Lawn Care Dos and Don’ts

By Nancy Fulton
Photo: © Dreamstime

Summer is here and many of us will be spending the warmer months at home this year. That means our yards have to be a recreational oasis where we’re comfortable inviting friends and family. Nothing is more important to a yard than a great lawn. It gives kids a place to play, provides a comfortable place to sit or lie down, and makes a home look beautiful. Read these Dos and Don’ts to keep your lawn beautiful this year.

Do Mow Your Grass – When your grass goes to seed, it dies. To prevent it from going to seed, you have to mow it before the seeds appear at the top of each blade of grass. In most cases, you must mow your lawn at least once a month to keep it green.

Do Water Deeply At Night – Since water you put on your grass during a hot afternoon quickly evaporates, it’s best to water your lawn at night or early in the morning. Don’t water every day, but do water once or twice a week. Make sure the water goes deep into the soil, not just on top of the grass.

Do Feed Your Lawn – Nutrients get sucked out of the soil and into the grass year after year. To keep your grass healthy, you need to put nutrients back in. In Northern climates, you should fertilize your grass in fall and early spring. In Southern climates, you need to fertilize throughout the summer because your grass grows faster and needs more nutrition. Follow the instructions on each bag of fertilizer you use, and make sure you use a “spreader” to ensure the fertilizer is evenly distributed.

Do Weed Your Lawn – Some fertilizers have weed killers in them that will help keep your lawn weed free. But you will still need to pull stubborn weeds out of the ground by hand from time to time. Make sure you always grasp the weeds by the root, and that you pull slowly. You do not want to end up just taking out part of the weed.

Do Keep Pets Off Your Lawn – If you want a healthy lawn it is important to confine your dogs and cats so they don’t use the lawn for potty breaks. This keeps the people who use your lawn healthy too.

Don’t Over Fertilize – More is not better when it comes to fertilizer. If your grass starts to look brown, or burnt, despite regular watering, stop fertilizing. Make sure that you water enough to eliminate any excess fertilizer, which might remain on the grass blades.

Don’t Leave Stuff Lying On Your Lawn – The toy pool, the slip and slide, and stray junk can kill your lawn if left lying on the grass for too long. Your lawn needs sunlight and fresh air to thrive. It doesn’t do well if compressed for long periods of time, and it can’t survive being exposed to chemicals from metal or plastic that is leeching into the ground. So keep your lawn tidy if you want to keep it healthy.

Don’t Let Trees Grow Too Tall – Too much shade will kill your lawn. You may decide that during the summer, a leafy tree is great, but during the fall and winter cut it back so your lawn gets the sun it needs.

Pay Attention to Detail When Preparing Your Home to Sell

By Cheryl D. Green
Photo: © Terry J. Alcorn – Dreamstime
First impressions are lasting. If you are preparing to sell your home, you want it to appear well maintained and showroom ready. Using these simple tips will ensure that your home shouts, “’m ready to sell.”

Tip 1. Improve the kitchen and bathroom.
Nothing adds value like improvements to these well-traveled areas. Check your cabinets and fixtures for hanging knobs or large scratches. Spend time making minor repairs and painting or staining cabinets. Get the bathroom ready by putting up a new shower curtain or replacing that old toilet seat.

Tip 2. Minimize the ‘personal’ touch.
Begin to remove excess pictures, school art, certificates or anything else that may hide walls. A shrine to your kids is cute, but it may also give the impression that you aren’t ready to leave yet. Once again, buyers should be able to visualize themselves living in your home.

Tip 3. De-clutter and clean.
Since homebuyers are generally a nosy bunch, you’ll want to make sure that even the hidden areas of your home are clean and organized. If a prospective buyer looks into a closet or opens a drawer, the last thing you want is Junior’s wash pile falling out for the world to see. Take this opportunity to have a garage sale or place excess stuff into storage.

Tip 4. Fresh is always best.
Smell is one of our most powerful senses. Someone not used to your home may pick up scents that are not pleasing to their nose. Get rid of any unpleasant odor by shampooing the carpets, emptying the garbage and cleaning the refrigerator. You may want to light scented candles, have a light potpourri on the stove or use a plug-in to create a pleasant scent.

Tip 5. Have “curb appeal.”
A well-kept lawn is an absolute ‘must-have’ when preparing to sell your home. People love to see the lines of a freshly mowed lawn in front of their house. Look at the front door and make it attractive with a new paint or stain job. Sweep around the door and place a new welcome mat down.

And finally, get a second opinion by asking your real estate agent to tour the home with you. It may seem like extra work now, but by putting a little extra effort into the details, you’ll help your agent sell your home.

A New Web Experience

By Izzy Buholzer

Celebrate with us  with the launch of our new website! 

Thanks to all of our customers that made recommendations throughout the year. We came up with a faster and more user-friendly website. It let’s you search and re-search any aspect related to buying or selling real estate in Miami.

Please visit us at:

Send us your comments and suggestions, so we can make your online experience even better. Here some of the improvements:
 www.ibmiami.com

• - Full unrestricted access to the Multiple Listing Services (MLS)
  
• - Client Review Page under “About Us” – clients can write about their experience and share with future clients.
  
• - Tons of Freebies under “Concierge” – Valuable information and links related to Miami Real Estate.

Feel free to forward our website to friends or family that need a dynamic real estate company.

Thank you for your visit.

Izzy Buholzer , Lic. Realtor
Phone: 305-476-8000
izzy@ibmiami.com
www.ibmiami.com

Condo fee deadbeats cause problems for neighbors

The Associated Press

MIAMI — The number of condo owners who aren’t paying maintenance fees is on the rise, causing headaches for the other owners and, in some cases, animosity between neighbors.

Condo associations around South Florida are using a variety of tactics to retaliate against the deadbeats, including closing pools, towing cars and posting lists on bulletin boards of those who don’t pay fees. State officials say that the situation has gotten downright dangerous in some cases.

“The frustration people have, it leads to terrible animosity,” said Bill Raphan, the state’s assistant condo ombudsman.

Owners who are having financial difficulties often stop paying their condo fees – but that money is essential for utilities and services used by everyone in the building. Whether it’s one owner – or 50 – that doesn’t pay the monthly fees, it’s up to the rest of the condo to cover the shortfall.

But some owners are strapped themselves and can’t pay more. As a result, water and lights have been shut off in some condos. Trash has piled up and landscaping is nonexistent.

At the 310-unit Mirassou Condos in Miami-Dade County, county officials shut off water to the entire building because the condo’s association bounced a check and failed to pay a $109,000 past due bill.

Roughly a third of the units are bank-owned or in foreclosure. After the county turned off the water, residents allegedly tampered with the meter to keep it running illegally. The county and the association eventually agreed on a payment plan, and the water was turned on again.

Or take the Island Shores condo in North Miami Beach. Eduard Sotolongo is a condo board member who said he started calling the towing service to haul away the cars of people who haven’t paid fees when their cars were parked in guest spots or other unauthorized spaces.

Sotolongo said one resident threatened his life when his car was towed.

“You feel like buying a shotgun because it feels like the Wild West,” Sotolongo said.

In Hialeah, 44 of the 96 units at the Lancaster condo are in foreclosure. Association president Rolando Tato decided to close the pool.

At first, he said, it was to save money. Then he disclosed the real reason: “I don’t want the people who don’t pay the bills to have that enjoyment.”

Rudy Martin is a condo owner who hasn’t paid his fees. More than a year ago, he quit paying the maintenance charges on his Deerfield Beach condo more than a year ago. Martin now avoids his neighbors or endures “chilly stares.”

Often, he felt compelled to explain his situation when he ran into neighbors: “I felt like I had to talk to them and justify it, so they didn’t think I was scumbagging them.”

Is the worst over for South Florida housing market?

BY MONICA HATCHER

mhatcher@MiamiHerald.com

Is the South Florida housing market finally touching bottom? The answer, of course, can only be seen in the rearview mirror, but analysts agree that the most terrifying part of the downward slide is behind us.

New monthly figures from the Florida Association of Realtors show sales of existing homes and condos continued to post gains in May, the ninth consecutive month-to-month increase and a strong step in the right direction. Although sale prices are still way down from last year’s numbers, monthly declines appear to be stabilizing.

”If you look at the yardstick of housing sales, which is a typical yardstick, we are in the recovery stage and we’re in the bottoming phases on pricing,” said Coral Gables-based real estate analyst David Dabby.

The market remains mired in a swamp of foreclosures and short-sales, however, and as long as there are still a sizable number of these distressed sales, it will continue to depress prices. As job losses mount and more homeowners enter foreclosure, such properties could continue to pour into the market.

Still, distressed sales are driving market activity.

Sales of single-family homes were up by 76 percent in Miami-Dade County and 47 percent in Broward County, compared to May of last year. Condo sales also rose by 36 percent and 25 percent in Miami-Dade and Broward, respectively.

As many as 60 percent of those sales, according to recent research from the Dabby Group Advisors, were foreclosures or short-sales that are sold for less than the mortgage owed against them. In some areas, like Homestead, the percentage of distressed sales is as high as 80 percent.

During the last market crash of the mid-1980s, distressed property sales accounted for no more than 15 percent of sales.

But now the low prices are spurring buying, which in turn is eroding the huge supply of homes and condos offered for sale.

The number of single family homes for sale in May fell from a year ago by 33 percent in Miami-Dade and 36 percent in Broward. The number of condos for sale dropped by 20 percent in Miami-Dade and 26 percent in Broward.

On the pricing front, median sale prices for single-family homes in May were down significantly from a year ago, dropping 39 percent in Miami-Dade to $194,700 and 36 percent in Broward to $190,000. The Miami-Dade median condo price slid 50 percent to $140,300 and 42 percent in Broward to $80,400.

The median price is the point at which half the homes sold for more and half for less.

Month-to-month figures, which are important to follow as market dynamics change, show pricing was essentially flat for homes and condos in Broward between April and May. In Miami-Dade, the median price actually rose by 10 percent for homes and 5 percent for condos.

A slowing of price declines and median prices that fluctuate only slightly from month to month is a sign that a bottom may be approaching.

The price of a Broward condo, for instance, has bounced between $85,000 and about $80,000 for the last five months. Similarly, the median home price has jumped between $219,000 and $190,000.

In Miami-Dade, Jenny Huertas, a real estate agent with Bal Harbour-based Condo Vultures, said more home buyers who can get financing are paying full list price for bank-owned properties in an effort to outbid investors with lots of cash.

