TALLAHASSEE, Fla. – Sept. 23, 2010 – A bill passed by the Florida Legislature, SB 550, requires septic tank homeowners to have an inspection every five years. The Florida Department of Health (DOH) is now drafting rules for compliance. The law becomes effective on Jan. 1, 2011, with the inspection component phased in over the following five years.
The Legislature created stricter septic tank rules to protect the environment. Better septic systems are designed to filter out more nitrogen, which feed weeds and algae.
But the rule comes at a significant cost to the state’s 2.6 million homeowners that rely on a septic tank, and Florida lawmakers representing rural counties that rely heavily on septic tanks – Rep. Marti Coley (R-Marianna) and Sen. Evelyn Lynn (R-Ormond Beach) – have promised to introduce legislation next year to repeal the septic tank inspection measure.
“I just simply think that to mandate every five years for every homeowner with a septic tank to have it inspected is unnecessary and big government,” Coley says.
The DOH has heard from a number of counties and homeowners worried about the $100 to $300 cost of a septic inspection, and Gerald Briggs, DOH’s bureau chief for onsite sewage programs, says he’s “very concerned this will cost property owners,” and “we are making sure the cost is as low as we can make.”
State officials believe some septic tanks pollute more than others, and the mandatory inspections will help identify those homes. If an inspection does uncover a major problem, new drain fields could cost homeowners as much as $5,000 or $6,000 to fix, according to Sam Averett, president of Averett Septic Tank in Lakeland.
“Every system needs to be maintained,” Averett said. “You are affecting some water body somewhere – everywhere in the state … If the homeowners were maintaining their systems to begin with this would not be an issue – but they are not.”
Source: Bruce Ritchie, 09/21/2010 © 2010 Florida Realtors®
Thursday, September 23, 2010
Wednesday, September 22, 2010
Florida again #1... but for the wrong reasons.
MIAMI – Sept. 22, 2010 – Mortgage fraud is responsible for untold trillions of dollars in bad loans currently defaulting across the country, and Florida has played a starring role in the tragedy, a federal commission said during a hearing in Miami on Tuesday.
A panel of national and local experts sat before the federal Financial Crisis Inquiry Commission during a hearing focused on liar’s loans, predatory mortgage practices and shady home appraisals. They concluded that the financial impact of the fraud was more severe than most have estimated, and prosecuting those responsible will be nearly impossible. It was the third of four hearings being carried out nationwide by the commission, which Congress assembled last year to investigate the causes of the global financial meltdown.
‘A central issue’
“Mortgage fraud is not just a side issue – in many ways it’s a central issue of this financial collapse,” former Florida Sen. Bob Graham, a commission member, said after the hearing. “I was stunned at the extent and the dollar impact of mortgage fraud and its contribution to the worst financial meltdown in half a century.”
Five hours of expert testimony painted a picture of a system wrought with regulatory inadequacies and financial incentives for unscrupulous behavior at nearly every level. The result, panelists said, was more than $1 trillion lost by banks, homeowners and, ultimately, the U.S. taxpayer between 2005 and 2007 alone. As many as 70 percent of mortgages now in foreclosure were the result of at least one element of fraud, said Ann Fulmer, vice president at Interthinx, a risk-mitigation firm that does extensive mortgage fraud research.
The hearing also laid out the laundry list of challenges local law enforcement officials face as they try to track down and prosecute the predatory lenders and mortgage fraudsters active in Florida during the housing boom.
Compared to the savings and loan crisis of the 1980s and 1990s, which saw more than 1,000 mid- and high-level executives jailed for white-collar crime, mortgage fraud convictions have been paltry, panelists said. Solving mortgage fraud cases is difficult because the process is time-intensive and proving “intent” can be nearly impossible, said Ellen Wilcox, a special agent with the Florida Department of Law Enforcement.
Another challenge: Florida’s statute of limitations means fraudulent loans issued more than three years ago are no longer subject to prosecution.
“Most mortgage fraud will not be reported until the mortgage goes bad, but the ‘crime’ occurred when the money was lent,” Wilcox said. “If there was mortgage fraud in the granting of a mortgage loan in 2004, it can not longer be criminally charged.”
The average mortgage fraud case takes one to two years to investigate, she added.
Law-enforcement officials are also generally under-equipped to face down Florida’s nation-leading fraud problem – the Mortgage Asset Research Institute has ranked the state No. 1 in the country for mortgage fraud since 2006, with nearly three times the normal amount of reported cases.
Still, some progress has been made, and the general consensus is that many of the individual bad apples involved in mid-decade mortgage fraud have been pushed out by market forces, tougher regulation and law enforcement.
Task force launched
In 2007, Miami-Dade police and Mayor Carlos Alvarez launched the Mortgage Fraud Task Force and lobbied for tougher regulatory laws, said Miami-Dade police Capt. Ed Gallagher. Since then, Miami-Dade police have made 239 arrests for mortgage fraud. The U.S. attorney’s office Mortgage Fraud Strike Force has gotten 401 convictions since 2007, said Wilfredo Ferrer, U.S. attorney for the Southern District of Florida.
The Florida Office of Financial Regulation has put together a task force to curb the latest wave of real estate fraud – mortgage modification schemes, said commissioner J. Thomas Cardwell.
Graham and other FCIC commissioners plan to use Tuesday’s findings as part of a comprehensive financial crisis report, due to the president by Dec. 15. Graham said he hoped that report would help policymakers better understand the regulatory and market forces that led to the costly mortgage fraud crisis.
“The role of government as a regulator had gotten – as it did in so many other areas of finance – fairly soft and flabby during the early part of this century,” he said. “Hopefully, one of the positive outcomes of this terrible experience is that the agencies will be better supported, staffed and given the capability to be a lion and not a toothless tiger.”
Copyright © 2010 The Miami Herald, Toluse Olorunnipa. Distributed by McClatchy-Tribune Information Services.
A panel of national and local experts sat before the federal Financial Crisis Inquiry Commission during a hearing focused on liar’s loans, predatory mortgage practices and shady home appraisals. They concluded that the financial impact of the fraud was more severe than most have estimated, and prosecuting those responsible will be nearly impossible. It was the third of four hearings being carried out nationwide by the commission, which Congress assembled last year to investigate the causes of the global financial meltdown.
‘A central issue’
“Mortgage fraud is not just a side issue – in many ways it’s a central issue of this financial collapse,” former Florida Sen. Bob Graham, a commission member, said after the hearing. “I was stunned at the extent and the dollar impact of mortgage fraud and its contribution to the worst financial meltdown in half a century.”
Five hours of expert testimony painted a picture of a system wrought with regulatory inadequacies and financial incentives for unscrupulous behavior at nearly every level. The result, panelists said, was more than $1 trillion lost by banks, homeowners and, ultimately, the U.S. taxpayer between 2005 and 2007 alone. As many as 70 percent of mortgages now in foreclosure were the result of at least one element of fraud, said Ann Fulmer, vice president at Interthinx, a risk-mitigation firm that does extensive mortgage fraud research.
The hearing also laid out the laundry list of challenges local law enforcement officials face as they try to track down and prosecute the predatory lenders and mortgage fraudsters active in Florida during the housing boom.
Compared to the savings and loan crisis of the 1980s and 1990s, which saw more than 1,000 mid- and high-level executives jailed for white-collar crime, mortgage fraud convictions have been paltry, panelists said. Solving mortgage fraud cases is difficult because the process is time-intensive and proving “intent” can be nearly impossible, said Ellen Wilcox, a special agent with the Florida Department of Law Enforcement.
Another challenge: Florida’s statute of limitations means fraudulent loans issued more than three years ago are no longer subject to prosecution.
“Most mortgage fraud will not be reported until the mortgage goes bad, but the ‘crime’ occurred when the money was lent,” Wilcox said. “If there was mortgage fraud in the granting of a mortgage loan in 2004, it can not longer be criminally charged.”
The average mortgage fraud case takes one to two years to investigate, she added.
Law-enforcement officials are also generally under-equipped to face down Florida’s nation-leading fraud problem – the Mortgage Asset Research Institute has ranked the state No. 1 in the country for mortgage fraud since 2006, with nearly three times the normal amount of reported cases.
Still, some progress has been made, and the general consensus is that many of the individual bad apples involved in mid-decade mortgage fraud have been pushed out by market forces, tougher regulation and law enforcement.
Task force launched
In 2007, Miami-Dade police and Mayor Carlos Alvarez launched the Mortgage Fraud Task Force and lobbied for tougher regulatory laws, said Miami-Dade police Capt. Ed Gallagher. Since then, Miami-Dade police have made 239 arrests for mortgage fraud. The U.S. attorney’s office Mortgage Fraud Strike Force has gotten 401 convictions since 2007, said Wilfredo Ferrer, U.S. attorney for the Southern District of Florida.
The Florida Office of Financial Regulation has put together a task force to curb the latest wave of real estate fraud – mortgage modification schemes, said commissioner J. Thomas Cardwell.
Graham and other FCIC commissioners plan to use Tuesday’s findings as part of a comprehensive financial crisis report, due to the president by Dec. 15. Graham said he hoped that report would help policymakers better understand the regulatory and market forces that led to the costly mortgage fraud crisis.
“The role of government as a regulator had gotten – as it did in so many other areas of finance – fairly soft and flabby during the early part of this century,” he said. “Hopefully, one of the positive outcomes of this terrible experience is that the agencies will be better supported, staffed and given the capability to be a lion and not a toothless tiger.”
Copyright © 2010 The Miami Herald, Toluse Olorunnipa. Distributed by McClatchy-Tribune Information Services.
Thursday, September 16, 2010
Tips to help owners spot foreclosure scams
WASHINGTON – Sept. 15, 2010 – Last year, the U.S. Federal Trade Commission identified 71 companies running suspicious foreclosure rescue ads. This year, the Better Business Bureau named foreclosure rescue rip-offs among its top 10 scams.
Here are just two common scams identified in the September “Foreclosure Resource Guide” now available at the National Association of Realtors® (NAR) Realtor Content Resource:
• A representative of a so-called foreclosure rescue company promises to negotiate a deal with your lender, instructing you not to contact your lender, lawyer or credit counselor during the supposed negotiations. After you pay an up-front fee or a few months of mortgage payments, the scam artist disappears.
• A scam artist promises to fend off foreclosure in exchange for an up-front fee. Instead of getting you legitimate relief, the fraudster pockets the fee and secretly files a bankruptcy case in your name.
Also covered in the “Foreclosure Resource Guide” are free tips on what to do immediately if you’re facing foreclosure, five foreclosure pros you need on your team, what foreclosure counselors can and can’t do, and website resources for foreclosure help.
NAR’s Realtor Content Resource is an exclusive member benefit that entitles Realtors to download free homeownership content from HouseLogic to your consumer website, blog, or e-newsletter. HouseLogic is NAR’s consumer website geared to helping homeowners make smart decisions to enhance, maintain and protect the value of their home.
For more information, go to the Realtor® Content Resource at: http://www.houselogic.com/members/?nicmp=RCRIM&nichn=editorial&niseg=RMONews1_20100905
© 2010 Florida Realtors®
Here are just two common scams identified in the September “Foreclosure Resource Guide” now available at the National Association of Realtors® (NAR) Realtor Content Resource:
• A representative of a so-called foreclosure rescue company promises to negotiate a deal with your lender, instructing you not to contact your lender, lawyer or credit counselor during the supposed negotiations. After you pay an up-front fee or a few months of mortgage payments, the scam artist disappears.
• A scam artist promises to fend off foreclosure in exchange for an up-front fee. Instead of getting you legitimate relief, the fraudster pockets the fee and secretly files a bankruptcy case in your name.
Also covered in the “Foreclosure Resource Guide” are free tips on what to do immediately if you’re facing foreclosure, five foreclosure pros you need on your team, what foreclosure counselors can and can’t do, and website resources for foreclosure help.
NAR’s Realtor Content Resource is an exclusive member benefit that entitles Realtors to download free homeownership content from HouseLogic to your consumer website, blog, or e-newsletter. HouseLogic is NAR’s consumer website geared to helping homeowners make smart decisions to enhance, maintain and protect the value of their home.
For more information, go to the Realtor® Content Resource at: http://www.houselogic.com/members/?nicmp=RCRIM&nichn=editorial&niseg=RMONews1_20100905
© 2010 Florida Realtors®
Did you know?
Florida, California, Arizona and Texas account for 53% of all purchases by international buyers and have remained the top destination for three years in a row, with Florida topping the list?
