinance, repayment, forbearance, and modification.

• Videos feature real homeowners discussing how they received help; others feature housing counselors giving advice.

• Forms – including a financial checklist and contact log – to help borrowers prepare for a meeting with their mortgage company or housing counselor.

• Information on refinancing, repayment plans, forbearance, modifications and Deed-for-Lease.

• Out-of-the-box alternatives, including short sales and deeds-in-lieu for homeowners who recognize that they can no longer afford their mortgages, but want to avoid a foreclosure on their credit history

More info: www.KnowYourOptions.com.

Reprinted by Permission: © 2010 Florida Realtors®

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FOR LOCAL ASSISTANCE you may also click HERE: http://DistressedBeachHomeSolutions.com

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