”I have an investor from New York who wants to buy ugly houses and fix them up and sell them to first-time home buyers, but every time he gets outbid,” Huertas said.

Consequently, these cash-laden investors are being pushed to the condo market where they can bully-down prices because average buyers are having a tough time getting condo loans.

When prices will start appreciating again is anybody’s guess. ”Just because you reach the bottom, doesn’t mean you are going to turn around and come right back immediately,” said Andrea Heuson, a University of Miami finance professor who studies the real estate market.

If history is any gauge, home prices should come back sooner than condos. Until prices peaked in 2006, single-family home prices had fallen only one other time in the past 50 years. They dipped slightly after the real estate boom of the 1980s, but recovered in about a year.

Condos, on the other hand, have been an entirely different story. After the similarly overbuilt condo market crashed in 1984, the average price of a condo in Miami-Dade fell 47 percent and didn’t recover its peak price of $86,479 until 14 years later, according to research from the Dabby Group.

It took even longer in Broward, though for different reasons. Condos there were mainly in retirement communities and there was less demand.

The current overstock of developer-held condos still vastly exceeds that of the 1980s, Dabby said. In the greater downtown Miami area alone, developers will still have roughly 10,000 unsold units on their hands by the end of this year.

 

Obama Administration to Launch National Outreach Campaign in Support of Making Home Affordable Program

MIAMI, FL – June 26, 2009 – (RealEstateRama) — The Obama Administration today kicks off a nationwide campaign to promote the Making Home Affordable Program, a plan to stabilize our housing market and help millions of Americans reduce their monthly mortgage payments to more affordable levels. The campaign starts today in Miami and then travels to nine additional housing markets that have been hit hard by foreclosure, with the goal of empowering local partners to connect homeowners with much needed relief under the Administration’s housing program. 

The campaign will engage local housing counseling agencies, community organizations, elected officials and other trusted advisors in the target markets to build public awareness of Making Home Affordable, educate at-risk borrowers about options available, prepare borrowers to work more efficiently with their servicers and drive them to take action.

The Administration is ramping up on-the-ground outreach to homeowners to help ensure that eligible families that could benefit have the necessary information and resources to access the program. By organizing community events, the campaign maximizes behavioral research that suggests that more homeowners will feel comfortable asking for help if they are among peers who are doing the same.

“More than 50 percent of all foreclosures occur without servicers and borrowers ever connecting,” said Treasury Secretary Tim Geithner.  “With this targeted campaign, we can reach in to the communities most in need, bolster awareness of this program and help responsible homeowners take the first step toward getting relief – all steps that will in turn help to stabilize the housing market and get our economy on the path to recovery.”

“Leveraging local housing partners on the ground is a key component in making the Making Home Affordable Program a success,” said HUD Secretary Shaun Donovan.  “Engaging community groups that are on the front line with at-risk borrowers will help broaden our outreach efforts and keep more people in their homes.”

Sessions with local housing counselors, community organizations and other trusted advisors will train those on the front lines of borrower outreach and empower them with Making Home Affordable collateral materials. Additionally, the campaign’s on-the-ground efforts will include neighborhood door to-door canvassing and Making Home Affordable foreclosure prevention workshops for homeowners in the local communities.

Today in Miami, Mayor Manuel Diaz will be joined by Administration officials, housing advocates and borrowers to kick off a training session designed to educate and empower local counselors on the ground to to assist borrowers in their community. Then on Tuesday, local housing counselors will host a borrower outreach event at the James L. Knight Center, where homeowners at risk of foreclosure will have the opportunity to talk with representatives from various lenders and servicing partners as well as HUD-certified housing counselors. Earlier this week, as part of the “Bringing Hope Home” bus tour, Alonzo Mourning and Dwyane Wade led a canvassing effort throughout Miami Gardens to help raise awareness in the local community about the resources homeowners can access to address their individual mortgage circumstances.

Making Home Affordable, a comprehensive plan to stabilize the U.S. housing market, was first announced by the Administration on February 18.  The three part program includes aggressive measures to support low mortgage rates by strengthening confidence in Fannie Mae and Freddie Mac; a Home Affordable Refinance Program to provide new access to refinancing for up to 4 to 5 million homeowners; and a Home Affordable Modification Program to reduce monthly mortgage payments for up to 3 to 4 million at-risk homeowners. In just a few months, more than 200,000 borrowers have received offers for trial loan modifications, tens of thousands of refinances and trial modifications are under way, and informational mailings about the program have been sent to more than one million borrowers who may be eligible.

Other cities on the tour include Los Angeles, Sacramento, Las Vegas, Phoenix, Boston, and several more with the possibility of expanding the tour to other areas that have been hit hard by foreclosure in the coming months. Specific dates and events in these markets will be made available in the weeks ahead.

Homes in foreclosure-ridden Miami-Dade projects are top sellers

BY MONICA HATCHER

mhatcher@MiamiHerald.com

The foreclosure tsunami that has washed over Miami-Dade County’s town home and condo market is helping to wipe the slate clean for some projects with the worst foreclosure problems. In a dubious reversal of fortune, seven of the top 10 most foreclosure-ridden complexes last year ranked among the 10 top-selling projects in the first three months of 2009, largely because banks slashed prices to the bone in order to speed sales.

The new figures come from Miami-based market research firm CondoReports.com, which compared foreclosure and sales transactions in its database of 2,000 Miami-Dade projects built before 2008.

The top three best-selling projects were in Miami-Dade’s farthest flung suburbs. Shoma at Keys Cove in Homestead ranked first with 50 sales; followed by Mandarin Lakes near South Miami Heights, with 32 sales; and, Bluewaters subdivision in the Country Walk area, also with 32 sales.

Several Brickell area luxury condos that became notorious for hallways dotted with eviction stickers and lock boxes also made the list, including the Club at Brickell Bay and the Vue at Brickell.

With the financing bar set too high for many buyers, sales in the condo market are still anemic relative to the volume of units on the market. Additionally, many lenders still refuse to write loans for condos and town houses in Florida because of the risk of further price declines and foreclosures. Consequently, many foreclosure sales are all-cash transactions to investors.

Transactions in the top 10 selling projects accounted for more than 11 percent of the 2,600 condo and town home sales tracked by the firm in Miami-Dade County. The projects, however, represent only 0.5 percent of the 2,000 projects followed during the first quarter.

Adam Cappel, CondoReports.com president, said it was notable that such a large percentage of sales activity was concentrated in only a small number of projects.

”The people in control of most of these units are banks and they are obviously the most motivated market participants to move the product — rather than individuals who might be holding out for higher prices or a price they could get a year or two years ago,” Cappel said.

In compiling the list, CondoReports. com looked at closed sales in projects with 50 or more units, excluding newly constructed projects from 2008 and 2009. Developers in many of those buildings are still closing preconstruction contracts, which, Cappel said, do not generally reflect the current market prices.

While the average sales prices at Shoma at Keys Cove was a mere $38,060, pricing was not the only factor that propelled the projects to the top of the pack, he said.

‘In these buildings, banks are meeting market prices, but there are also a lot of banks controlling a lot of units — through foreclosures or by having the `yes’ or ‘no’ on short sales,” Cappel said.

The average sales price of homes in the second-ranked Mandarin Lakes was about $192,000 and about $211,000 in Bluewaters, which ranked third.

Foreclosures and short-sales — in which a lender allows a homeowner to sell for less than the full mortgage amount owed — accounted for more than 60 percent of all home sales in April.

Use Less Stuff to be “Green”

Courtesy of ARAcontent
Photo © Saniphoto – Dreamstime
If the desire to “go green” leaves you feeling a bit overwhelmed, keep it simple with a “less is more” attitude, advises Bob Lilienfeld, sustainability expert and author of “Use Less Stuff.” You’ll be amazed at how simple lifestyle changes can affect your impact on the environment and your budget.

Recycling has long been touted as the centerpiece of environmentally conscious behavior, Lilienfeld notes. But the truth is that recycling by itself can’t solve the environmental issues we’re now facing. “The real key to saving the planet is to shop smarter so that we manage our consumption and stop creating waste,” he says “Beyond recycling, we need to reduce and reuse in all areas of our life.”

Here are Lilienfeld’s tips on how to shop with a “use less stuff” mindset:

Make a List, Check it Twice
The best way to get what you need—and not what you don’t—is to start from a list. Doing so keeps you from purchasing impulse items that you really don’t need and have to pay for. And, if you include items that you’re almost out of, you’ll prevent yourself from having to run out for that one thing you either ran out of or forgot to buy. So, you’ll save time, money, and gasoline.

Less is More
Concentrated products are better for the environment because they use fewer natural resources. Concentrated products not only mean less waste, but also less weight you have to carry around. Concentrated products use 22 percent to 43 percent less packaging and up to 44 percent less water in the formulation than before, so you get a product that is a better choice for the planet, without any performance sacrifice.

A great place to find concentrated products is the detergent aisle. There are a number of top brand detergents, like Tide, Gain, Cheer, Era and Dreft that have been recently reformulated to provide the same number of loads in detergent bottles that are about half the size, resulting in a more convenient product that is easier to carry, pour and store.

Reduce, Reuse, Refill
Buy refills for your favorite products. Take a spray bottle for example. You really don’t need a new sprayer, just more cleaner. Buying the larger refill bottles means you throw away less, get more product, and save money, too, since you’re not paying for a spray top that you really don’t need.

A Bright Idea
Invest in the just-introduced, second generation compact fluorescent light bulbs, or CFLs. They last 16 times as long, use 75 percent less energy, and now provide light that’s as natural looking as standard incandescent bulbs.

For more information on how using less stuff can help the environment, visit www.use-less-stuff.com.

The Benefits of a Great Real Estate Agent

By Angela Baca
Photo © Jozsef Szasz – Dreamstime
Real estate agents do more than just help you search for a home; they provide indispensable advice during the entire home-buying process. Here are three ways that your agent will protect your interests in the steps toward buying a home.

1. Finding Your Ideal Home – If you’ve already searched for a home for several months, you probably have a few prime properties in mind. Your agent will help you sift through your choices to ensure that the property you think you want is really going to serve you well long-term.

As an added bonus, an experienced agent has a knack for sniffing out things like dishonest sellers, lemon houses, and bad deals. Buying a home can present many pitfalls for the inexperienced; having the expertise of a professional will provide peace of mind and ensure that the process goes smoothly.