Wednesday, September 15, 2010
Florida. economy improves, but fragile
TALLAHASSEE, Fla. – Sept. 15, 2010 – Florida’s budget picture is improving but remains shaky, with unemployment expected to climb through the autumn and foreclosures still outpacing home sales, a legislative budget panel was told Tuesday.
Analysts reduced next year’s anticipated budget shortfall to $2.5 billion – down from a $5.5 billion gap for 2011-12 that was projected last year. But the red ink will continue to course through Florida’s spending plans for the next three years as federal stimulus dollars dry up, Medicaid costs climb, and the economy remains fragile, analysts said.
“We know the recovery is going to be uneven – with a lot of ups and downs,” the Legislature’s chief economist, Amy Baker, told the Legislative Budget Commission (LBC).
The LBC formally adopted the three-year budget outlook presented by Baker and compiled by analysts and economists from several budget and policy committees. The outlook effectively serves as a guidepost for lawmakers, based on what analysts say are “events that are known or likely to occur.”
Baker conceded, however, that some potential budget factors remain difficult to gauge. The financial impact of the Deepwater Horizon oil spill was not included in Tuesday’s forecast, but Baker counseled that preliminary estimates show that its impact on Florida’s economy is “not going to be some of the huge, frightening numbers that came out after the disaster.”
Other potential high-impact events include the possibility of a spate of commercial real estate defaults triggering bank failures. Thirty-seven Florida banks have collapsed in the past 18 months, Baker said.
Hurricanes and the prospect of a double-dip recession also are on state economists’ watch list.
The downsized budget gap for next year is credited to the role of federal stimulus dollars, years of budget cuts, and the arrival of Indian gambling money. But it also prompted sharp-edged questioning from Rep. Ron Saunders of Key West, designated as the incoming House Democratic leader, aimed at Republican gubernatorial candidate Rick Scott.
Scott opposes the federal stimulus dollars, which poured $2.5 billion into the state’s current, $70.2 billion budget. State spending also was eased by $855 million in enhanced Medicaid spending approved this summer by Congress and distributed Tuesday by the LBC across five major health programs.
Scott also has called for eliminating the state’s corporate income tax, which is on track to bring $1.8 billion into next year’s budget.
“I think it shows Rick Scott’s lack of understanding about how the state budget works,” Saunders said.
Scott’s campaign spokeswoman, Jennifer Baker, has said the Republican candidate is a political outsider with a “proven track record of creating jobs, balancing budgets.”
Democrat Alex Sink has outlined a more sweeping “government reform and accountability plan” that she says would yield $700 million in first-year spending cuts. The reductions, however, may prove inflated since many of the changes she proposes are confined to such steps as reducing state office space, eliminating unneeded layers of management, and bolstering the state’s hand in contracting.
Whoever is elected governor in November is almost assured of facing a still-bleak economic outlook, according to details presented Tuesday by Baker.
Florida’s 11.5 percent unemployment rate – two percentage points above the national average – is expected to tick upward in coming months, analysts said, based on formerly discouraged workers returning to the job markets amid some signs of improvement.
Two regions of the state, Cape Coral/Fort Myers, and greater Orlando, remain in the nation’s top 10 for the number of foreclosure filings – with Florida second in the nation, overall. Median home prices in the state are 22 percent below the national average, a level that has helped spur sales and may eventually contribute to the economic recovery, Baker told lawmakers.
Still, amid the rising home sales there are ominous signs, she warned. Fifty-percent of Florida home sales are currently being conducted by banks on foreclosed properties or on quick, lower-priced “short sales,” Baker said.
Source: News Service of Florida, John Kennedy
Carmen Bongiovanni, e-pro
Watson Realty Corp
386-246-9239
http://CarmenAndGeorge.com
Analysts reduced next year’s anticipated budget shortfall to $2.5 billion – down from a $5.5 billion gap for 2011-12 that was projected last year. But the red ink will continue to course through Florida’s spending plans for the next three years as federal stimulus dollars dry up, Medicaid costs climb, and the economy remains fragile, analysts said.
“We know the recovery is going to be uneven – with a lot of ups and downs,” the Legislature’s chief economist, Amy Baker, told the Legislative Budget Commission (LBC).
The LBC formally adopted the three-year budget outlook presented by Baker and compiled by analysts and economists from several budget and policy committees. The outlook effectively serves as a guidepost for lawmakers, based on what analysts say are “events that are known or likely to occur.”
Baker conceded, however, that some potential budget factors remain difficult to gauge. The financial impact of the Deepwater Horizon oil spill was not included in Tuesday’s forecast, but Baker counseled that preliminary estimates show that its impact on Florida’s economy is “not going to be some of the huge, frightening numbers that came out after the disaster.”
Other potential high-impact events include the possibility of a spate of commercial real estate defaults triggering bank failures. Thirty-seven Florida banks have collapsed in the past 18 months, Baker said.
Hurricanes and the prospect of a double-dip recession also are on state economists’ watch list.
The downsized budget gap for next year is credited to the role of federal stimulus dollars, years of budget cuts, and the arrival of Indian gambling money. But it also prompted sharp-edged questioning from Rep. Ron Saunders of Key West, designated as the incoming House Democratic leader, aimed at Republican gubernatorial candidate Rick Scott.
Scott opposes the federal stimulus dollars, which poured $2.5 billion into the state’s current, $70.2 billion budget. State spending also was eased by $855 million in enhanced Medicaid spending approved this summer by Congress and distributed Tuesday by the LBC across five major health programs.
Scott also has called for eliminating the state’s corporate income tax, which is on track to bring $1.8 billion into next year’s budget.
“I think it shows Rick Scott’s lack of understanding about how the state budget works,” Saunders said.
Scott’s campaign spokeswoman, Jennifer Baker, has said the Republican candidate is a political outsider with a “proven track record of creating jobs, balancing budgets.”
Democrat Alex Sink has outlined a more sweeping “government reform and accountability plan” that she says would yield $700 million in first-year spending cuts. The reductions, however, may prove inflated since many of the changes she proposes are confined to such steps as reducing state office space, eliminating unneeded layers of management, and bolstering the state’s hand in contracting.
Whoever is elected governor in November is almost assured of facing a still-bleak economic outlook, according to details presented Tuesday by Baker.
Florida’s 11.5 percent unemployment rate – two percentage points above the national average – is expected to tick upward in coming months, analysts said, based on formerly discouraged workers returning to the job markets amid some signs of improvement.
Two regions of the state, Cape Coral/Fort Myers, and greater Orlando, remain in the nation’s top 10 for the number of foreclosure filings – with Florida second in the nation, overall. Median home prices in the state are 22 percent below the national average, a level that has helped spur sales and may eventually contribute to the economic recovery, Baker told lawmakers.
Still, amid the rising home sales there are ominous signs, she warned. Fifty-percent of Florida home sales are currently being conducted by banks on foreclosed properties or on quick, lower-priced “short sales,” Baker said.
Source: News Service of Florida, John Kennedy
Carmen Bongiovanni, e-pro
Watson Realty Corp
386-246-9239
http://CarmenAndGeorge.com
Friday, August 20, 2010
Buy Owner service is in liquidation
BOCA RATON, Fla. – Aug. 20, 2010 – The Buy Owner broker-free real estate firm, known for its familiar “Thanks, Buy Owner” advertisements, has filed for liquidation as the housing market continues to struggle.
The Deerfield Beach-based company will continue to operate with a reduced staff as a buyer is sought for its assets, which could include the purchase of the firm in its entirety, minus its debt.
“The phones, as far as people interested in the service, remain very active, and we are signing up new clients everyday,” said Philip J. von Kahle, managing director for Michael Moecker & Associates, which is the assignee for Buy Owner. “There is still a very valuable core business here.”
Buy Owner president and CEO Scott A. Eckert lives in Boca Raton.
The company filed last month for an assignment for the benefit of creditors in Broward County, which is similar to a Chapter 7 federal bankruptcy but in state court. As assignee, the Fort Lauderdale-based Michael Moecker & Associates, is responsible for maximizing the assets of the company so creditors can get paid.
Von Kahle said the combination of a down real estate market and a large Bank of America loan that recently required payment led to the liquidation filing. According to court documents, Buy Owner owes about $3.9 million to Bank of America, and $1.2 million in back pay to its executives, including Eckert. It has 33 shareholders.
Buy Owner, founded in 1984, charges fees to sellers based on how much exposure they want on its website, and what features, such as custom fliers or talking yard signs, they choose. It is free to buyers.
The company has franchises in Atlanta, Chicago, Dallas, Jacksonville, New Orleans, Orlando, Philadelphia and Tampa.
“I don’t think the company could scale down quick enough because it got so big,” said von Kahle. “It appears to me the loan from Bank of America was the straw that broke the camel’s back.”
A 2009 Florida Realtors report found about 10 percent of homes sold last year did so without the help of a Realtor.
Leyza Blanco, an attorney with Miami-based GrayRobinson, P.A. who is representing Michael Moecker & Associates, said she has filed a motion to allow for liquidation of the business as a whole, rather than its parts. Because Buy Owner is a service-based company, that could maximize profits, Blanco said.
“There’s not a lot of tangible assets that you can just take apart and sell,” she said.
Creditors have until Nov. 23 to file claims against the company.
Copyright © 2010 The Palm Beach Post, Fla. Distributed by McClatchy-Tribune Information Services
The Deerfield Beach-based company will continue to operate with a reduced staff as a buyer is sought for its assets, which could include the purchase of the firm in its entirety, minus its debt.
“The phones, as far as people interested in the service, remain very active, and we are signing up new clients everyday,” said Philip J. von Kahle, managing director for Michael Moecker & Associates, which is the assignee for Buy Owner. “There is still a very valuable core business here.”
Buy Owner president and CEO Scott A. Eckert lives in Boca Raton.
The company filed last month for an assignment for the benefit of creditors in Broward County, which is similar to a Chapter 7 federal bankruptcy but in state court. As assignee, the Fort Lauderdale-based Michael Moecker & Associates, is responsible for maximizing the assets of the company so creditors can get paid.
Von Kahle said the combination of a down real estate market and a large Bank of America loan that recently required payment led to the liquidation filing. According to court documents, Buy Owner owes about $3.9 million to Bank of America, and $1.2 million in back pay to its executives, including Eckert. It has 33 shareholders.
Buy Owner, founded in 1984, charges fees to sellers based on how much exposure they want on its website, and what features, such as custom fliers or talking yard signs, they choose. It is free to buyers.
The company has franchises in Atlanta, Chicago, Dallas, Jacksonville, New Orleans, Orlando, Philadelphia and Tampa.
“I don’t think the company could scale down quick enough because it got so big,” said von Kahle. “It appears to me the loan from Bank of America was the straw that broke the camel’s back.”
A 2009 Florida Realtors report found about 10 percent of homes sold last year did so without the help of a Realtor.
Leyza Blanco, an attorney with Miami-based GrayRobinson, P.A. who is representing Michael Moecker & Associates, said she has filed a motion to allow for liquidation of the business as a whole, rather than its parts. Because Buy Owner is a service-based company, that could maximize profits, Blanco said.
“There’s not a lot of tangible assets that you can just take apart and sell,” she said.
Creditors have until Nov. 23 to file claims against the company.
Copyright © 2010 The Palm Beach Post, Fla. Distributed by McClatchy-Tribune Information Services
Monday, August 16, 2010
Wednesday, August 11, 2010
Early voting begins in primaries
Early voting begins in primaries
TALLAHASSEE, Fla. – Aug. 10, 2010 – Voters around the state began casting ballots Monday through Florida’s early voting program that continues for the next two weeks leading up to the actual primary Election Day.
Counties across the state reported a steady stream of voters showing up on the first day for an election that will decide highly contested primaries in the Republican governor’s race between former Columbia/HCA executive Rick Scott and Attorney General Bill McCollum, and the Democratic U.S. Senate election between U.S. Rep. Kendrick Meek, South Florida businessman Jeff Greene and former Miami Mayor Maurice Ferre.
“I think you’ve got a lot of turmoil, a lot of political attacks going on,” says Leon County Supervisor of Elections Ion Sancho, who predicts that turnout in Tallahassee will surpass the 31 percent turnout of the 2008 primary. “I think in terms of the primary itself, there’s a lot more attention.”
Heading into the primary, there are 4,601,771 Democrats registered in the state and 3,997,998 Republicans. There are about 2.1 million voters without a party affiliation.
Source: News Service of Florida, Kathleen Haughney
TALLAHASSEE, Fla. – Aug. 10, 2010 – Voters around the state began casting ballots Monday through Florida’s early voting program that continues for the next two weeks leading up to the actual primary Election Day.