2. Preparing the Real Estate Offer – You may already be aware of the basic steps toward owning a home, but there are some finer details to drafting and presenting a real estate offer to the seller. A real estate agent guides you in how to prepare your offer and helps you to draft a competitive set of terms that will increase your chance of being accepted by the seller. Some considerations include how much to offer for the home, when to close on the deal, what costs will be paid by each party, and if the seller will add improvements to the home before closing.

3. Closing the Deal – Once a seller has accepted your written offer, there are many steps that must take place before the house will be transferred to you. Since a professional real estate agent has been down this road many times, they will be able to guide you during the major phases of the closing process.

Although an objective third party may draw up all the paperwork and hold the escrow funds until closing, your agent acts solely on your behalf. Don’t hesitate to voice your concerns or ask your agent lots of questions to ensure that you get the optimal benefit from the home-buying experience.

Despite Tighter Lending Buyers Still Benefit

By Melissa Nykorchuk

 

With the recent government bailout of Fannie Mae and Freddie Mac, mortgage lenders are finally showing responsibility in their lending practices. Potential homeowners will find it tougher to get a mortgage than in recent years where a loan could be secured with no down payment, a subprime credit score, and no income verification. As lenders tighten their approval process, fewer homebuyers will be getting in over their financial heads. Buyers that can meet the new criteria for a mortgage will find lower home prices and lower rates, which will allow the buyer to purchase more home for their money.

With previous lending practices, it was possible to buy a home without putting any money down. Rates were reasonable, even if the borrower was unable to provide verification of their income and had a weak credit score. This lending practice was not only bad business for the lender, but it set up potential homeowners for financial disaster. With house prices going down, borrowers who rely on home equity as a cushion no longer have that cushion and many owe more on their house than it is worth.

As a potential homebuyer, there are a number of steps you can take to ensure you get the right mortgage for your needs. You should be saving for a down payment of about ten percent, which in the long run will allow you to have equity in your home even if the value dips. Make sure that you continue to pay debts on time so that your credit score remains stable or rises. If you have credit card debt, pay down some of this debt to increase your credit score. The closer the balances are on your credit cards to the credit limit, the lower your credit score will be. You should also be able to prove a steady stream of income that reflects your ability to pay your potential monthly mortgage payment.

House prices are down and mortgage rates are reasonable. If you are approved for a mortgage, the time is ripe for you as the homebuyer to purchase more for your money than you would have been able to even less than a year ago. As house prices go down, current homeowners that need to sell their home are more likely to negotiate a deal that is favorable to the potential homebuyer. More houses are on the market and there is less competition among homebuyers. Instead of getting into a bidding war, which can lead to purchasing an overpriced home, homebuyers are now able to take their time and negotiate a price for the home that they want. Homebuyers do not have to feel pressured into making an offer immediately after viewing a house and can instead look around for their ideal home.

The Recent Interest in Real Estate Short Sales

By William Payne

 

Lenders are facing a liquidity dilemma as the number of foreclosures continues to rise. As a result, more banks and other financial institutions are becoming amenable to a short sale by the borrower to prevent the property from becoming a real estate owned asset.
Based on how much real estate a bank holds on the books, banking regulations will penalize a bank by adjusting their overall lending authority downward.

A short sale also gives the lender an opportunity to get at least the majority of their money back without the time and expense of a foreclosure action—which can take several months to accomplish and thousands of dollars in legal fees and court costs.

The Short Sale:
Impact on Borrower and Lender
A short sale accomplishes objectives for both the borrower and the lender. For the borrower whose property is in foreclosure or about to be foreclosed upon, it permits an orderly sale of the property to a third party at a fair market value, albeit one that is less than what the purchase price was. By short selling, the borrower also prevents or lessens the impact that a foreclosure will have on their credit history.

The lender shares the financial burden in a short sale. Because the sale of the property is short of the principal balance of the existing first mortgage and the lender has agreed not to pursue the borrower for the deficiency, the lending institution has to write off part of its loan. Since the bank agreed to the short sale, a deficiency judgment cannot be sought against the borrower, which can happen in a foreclosure sale if the amount paid is less than that of the mortgage balance.
What Is a Short Sale?
A short sale means that the lender has agreed to accept the proceeds from the sale of a piece of property, when the sale price is less than the current principle balance of the property loan, as the full payment of the mortgage debt obligation.

Why Would a Bank Agree to a Short Sale?
Holding and managing real estate is not in a bank’s best interest; a bank’s main business is making loans and collecting interest on those loans. Making loans requires cash liquidity and real estate is not a liquid asset. The Federal Reserve regulates how much the bank can have in outstanding loans at any given time—they base this number on many different factors. Bank owned real estate that is not used as part of a bank’s daily operations is actually a liability when it comes to the bank’s lending limit authority.

Based on how much real estate a bank holds on the books, banking regulations will penalize a bank by adjusting their overall lending authority downward.

A short sale also gives the lender an opportunity to get at least the majority of their money back without the time and expense of a foreclosure action—which can take several months to accomplish and thousands of dollars in legal fees and court costs.

The Short Sale:

Impact on Borrower and Lender
A short sale accomplishes objectives for both the borrower and the lender. For the borrower whose property is in foreclosure or about to be foreclosed upon, it permits an orderly sale of the property to a third party at a fair market value, albeit one that is less than what the purchase price was. By short selling, the borrower also prevents or lessens the impact that a foreclosure will have on their credit history.

The lender shares the financial burden in a short sale. Because the sale of the property is short of the principal balance of the existing first mortgage and the lender has agreed not to pursue the borrower for the deficiency, the lending institution has to write off part of its loan. Since the bank agreed to the short sale, a deficiency judgment cannot be sought against the borrower, which can happen in a foreclosure sale if the amount paid is less than that of the mortgage balance.

 

4 Ways to Shop Smarter for Your Home

By Angela Baca

When it comes to buying things for your home, you want to make a smart investment and save money over the lifetime of your home products. Use these four tips as a starting point for doing your research before you buy.

1. Research which appliances are truly energy-efficient. Many brands can make this claim, but some appliances are better engineered than others. You can look for online reviews of products from independent sources to carefully select an appliance.2. Research warranty and service plan options. When you purchase a home product such as an appliance, the retailer or the manufacturer may offer a warranty or service plan for an additional fee. Compare the product warranty with additional options and decide which option will fit your budget. Many retailers will refund your money if you are not satisfied with your purchase. The home product you seek is probably available from more than one retailer. Make your purchase from a store with a money-back guarantee.

3. Look for a 30-day, money-back guarantee.

4. Identify used products that serve just as well. You don’t always have to buy new. Look for options at resale stores including consignment businesses and thrift stores. For example, a used couch in good condition can meet your needs for a fraction of the cost.

The Internet is a great tool for finding consumer product information that’s free. When you think about what home goods to purchase, you have to weigh quality against price. Your cost-benefit analysis will lead you to the right product choices for your home.

A LAWYER’S EXPLANATION OF THE FORECLOSURE PROCESS

As an attorney I often consult with homeowners that are in distress along with the Realtors that represent them in trying to accomplish a short sale.  Often a detailed explanation of the foreclosure process would be very worth while for my client to have a thorough understanding of what they may be facing as the lender seeks to enforce the promissory note and mortgage.  We usually don’t have enough time to explain the process in full, so here is an article that should help non-lawyers understand what is happening according to rules of procedure in the court system and what options lenders have for enforcing the money they loaned to the homeowner.

The Promissory Note – the obligation to pay back the borrowed money -

In the beginning there is a PROMISSORY NOTE.  This is a promise to repay money that is being given by the HOLDER, usually a bank or LENDER.  To be sure the promissory note is repaid the HOLDER wants some collateral.  The collateral could be anything from your heirloom watch to your car, but for our discussion purposes it will be your house. 

The Mortgage – the collateral of your promise to pay back the borrowed money -

The typical way to provide the collateral of your house to the HOLDER of the promissory note is to sign a MORTGAGE.  The mortgage is not a promise to pay any money.  It is merely the promise that if the promissory note is not paid according to its terms, the HOLDER of the promissory note has the option of selling your house and taking from the proceeds of that sale only enough money to pay back the promissory note, giving to you the balance of any excess money from that sale.

Why do I get sued if I don’t pay the money to the Lender?

Understand that the HOLDER does not have to use the mortgage to collect on the payments unpaid on the promissory note as there are other collection methods.  For example, the HOLDER can just sue on the promissory note and get a money judgment against you for not paying according to the terms of the promissory note.  That money judgment can then become a lien upon all of your property, both real estate and non-real estate, and (with certain exceptions) the HOLDER can then have the Sheriff sell your real estate or non-real estate assets until the funds raised are enough to pay off the promissory note.

For the purpose of this explanation let’s assume the other route of enforcing the obligation to pay the promissory note is used and that is the commonly used “Foreclosure” or more appropriately termed “Mortgage Foreclosure”.  In the mortgage foreclosure the HOLDER takes the option of using the collateral of your home (in the example above) and elects to have it sold at (in Florida and most other states) a public sale conducted by an officer of the court, usually the Clerk of the Court in the county in which your house is located.  At the foreclosure sale there is the opportunity for the public and the HOLDER to bid on the house and the house is then sold by the Clerk to the person that bid the highest amount.

The Foreclosure Sale Bidding Process-

This bidding process is confusing because you often hear that the Lender (HOLDER) got the house at the public sale for just $100.  The bid of $100 is usually the opening minimum bid at a public sale.  The reason for this is that there was no public interest in the house, usually because the judgment in the mortgage foreclosure is higher than the value of the house being sold.  To understand why the HOLDER then only bids $100 and no one else bids at the public sale, you need to understand that the HOLDER, having been awarded a foreclosure judgment against the house (not against you as the borrower) is entitled to bid on the house at the sale and the HOLDER can “credit bid” up to the amount of the foreclosure judgment.  This makes sense because why should the HOLDER, who is already owed money, have to actually pay the Clerk for any bid it makes if the money would only go right back to the HOLDER?  So the court rules allow the HOLDER to just bid any number up to the amount the judge set in the foreclosure judgment (being the amount owned to the HODLER under the promissory note).  So if no one else bids on the house at the sale, the bidding starts and ends at the $100 and the winner of the bidding is the HOLDER, who then gets the title to the house.