Counties across the state reported a steady stream of voters showing up on the first day for an election that will decide highly contested primaries in the Republican governor’s race between former Columbia/HCA executive Rick Scott and Attorney General Bill McCollum, and the Democratic U.S. Senate election between U.S. Rep. Kendrick Meek, South Florida businessman Jeff Greene and former Miami Mayor Maurice Ferre.
“I think you’ve got a lot of turmoil, a lot of political attacks going on,” says Leon County Supervisor of Elections Ion Sancho, who predicts that turnout in Tallahassee will surpass the 31 percent turnout of the 2008 primary. “I think in terms of the primary itself, there’s a lot more attention.”
Heading into the primary, there are 4,601,771 Democrats registered in the state and 3,997,998 Republicans. There are about 2.1 million voters without a party affiliation.
Source: News Service of Florida, Kathleen Haughney
Friday, August 6, 2010
Forecasters maintain call for active hurricane season
FORT LAUDERDALE, Fla. – Aug. 6, 2010 – Government forecasters slightly reduced their tropical predictions on Thursday yet still call for a highly active season with 14 to 20 named storms, including eight to 12 hurricanes.
With the busiest stretch upcoming, the National Oceanic and Atmospheric Administration predicts four to six of the hurricanes will be major with sustained winds greater than 110 mph.
“The key message is that we can expect well above normal activity for the rest of the season,” said Gerry Bell, NOAA’s lead hurricane forecaster.
Meanwhile, Tropical Storm Colin was resurrected on Thursday and expected to either brush or directly hit Bermuda on Saturday. Then it was expected to curve out to sea without growing into a hurricane. The system briefly grew to tropical storm status on Tuesday and disintegrated into an open wave.
NOAA reduced its forecast a notch because it expected more storms to pop up in June and July, Bell said.
Because three named storms already have emerged, including Hurricane Alex and Tropical Storms Bonnie and Colin, NOAA calls for up to 17 named storms, including up to 11 hurricanes, to develop over the rest of the season, which ends on Nov. 30.
In late May, NOAA released an outlook calling for 14 to 23 named storms, including eight to 14 hurricanes. The average season sees 11 named storms, including six hurricanes.
NOAA cites three main reasons for maintaining a busy forecast: abnormally warm water in the tropics; a decades-long era of Atlantic hurricane intensity and the emergence of La Nina, an atmospheric condition that nurtures tropical systems.
Historically, the busiest stretch of the season is from mid-August through early October.
Copyright © 2010 Sun Sentinel, Ken Kaye. Distributed by McClatchy-Tribune News Service.
With the busiest stretch upcoming, the National Oceanic and Atmospheric Administration predicts four to six of the hurricanes will be major with sustained winds greater than 110 mph.
“The key message is that we can expect well above normal activity for the rest of the season,” said Gerry Bell, NOAA’s lead hurricane forecaster.
Meanwhile, Tropical Storm Colin was resurrected on Thursday and expected to either brush or directly hit Bermuda on Saturday. Then it was expected to curve out to sea without growing into a hurricane. The system briefly grew to tropical storm status on Tuesday and disintegrated into an open wave.
NOAA reduced its forecast a notch because it expected more storms to pop up in June and July, Bell said.
Because three named storms already have emerged, including Hurricane Alex and Tropical Storms Bonnie and Colin, NOAA calls for up to 17 named storms, including up to 11 hurricanes, to develop over the rest of the season, which ends on Nov. 30.
In late May, NOAA released an outlook calling for 14 to 23 named storms, including eight to 14 hurricanes. The average season sees 11 named storms, including six hurricanes.
NOAA cites three main reasons for maintaining a busy forecast: abnormally warm water in the tropics; a decades-long era of Atlantic hurricane intensity and the emergence of La Nina, an atmospheric condition that nurtures tropical systems.
Historically, the busiest stretch of the season is from mid-August through early October.
Copyright © 2010 Sun Sentinel, Ken Kaye. Distributed by McClatchy-Tribune News Service.
Thursday, August 5, 2010
Five reasons to buy a home now
ORLANDO, Fla. – Aug. 4, 2010 – The tax credit expired, but it’s still a great time to buy a home thanks to low mortgage rates and motivated sellers. Here are five reasons why now is a great time to buy:
1. Low mortgage rates serve as an equity shock absorber. When buyers borrow at today’s record-low rates, they start building equity as soon as they close. That means they can absorb a few ups and downs as the still-recovering housing market gains traction.
2. Houses are in move-in condition. Homeowners continue to spend on maintenance and repair, according to the Harvard Joint Center on Housing. As these houses enter the market, they stand in marked contrast to tattered foreclosures.
3. Terrific houses are coming on the market. Foreclosures are finally starting to clear the system, and they are being replaced by some very attractive properties.
4. Appraisal regulations are finally aligned with market realities. Fannie Mae has adjusted its appraisal guidelines, giving appraisers more flexibility to set values that reflect the current market.
5. Plenty of programs. Many programs that encourage middle-class families to buy homes still exist, despite market downturns. Buyers who qualify can get a big boost by combining one of these programs with today’s low mortgage rates.
Source: ForSaleByOwner.com (07/29/2010)
© Copyright 2010 INFORMATION, INC. Bethesda, MD (301) 215-4688
Tuesday, May 25, 2010
Florida justices refuse to hear homeowner tax case
TALLAHASSEE, Fla. (AP) – May 25, 2010 – A pair of state constitutional amendments that give tax breaks to primary homeowners survived another legal challenge Monday as the Florida Supreme Court refused to hear the case.
That decision, though, may not be the end of the issue.
An appeal to the U.S. Supreme Court is likely, said Florida State University President Emeritus Talbot "Sandy" D'Alemberte, a lawyer for taxpayers who filed the lawsuit.
"The Supreme Court does not take jurisdiction in very many cases, but that's probably where this issue ought to be decided," he said. D'Alemberte said he hadn't yet discussed an appeal with his clients.
The Florida justices' unanimous decision lets stand rulings by a trial judge and appeal court upholding the Save Our Homes Amendment, which took effect in 1995, and Amendment 1, which was effective in 2008.
Save Our Homes limits annual property tax assessment increases to 3 percent for primary homeowners. Amendment 1 has a "portability' provision letting those homeowners take at least part of their accumulated tax break to a new home.
Four recently arrived Florida homeowners – Robert and Katherine Bruner of Tallahassee, Deborah Plitnick of Port Charlotte and Stanley Chamberlin of North Palm Beach – filed the challenge.
They get Save Our Home benefits, but their tax savings are significantly smaller than those of longtime homeowners.
The amendments discriminate against newcomers and those who own other types of property including second homes and businesses, argued D'Alemberte, also a former American Bar Association president.
The lawsuit is one of three that have challenged Save Our Homes, which got on the ballot through a petition drive.
Lee County Property Appraiser Ken Wilkinson, who led the petition campaign, said he was not surprised by the latest ruling.
"I don't think they've had one victory in any of the cases," Wilkinson said. "I think a lot of their arguments have lost wind due to recapture."
Save Our Homes limits tax increases when real estate values go up, but the state's recapture rule has the opposite effect. It raises assessments by up to 3 percent when values drop, which they've been doing in recent years. That's reduced some of the advantage longtime primary homeowners received from Save Our Homes.
Another case that focuses on Save Our Homes and was filed by out-of-state property owners also is awaiting a Florida Supreme Court decision. The third case, attacking both amendments and also filed by out-of-state residents, is back in trial court after the 1st District Court of Appeal ruled it had been improperly dismissed.
Copyright © 2010 The Associated Press, Bill Kaczor, Associated Press writer.
That decision, though, may not be the end of the issue.
An appeal to the U.S. Supreme Court is likely, said Florida State University President Emeritus Talbot "Sandy" D'Alemberte, a lawyer for taxpayers who filed the lawsuit.
"The Supreme Court does not take jurisdiction in very many cases, but that's probably where this issue ought to be decided," he said. D'Alemberte said he hadn't yet discussed an appeal with his clients.
The Florida justices' unanimous decision lets stand rulings by a trial judge and appeal court upholding the Save Our Homes Amendment, which took effect in 1995, and Amendment 1, which was effective in 2008.
Save Our Homes limits annual property tax assessment increases to 3 percent for primary homeowners. Amendment 1 has a "portability' provision letting those homeowners take at least part of their accumulated tax break to a new home.
Four recently arrived Florida homeowners – Robert and Katherine Bruner of Tallahassee, Deborah Plitnick of Port Charlotte and Stanley Chamberlin of North Palm Beach – filed the challenge.
They get Save Our Home benefits, but their tax savings are significantly smaller than those of longtime homeowners.
The amendments discriminate against newcomers and those who own other types of property including second homes and businesses, argued D'Alemberte, also a former American Bar Association president.
The lawsuit is one of three that have challenged Save Our Homes, which got on the ballot through a petition drive.
Lee County Property Appraiser Ken Wilkinson, who led the petition campaign, said he was not surprised by the latest ruling.
"I don't think they've had one victory in any of the cases," Wilkinson said. "I think a lot of their arguments have lost wind due to recapture."
Save Our Homes limits tax increases when real estate values go up, but the state's recapture rule has the opposite effect. It raises assessments by up to 3 percent when values drop, which they've been doing in recent years. That's reduced some of the advantage longtime primary homeowners received from Save Our Homes.
Another case that focuses on Save Our Homes and was filed by out-of-state property owners also is awaiting a Florida Supreme Court decision. The third case, attacking both amendments and also filed by out-of-state residents, is back in trial court after the 1st District Court of Appeal ruled it had been improperly dismissed.
Copyright © 2010 The Associated Press, Bill Kaczor, Associated Press writer.
Friday, May 21, 2010
Thursday, May 20, 2010
What to watch for when buying a vacant home
DETROIT – May 20, 2010 – When it comes to the housing market for foreclosures – buyer beware.
"One mistake that we see all the time is buyers going in and assuming all the mechanicals are working," said Brandon T. Johnson, president of GTJ Consulting in Roseville, Mich. "You have to be careful you don't get burned that way."
Johnson's company maintains foreclosed homes for a number of lenders, Realtors and Freddie Mac. He said the term "as is" shouldn't scare buyers off as long as they know what it means. He recommends that buyers get private inspections on houses they want to buy to avoid surprises such as missing plumbing or water damage.
Here's a list of 10 things to watch for in foreclosed or vacant homes from Ross Kollenberg, mitigation and construction manager for On-Site Specialty Cleaning & Restoration in Troy, Mich:
1. Air quality. This tells a lot about the home's condition. Include air and surface testing in your home inspection. It is a few hundred dollars well spent.
2. Black cobwebs, greasy gray residue on walls and/or a strong oily odor. This is soot damage, which requires professional cleaning, and points to a malfunctioning furnace. It also could be a tip-off that the home had a fire.
3. Discolored subflooring. From the basement, check the subflooring above for stains and small holes, both caused by mold.
4. An older home with extensive renovations. Check with the city for permits: You'll get remodeling details. If asbestos or lead paint is present and has been disturbed, be sure it's been remediated by a certified specialist. It the home has four or five major changes, it may not be up to code, and that could mean extensive fixes for the next owner.
5. Peeling, bubbling, and discolored paint; swelling in walls or ceilings (especially around kitchens and bathrooms); a musty odor: All indicate water damage and, potentially, the presence of moisture and mold.
6. Missing sinks, toilets and other fixtures. Sometimes the previous owner will take the fixtures with them, but won't shut off the pipes or will rip fixtures from the wall. If a pipe was cracked during the fixture removal, it could start a slow leak in the wall that isn't easily seen. Make sure those fixtures have been properly removed and not ripped from walls and floors.
7. Fungus growth inside cabinets, behind drawers and built-ins. That could mean there has been water damage. Since water falls down, look for the source above the mold. One trick inspectors use to determine whether there could be hidden water damage is to pull out the kitchen drawers and look inside to see whether the back wall has been rebuilt. If it has, that could mean water damage has been covered up.
8. Excessive painting of every nook, cranny, door and floor. The seller may be covering up mold. "When you go do a home that is 'landlord white' and the trim is flat, we tell people there is a reason the house was painted this way," Kollenberg said. "When we see it is over everything, it is a tip-off that it is just covering something up."
9. Unheated house in winter months. If the home has been properly winterized, there's no need for heat. If not, pipes will burst and cause water damage.
10. Blocked drains or pipes. These will cause future problems and may have already created sewage backups. Check for a telltale water ring in the basement, Kollenberg said.
Copyright © 2010 Detroit Free Press. Distributed by McClatchy-Tribune Information Services.
"One mistake that we see all the time is buyers going in and assuming all the mechanicals are working," said Brandon T. Johnson, president of GTJ Consulting in Roseville, Mich. "You have to be careful you don't get burned that way."
Johnson's company maintains foreclosed homes for a number of lenders, Realtors and Freddie Mac. He said the term "as is" shouldn't scare buyers off as long as they know what it means. He recommends that buyers get private inspections on houses they want to buy to avoid surprises such as missing plumbing or water damage.
Here's a list of 10 things to watch for in foreclosed or vacant homes from Ross Kollenberg, mitigation and construction manager for On-Site Specialty Cleaning & Restoration in Troy, Mich:
1. Air quality. This tells a lot about the home's condition. Include air and surface testing in your home inspection. It is a few hundred dollars well spent.
2. Black cobwebs, greasy gray residue on walls and/or a strong oily odor. This is soot damage, which requires professional cleaning, and points to a malfunctioning furnace. It also could be a tip-off that the home had a fire.
3. Discolored subflooring. From the basement, check the subflooring above for stains and small holes, both caused by mold.
4. An older home with extensive renovations. Check with the city for permits: You'll get remodeling details. If asbestos or lead paint is present and has been disturbed, be sure it's been remediated by a certified specialist. It the home has four or five major changes, it may not be up to code, and that could mean extensive fixes for the next owner.
5. Peeling, bubbling, and discolored paint; swelling in walls or ceilings (especially around kitchens and bathrooms); a musty odor: All indicate water damage and, potentially, the presence of moisture and mold.
6. Missing sinks, toilets and other fixtures. Sometimes the previous owner will take the fixtures with them, but won't shut off the pipes or will rip fixtures from the wall. If a pipe was cracked during the fixture removal, it could start a slow leak in the wall that isn't easily seen. Make sure those fixtures have been properly removed and not ripped from walls and floors.
7. Fungus growth inside cabinets, behind drawers and built-ins. That could mean there has been water damage. Since water falls down, look for the source above the mold. One trick inspectors use to determine whether there could be hidden water damage is to pull out the kitchen drawers and look inside to see whether the back wall has been rebuilt. If it has, that could mean water damage has been covered up.
8. Excessive painting of every nook, cranny, door and floor. The seller may be covering up mold. "When you go do a home that is 'landlord white' and the trim is flat, we tell people there is a reason the house was painted this way," Kollenberg said. "When we see it is over everything, it is a tip-off that it is just covering something up."
9. Unheated house in winter months. If the home has been properly winterized, there's no need for heat. If not, pipes will burst and cause water damage.
10. Blocked drains or pipes. These will cause future problems and may have already created sewage backups. Check for a telltale water ring in the basement, Kollenberg said.
Copyright © 2010 Detroit Free Press. Distributed by McClatchy-Tribune Information Services.
Wednesday, May 12, 2010
Tuesday, May 11, 2010
Resales of homes & condos up for 1st quarter
ORLANDO, Fla. – May 11, 2010 — Sales of existing single-family homes in Florida rose 24 percent in first quarter 2010 compared to the same period a year earlier, according to the latest housing statistics from Florida Realtors®. A total of 38,846 existing homes sold statewide in 1Q 2010; during the same period the year before, a total of 31,410 existing homes sold. It marks the seventh consecutive quarter that Florida has seen higher existing year-to-year home sales, according to the state association.
Statewide sales of existing condominiums in the first quarter rose 67 percent compared to the same time the previous year. This marks the sixth consecutive quarter for increased statewide sales in both the existing home and condo markets compared to year-ago levels.
"The first quarter data release from the Florida Realtors paints a picture of a housing market continuing down the long road to recovery," said Dr. Sean Snaith, director for the University of Central Florida's Institute for Economic Competitiveness. "Transactions in the single family market have extended quarterly year-over-year gains for nearly two years, and condo sales have also risen sharply. Median prices in most areas of the state continue to fall; however, the rate at which they are falling has diminished significantly and this is indicative of a bottom approaching.
"How long prices stay at the bottom and when price appreciation will reappear will depend in a large part on the improving fundamentals in the economy and credit markets."
The University of Florida's Bergstrom Center for Real Estate Studies' latest quarterly survey of real estate trends also notes positive signs of recovery in the state's real estate industry. The survey polls market research economists, industry executives, real estate scholars and other experts.
"Results indicate that the real estate market in Florida has hit bottom and is in the process of stabilizing across most property types," said Timothy Becker, the center's director. Private capital – both foreign and domestic – continues to enter the state in search of quality investment deals, he added.
Seventeen of Florida's metropolitan statistical areas (MSAs) reported increased sales of existing homes in 1Q 2010 compared to the same three-month-period a year earlier, while all of the MSAs showed gains in condo sales.
The statewide existing-home median sales price was $133,800 in 1Q 2010; a year earlier, it was $140,900 for a decrease of 5 percent. According to industry analysts with the National Association of Realtors® (NAR), sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is a typical market price where half the homes sold for more, half for less.
Inthe year-to-year quarterly comparison for condo sales, 16,897 units sold statewide for the quarter compared to 10,131 in 1Q 2009 for a 67 percent increase. The statewide existing-condo median sales price was $95,800 for the three-month period; in 1Q 2009, it was $110,000 for a decrease of 13 percent.
Low mortgage rates remain another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 5 percent in 1Q 2010; one year earlier, it averaged 5.06 percent.
© 2010 Florida Realtors
Statewide sales of existing condominiums in the first quarter rose 67 percent compared to the same time the previous year. This marks the sixth consecutive quarter for increased statewide sales in both the existing home and condo markets compared to year-ago levels.
"The first quarter data release from the Florida Realtors paints a picture of a housing market continuing down the long road to recovery," said Dr. Sean Snaith, director for the University of Central Florida's Institute for Economic Competitiveness. "Transactions in the single family market have extended quarterly year-over-year gains for nearly two years, and condo sales have also risen sharply. Median prices in most areas of the state continue to fall; however, the rate at which they are falling has diminished significantly and this is indicative of a bottom approaching.
"How long prices stay at the bottom and when price appreciation will reappear will depend in a large part on the improving fundamentals in the economy and credit markets."
The University of Florida's Bergstrom Center for Real Estate Studies' latest quarterly survey of real estate trends also notes positive signs of recovery in the state's real estate industry. The survey polls market research economists, industry executives, real estate scholars and other experts.
"Results indicate that the real estate market in Florida has hit bottom and is in the process of stabilizing across most property types," said Timothy Becker, the center's director. Private capital – both foreign and domestic – continues to enter the state in search of quality investment deals, he added.
Seventeen of Florida's metropolitan statistical areas (MSAs) reported increased sales of existing homes in 1Q 2010 compared to the same three-month-period a year earlier, while all of the MSAs showed gains in condo sales.
The statewide existing-home median sales price was $133,800 in 1Q 2010; a year earlier, it was $140,900 for a decrease of 5 percent. According to industry analysts with the National Association of Realtors® (NAR), sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is a typical market price where half the homes sold for more, half for less.
Inthe year-to-year quarterly comparison for condo sales, 16,897 units sold statewide for the quarter compared to 10,131 in 1Q 2009 for a 67 percent increase. The statewide existing-condo median sales price was $95,800 for the three-month period; in 1Q 2009, it was $110,000 for a decrease of 13 percent.
Low mortgage rates remain another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 5 percent in 1Q 2010; one year earlier, it averaged 5.06 percent.
© 2010 Florida Realtors
Monday, April 5, 2010
Official Credit Score Will Cost You, but Fake One Won't
Official Credit Score Will Cost You, but Fake One Won't
By Gregory Karp
RISMEDIA, April 5, 2010—(MCT)—Savvy consumers know they can get a free copy of their credit reports at AnnualCreditReport.com. But can you get a credit score for free?
No, you generally can't get your FICO credit score free. FICO is the brand name of the three-digit rating between 350 and 850 that most resembles what lenders will use to grant you loans.
But you can get a free "FAKO" score. These fake FICO scores come from credit-score simulators or off-brand scoring models, and they are useful for people who want to keep tabs on their creditworthiness without paying a fee.
—AnnualCreditReport.com: Starting Thursday, companies that try to trick you into paying for a service to see your free report must more clearly direct you to this official site from theirs. The federally mandated disclosure becomes required for all marketing, including TV and radio advertising, in September. Credit scores are based on data in your credit reports, which come from three companies: TransUnion, Equifax and Experian. You can get one free credit report per year from each of them by going to AnnualCreditReport.com.
—CreditKarma.com: You can pull a score daily. It is the TransRisk credit score based on your TransUnion report. The site sells no products but makes money from advertising and recommending products, such as credit cards and mortgages, based on information in your credit report. But it doesn't store or reveal to vendors your personal information, said CEO Ken Lin. Lin said your CreditKarma score should be highly correlated with your FICO score.
"There are literally hundreds of credit scores, and you're not going to be able to monitor all of them. So pick a scale, track it over time and that will give you a very good idea of what's going on in your credit report and your general creditworthiness," he said. CreditKarma.com also offers a score simulator, so you can assess how actions, such as opening a credit card, will affect your credit.
—Quizzle.com: You can access your score once every six months. Based on your Experian report, it provides a score by CE Analytics. Quizzle discarded two previous types of scores in favor of a CE score, which is closer to a FICO score, said Quizzle CEO Todd Albery. You also get your Experian credit report.
Quizzle sells credit-improvement tools, which cost $25 or $75 depending on the product. However, improving your credit mostly involves paying your bills on time, paying off debt and using little of your available credit.
—Credit.com: You can access its Credit Report Card once a month. Based on your TransUnion report, it gives a letter grade like a school report card, and then gives number ranges for how that would rate with five credit-score models, including FICO. The site links to various paid credit products, including credit-monitoring services that might be of questionable value for most people. It also links to credit card and loan offers.
—MyFICO.com: If you're in the market for a loan or will be soon, you should probably pay $15.95 each for one or both of your scores from MyFico.com. You can get the Equifax and TransUnion FICO scores but not the score from Experian, which no longer sells it to the public. Your FICO score is probably the closest to what lenders will see, said spokesman Barry Paperno.
(c) 2010, The Morning Call (Allentown, Pa.)
Distributed by McClatchy-Tribune Information Services.
By Gregory Karp
RISMEDIA, April 5, 2010—(MCT)—Savvy consumers know they can get a free copy of their credit reports at AnnualCreditReport.com. But can you get a credit score for free?
No, you generally can't get your FICO credit score free. FICO is the brand name of the three-digit rating between 350 and 850 that most resembles what lenders will use to grant you loans.
But you can get a free "FAKO" score. These fake FICO scores come from credit-score simulators or off-brand scoring models, and they are useful for people who want to keep tabs on their creditworthiness without paying a fee.
—AnnualCreditReport.com: Starting Thursday, companies that try to trick you into paying for a service to see your free report must more clearly direct you to this official site from theirs. The federally mandated disclosure becomes required for all marketing, including TV and radio advertising, in September. Credit scores are based on data in your credit reports, which come from three companies: TransUnion, Equifax and Experian. You can get one free credit report per year from each of them by going to AnnualCreditReport.com.
—CreditKarma.com: You can pull a score daily. It is the TransRisk credit score based on your TransUnion report. The site sells no products but makes money from advertising and recommending products, such as credit cards and mortgages, based on information in your credit report. But it doesn't store or reveal to vendors your personal information, said CEO Ken Lin. Lin said your CreditKarma score should be highly correlated with your FICO score.
"There are literally hundreds of credit scores, and you're not going to be able to monitor all of them. So pick a scale, track it over time and that will give you a very good idea of what's going on in your credit report and your general creditworthiness," he said. CreditKarma.com also offers a score simulator, so you can assess how actions, such as opening a credit card, will affect your credit.
—Quizzle.com: You can access your score once every six months. Based on your Experian report, it provides a score by CE Analytics. Quizzle discarded two previous types of scores in favor of a CE score, which is closer to a FICO score, said Quizzle CEO Todd Albery. You also get your Experian credit report.
Quizzle sells credit-improvement tools, which cost $25 or $75 depending on the product. However, improving your credit mostly involves paying your bills on time, paying off debt and using little of your available credit.
—Credit.com: You can access its Credit Report Card once a month. Based on your TransUnion report, it gives a letter grade like a school report card, and then gives number ranges for how that would rate with five credit-score models, including FICO. The site links to various paid credit products, including credit-monitoring services that might be of questionable value for most people. It also links to credit card and loan offers.
—MyFICO.com: If you're in the market for a loan or will be soon, you should probably pay $15.95 each for one or both of your scores from MyFico.com. You can get the Equifax and TransUnion FICO scores but not the score from Experian, which no longer sells it to the public. Your FICO score is probably the closest to what lenders will see, said spokesman Barry Paperno.