The Meat of the Foreclosure Process -

Now that we have dealt with the very beginning and the very end of the foreclosure process, let’s get into the middle of the foreclosure process.

1.  Notice that you are Delinquent:  The foreclosure warning letter is usually the first stage of the foreclosure sale.  This letter is not the letter that you owe a late fee because you did not pay by the 15^th of the month.  The foreclosure warning letter is usually after you are 60 or 90 days late on your payments.  It usually precedes the filing of the complaint for foreclosure by 30 days, but currently that time period can be much longer.  This letter could be written by the HOLDER or by the HOLDER’s attorney and it usually demands the payment of the full amount of the delinquency and some letters could announce a full acceleration of the amounts due, including the principal amount of the promissory note.  If you don’t pay the money demanded to the HOLDER, the foreclosure complaint will likely follow.  This letter may also include a suggestion that you contact the lender and see if a modification, deed in lieu, short sale or other assistance to your problem of paying the mortgage may be available and appropriate for you.  Whatever you do however, understand that unless you pay the mortgage arrearage in full, the mortgage foreclosure process is likely going to continue!

2.  The Foreclosure Complaint and Lis Pendens:  The foreclosure complaint is a document that tells the court that you signed a promissory note and did not pay it, and you also collateralized the promise to pay the promissory note with a pledge of collateral (a mortgage) of real estate, in this case you house.  Some people call this the “lis pendens”.  In reality the lis pendens is a document that is filed in the court file and also recorded (”filed” and “recorded” have different meanings) in the public records of the county where the real estate is located.  The lis pendens mean literally “litigation pending” and it identifies who is involved and what property is involved.  Some people think it is a lien on the house, but in a foreclosure litigation situation, the mortgage itself is the lien and the lis pendens is just a notice to the public that a lawsuit is filed, thus alerting anyone that would be buying or otherwise dealing with the identified real estate that its disposition is subject to a lawsuit.  There are some issues of priority of liens that could be part of this discussion, but it is not necessary for the answering of your question.

3.  Summons and Service of Process:  The foreclosure complaint is provided to all of the defendants by “service of process” and usually that is accomplished by the delivery of a “summons” to each defendant.  The summons says that you have a certain number of days to respond to the complaint filed in the court or a default will be taken against you.  Let me mention a few things here:

            a. If you are named a defendant in a foreclosure complaint it is because of one of three reasons: (1) you owe the money to the Holder; (2) you are owned money by the Borrower; (3) you are in possession or have a right of possession (like a renter) of the property described in the mortgage.  If you are in category 2 or 3 you are not subject to owing money as a result of the lawsuit and the complaint is filed against you only so the mortgaged property can be sold free and clear of any claim you have or may have to the property named in the mortgage.

            b. If you don’t answer a complaint within the time period stated in the summons, a default will be entered by the court.  The default is in effect an admission of the things stated in the complaint relative to your name and relationships in the complaint are all true.  What this then means depends on what the complaint says concerning you.  If you are a tenant for example, it means that the mortgage is a lien on the property superior to your right of possession.  A discussion on foreclosure defenses is for another article unto itself, but they can include violations by the Lender of various regulatory rules.  I have two caveats in regard to defenses: (1) don’t confuse a defense with a defective foreclosure complaint.  A lost note is not a defense, nor is a lack of an assignment of the mortgage.  Both are defects in the complaint.  (2) Defenses like Truth in Lending violations or RESPA violations require the transaction to be unwound and that means you have to pay back to the lender the money they loaned to you (less certain penalties and attorney fees).  If you cannot return the money the defense becomes illusory.  Congress is addressing this issue now that the housing market is upside down, but there are no solutions yet. Learn more at my article FORECLOSURE DEFENSE FALLACY.

4.  The Timing of Pleadings: The HOLDER’s attorney’s procedure for a foreclosure is usually pretty much standard:  file and serve the complaint, then wait for the statutory time to answer (usually 20 days), then file a motion for summary judgment of foreclosure with the necessary affidavits and schedule the hearing, then have the hearing with the judge on the motion for summary judgment of foreclosure (which hearing usually takes less than 10 minutes), then have the judge enter the order of final judgment of foreclosure and schedule the foreclosure sale date (sometimes the Clerk has to first give the date to the judge) which date is usually no less than 30 and no more than 45 days from the hearing; then the sale date comes and the public auction of the property occurs.  It is this final event that ends the owner’s ability to repay the loan. 

5.  Is the House Lost for Good?  After the sale has occurred there is sometimes a period of redemption where you can still reacquire the house not withstanding it having been sold a public auction.  This period of redemption varies from state to state.  In Florida it effectively ends when the bidder at the foreclosure sale pays the full amount of the bid to the Clerk of the court.  There can be legal objections to the sale based on irregularity or other technical infirmities and in Florida this must be brought to the attention of the Court within 10 days of the sale of the property at foreclosure. The judge then has a hearing on the issues and either sets the sale aside and orders a new sale or the judge confirms the sale and orders the Clerk of the Court to issue a deed to the successful bidder.

6.  Attacking Errors in the Procedure: An appeal can be taken from a judgment of foreclosure but it must be timely.  In Florida the time to take the appeal is 30 days from when it is rendered.

7.  Deficiency Judgment or Surplus Funds?  After the foreclosure sale, if the Lender got less than it was owed it can file a motion to have the court award a deficiency judgment against you as the borrower. How this amount of the deficiency is determined is usually the difference between the foreclosure judgment amount and the market value of the home at the time of the foreclosure public sale.  An in-depth discussion on the procedure is covered in Foreclosure Deficiency Judgment Compared to Deed In Lieu and Short Sale Scenarios.

7.1 After the foreclosure sale, if the Lender got what it was owed there is probably more money left over.  This occurs when the amount of the foreclosure judgment is less than the amount bid at the foreclosure sale.  This excess money or “overbid” is called the “surplus” and it very well may belong to the borrower!  To get this money the borrower must file a motion to the Clerk (sometimes the Court) to get the money.  If there are other creditors that have judgments or liens on the house (like a second mortgage holder) those people could have a superior claim to the surplus money.  Usually you can apply for these monies without an attorney, but if there are other claims or if you are uncomfortable with the process an attorney should be able to get the matter resolved with just a few hours of work.

This is a lot to digest and frankly  I could have been much more detailed.  You are probably asking yourself how long this whole process takes.  Before the current deluge of foreclosures the courts and the attorneys were not that busy so things pretty much went about as fast in Dade County as they did in Flagler County.  But today the whole system is over taxed with more cases than is humanly possible to process according the “fastest time” scenarios allowed by the Rules of Court.  What was once typically a 100 day process can now easily be twice that or more.

Copyright 2008 Richard P. Zaretsky, Esq

Article Written by: Richard Zaretsky, Esq

Telephone:  561-689-6660Ext.:107

Web: http://www.florida-counsel.com

New credit-scoring system coming in ‘09

By Renuka Rayasam

Content provider by Kiplinger.com

By next spring, two of three credit reporting bureaus will use a new model.
Fair Isaac, the developer of FICO scores, has made the biggest change to its mathematical credit score model since it was introduced in 1989. Scores will still be on a 300- to 850-point scale. But the company estimates that 40% to 50% of borrowers’ scores could go up or down by more than 20 points because of how the new model fine-tunes the variables it uses to evaluate consumers’ credit use behavior.
For creditors, the new FICO score promises to reduce the risk of defaults, improving the predictability of defaults by 5% to 15%. Delinquencies are at their highest rate since 1992, when the economy was also in a recession. The revised scoring method “has a few more gray areas fleshed out so it gives us confidence in credit scoring models,” says Ginny Ferguson, a member of the board of the National Association of Mortgage Brokers.
Equifax and TransUnion will be the first credit reporting bureaus to roll out the changes over the next year. As credit tightens because of the financial crisis, FICO scores are becoming increasingly important for borrowers looking to qualify for favorable terms. That puts high scorers in “even a better position for pricing on loans” as the economy recovers, says Ferguson.
The timing of the new scores reflects more changes in the marketplace, says Careen Foster, senior product manager at Fair Isaac. “Lenders said they wanted a stronger predictive model, but didn’t want to change how it is used,” she adds.
Fair Isaac has increased the number of groups that customers fall into from 10 to 12, taking into more account the number and magnitude of credit problems. Infrequent problem borrowers will no longer be lumped in with habitual delinquents. With the new model, “there is more forgiveness around people in the middle,” says Foster. “If you have one isolated missed payment you won’t score as low as before.” The new FICO model also focuses less on how many accounts a borrower has and more on the amount of balances carried.
Piggybacking — upping a score on someone else’s back — won’t be ruled out in the new FICO score. But it will make using that route to establishing credit harder and lengthier. The authorized user provision allows young adults to create a credit history by using and paying off accounts held by their parents. But it has also been subject to abuse, with high credit scorers selling their names to borrowers looking to improve scores. Fair Isaac estimates that 30% of U.S. credit card holders, or 60-75 million people, are authorized users. Credit.com says that many of those authorized users are women. Many of them rely on their husbands’ FICO scores, and it will now take longer for those women to build up their own credit scores

Settlement conveys a message

Demand transparency in details of refinancing or purchasing a home.
BY KENNETH HARNEY
KENHARNEY@EARTHLINK.NET
With mortgage rates at historic lows — 4.75 percent from several lenders in mid-December — a new legal settlement from the Federal Trade Commission offers a cautionary note for consumers, especially if they are minorities: Watch out. The rates and fees you’re quoted could violate federal law.
In a settlement agreement with a national mortgage company, the FTC alleged that minority re-financers and home buyers were charged higher fees and rates than white applicants with comparable credit scores and other risk factors. The excess costs ranged from hundreds of dollars in loan origination fees to potentially thousands of dollars in bloated principal and interest payments over the term of the loans.