(c) 2010, The Morning Call (Allentown, Pa.)
Distributed by McClatchy-Tribune Information Services.
Watching out for ourselves
REALTORS® face more on-the-job risks than many other business professionals. NAR is committed to helping you stay safe as you show properties, when you conduct open houses and when you meet prospects for the first time. Discover these safety resources available from NAR.
On these pages, you'll find a wide variety of safety tips, resources, and products from NAR specifically for association executives, brokers, and REALTORS®. Visit REALTOR® Magazine Online for a collection of safety features, an interactive safety quiz, and other information.
REALTOR® Safety Week
NAR’s annual REALTORS® Safety Week will be observed September 13–19, 2009. Resources will be sent to Associations and brokers in July.
Other Resources
View the NAR safety video, "Safety Strategies For You and Your Clients," to see these safety tips in action.
Learn about the online Safety Course from REALTOR® University.
Customizable tips and articles include training instructions and talking points, handouts, graphics, customizable articles, and valuable tips to help members stay safe on the job, on the road, and at home.
On these pages, you'll find a wide variety of safety tips, resources, and products from NAR specifically for association executives, brokers, and REALTORS®. Visit REALTOR® Magazine Online for a collection of safety features, an interactive safety quiz, and other information.
REALTOR® Safety Week
NAR’s annual REALTORS® Safety Week will be observed September 13–19, 2009. Resources will be sent to Associations and brokers in July.
Other Resources
View the NAR safety video, "Safety Strategies For You and Your Clients," to see these safety tips in action.
Learn about the online Safety Course from REALTOR® University.
Customizable tips and articles include training instructions and talking points, handouts, graphics, customizable articles, and valuable tips to help members stay safe on the job, on the road, and at home.
Wednesday, March 31, 2010
USDA program runs out of money
WASHINGTON – March 31, 2010 – A no-down/low downpayment program for rural areas is running out of operational money, jeopardizing sales in some Fla. areas.
Last week, the United States Department of Agriculture (USDA) announced that funding authority for its popular Rural Housing 502 Single-Family Loan Guarantee program would, according to its notice, “likely be exhausted by the end of April 2010.” Once the funding runs out, the USDA will not issue its conditional commitments to homebuyers “subject to receipt of appropriated funds.”
Officially, new appropriated funds don’t become available until October 2010, but the National Association of Realtors® sent letters to Congressional appropriators urging immediate extension of commitment authority for the program. Other real estate interests, such as the National Association of Builders, have also stepped up pressure on Congress.
In a letter sent to every Florida Congressional lawmaker, Florida Realtors® President Wendell Davis told Senators and Representatives that “worthy homebuyers will be left without access to mortgages” from federal inaction. In the letter, Davis protested the lack of funding for Section 502 rural housing and Congress’ failure to extend the National Flood Insurance Program.
“Homeowners and homebuyers in our state/region are already feeling the impact,” Davis said in his letter. “Given the many challenges financial and real estate markets are facing, now is not the time to create another obstacle to real estate transactions.”
However, Congress is now in recess and does not return until April 12, so additional funding cannot appear until at least then. In addition, an increase in funding is not assured for the rural housing program, and homebuyers counting on the loan could be out of luck – especially those homebuyers hoping to use a USDA loan in time to qualify by the April 30 deadline for the federal tax credit of up to $8,000 for first-time buyers and $6,500 for move-up buyers.
Loans are first-come, first-served. With 1,900 lenders offering the loans, time is of the essence for homebuyers who plan to use the funding. When the money runs out, the program stops operations.
Questions should be directed to USDA’s Single Family Housing Guaranteed Loan Division at (202) 720-1452.
© 2010 Florida Realtors®
Last week, the United States Department of Agriculture (USDA) announced that funding authority for its popular Rural Housing 502 Single-Family Loan Guarantee program would, according to its notice, “likely be exhausted by the end of April 2010.” Once the funding runs out, the USDA will not issue its conditional commitments to homebuyers “subject to receipt of appropriated funds.”
Officially, new appropriated funds don’t become available until October 2010, but the National Association of Realtors® sent letters to Congressional appropriators urging immediate extension of commitment authority for the program. Other real estate interests, such as the National Association of Builders, have also stepped up pressure on Congress.
In a letter sent to every Florida Congressional lawmaker, Florida Realtors® President Wendell Davis told Senators and Representatives that “worthy homebuyers will be left without access to mortgages” from federal inaction. In the letter, Davis protested the lack of funding for Section 502 rural housing and Congress’ failure to extend the National Flood Insurance Program.
“Homeowners and homebuyers in our state/region are already feeling the impact,” Davis said in his letter. “Given the many challenges financial and real estate markets are facing, now is not the time to create another obstacle to real estate transactions.”
However, Congress is now in recess and does not return until April 12, so additional funding cannot appear until at least then. In addition, an increase in funding is not assured for the rural housing program, and homebuyers counting on the loan could be out of luck – especially those homebuyers hoping to use a USDA loan in time to qualify by the April 30 deadline for the federal tax credit of up to $8,000 for first-time buyers and $6,500 for move-up buyers.
Loans are first-come, first-served. With 1,900 lenders offering the loans, time is of the essence for homebuyers who plan to use the funding. When the money runs out, the program stops operations.
Questions should be directed to USDA’s Single Family Housing Guaranteed Loan Division at (202) 720-1452.
© 2010 Florida Realtors®
Tuesday, March 16, 2010
Not very good news for Real Estate agents.
Only 22 percent of homebuyers happy with their agent
SACRAMENTO, Calif. – March 16, 2010 – A study by the California Association of Realtors shows a decrease in the number of consumers who say they would use the same real estate agent again to 22 percent in 2009 from 79 percent in 2004. When asked why they would not retain their previous agent, 64 percent said their homes languished on the market and 51 percent were upset that their house fetched less than they had expected.
The study findings show that sellers with unrealistic expectations blame their agents when a transaction does not go as planned, but agents often are indeed at fault for failing to inform sellers about current market realities when it comes to pricing and financing.
In the short term, agents can expect consumers to prefer working with individual agents, believing that a large brokerage cannot provide the personal response and service they so desire. Agents also need to drum up the courage to turn down overpriced listings that likely will not sell.
Over the long term, Realtors must focus on skill, hard work, and the use of technology to provide personal service and deliver the information of most interest to clients. Moreover, agents should immediately respond to calls and e-mails, listen to their prospect’s wants and needs, and make good on their requests.
Source: RISMedia (03/16/10) Parker, Mike
© Copyright 2010 INFORMATION, INC. Bethesda, MD (301) 215-4688
SACRAMENTO, Calif. – March 16, 2010 – A study by the California Association of Realtors shows a decrease in the number of consumers who say they would use the same real estate agent again to 22 percent in 2009 from 79 percent in 2004. When asked why they would not retain their previous agent, 64 percent said their homes languished on the market and 51 percent were upset that their house fetched less than they had expected.
The study findings show that sellers with unrealistic expectations blame their agents when a transaction does not go as planned, but agents often are indeed at fault for failing to inform sellers about current market realities when it comes to pricing and financing.
In the short term, agents can expect consumers to prefer working with individual agents, believing that a large brokerage cannot provide the personal response and service they so desire. Agents also need to drum up the courage to turn down overpriced listings that likely will not sell.
Over the long term, Realtors must focus on skill, hard work, and the use of technology to provide personal service and deliver the information of most interest to clients. Moreover, agents should immediately respond to calls and e-mails, listen to their prospect’s wants and needs, and make good on their requests.
Source: RISMedia (03/16/10) Parker, Mike
© Copyright 2010 INFORMATION, INC. Bethesda, MD (301) 215-4688
Thursday, March 11, 2010
House hunting via real estate apps
NEW YORK – March 11, 2010 – Smart phone apps are becoming increasingly popular among homebuyers, sellers and the real estate professionals who serve them.
Zillow.com, which has a free app, says people are using it to look up 2 million properties a month. In addition to Realtor.com, other popular apps include ones offered by ZipRealty, Coldwell Banker, Better Homes and Gardens, and the Corcoran Group.
The apps provide the same information that Web sites do, but they allow users access without having to lug a computer around. They can make house hunting easier for both practitioners and buyers because the information is so immediately and widely available.
“Within a minute, I had enough information to say it’s not worth driving” 25 miles to inspect the home, says Jon Mirmelli, a buyer who otherwise might have asked his real estate professional to meet him there.
Source: The Wall Street Journal, James R. Hagerty (03/09/2010)
© Copyright 2010 INFORMATION, INC. Bethesda, MD (301) 215-4688
Locally, you can text the word "CFLGUY" to 87778 and you'll get the Smarter Agent app for this area so you can shop from your GPS enabled cell phone.
Zillow.com, which has a free app, says people are using it to look up 2 million properties a month. In addition to Realtor.com, other popular apps include ones offered by ZipRealty, Coldwell Banker, Better Homes and Gardens, and the Corcoran Group.
The apps provide the same information that Web sites do, but they allow users access without having to lug a computer around. They can make house hunting easier for both practitioners and buyers because the information is so immediately and widely available.
“Within a minute, I had enough information to say it’s not worth driving” 25 miles to inspect the home, says Jon Mirmelli, a buyer who otherwise might have asked his real estate professional to meet him there.
Source: The Wall Street Journal, James R. Hagerty (03/09/2010)
© Copyright 2010 INFORMATION, INC. Bethesda, MD (301) 215-4688
Locally, you can text the word "CFLGUY" to 87778 and you'll get the Smarter Agent app for this area so you can shop from your GPS enabled cell phone.
Wednesday, March 3, 2010
Termite swarming season is here
TALLAHASSEE, Fla. – March 3, 2010 – Termite swarming season gets under way in late February and early March as temperatures begin to warm. Swarming means the termites are leaving their colonies to search for new nesting sites. Florida Agriculture and Consumer Services Commissioner Charles H. Bronson is again warning Floridians to take steps to protect their home. Termites cause about $750 million in property damage in the United States annually.
Termites are most abundant in the southwestern and southern U.S., with the Gulf Coast commonly known as “the termite belt.” Since termites try to avoid light and open air spaces, the insects do their damage behind walls. Many homeowners don’t realize they have a termite problem until swarming season when they see them flying around their homes.
The swarmers are winged, black insects about one-quarter-inch long and look a lot like flying ants. Termites can be categorized into two groups by their nesting sites. The earth-dwelling termites that make tunnels in the ground or build tubes above the earth are called subterranean termites. The second group, the wood-dwelling termites that have no contact with the earth, are called drywood termites.
Florida’s climate makes it especially vulnerable to termites, and they are found throughout the state. Despite this, many homes in the state have no termite protection.
“Prevention is critical in avoiding termite destruction,” Bronson says. “The insects can go undetected for long periods of time while they feed on the wood in a home.” The Florida Department of Agriculture and Consumer Services regulates and licenses pest control companies and conducts regular inspections to ensure the businesses are adhering to the rules and regulations governing pesticides and pest control. Consumers can contact the department to find out whether a pest control company is properly licensed, to find out how many consumer complaints have been filed against a particular business and to learn about the various types of termite control contracts.
Licensed pest management professionals have the expertise to inspect buildings and treat them to prevent an infestation or provide treatment when the insects are found. Termite companies are now required to clearly tell customers if their contract covers both subterranean and drywood termites. Most pest control operations in Florida are licensed but it’s important to check out a business before signing a contract.
Steps that consumers can take to protect their homes from termites include:
• Remove wood piles and other cellulose sources from under and next to homes.
• Have an annual inspection by a licensed professional pest control company.
• Direct water sources, such as air conditioner drip lines and roof downspouts, away from the structure foundation.
• When purchasing a home, carefully check its termite protection history.
• Obtain a termite protection contract and renew it annually.
Bronson said consumers should read a termite protection contract before signing it. Some contracts only require that the company re-treat a home if termites are found. Bronson says it is better to have a re-treat and repair contract that requires the pest control business to repair any damage caused by termites after a home has been inspected and treated.
For information, visit the department’s web site at http://www.FloridaTermiteHelp.org or call (800) 435-7352.
© 2010 Florida Realtors®
Termites are most abundant in the southwestern and southern U.S., with the Gulf Coast commonly known as “the termite belt.” Since termites try to avoid light and open air spaces, the insects do their damage behind walls. Many homeowners don’t realize they have a termite problem until swarming season when they see them flying around their homes.
The swarmers are winged, black insects about one-quarter-inch long and look a lot like flying ants. Termites can be categorized into two groups by their nesting sites. The earth-dwelling termites that make tunnels in the ground or build tubes above the earth are called subterranean termites. The second group, the wood-dwelling termites that have no contact with the earth, are called drywood termites.