RACIAL ALLEGATIONS
Gateway Funding Diversified Mortgage Services LP and its general partner, Gateway Funding of Horsham, Pa., agreed to settle allegations that in-house mortgage officers charged African-American and Hispanic borrowers more in discretionary loan ”overages” — rates or fees above the company’s baseline amounts — than they charged white borrowers.
The settlement in U.S. District Court in Philadelphia imposed a $2.9 million judgment against Gateway for its alleged violations of the Equal Credit Opportunity Act. Because the company currently is in difficult financial circumstances and cannot afford to pay the government that amount, the FTC allowed all but $200,000 to be suspended.
Gateway admitted no wrongdoing as part of the settlement, and its attorney, Leonard Bernstein of Reed Smith LLP, said the firm never had a policy of charging minority borrowers higher costs. ”These weren’t bad people,” said Bernstein, but like many other firms during the housing boom, the company ”didn’t invest in the computer systems [needed] to detect problems that were not overt.” Those problems, according to the FTC, arose from a policy of allowing loan officers ”nearly complete discretion” as to what fees and rates they charged individual applicants.
The Gateway settlement underscores an important point that consumers looking to refinance or buy a home in 2009 need to remember: Unlike other products that have easy-to-understand price tags attached, mortgages come with multiple price points tucked away in a relatively complex package — the base rate, loan discount ”points,” plus a wide variety of fees associated with the loan origination — all of which may be open to the loan officer’s discretion as to how much you’re charged.
Under federal civil rights laws, mortgage companies can set prices using specific underwriting factors related to the statistical probability of nonpayment, but under no circumstances can they charge applicants based on race, ethnicity, religion, age, sex or physical disability.
IMPORTANT LESSON
To Alice Saker Hrdy, FTC assistant director for financial practices and lead attorney on the Gateway case, the settlement has important lessons for re-financers and home buyers, whatever their race or ethnicity.

Since loan officers can earn extra compensation by subtly extracting higher fees from borrowers, Hrdy believes it’s essential for applicants to get all the details of every mortgage quote down in paper upfront — rate, points, all origination and processing fees, plus a good faith estimate of settlement charges — and require the loan officer to “break down the different items so you understand what you’re being charged and why.”
‘You’ve got to ask, `What’s your commission on this, and where is it?’ ” Then you take the answers and shop aggressively. In the process, you’ll probably not only spot the best-priced, all-around deal, but there’s a better chance you’ll also spot any evidence of discriminatory — and illegal — pricing.

Kenneth Harney is executive director of the National Real Estate Development Center.

Condo bust may mean more parks for Miami

BY MICHAEL VASQUEZ

MRVASQUEZ@MIAMIHERALD.COM

In the heyday of Miami’s building boom, the empty spaces were where the magic happened.

Pre-construction condo sales parties turned vacant lots into fields of dreams. Developers would one-up each other by stocking their sales events not only with glossy brochures but also celebrity appearances, sexy salsa dancers, trampoline artists.
All of that largess is gone now, and some of those glossy brochures never became actual brick-and-mortar buildings. The empty spaces are just that — fenced-in and unwelcoming.
Could they be something more?

Miami Commissioner Marc Sarnoff thinks so and is proposing that the city turn some of those would-be condo properties into temporary parks. Amid the dour economic climate, it will likely be years before developers build anything there, even in prime, waterfront locations.

Call it rent-a-park.
Sarnoff, following the lead of a Seattle program that turns vacant land into community gardens, has approached several local developers.
One, Tibor Hollo, is poised to grant Miami use of his 1201 Brickell Bay Drive property — future home of the two-tower, 787-unit Villa Magna project — for the next three years at a lease rate of $1 a year.

The Brickell-area property boasts panoramic views of downtown in a densely-populated neighborhood lacking park space.

”Every cloud has a silver lining,” Sarnoff said of Miami’s now-lackluster real estate market. “And the silver lining for the citizens of Miami is that they get to have a waterfront park.”

SEVERAL SITES
Maybe more than just one. Other properties the commissioner is eyeing as possible park space include bayfront property in the Upper East Side, another site along the Miami River and downtown land that, while not waterfront, is in the heart of Miami’s business district.
”Nothing has been made definitive,” cautioned Eric Fordin, vice president of The Related Group, owner of the Upper East Side property. But he added, “Related likes to pride itself on being open-minded and listening to ideas and concepts.”
While city leaders have made strides in upgrading Miami’s long-neglected park system, the city is still near the very bottom of national big-city rankings of park space per 1,000 residents.
Miami activist Steve Hagen, who has often chided City Hall for this shortage of park acreage, isn’t convinced renting green space is the solution.
”It’s a Band-Aid on the need for parks,” Hagen said. “The bottom line is the City Commission has to get real serious about adding park space.”
Sarnoff says Miami isn’t choosing renting over owning — the city is actively taking steps to do both. But with land like the Hollo property — valued at about $38 million — Sarnoff says renting is the only realistic option.
Of all the sites under consideration, Hollo’s land is by far the closest to becoming park space. City leaders had already picked a park name — Hollo Park, in honor of its owner — when an unexpected wrinkle surfaced.
”I asked them to please don’t use my name,” Hollo told The Miami Herald. “I’m kind of a little bit shy in that way. There’s no reason for it.”
The park was rechristened ”Villa Magna Park.” The lease deal between Hollo and the city may receive final approval in January.
Assuming that happens, how long will the land stay a park? That’s not clear.
The current terms of the deal call for a three-year life span with an optional reduction to two years if Hollo wants out early.

Miami-Dade Housing In Search Of A Bottom

MIAMI (CBS4) ―Certain housing markets around the country have taken large hits. Some of the usual suspects were Phoenix, Las Vegas and San Francisco whose declines were 30 percent this time last year. Miami and Los Angeles saw drops in the high 20s, and now a study says Miami may not bottom out until 2011.

In a report released by Moody’s Economy.com, home prices in Miami-Dade County will continue sliding through 2010, not bottoming out until early 2011. It stated also that Broward real estate may bottom in the latter part of 2010.

The report is called, ”Housing in Crisis: When Will Metro Markets Recover?”

U.S. home prices will reach bottom by the end of the year, concluding a slide that will have cut values 36 percent.

The biggest home-price decline is forecast for the Naples, Florida, area, where the report estimates prices will tumble 70.1 percent from the top before hitting bottom in the fourth quarter of 2010. Naples is followed by the California areas of Merced and Salinas. Merced prices are forecast to fall 69.6 percent from the peak and Salinas 67.9 percent.

Drops in home prices and sales in Miami-Dade and Broward counties in 2008 marked one of the worst years for the real estate industry.

Prices for a single-family home were down 27 percent in 2008 in Miami-Dade and condo prices saw a drop of about 12 percent.

The median price for a single family home in Miami Dade for 2008 was $276,600; the median price for a condo was $239,400. In Broward, single family home prices fell 23 percent while condo prices were down 29 percent. In Broward, the median price for a single family home in 2008 was $278,000 while the median price for a condo was $132,900.

More bank failures in Florida expected

By JEFF OSTROWSKI

Palm Beach Post Staff Writer

Monday, February 09, 2009

Banking regulators have closed 34 banks nationwide in the past 13 months – yet only three of the failures were institutions based in Florida, ground zero for the housing collapse.

The low number of Florida failures is a head-scratcher for analysts like Philip van Doorn of TheStreet.com in Jupiter.

“It sure is surprising, considering how many banks with incredibly bad asset quality we have here in Florida,” van Doorn said. “There are a bunch of banks in Florida that are heading toward their doom.”

For the most part, though, they’re just flirting with doom. The three Florida banks that failed – Ocala National Bank of Ocala, and First Priority Bank and Freedom Bank, both of Bradenton – had no presence in South Florida or the Treasure Coast.

Both van Doorn and Miami banking analyst Ken Thomas estimate that 20 Florida institutions are on the Federal Deposit Insurance Corp.’s closely guarded list of troubled institutions.

“A lot of the problem banks in Florida could have been closed, but they’re not,” Thomas said. “Florida banks have got intrinsic franchise value. When this crisis is over and housing values start to come back, everyone’s going to say, ‘We want to be back in Florida.’ “

Peter Zalewski, head of Miami research and brokerage firm Condo Vultures, perused the list of banks shut down by the FDIC and noted that Florida isn’t the only state with surprisingly few failures. Nevada, another poster child for the housing bust, has had only two failures.

“Many people are going to be surprised by the lack of bank failures in Florida and Nevada given the dramatic price drops that have occurred in both states’ real estate markets,” Zalewski said. “One way to explain the low bank failure rate in Florida and Nevada is to assume that the local institutions in each market did a more competent job of lending and underwriting loans than did the out-of-town financiers who rushed to market. The other more likely explanation is that both states are primed for a rash of problems in the future.”

SellMyHouse.com Now Helping Foreclosure Victims in Miami Florida

MIAMI, FLORIDA: www.SellMyHouse.com announces expansion of its cutting edge marketing solutions for foreclsoure victims into the Miami metro area with the addition of . Izzy Buholzer to our Partner Program. As a response to the current housing crisis, the company has recently rolled out a new service that combines a revolutionary marketing system, expert advice from local real estate professionals, and finally, an online bidding platform designed to help home owners stop the foreclosure process by improving their chances of getting a quick offer.

Jason Roberts, President of SellMyHouse.com, says, “We are very excited to bring Izzy into our team. We designed this solution specifically for pre-foreclosure and stop foreclosure candidates because it maximizes exposure on a property while offering expert advice from Izzy’s team. The Florida market has been particulary devasted with this proplem over the past year. We want to do everything we can to help solve the current foreclosure problem.”

Lending institutions have been extremely receptive to the company because sellmyhouse.com helps them reduce foreclosure losses by dealing with it at the default stage. “Many banks are looking for solutions to dealing with is massive problem. Mr. Buholzer and SellMyhouse.com hope to help provide those solutions by keeping the homeowner in the house and taking care of the property while se search for a new buyer,” explains Mr. Roberts.

The company also has a national investor network for our “we buy houses’ and ‘cash for houses’ clientele. The company offers a complete solution that ranges from investor purchases and full service MLS listings to online auction and short sale services designed to help foreclosure victims who can not afford to remain in the house.

About SellMyHouse.com
www.Sellmyhouse.com offers clientele a true web 3.0 real estate solution through a combined information, advice, and national service platform. The company, operated by JKR & Associates, Inc, a licensed real estate company, operates a national investor and Realtor network offering services that include cash purchases, FSBO & MLS services, online auction platforms, short-sale mitigation services, as well as a variety of other options for home sellers.

Miami women’s shelter blooms in crime-ridden area

By LISA ORKIN EMMANUEL – Feb 3, 2009

MIAMI (AP) — In the mornings, the loudest sound at Lotus House is the running water from the main courtyard’s fountain.

The once homeless women bustle about in pajamas. Some eat breakfast before work, others sit in a secluded corner surrounded by trees to smoke or talk.