Florida’s climate makes it especially vulnerable to termites, and they are found throughout the state. Despite this, many homes in the state have no termite protection.
“Prevention is critical in avoiding termite destruction,” Bronson says. “The insects can go undetected for long periods of time while they feed on the wood in a home.” The Florida Department of Agriculture and Consumer Services regulates and licenses pest control companies and conducts regular inspections to ensure the businesses are adhering to the rules and regulations governing pesticides and pest control. Consumers can contact the department to find out whether a pest control company is properly licensed, to find out how many consumer complaints have been filed against a particular business and to learn about the various types of termite control contracts.
Licensed pest management professionals have the expertise to inspect buildings and treat them to prevent an infestation or provide treatment when the insects are found. Termite companies are now required to clearly tell customers if their contract covers both subterranean and drywood termites. Most pest control operations in Florida are licensed but it’s important to check out a business before signing a contract.
Steps that consumers can take to protect their homes from termites include:
• Remove wood piles and other cellulose sources from under and next to homes.
• Have an annual inspection by a licensed professional pest control company.
• Direct water sources, such as air conditioner drip lines and roof downspouts, away from the structure foundation.
• When purchasing a home, carefully check its termite protection history.
• Obtain a termite protection contract and renew it annually.
Bronson said consumers should read a termite protection contract before signing it. Some contracts only require that the company re-treat a home if termites are found. Bronson says it is better to have a re-treat and repair contract that requires the pest control business to repair any damage caused by termites after a home has been inspected and treated.
For information, visit the department’s web site at http://www.FloridaTermiteHelp.org or call (800) 435-7352.
© 2010 Florida Realtors®
Friday, February 19, 2010
Amendment 4 would create huge ballots
TALLAHASSEE, Fla. – Feb. 18, 2010 – Curious what a ballot would look like should Amendment 4 pass? A sample Orange City one has 47 pages and 488 referendums.
“We knew ballots would be ponderous should Amendment 4 pass, and have made that point many times to Realtors and Floridians,” says Florida Realtors Vice President of Public Policy John Sebree. “This sample ballot, however, is far worse than we imagined. It’s beyond the comprehension of most land use experts, much less the average Floridian.”
The sample ballot looked at a single election, Nov. 8, 2005, in Orange City, Fla., a town in Volusia County. Multiple questions deal with concurrency, water management and technical changes.
Citizens for Lower Taxes and a Stronger Economy Inc. developed the sample ballot for their website, “Vote No on 4.” Florida Realtors and a number of local Realtor associations support the anti-Amendment 4 movement, along with many other groups across the political spectrum.
To find out more about “Vote No on 4” and read the 47-page sample ballot, go to http://florida2010.org/home.php and click on the “Vote on Everything” icon.
© 2010 Florida Realtors®
“We knew ballots would be ponderous should Amendment 4 pass, and have made that point many times to Realtors and Floridians,” says Florida Realtors Vice President of Public Policy John Sebree. “This sample ballot, however, is far worse than we imagined. It’s beyond the comprehension of most land use experts, much less the average Floridian.”
The sample ballot looked at a single election, Nov. 8, 2005, in Orange City, Fla., a town in Volusia County. Multiple questions deal with concurrency, water management and technical changes.
Citizens for Lower Taxes and a Stronger Economy Inc. developed the sample ballot for their website, “Vote No on 4.” Florida Realtors and a number of local Realtor associations support the anti-Amendment 4 movement, along with many other groups across the political spectrum.
To find out more about “Vote No on 4” and read the 47-page sample ballot, go to http://florida2010.org/home.php and click on the “Vote on Everything” icon.
© 2010 Florida Realtors®
Wednesday, February 17, 2010
Some Countrywide customers may get a check
TALLAHASSEE, Fla. – Feb. 16, 2010 – More than 2,700 people will receive checks from a 2008 settlement Florida negotiated with Countrywide Financial Corporation. As part of the settlement, Countrywide is offering foreclosure relief payments to eligible borrowers who returned valid and timely claim forms and releases under a program administered by the Countrywide settlement administrator.
More than $16.9 million will be distributed this week, and each check will be written for just over $6,000.
In July 2008, Attorney General Bill McCollum filed a lawsuit against Countrywide, one of the nation’s largest mortgage companies, for allegedly engaging in deceptive and unfair trade practices. The lawsuit claimed Countrywide put borrowers into mortgages they couldn’t afford or loans with rates and penalties that were misleading. That lawsuit was resolved in October 2008, and the settlement agreement included a foreclosure relief payment program for Florida homeowners with qualifying Countrywide mortgages.
Eligible homeowners should consider the following:
• Important information: The checks must be cashed on or before May 13, 2010.
• A payment under this settlement may be taxable, and recipients should consult a tax advisor if they have any questions concerning possible tax liabilities.
• Recipients with any questions should contact the settlement administrator, Rust Consulting, toll free at (866) 411‐6987, or http://www.countrywidesettlementinfo.com.
The settlement also includes $4 million to fund a foreclosure defense assistance program. The money will be provided to organizations over the course of two years, and the first funds were distributed in late 2009. The organizations that receive the grants agree to provide free legal assistance to eligible homeowners who face foreclosure but cannot afford an attorney to review their case.
“These resources, both the checks to homeowners and the grants to fund pro bono foreclosure defense assistance, are substantial assets to Floridians,” says Heather Rodriguez of Holland & Knight law firm and president of the Legal Aid Society of the Orange County Bar Association, one of the organizations that received grant funding and has an attorney dedicated to foreclosure defense assistance. “Orange and Osceola counties are both high in foreclosures, and homeowners are struggling.”
Countrywide Chief Executive Angelo Mozilo was also named in the Countrywide lawsuit and the civil case against him is still pending in Broward County Circuit Court. McCollum has also called on Bank of America, the company that acquired Countrywide after the lawsuit was filed, to be more responsive to consumers trying to modify loans and save their home from foreclosure.
© 2010 Florida Realtors®
More than $16.9 million will be distributed this week, and each check will be written for just over $6,000.
In July 2008, Attorney General Bill McCollum filed a lawsuit against Countrywide, one of the nation’s largest mortgage companies, for allegedly engaging in deceptive and unfair trade practices. The lawsuit claimed Countrywide put borrowers into mortgages they couldn’t afford or loans with rates and penalties that were misleading. That lawsuit was resolved in October 2008, and the settlement agreement included a foreclosure relief payment program for Florida homeowners with qualifying Countrywide mortgages.
Eligible homeowners should consider the following:
• Important information: The checks must be cashed on or before May 13, 2010.
• A payment under this settlement may be taxable, and recipients should consult a tax advisor if they have any questions concerning possible tax liabilities.
• Recipients with any questions should contact the settlement administrator, Rust Consulting, toll free at (866) 411‐6987, or http://www.countrywidesettlementinfo.com.
The settlement also includes $4 million to fund a foreclosure defense assistance program. The money will be provided to organizations over the course of two years, and the first funds were distributed in late 2009. The organizations that receive the grants agree to provide free legal assistance to eligible homeowners who face foreclosure but cannot afford an attorney to review their case.
“These resources, both the checks to homeowners and the grants to fund pro bono foreclosure defense assistance, are substantial assets to Floridians,” says Heather Rodriguez of Holland & Knight law firm and president of the Legal Aid Society of the Orange County Bar Association, one of the organizations that received grant funding and has an attorney dedicated to foreclosure defense assistance. “Orange and Osceola counties are both high in foreclosures, and homeowners are struggling.”
Countrywide Chief Executive Angelo Mozilo was also named in the Countrywide lawsuit and the civil case against him is still pending in Broward County Circuit Court. McCollum has also called on Bank of America, the company that acquired Countrywide after the lawsuit was filed, to be more responsive to consumers trying to modify loans and save their home from foreclosure.
© 2010 Florida Realtors®
Friday, February 12, 2010
Walkaway rather than foreclosure?
NEW YORK – Feb. 11, 2010 – Seeking alternatives to the nation’s struggling foreclosure prevention efforts, federal and mortgage industry officials increasingly are looking for ways to get distressed borrowers to leave their homes voluntarily, without going through the expensive foreclosure process or a messy eviction.
Citigroup, for instance, plans to announce a pilot program on Thursday that would allow delinquent borrowers who don’t qualify for or decline mortgage relief the opportunity to stay in their homes without making payments for up to six months before turning over the keys, in return for keeping the property in good condition. The bank estimates that up to 20,000 borrowers in Texas, Florida, Illinois, Michigan, New Jersey and Ohio could be eligible.
The program is just the latest amid a growing acknowledgment that foreclosure prevention efforts will fail to reach millions of borrowers over the next few years.
“This is a graceful way to move on with their lives instead of being foreclosed on and being evicted from their homes,” said Sanjiv Das, chief executive of CitiMortgage.
The Citigroup plan attempts to address some common industry complaints, including borrowers who leave their homes in disarray after foreclosure, requiring lenders to spend thousands of dollars fixing up the property before putting it on the market. Also, homeowners who owe far more than their homes are worth increasingly are choosing to “strategically default,” even though they can afford to pay their mortgage. The new program gives CitiMortgage more control over when distressed homes are put up for sale, bypassing clogged courthouses that have slowed the foreclosure process in many parts of the country.
By avoiding a glut of foreclosures that could hit the housing market within the next 16 to 18 months, the program – if it is replicated throughout the industry – could help prevent another dip in home prices, Das said.
It would be a more orderly process “than if all of the foreclosed properties came crashing at some point in the cycle,” he said.
Other initiatives have also emerged for borrowers likely to lose their homes. Fannie Mae and Freddie Mac, the mortgage financing companies, developed programs allowing former homeowners to become renters after a foreclosure or other proceedings. As part of its federal foreclosure prevention program, known as Making Home Affordable, the Treasury Department announced late last year that lenders would be eligible for $1,000 in exchange for allowing borrowers to sell their home in a short sale. In such deals, the borrower sells the home for less than the outstanding mortgage, and the lender forgives the difference.
Moody’s Economy.com has forecast that the number of short sales and transactions in which borrowers surrender their deed in lieu of foreclosure will increase more than 50 percent, to about 490,000, this year. That is just a fraction of the 1.9 million homeowners Moody’s has forecast will lose their homes to foreclosure this year, up from 1.7 million last year.
But lenders have struggled to make many of these programs effective. The short sale is often lengthy and cumbersome for homeowners. In some cases, borrowers have second liens on the property, which can hang up the process. And lenders are sometimes suspicious of the potential for fraud if the home is sold cheap to a friend or family member of the borrower.
It’s unclear how rental programs for former homeowners are working. Fannie Mae launched its “Deed for Lease” program in November, offering borrowers a 12-month lease in return for turning over the keys to their former home and maintaining the property. A company spokeswoman said that it was too early to judge the program’s success, but that former homeowners who surrender their deed to avoid foreclosure – numbering nearly 2,000 through the third quarter of last year – would be eligible. Freddie Mac’s year-old program targets former homeowners after their foreclosure, offering them a month-to-month lease. It has not released specific data on how many homeowners have chosen this option.
Citigroup’s program goes further. It targets delinquent homeowners who do not qualify for mortgage relief. During the time the borrower is still in the home, they must continue to pay utilities, but in some cases, the bank may help cover some of the taxes, insurance or homeowner association fees. The borrower would also be eligible for transition counseling to help find a new home, and a minimum of $1,000 to help offset moving costs.
If there is significant demand for the program, Citigroup will expand it, Das said. “There might be complications that we haven’t thought about,” he said. “What happens if they don’t turn over the keys after six months or they don’t maintain their house like we would like them to maintain their house?”
Copyright © 2010 washingtonpost.com
Citigroup, for instance, plans to announce a pilot program on Thursday that would allow delinquent borrowers who don’t qualify for or decline mortgage relief the opportunity to stay in their homes without making payments for up to six months before turning over the keys, in return for keeping the property in good condition. The bank estimates that up to 20,000 borrowers in Texas, Florida, Illinois, Michigan, New Jersey and Ohio could be eligible.
The program is just the latest amid a growing acknowledgment that foreclosure prevention efforts will fail to reach millions of borrowers over the next few years.
“This is a graceful way to move on with their lives instead of being foreclosed on and being evicted from their homes,” said Sanjiv Das, chief executive of CitiMortgage.
The Citigroup plan attempts to address some common industry complaints, including borrowers who leave their homes in disarray after foreclosure, requiring lenders to spend thousands of dollars fixing up the property before putting it on the market. Also, homeowners who owe far more than their homes are worth increasingly are choosing to “strategically default,” even though they can afford to pay their mortgage. The new program gives CitiMortgage more control over when distressed homes are put up for sale, bypassing clogged courthouses that have slowed the foreclosure process in many parts of the country.