This is a women’s sanctuary, a place to restart life without drugs, alcohol, crime or abuse — the problems that put them on the street. Opened in 2006 in Overtown — one of Miami’s toughest neighborhoods — Lotus House aims to address the women’s emotional and physical needs and prepare them to live independently. Experts say the shelter, funded by a mix of private and public money, offers one of the most comprehensive homeless programs in the state and should be a model for facilities nationwide.

“I am so blessed and grateful. This is the best time of my life,” said Lisa Romano, 42, who has been at the shelter since leaving drug rehab almost four months ago.

At any given time there are up to 50 residents and 16 infants at the shelter, which puts a heavy emphasis on using art to help women recast their lives. The women receive life coaching, day care assistance and prenatal care. They can attend daily meditation and classes in art, creative writing, jewelry making, cooking and yoga. The average stay is about six months.

They also learn basic computer and job-hunting skills. There is a stock of interview clothes. Staff can arrange for tutors in math, English literacy and other subjects. Bus tokens are provided for transport to a job or interview. When the women leave they are given furniture and anything they need for their new living space, right down to the silverware.

Tom Pierce, director of the state’s Office on Homelessness, said the program stands out for its array of services and its focus on using art to help its residents heal.

“Those are things you don’t typically find geared toward the homeless.”

That was the vision of the founder, former real estate developer Constance Collins Marguiles. As a teen, she saw a homeless woman digging through garbage on the streets of New York City and wondered how anyone could be happy if even one person lived like that. She never forgot.

“When I reached a point in my business career where I was blessed enough to give back, I did it,” she said. “I was really moved to the work because there were so many women on the streets.”

Marguiles has placed art throughout the shelter, including the room where residents get their weekly therapy sessions. On the wall hangs a photograph by Moroccan-born Lalla Essaydi of women covered with fabric decorated with Arabic calligraphy.

In the kitchen hang works by French artist Denise A. Aubertin, who has stuck flour, spices and nuts on books and then baked them — a different kind of cookbook.

Missouri-born artist Megan McLarney’s video landscapes play on four screens in another room. But in the bedrooms no art is hung so the women sharing the space can express themselves.

Why so much focus on art?

“Through art we learn to touch our collective soul,” Marguiles said. “We are reminded when we see art, we are all interconnected.”

Art even helps to pay the bills at Lotus House, which has an annual budget of $850,000. About 15 percent comes from state and local grants. Much of the rest is raised through individual donations and private and public foundations. The house also earns money by selling photography and poetry created by residents and professionals. Marguiles’ husband, Martin Z. Marguiles, is an affluent art collector.

Still, she worries about the effect the recession may have on the shelter.

“Normally we would get the bulk of our food from the food bank,” she said “The food banks are depleted.” The staff is trying to persuade grocery stores and markets to give them surplus food.

David Raymond, executive director of the Miami-Dade County Homeless Trust, said Lotus House is the only homeless shelter in the county that focuses on helping single women and women with very young children. The county has about 4,600 homeless people. About 20 percent are women.

For Romano, Lotus House has given her a chance to rebuild her life. She said she goes to all the art classes and has even teamed up with a college student who used to teach the class. They roam the neighborhood and take black-and-white photographs of the people in the community and buildings.

“We are really treated with dignity and respect here,” she said.

Another resident, Jacqueline Gedin from Port-au-Prince, Haiti, proudly shows off her art work. She has propped up some paintings in the front hall of the suite she shares with two other women. Many of her paintings are symbolic, depicting women and landscapes from her homeland.

It might not mean much to others, “but when I look at it, I smile,” Gedin said.

RT Johnson, the health and wellness coordinator, was once a resident. She says she turned to drugs after her son was murdered and then both of her parents died within months of each other. Today she lives blocks from the center and is active within the homeless community.

“I am like a miracle,” she said. “There are no programs for women. This place is like an illusion that somebody’s vision brought to reality.”

___

ON THE NET:

Lotus House: http://www.lotushouseshelter.org/

The National Alliance to End Homelessness: http://www.endhomelessness.org/

Miami-Dade Homeless Trust: http://www.miamidade.gov/homeless/

Florida’s Office on Homelessness: http://www.dcf.state.fl.us/homelessness/

How We Can Resolve the Real Estate Crisis

By Izzy Buholzer

If every licensed Real Estate Agent bought or sold just one foreclosed property this year, our current crisis would be resolved.
Two important facts:
1. There are more real estate agents in the United States than foreclosed properties?
2. Foreclosures are the dragging down the market and saturating the real estate inventory.

I am committed to buy at least one rental property this year and I ask you to do the same. Here some compelling reasons why you should consider taking advantage of the many opportunities available:
- Real estate prices have dropped up to 70 percent in Miami Dade.
- Interest rates are at all time lows (see chart below).
- Choices of available properties have never been greater
- Tax benefits of investment property
- Wealth creation
- Favorable Exchange rate (Foreign Investors)

Whether you are a novice or expert investor, this is an excellent moment to start building your wealth in Real Estate. Let us show you how you can locate opportunities and obtain a positive cash flow with residential real estate. Call or write today!

Izzy Buholzer – Lic. Realtor
Phone: 305-476-8000
www.ibmiami.com

Tax Credits for New Homeowners

In spite of the turmoil of the past few years in the real estate world and the general economy, the current housing forecast is favorable for homebuyers. While housing prices may continue to drop, it is possible to close on a house at below market value and secure interest rates at record lows. And if you are a first-time buyer, the government is prepared to give you one more incentive to take the plunge: a tax credit of $7,500.

Before you get too excited about receiving free money from the government, you’ll want to know that the $7,500 tax credit is actually a zero interest loan. But don’t dismiss the advantages of this opportunity. An interest-free $7,500 tax credit “loan” for 15 years means you can save a lot of money on interest payments.

Qualifications are fairly simple.

The closing date of the house must fall between April 9, 2008, and June 30, 2009.
‘First-time buyers’ mean those who have not owned a home as their principal
residence for three years before closing on the current home. This status must apply to both partners in a marriage, even if one partner has never owned a home.
Your modified adjusted gross income (MAGI) must not exceed $75,000 for singles and $150,000 for married taxpayers.
You must repay the loan, but you have two years after applying for the tax credit to start making payments. You can also repay the loan from the profit of reselling the home, if you choose to sell within 15 years. If you do not make a profit on the sale, the remaining tax credit loan is forgiven. Otherwise, the tax credit loan is due within 15 years in annual payments.
You do not have to claim a full $7,500 tax credit. And you can only claim the full $7,500 if you buy a home for $75,000 or more. Homes worth less than $75,000 will qualify for a tax credit of 10% of the purchase price.

Since this tax credit is refundable (you can receive it as a tax refund after filing your federal tax return), the immediate advantage is what you can do with it: You can pay off credit cards to free up cash flow, improve your credit score, and qualify for a better interest rate. Make a larger down payment or pay for closing costs and other expenses related to buying a house.

Consult a tax professional for the finer details of the tax credit. If you have been on the fence about buying a house, have a steady, secure job, and a good credit score (720 or higher), there is no reason to wait. Start looking so you can close before the June 30, 2009, deadline.

South Florida building departments suffer during downturn

A decline in the real estate market and the resulting lack of work means cities in South Florida are struggling to pay their code inspectors.

There was a time when Davie Town Manager Gary Shimun struggled to find enough qualified code inspectors to deal with the building boom that swept South Florida. Now he’s struggling with finding enough jobs to send them to.

Throughout South Florida as developers pull back on projects, cities are seeing a drastic decline in the permitting fees that once lined city coffers, leaving many to downsize their building departments.

In Pembroke Pines, the city council will discuss a proposal to slash the department by 10 to 15 workers at Wednesday’s City Council meeting. In Davie, the town is allowing inspectors to do contract work for other municipalities and in Miami-Dade, the county’s building department slashed nearly 75 positions last year.

”In the past, everyone was scrambling to get people,” Shimun said. “It was always hard, because our requirements were much more intense than the rest of the state. Now you have really good people, and you really don’t want to lose them.”

But cities may not have any other options than to lose some of their employees.

”There’s no denying that the economy has taken its toll on the building industry,” said Pembroke Pines Manager Charles Dodge. “The permitting fees are what pays for the inspectors, but when you don’t have as many projects coming forward, then you’re in a difficult position.”

As an alternative to staff reductions, the city is also considering transferring some of the positions to the code compliance department.

In Weston, city officials said the city contracts out its building permit and inspection work to a private firm, so the city has not been forced to modify much.

Surfside and North Lauderdale also outsource their building services

Home prices are so low it may cost less to buy than to rent

By MONICA HATCHER
mhatcher@MiamiHerald.com
Just six months ago, with South Florida home prices in a steady fall, the decision to buy or rent was clear for many prospective home buyers — keep on renting, of course.

But these days, as the housing downturn enters another year, the question of whether the time has come to take the plunge is not as easily answered. The waters are at once tempting and forbidding.

There are lots of opportunities to own for less than it costs to rent, but it’s unwise to make your decision without first considering the market and how long you are willing to commit.

Here are a few issues to keep in mind.

The case for buying now:

• Median home prices in South Florida are back to 2003 levels and some new, never-lived-in property is selling for less than it would cost to build a similar home.

Additionally, the median price for a single-family home — now around $216,500 — is starting to come within reach of households earning around the median income in Miami-Dade and Broward counties. That could unleash pent-up demand.

• Interest rates today are at record lows. This could save a buyer thousands more than buying at a cheaper price down the road when interest rates may be higher.

• There are eye-popping bargains out there due to foreclosures and short sales. The excess of homes and condos on the market also means prices are low.

• A new $7,500 tax credit is available for first-time home buyers until July 1. This can be used to offset the cost of a down payment.

The case for holding off:

• There is the risk that home values will keep falling — especially for condos, analysts have said. The economy may also deteriorate further, threatening job security, and making the thought of taking on a home mortgage even more daunting.

• Rents are also declining.

• By holding off, renters can avoid paying homeowner and condo association fees that have spiked in many communities because of delinquencies and foreclosures.

• Actual property appreciation could be years away.

• Lending restrictions could loosen and down-payment requirements ease, tying up less cash in future purchases.

Still Hunter, a vice president of investment in the Fort Lauderdale office of Marcus & Millichap, a real-estate services firm, attributed falling rental prices to a booming shadow market of condos and homes being rented by investor/owners as well as renters rooming together to save money and a decline in foreign workers — typically renters — who have headed home as jobs dry up here.