By avoiding a glut of foreclosures that could hit the housing market within the next 16 to 18 months, the program – if it is replicated throughout the industry – could help prevent another dip in home prices, Das said.
It would be a more orderly process “than if all of the foreclosed properties came crashing at some point in the cycle,” he said.
Other initiatives have also emerged for borrowers likely to lose their homes. Fannie Mae and Freddie Mac, the mortgage financing companies, developed programs allowing former homeowners to become renters after a foreclosure or other proceedings. As part of its federal foreclosure prevention program, known as Making Home Affordable, the Treasury Department announced late last year that lenders would be eligible for $1,000 in exchange for allowing borrowers to sell their home in a short sale. In such deals, the borrower sells the home for less than the outstanding mortgage, and the lender forgives the difference.
Moody’s Economy.com has forecast that the number of short sales and transactions in which borrowers surrender their deed in lieu of foreclosure will increase more than 50 percent, to about 490,000, this year. That is just a fraction of the 1.9 million homeowners Moody’s has forecast will lose their homes to foreclosure this year, up from 1.7 million last year.
But lenders have struggled to make many of these programs effective. The short sale is often lengthy and cumbersome for homeowners. In some cases, borrowers have second liens on the property, which can hang up the process. And lenders are sometimes suspicious of the potential for fraud if the home is sold cheap to a friend or family member of the borrower.
It’s unclear how rental programs for former homeowners are working. Fannie Mae launched its “Deed for Lease” program in November, offering borrowers a 12-month lease in return for turning over the keys to their former home and maintaining the property. A company spokeswoman said that it was too early to judge the program’s success, but that former homeowners who surrender their deed to avoid foreclosure – numbering nearly 2,000 through the third quarter of last year – would be eligible. Freddie Mac’s year-old program targets former homeowners after their foreclosure, offering them a month-to-month lease. It has not released specific data on how many homeowners have chosen this option.
Citigroup’s program goes further. It targets delinquent homeowners who do not qualify for mortgage relief. During the time the borrower is still in the home, they must continue to pay utilities, but in some cases, the bank may help cover some of the taxes, insurance or homeowner association fees. The borrower would also be eligible for transition counseling to help find a new home, and a minimum of $1,000 to help offset moving costs.
If there is significant demand for the program, Citigroup will expand it, Das said. “There might be complications that we haven’t thought about,” he said. “What happens if they don’t turn over the keys after six months or they don’t maintain their house like we would like them to maintain their house?”
Copyright © 2010 washingtonpost.com
Tuesday, February 9, 2010
Great time to sell your home
ORLANDO, Fla. ? Feb. 9, 2010 ? Selling a property in this tough market can seem like a challenge. Here are four factors that actually make this a good time to post a For-Sale sign:
? Sell low and buy low. Because all property values are down, the loss on the property a homeowner sells is really only a paper loss because the next property he buys also will be a bargain. If he buys smartly, when prices come back up in a few years, he?ll be in better shape.
? Downpayment help is widely available. While nothing-down loans have disappeared, it?s easy to find downpayment assistance for lower-income and first-time homebuyers. Programs vary all over the country, but one good way to find them is to search online for ?downpayment assistance programs? and the name of your region.
? Your Uncle Sam has money to share. Besides the $8,000 first-time homebuyer tax credit and the $6,500 move-up credit, there are an array of energy tax credits that can make home improvements pay off in cash.
? Good help is available. Really talented real estate practitioners, contractors and designers are available and eager for business.
Source: McClatchy Tribune, Kate Forgach (02/07/2010)
? Copyright 2010 INFORMATION, INC. Bethesda, MD (301) 215-4688
? Sell low and buy low. Because all property values are down, the loss on the property a homeowner sells is really only a paper loss because the next property he buys also will be a bargain. If he buys smartly, when prices come back up in a few years, he?ll be in better shape.
? Downpayment help is widely available. While nothing-down loans have disappeared, it?s easy to find downpayment assistance for lower-income and first-time homebuyers. Programs vary all over the country, but one good way to find them is to search online for ?downpayment assistance programs? and the name of your region.
? Your Uncle Sam has money to share. Besides the $8,000 first-time homebuyer tax credit and the $6,500 move-up credit, there are an array of energy tax credits that can make home improvements pay off in cash.
? Good help is available. Really talented real estate practitioners, contractors and designers are available and eager for business.
Source: McClatchy Tribune, Kate Forgach (02/07/2010)
? Copyright 2010 INFORMATION, INC. Bethesda, MD (301) 215-4688
Monday, February 8, 2010
What your credit score means to you when buying a home.
DETROIT ? Feb. 5, 2010 ? Lucas Harrison-Zdenek has tried twice since last summer to get a federal loan to buy a foreclosed home.
His credit score hasn?t been good enough. It was 575 last fall when it needed to be 580, and is now 606 when it needs to be 620. He was denied again earlier this month.
The Ferndale, Mich., massage therapist is hopeful that an update to his credit report to reflect some recently paid debts will push his score up to 620. He?s aiming for a mortgage on a four-bedroom, 1 1/2-bath house in Ferndale that?s priced at $70,000.
A Jan. 1 change in federal lending guidelines has made it harder for people to benefit from Neighborhood Stabilization Programs, which help lower-income buyers purchase foreclosed homes. The rules pushed the minimum credit score to 620 for an FHA loan.
?Every time we get denied, I feel like we are closer to getting approved,? said Harrison-Zdenek, 25.
He?s now renting a house in Berkley for his wife, Genevieve, and 3-month-old son, Lincoln.
Harrison-Zdenek?s experience is pretty common for people who are at or below 50 percent of the local median income, or $31,450, for a family of three.
The programs include mandatory homeowner counseling classes and applicants must be able to qualify for a mortgage. And 25 percent of the federal grant money must go toward helping those at 50 percent of the median local income buy homes.
Officials administering the program say it has been a big challenge to find families who qualify in the low-income category and have the necessary 620 or higher credit score and 24 months of income history. Additionally, the Oakland County, Mich., program doesn?t allow people with a foreclosure or bankruptcy in the past three years to participate.
?It is brutal. It means that they don?t get the house,? said Gordon Lambert, chief of operations for Oakland County?s community and home improvement division. ?This credit crunch is really, really impacting the whole community.?
Marsha Scheer, who coordinates the Neighborhood Stabilization Program for Ferndale, said the city has closed on homes sold to five low-income buyers so far. The city hopes to help 25 to 30 families buy homes in the community.
Ferndale contracted with Home Renewal Systems to implement its program. Home Renewal handles everything from getting potential buyers qualified, finding homes, rehabilitation work and closing on the mortgage.
Cathy Doig, marketing director for the company, said federal lending guidelines have made it harder to get people in homes.
She said that people with lower incomes sometimes have low credit scores because of damaged credit. More often, though, applicants are ineligible because they haven?t established credit. These are people who do not use credit cards or make installment payments on vehicles, but they pay their bills on time.
?In order to have a high credit score in this country, you have to use credit,? Doig said.
She said the company?s staff works with these potential homeowners on getting their credit scores up, but that can take months.
Harrison-Zdenek is hopeful that he will qualify for a mortgage before the minimum credit score is raised again.
?If (the loan officer) didn?t feel Genna and I were worthy of homeownership, they wouldn?t try so hard,? Harrison-Zdenek said.
Copyright ? 2010 Detroit Free Press. Distributed by McClatchy-Tribune News Service, Greta Guest.
His credit score hasn?t been good enough. It was 575 last fall when it needed to be 580, and is now 606 when it needs to be 620. He was denied again earlier this month.
The Ferndale, Mich., massage therapist is hopeful that an update to his credit report to reflect some recently paid debts will push his score up to 620. He?s aiming for a mortgage on a four-bedroom, 1 1/2-bath house in Ferndale that?s priced at $70,000.
A Jan. 1 change in federal lending guidelines has made it harder for people to benefit from Neighborhood Stabilization Programs, which help lower-income buyers purchase foreclosed homes. The rules pushed the minimum credit score to 620 for an FHA loan.
?Every time we get denied, I feel like we are closer to getting approved,? said Harrison-Zdenek, 25.
He?s now renting a house in Berkley for his wife, Genevieve, and 3-month-old son, Lincoln.
Harrison-Zdenek?s experience is pretty common for people who are at or below 50 percent of the local median income, or $31,450, for a family of three.
The programs include mandatory homeowner counseling classes and applicants must be able to qualify for a mortgage. And 25 percent of the federal grant money must go toward helping those at 50 percent of the median local income buy homes.
Officials administering the program say it has been a big challenge to find families who qualify in the low-income category and have the necessary 620 or higher credit score and 24 months of income history. Additionally, the Oakland County, Mich., program doesn?t allow people with a foreclosure or bankruptcy in the past three years to participate.
?It is brutal. It means that they don?t get the house,? said Gordon Lambert, chief of operations for Oakland County?s community and home improvement division. ?This credit crunch is really, really impacting the whole community.?
Marsha Scheer, who coordinates the Neighborhood Stabilization Program for Ferndale, said the city has closed on homes sold to five low-income buyers so far. The city hopes to help 25 to 30 families buy homes in the community.
Ferndale contracted with Home Renewal Systems to implement its program. Home Renewal handles everything from getting potential buyers qualified, finding homes, rehabilitation work and closing on the mortgage.
Cathy Doig, marketing director for the company, said federal lending guidelines have made it harder to get people in homes.
She said that people with lower incomes sometimes have low credit scores because of damaged credit. More often, though, applicants are ineligible because they haven?t established credit. These are people who do not use credit cards or make installment payments on vehicles, but they pay their bills on time.
?In order to have a high credit score in this country, you have to use credit,? Doig said.
She said the company?s staff works with these potential homeowners on getting their credit scores up, but that can take months.
Harrison-Zdenek is hopeful that he will qualify for a mortgage before the minimum credit score is raised again.
?If (the loan officer) didn?t feel Genna and I were worthy of homeownership, they wouldn?t try so hard,? Harrison-Zdenek said.
Copyright ? 2010 Detroit Free Press. Distributed by McClatchy-Tribune News Service, Greta Guest.
Tuesday, February 2, 2010
Fannie to offer closing cost aid on foreclosures
WASHINGTON ? Feb. 1, 2010 ? Fannie Mae, the largest provider of residential home funding in the United States, announced on Friday that it would start to pay closing costs for buyers of foreclosed homes in its inventory. Buyers of qualified properties will get up to 3.5 percent in closing costs or an equivalent amount for the purchase of new appliances.
Fannie wants to clear out the nearly 50,000 properties it has in inventory ? listed on HomePath.com, the Web site created by Fannie Mae last year to sell the growing number of foreclosed homes. The offer is available to any owner-occupant who closes on the purchase of a property listed on HomePath.com before May 1, 2010. Applicable properties can be found on HomePath.com, along with property descriptions, photographs, community and school information, and more.
In addition, some Fannie Mae-owned properties are eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing, which offers qualified homebuyers the ability to purchase with as little as 3 percent down.
?Attracting qualified buyers to the market and reducing inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover,? Terry Edwards, executive vice president for credit portfolio management, said in a statement.
? 2010 Florida Realtors?
Fannie wants to clear out the nearly 50,000 properties it has in inventory ? listed on HomePath.com, the Web site created by Fannie Mae last year to sell the growing number of foreclosed homes. The offer is available to any owner-occupant who closes on the purchase of a property listed on HomePath.com before May 1, 2010. Applicable properties can be found on HomePath.com, along with property descriptions, photographs, community and school information, and more.
In addition, some Fannie Mae-owned properties are eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing, which offers qualified homebuyers the ability to purchase with as little as 3 percent down.
?Attracting qualified buyers to the market and reducing inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover,? Terry Edwards, executive vice president for credit portfolio management, said in a statement.
? 2010 Florida Realtors?
Monday, February 1, 2010
Consumer Confidence Index Increases Moderately in January 2010
RISMEDIA, February 1, 2010?The Conference Board Consumer Confidence Index, which had increased in December 2009, improved further in January 2010. The Index now stands at 55.9 (1985=100), up from 53.6 in December. The Present Situation Index increased to 25.0 from 20.2. The Expectations Index increased to 76.5 from 75.9 last month.
The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households. The monthly survey is conducted for The Conference Board by TNS. TNS is one of the world?s largest custom research companies. The cutoff date for January?s preliminary results was January 19th.