RENTS ON DECLINE

Hunter said his firm’s rental outlook for 2009 shows average rents (for one- to three-bedroom apartments) declining in Broward County by 2.6 percent to $1,094 and in Miami-Dade by 1.3 percent to $1,109.

”From my perspective, it makes sense to rent right now, while rents continue to decline and home prices continue to decline. We’re not at the bottom,” Hunter said.

Still, Hunter said, home prices have adjusted so much, it might make sense to jump into the market.

”It’s a tough question to answer,” he said.

On the other hand, Ron Shuffield, president of realty firm Esslinger Wooten Maxwell in Coral Gables, said it was the first time in a long time when the cost of owning could be cheaper than renting. He was able to demonstrate how a person buying a condo in Toscano, a new complex near Dadeland Mall, at the current list price of $220,800 could save $775.92 annually over renting an identical unit for $1,350 monthly. EWM is the exclusive brokerage firm for Toscano.

The analysis is based on a buyer getting an FHA loan with a 4.625 percent interest rate. A buyer would need to pay more money out of pocket each month — the monthly payment for the 759-square-foot unit is $1,914.79. But after annual tax deductions for mortgage interest, mortgage insurance and property tax, the annual savings tip the scales toward owning, Shuffield said.

In his analysis, savings also include equity built up each year from paying down the mortgage. Shuffield also pointed out a new perk for first-time buyers — the $7,500 tax credit that is part of a housing recovery bill passed by Congress last summer.

The credit must be repaid by the buyer over 15 years at $500 increments on the tax return. It amounts to an interest-free loan for people who buy before July 1, or, as Shuffield sees it, down-payment assistance.

Before affordability alone sways a renter to start looking, the first question to ask is how long a potential buyer thinks he or she will live in a home, said William Hardin, director of real estate programs at Florida International University.

In a normal market, where homes appreciate at a rate of about 3 percent annually, owners typically lose money when they sell within two years because the cost of selling generally exceeds 6 percent due to sales commissions and other expenses.

But, again, that’s in a normal market.

There are very few real estate analysts audacious enough to call a bottom on home prices right now. However, Madeleine Romanello, a real estate agent for Douglas Elliman Florida, said that prices in some highly desirable areas such as Coral Gables and Miami Shores seem to have stabilized at 2004 levels.

NO BOUNCING BACK

Even when prices hit bottom, it doesn’t mean they will bounce back up, said Alan Ojeda, chief executive of the Rilea Group, a Miami-based developer of large-scale rental properties. That makes the horizon for profit even longer and means that a buyer in the current market should be committed to a home for several years.

Ojeda, who said he is trying to fill up One Broadway, a new luxury rental tower in Miami’s Brickell area, takes it a step further, saying that unless a renter believes a home’s price will appreciate in the next three years, he or she would be better off remaining a renter.

”It’s the same theory you use when you decide whether to buy or lease a car. What you are looking for is to use a car. If there’s no appreciation in a home, wouldn’t you prefer to use a home, since after three years you would have spent more money on real estate taxes and the mortgage. What would your gain have been?” Ojeda asked.

Still, there are signals the blood-letting in the real estate market may be starting to slow. Sales were up significantly in December, the last time figures from the Florida Association of Realtors were available, and that made a dent — albeit small — in the number of homes for sale.

Hardin said it was hard to imagine values would continue to fall at the same rate at which they have since the market peaked. Prices are likely to continue falling, but it’ll be by smaller percentages, he said.

Unless renters wholeheartedly believe prices will rise over the next several years, they may want to stay put, he said. Aside from the past seven years or so, real estate has always been seen as a long-term investment, Hardin said, so buying low today and selling in 10 years could be lucrative.

Either way, there’s little downside in delaying the decision.

NOW OR LATER?

Romanello acknowledged there would be little difference in buying now vs. later. She said that among her clients who had decided to wait, the worst that happened was they lost several great opportunities.

‘I don’t think there is any urgency to buying because I don’t think in six months’ time prices are going to be up 10 percent,” Romanello said.

2 Florida banks temporarily halting foreclosures

MIAMI (AP) — Two Florida banks are joining some of the country’s largest lenders in temporarily halting foreclosures as the federal government tackles the housing crisis.

On Friday, Fannie Mae, Freddie Mac and major banks JPMorgan Chase & Co., Morgan Stanley, Citigroup Inc. and Bank of America Corp. said they were halting foreclosures for at least a month. Coral Gables-based BankUnited and Fort Lauderdale-based BankAtlantic followed suit, all saying they hoped to learn more soon about President Barack Obama’s $50 billion plan to keep more people from losing their homes. Obama is expected to provide more details in an Arizona speech Wednesday.

“We want to help people remain in their homes,” said Ramiro Ortiz, BankUnited’s president and chief executive officer. “… Treasury’s plan may provide different avenues of relief for consumers, and we don’t want them to miss an opportunity to take advantage of the program.”

Ortiz said his bank’s moratorium would affect 1,400 homes statewide with $426 million in mortgages.

“This amounts to a triage until they can come up with a permanent solution,” said Anne L. Weintraub, a Sarasota attorney who specializes in real estate. “Banks are finally trying to come up with an alternative to foreclosure because it’s expensive and they don’t want to become property managers.”

Florida is one of four states — along with California, Nevada and Arizona — that accounted for nearly half the nation’s 2008 foreclosures, according to RealtyTrac Inc., while comprising just a quarter of U.S. mortgages overall.

Florida’s banks have also shouldered more of the burden. Two of the 13 financial institutions that have failed this year were based in Florida, including Cape Coral-based Riverside Bank of the Gulf Coast, which was overtaken Friday.

Chase hopes soon to open five counseling centers around Florida, where homeowners can meet directly with counselors to avoid foreclosure.

More than 2.3 million homeowners faced foreclosure proceedings last year, an 81 percent increase from 2007. Analysts say that number could soar as high as 10 million under some worst-case scenarios.

Real Estate Agent Show Home Listed For 40 Percent Below Initial Asking- Izzy Buholzer & Shellie Young

Real estate agents, Izzy Buholzer from Home and Business Realty, Inc. and Shellie Young from Fortune International Realty look at a house, for their prospective clients, that originally was on the market for over one million dollars and is now selling in the six hundred thousand dollar range on February 24, 2009 in Miami, Florida. The Standard & Poor’s/Case-Shiller U.S. National Home Price Index plunged 18.2 percent during the quarter from the same period a year ago, the largest drop in its 21-year history. (Photo by Joe Raedle/Getty Images) *** Local Caption *** Izzy Buholzer; Shellie Young
(Photo by Joe Raedle/Getty Images North America)

Link to origional article: http://www.zimbio.com/pictures/7WSCksg5Res/Real+Estate+Agent+Show+Home+Listed+40+Percent/14Q315WpNMq/Shellie+Young

MFI-Miami Investigates Illegal Foreclosures By Deutsche Bank

MIAMI, Feb 25, 2009 (BUSINESS WIRE)  –MFI-Miami, LLC announced today that it’s narrowing its multistate investigation into illegal foreclosures and is focusing exclusively on Deutsche Bank.

 

“Deutsche Bank is named as the trustee on nearly 50 percent of the fraud investigations we have done in the past six months,” says Stephen Dibert, President of MFI-Miami.

In the majority of these cases, Deutsche Bank or its servicer almost never produces or refuses to produce the original note and mortgage, or proof that the transfer of the note has been validated. They freely admit this in the actions filed in court. However, some minority homeowners don’t have the legal expertise to understand how important these documents are to their case. They assume they have no defense and don’t show up for the hearing.

In most of the cases MFI-Miami examines, Deutsche Bank has purchased these mortgages and notes on the secondary market as part of a pool with other mortgages. These mortgages have been traded by fund managers like baseball cards.

“The practices of Deutsche Bank underscore the disorganized process financial firms used in buying and selling mortgages on the secondary market, which is done secretly behind closed doors,” says Massachusetts Bankruptcy Attorney Glenn F. Russell Jr. “They are turning the foreclosure process into the Wild West, and many of these foreclosures are plainly illegal.”

Stephen Dibert says, “In many of these cases, it appears that Deutsche Bank management gave their approval to buy a lot of worthless paper on the secondary market.”

“Deutsche Bank retains law firms that aren’t interested in defending the legitimacy of their claim,” said Dibert. “Their purpose is to intimidate, obtain default judgments, and foreclose as fast as possible against homeowners who are uneducated about the legal foreclosure process. Joseph DeYounks of West Palm Beach, Florida, is a perfect example. Deutsche Bank purchased his note on the secondary market and is now attempting to foreclose on his home. The bank hasn’t provided proof that it’s the legal owner, and the originating lender violated Florida law by funding this loan without the proper lending license.”

“Deutsche Bank is displacing minority homeowners at a methodical rate,” says Stephen Dibert, President of MFI-Miami.

Banks in South Florida are bringing foreclosure actions at an unprecedented rate. Miami-Dade County averaged about 10,000 to 11,000 foreclosures in 2006. In 2008, according to the Miami-Dade County Clerk of Courts, foreclosures were in excess of 56,000.

Miami Foreclosure Defense Attorney Shaun Rice, of De Armas, Millich, & Rice, PL, says: “I strongly believe that minorities have suffered disproportionately as a result precisely from banks like Deutsche Bank who often never had a legitimate claim to bring a foreclosure action in the first place.”

Couple raffles off their Miami Beach condo to help wounded war veterans

BY Stephanie Gaskell
DAILY NEWS STAFF WRITER

Buy a $100 raffle ticket and you could win a $350,000 condo in Miami Beach.

Sound too good to be true?

A Florida couple is raffling of their waterfront condo and using the proceeds to pay the mortgage – and help wounded veterans.

“We had planned on selling it a couple years ago, but the market started to fall apart,” said Tim Suereth, a 42-year old Army veteran working as a realtor in Miami.

In 2005, Suereth and his wife, Diane Thorne, started Veterans Retreat, a charity group that takes wounded vets on fishing trips.

Suereth was inspired by his father, a fighter pilot in Vietnam. His dad’s best friend and fellow pilot was shot down in Vietnam in 1967, but his remains weren’t brought back home until 2005.

Then Suereth’s younger brother was in a horrific motorcycle crash that left him with a traumatic brain injury – the signature injury of the Iraq war.

“It just kind of all happened at one time,” Suereth said. “That’s when we decided we were going to do something.”