?Consumer Confidence rose for the third consecutive month, primarily the result of an improvement in present-day conditions. Consumers? short-term outlook, while moderately more positive, does not suggest any significant pickup in activity in the coming months. Regarding their financial situation, while consumers were less dire about their income prospects than in December, the number of pessimists continues to outnumber the optimists,? said Lynn Franco, director of The Conference Board Consumer Research Center.
Consumers? assessment of present-day conditions was, on the whole, more positive than last month. Those stating business conditions are ?good? increased to 9.0% from 7.5%, however, those stating business conditions are ?bad? increased to 46.1% from 45.7%. Consumers? assessment of the labor market improved moderately. Those claiming jobs are ?hard to get? declined to 47.4% from 48.1%, while those claiming jobs are ?plentiful? increased to 4.3% from 3.1%.
Consumers? short-term outlook, while overall more positive, was somewhat mixed. The percentage of consumers expecting an improvement in business conditions over the next six months decreased to 20.9% from 21.2%, while those anticipating conditions will worsen increased to 12.7% from 11.8%. Regarding the outlook for the labor market, those expecting fewer jobs decreased to 18.9% from 20.6%. However, those expecting more jobs to become available in the months ahead declined to 15.5% from 16.4%. The proportion of consumers anticipating a decrease in their incomes declined to 16.2% from 18.4%.
For more information, visit www.conference-board.org.
The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households. The monthly survey is conducted for The Conference Board by TNS. TNS is one of the world?s largest custom research companies. The cutoff date for January?s preliminary results was January 19th.
?Consumer Confidence rose for the third consecutive month, primarily the result of an improvement in present-day conditions. Consumers? short-term outlook, while moderately more positive, does not suggest any significant pickup in activity in the coming months. Regarding their financial situation, while consumers were less dire about their income prospects than in December, the number of pessimists continues to outnumber the optimists,? said Lynn Franco, director of The Conference Board Consumer Research Center.
Consumers? assessment of present-day conditions was, on the whole, more positive than last month. Those stating business conditions are ?good? increased to 9.0% from 7.5%, however, those stating business conditions are ?bad? increased to 46.1% from 45.7%. Consumers? assessment of the labor market improved moderately. Those claiming jobs are ?hard to get? declined to 47.4% from 48.1%, while those claiming jobs are ?plentiful? increased to 4.3% from 3.1%.
Consumers? short-term outlook, while overall more positive, was somewhat mixed. The percentage of consumers expecting an improvement in business conditions over the next six months decreased to 20.9% from 21.2%, while those anticipating conditions will worsen increased to 12.7% from 11.8%. Regarding the outlook for the labor market, those expecting fewer jobs decreased to 18.9% from 20.6%. However, those expecting more jobs to become available in the months ahead declined to 15.5% from 16.4%. The proportion of consumers anticipating a decrease in their incomes declined to 16.2% from 18.4%.
For more information, visit www.conference-board.org.
Friday, January 29, 2010
Fannie Mae Offers New Closing Cost Assistance and Appliance Incentive for Homebuyers
Fannie Mae is offering a 3.5% incentive for buyers who purchase and close on a Fannie Mae-owned home between January 28 and April 30, 2010. Buyers purchasing properties listed on HomePath.com that are closed within this period may receive up to 3.5% of the final sales price for:
? Closing costs;
? The purchase of new Whirlpool? appliances by Fannie Mae; or
? A mix of closing costs and appliances, at the buyer's discretion, up to the maximum 3.5%.
To be eligible for this incentive:
? Offers must be accepted on or after January 28, 2010;
? Property sales must close before May 1, 2010, and;
? Buyers must be owner-occupants (investors are excluded).
The incentive reinforces the organization's commitment to stabilizing communities and assisting buyers. For more information about this incentive, visit www.HomePath.com, read the press release on fanniemae.com, or contact a Fannie Mae listing broker.
? Closing costs;
? The purchase of new Whirlpool? appliances by Fannie Mae; or
? A mix of closing costs and appliances, at the buyer's discretion, up to the maximum 3.5%.
To be eligible for this incentive:
? Offers must be accepted on or after January 28, 2010;
? Property sales must close before May 1, 2010, and;
? Buyers must be owner-occupants (investors are excluded).
The incentive reinforces the organization's commitment to stabilizing communities and assisting buyers. For more information about this incentive, visit www.HomePath.com, read the press release on fanniemae.com, or contact a Fannie Mae listing broker.
Tuesday, January 19, 2010
HUD takes action to speed resale of foreclosed properties
WASHINGTON ? Jan. 18, 2010 ? In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan announced a temporary policy that will expand access to FHA mortgage insurance to allow for a quicker resale of foreclosed properties. The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties or properties resold through private sales.
?As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers,? says Donovan. ?FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization.?
With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.
?This change in policy is temporary and will have very strict conditions and guidelines to assure that predatory practices are not allowed,? Donovan says.
Acquiring, rehabilitating and reselling foreclosed properties to prospective homeowners often takes less than 90 days in today?s market; and FHA?s 90-day rule can adversely impact buyers if a seller is unwilling to hold a property 90 days thanks to holding costs and the risk of vandalism.
?FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties,? says FHA Commissioner David H. Stevens. ?This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity.?
The waiver will take effect on Feb. 1, 2010, and be effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of ?flipping,? the waiver is limited to those sales meeting the following general conditions:
? All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
? In cases in which the sales price of the property is 20 percent or more above the seller?s acquisition cost, the waiver will only apply if the lender meets specific conditions.
? The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.
? Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD?s website:
http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf
? 2010 Florida Realtors?
?As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers,? says Donovan. ?FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization.?
With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.
?This change in policy is temporary and will have very strict conditions and guidelines to assure that predatory practices are not allowed,? Donovan says.
Acquiring, rehabilitating and reselling foreclosed properties to prospective homeowners often takes less than 90 days in today?s market; and FHA?s 90-day rule can adversely impact buyers if a seller is unwilling to hold a property 90 days thanks to holding costs and the risk of vandalism.
?FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties,? says FHA Commissioner David H. Stevens. ?This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity.?
The waiver will take effect on Feb. 1, 2010, and be effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of ?flipping,? the waiver is limited to those sales meeting the following general conditions:
? All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
? In cases in which the sales price of the property is 20 percent or more above the seller?s acquisition cost, the waiver will only apply if the lender meets specific conditions.
? The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.
? Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD?s website:
http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf
? 2010 Florida Realtors?
Monday, January 11, 2010
Single women outnumber single men when buying a home
CHAPEL HILL, N.C. ? Jan. 11, 2010 ? For a number of reasons, both financial and personal, a growing number of men are shunning the revered institution of homeownership. The figures behind this phenomenon only hint at possible reasons.
A comprehensive nationwide study by the University of North Carolina at Chapel Hill?s Center for Community Capital found that men and women under age 40 report fairly comparable levels of contentment with homeownership. Yet the attitudes of bachelors and bachelorettes hint at underlying gender attitudes toward homeownership. Married couples comprise the majority of new homebuyers.
According to the National Association of Realtors? (NAR), the next-largest buying group is single women, who in the past year accounted for more than one in five home sales; single men represented just 10 percent.
The gap has widened since the turn of the century, confirms Paul Bishop, NAR?s vice president for research. Bishop?s survey leaves unanswered questions about the roots of the gender divide. Whatever the reasons, a number of men seem to grasp all too well what economists see as an enigma of homeownership: it has an asset, or investment, value, as well as a consumption value.
?Once upon a time, people bought houses to live in,? says UCLA geography professor William Clark, who writes frequently on homeownership. Today, ?with the sudden run-up in foreclosures, you?re starting to see people ask: ?Is housing a good investment??? he explains.
Source: New York Times (01/07/10) P. D1; Tortorello, Michael
? Copyright 2010 INFORMATION, INC. Bethesda, MD (301) 215-4688
A comprehensive nationwide study by the University of North Carolina at Chapel Hill?s Center for Community Capital found that men and women under age 40 report fairly comparable levels of contentment with homeownership. Yet the attitudes of bachelors and bachelorettes hint at underlying gender attitudes toward homeownership. Married couples comprise the majority of new homebuyers.
According to the National Association of Realtors? (NAR), the next-largest buying group is single women, who in the past year accounted for more than one in five home sales; single men represented just 10 percent.
The gap has widened since the turn of the century, confirms Paul Bishop, NAR?s vice president for research. Bishop?s survey leaves unanswered questions about the roots of the gender divide. Whatever the reasons, a number of men seem to grasp all too well what economists see as an enigma of homeownership: it has an asset, or investment, value, as well as a consumption value.
?Once upon a time, people bought houses to live in,? says UCLA geography professor William Clark, who writes frequently on homeownership. Today, ?with the sudden run-up in foreclosures, you?re starting to see people ask: ?Is housing a good investment??? he explains.
Source: New York Times (01/07/10) P. D1; Tortorello, Michael
? Copyright 2010 INFORMATION, INC. Bethesda, MD (301) 215-4688
Saturday, January 9, 2010
Fannie Mae Launches Special Approval Designation to Support Florida Condo Market
WASHINGTON, DC ? Fannie Mae (FNM/NYSE) announced today that it is undertaking a comprehensive review of hundreds of condominium projects in the state of Florida in an effort to allow additional projects to become Fannie Mae-eligible through a new "Special Approval" designation.
A dedicated team of six Fannie Mae professionals based in Florida is conducting a thorough examination of condominium projects across the state that may not currently meet Fannie Mae's standard eligibility criteria and assessing specific criteria more closely, including occupancy, homeownership association dues, financial stability of the project and property condition. Projects deemed to be sufficiently stable following the closer examination are granted a Special Approval designation, meaning lenders can originate and deliver mortgage loans secured by units in these projects to Fannie Mae.
Fannie Mae has been granting exceptions to its condominium eligibility guidelines on a case-by-case basis when requested by lenders. The Special Approval designation streamlines the process for lenders and catalogues projects across the state that are Fannie Mae-eligible. Projects deemed eligible will be listed on www.eFannieMae.com as project reviews are completed, and qualified borrowers wishing to purchase units in these projects will be eligible for financing.
"This new initiative is geared toward providing maximum support for Florida's distressed condo market as we continue to provide liquidity to the housing market more broadly," said Karen Pallotta, Executive Vice President, Single Family Mortgage Business. "The state's condo market has been particularly hard hit by the housing downturn and we're working with the industry and our partners to do all we can to stabilize the market and help spur recovery."
"NAR applauds Fannie Mae for taking this important step to make condo loans more readily available in Florida," said Moe Veissi, National Association of Realtors? First Vice President and broker-owner of Veissi & Associates Inc. in Miami. "Our state is probably the hardest hit as far as the condo market is concerned, and Fannie Mae's new effort to take a closer look at project eligibility could go a long way to putting projects back on a healthy financial track."
Special Approval designations are effective for periods between 9 and 18 months, and lenders are required to confirm the project's Special Approval designation on the date of the loan application. The Special Approval initiative is for established condominium projects only.
Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.
A dedicated team of six Fannie Mae professionals based in Florida is conducting a thorough examination of condominium projects across the state that may not currently meet Fannie Mae's standard eligibility criteria and assessing specific criteria more closely, including occupancy, homeownership association dues, financial stability of the project and property condition. Projects deemed to be sufficiently stable following the closer examination are granted a Special Approval designation, meaning lenders can originate and deliver mortgage loans secured by units in these projects to Fannie Mae.
Fannie Mae has been granting exceptions to its condominium eligibility guidelines on a case-by-case basis when requested by lenders. The Special Approval designation streamlines the process for lenders and catalogues projects across the state that are Fannie Mae-eligible. Projects deemed eligible will be listed on www.eFannieMae.com as project reviews are completed, and qualified borrowers wishing to purchase units in these projects will be eligible for financing.
"This new initiative is geared toward providing maximum support for Florida's distressed condo market as we continue to provide liquidity to the housing market more broadly," said Karen Pallotta, Executive Vice President, Single Family Mortgage Business. "The state's condo market has been particularly hard hit by the housing downturn and we're working with the industry and our partners to do all we can to stabilize the market and help spur recovery."
"NAR applauds Fannie Mae for taking this important step to make condo loans more readily available in Florida," said Moe Veissi, National Association of Realtors? First Vice President and broker-owner of Veissi & Associates Inc. in Miami. "Our state is probably the hardest hit as far as the condo market is concerned, and Fannie Mae's new effort to take a closer look at project eligibility could go a long way to putting projects back on a healthy financial track."
Special Approval designations are effective for periods between 9 and 18 months, and lenders are required to confirm the project's Special Approval designation on the date of the loan application. The Special Approval initiative is for established condominium projects only.
Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.
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