The couple plans to use the money from the sale of the condo to buy a retreat in the Florida Keys for wounded vets to fish and relax for free.

“Instead of waiting how many years until the market recovers, now we can do it now,” Suereth said.

The one-bedroom, 850-square-foot condo overlooks Biscayne Bay and Star Island, where celebs like Madonna and NBA legend Shaquille O’Neal live.

“It overlooks Shaq’s house,” said Thorne. “It’s amazing. It’s completely redone – new floors, new cabinets.”

There’s a bay view, a pool and a courtyard. The couple said it will pay all taxes and maintenance fees through the end of the year.

There is a catch: The winner does not get the house unless at least 5,000 tickets are sold – meaning a take of $500,000. If fewer than 5,000 are sold, the money will be split 50-50 between the winner and the charity – and Suereth and Thorne keep the house.

They have set a limit on selling a maximum of 7,000 tickets.

Suereth, who boxed while he was in the Army, is even throwing in a free membership to the South Florida Boxing Club.

For more information, visit www.veteransretreat.com.

sgaskell@nydailynews.com

 

Fla. county may declare itself disaster area

By BRIAN SKOLOFF – 1 day ago

PORT ST. LUCIE, Fla. (AP) — Just five years ago, Port St. Lucie was America’s fastest-growing large city. Then the foreclosure crisis slammed it like a hurricane.

Today it sits in one of the hardest-hit counties in the nation. Thousands of houses are empty or unfinished. Neighborhoods are littered with for-sale and foreclosure signs and overgrown, neglected yards. Break-ins are on the rise.

But one politician believes he has a unique solution: Declare St. Lucie County a disaster area as if it had been hit by, well, a hurricane.

“This is a manmade disaster,” County Commissioner Doug Coward acknowledged. But he said that is why “we’ve got to do something. Clearly, the economic crisis of the country far exceeds the ability of local governments to solve it, but we’re trying be a part of the solution.”

The declaration would allow the county to suspend the usual bidding process for shovel-ready projects so that local contractors would get the jobs. It would also enable government officials to use some of the money in a $17.5 million county fund usually reserved for natural disasters.

The projects could, in turn, put some residents back to work, helping them pay their mortgages and stave off foreclosure.

Other politicians fear a disaster declaration could scare off investors and drive down the county’s credit rating, which would make it more expensive to borrow money. But the idea has appeal among many homeowners, particularly those in the construction trades, which are seeing unemployment rates of up to 40 percent.

Jacqueline Byers, research director for the National Association of Counties, said she knows of no other U.S. county that is contemplating such a move.

“Everybody is kind of foundering around. Counties are looking for ways to address their shortfalls. This might be an innovative way to do it,” she said.

During Port St. Lucie’s boom, houses sprang up by the thousands as young and old flocked to the area, lured by affordable prices, open space and a bit of a slower lifestyle.

Port St. Lucie — the spring-training home of the New York Mets, situated inland from the more expensive Atlantic Coast along Florida’s Turnpike, about 100 miles north of Miami — nearly doubled in population from 88,000 in 2000 to 151,000 in 2007. Three biotechnology institutions opened in the county.

But then the foreclosure crisis struck and the economy went south. Many people soon realized they had bought more house than they could afford.

The county had more than 10,000 foreclosures last year, up from 4,165 the year before. Unemployment stands at 10.5 percent, more than double three years ago.

The newly out-of-work have been showing up in large numbers at St. Lucie Catholic Church, where free dinners are served every Thursday night. The church began serving meals to about 35 people a year ago. Last week, there were 175.

“We even give them a little bag to take home to try to help them through the week,” said volunteer Karen Cuevas. “But we can’t give out too much because we’re not getting as much in.”

Coward, who hopes to put the disaster-declaration idea to a commission vote within a few weeks, said that the laws regarding the emergency fund refer to manmade as well as natural disasters, and that the county attorney believes the idea is legal. He said the money could go toward new roads, a courthouse expansion, utility improvements and other projects.

Among those who could benefit are Bonnie Bigger, 60, and her 29-year-old son, Jason. Their lender began foreclosure proceedings against them last week for falling $4,500 behind on their $776-a-month mortgage payments on a condo they have been living in since 1984.

She retired a year ago from her job as a 411 operator, but Social Security and disability payments just aren’t cutting it, and she has had trouble finding part-time work. Her son, who works in construction, just had his hours cut back by 40 a month.

“We’re hurting,” he said.

But Port St. Lucie Mayor Patricia Christensen warned that labeling the county a disaster area could have a devastating effect. She said that after word of the idea got out, the city’s New York bond issuer called to check on whether it was on the brink of ruin.

“I understand what the county is trying to do,” Christensen said. “But we’re starting to see improvements in our city. The real estate market is turning around, and although the homes aren’t selling for the high prices that they were a few years ago, they are starting to sell.”

The idea may or may not help folks like the Derek and Kellyanne Baehr. They are six months behind on their $2,160-a-month mortgage and struggling to avert foreclosure.

Derek, 40, has been unemployed for the past 10 years after being diagnosed with a rare neurological disorder that will eventually put him in a wheelchair. The couple have lived in their modest, single-story stucco home for four years, and admit they got in over their heads with the $209,000 purchase. They said the house is now worth just $135,000.

After months of trying to work with their lender, they got a slight reduction in their interest rate, but “it was like putting a Band-Aid on cancer,” Derek said.

“We can’t continue to go on this way,” said Kellyanne, 37, who fears she could soon lose her job as an accounting clerk because another round of layoffs is coming. “I cry about every day.”

Wachovia seeks foreclosure on units at 3030 Aventura condo

South Florida Business Journal – by Brian Bandell

Wachovia Bank has filed a foreclosure lawsuit targeting 34 unsold units in the 3030 Aventura condominium.

The bank, a subsidiary of Wells Fargo, filed the notice of foreclosure in Miami-Dade County Circuit Court on Feb. 20 against Aventura-based 3030 Associates and corporate principals Lauris Boulanger and Mark Rousso.

The lawsuit is based on a Wachovia mortgage that was last modified at $23.5 million in 2006.

The developer completed the seven-story, 45-unit condo, at 3030 N.W. 188th St., in 2007. Units were preconstruction priced from $505,000 to $1.33 million.

According to county records, 3030 Associates sold 12 units between December 2007 and Oct. 6, 2008. Rousso bought one unit.

Fort Lauderdale attorney Barry Mandelkorn, who represents Wachovia in the lawsuit, did not immediately return a call or e-mail seeking comment.

Lawmakers look for ways to aid condo associations

BY MONICA HATCHER

mhatcher@MiamiHerald.com

Harvey Berman, president of Royal Oaks condominium in the California Club area of Miami-Dade County, takes a lot of flack from dues-paying residents in his building who are peeved about other owners in foreclosure and behind on their association fees.

”A man has been in a unit for 17 months and hasn’t paid a nickel for anything and that is not right,” Berman said, “Nobody should be allowed to live on a piece of property for free, especially in a condo where the condo pays the water, cable, laundry, lawn maintenance, the pool, the garbage.”

Still, Berman admits the problem in the 180-unit complex is not as bad as in many other South Florida condo communities where nonpaying units are swamping budgets and forcing associations to cut back on services and hike maintenance fees. But, he says, preventing that takes enormous effort.

The system that allows lenders to avoid paying maintenance fees is broken, says Berman, and needs fixing when Florida legislators meet for their annual session, which starts Tuesday in Tallahassee.

Central to the solution, condo owners say, is finding a way to get lenders to contribute to the costly maintenance of buildings by not dragging out foreclosures and by assuming fee payments like other homeowners.

State Rep. Julio Robaina, a Miami Republican who has hosted a series of town hall meetings on the issue, said his top priority would be ensuring associations are made whole by banks before the foreclosure process is finished and huge delinquencies have accumulated.

Other lawmakers are also proposing legislation to address the problem.

”Constituents have brought me clear evidence that banks are purposely delaying the foreclosure proceedings, thus hurting the associations,” Robaina said.

However, Tom Cardwell, general counsel for the Florida Bankers Association, said he has seen no evidence of such delays. Lenders, he said, are working in a court system bogged down by filings in which homeowners often mount time-consuming defenses.

Lenders, he added, are taking pains to work with homeowners to keep them in their properties and heeding calls for foreclosure moratoriums from both state and federal governments.

The issue is indeed tricky.

Strapped for cash, condo boards complain current state law actually encourages banks to stall taking title to units — even vacant units — because a statutory cap limits the amount of past-due fees they must pay to six months of arrears or 1 percent of the original mortgage amount.

Sharon Dodge, president of The Venetia in Miami, said several units had racked up as much as $30,000 in unpaid fees. Others, she said, may owe as much as $50,000 by the time the banks take ownership.

Yet, under the current law, the maximum her association can recover from lenders for each is $4,200. While the process drags on, homeowners often continue living in the units, using the building’s facilities and amenities for free. To make budget and cover expenses, paying unit owners have to foot the difference, often at great expense and at their financial peril.

”The story is really that condominiums, which are really the vertical small towns of Florida, are being horribly victimized by laws that protect the banks,” Dodge said, “They are ill-suited laws for the present crisis. In fact, they totally exacerbate the situation and they will destroy many, many associations.”The problem has reached a crisis point already for many associations that are struggling to cover basic utilities, such as water and electricity. Raising fees for paying unit owners to cover shortfalls can have unintended consequences of pushing more residents into delinquency because they cannot afford the higher payments.

Lenders also shy away from funding loans in financially shaky buildings, preventing sales that would help put them on more stable footing. In January, mortgage giant Fannie Mae said it would no longer fund loans in buildings where more than 15 percent of the units were 30 days or more past due.

At The Venetia, Dodge said lenders themselves are responsible for many of the nonpaying units — even after a foreclosure is finished and they own the units outright. As a result, her association has resorted to foreclosing on bank-owned units, further costing residents. Associations have the legal right to force the sale of a property through foreclosure proceedings to recover unpaid maintenance fees.

While there is no complete count of condominium foreclosure filings, at the end of 2008, lenders owned more than 3,725 units in 2,000 projects built before 2007 in Miami-Dade County, according to an analysis by CondoReports.com. The company does not track buildings with fewer than 50 units and does not compile data for Broward County.

Though most lenders begin paying once they own the property, Berman also said he has had to initiate foreclosures against lenders — most recently Bank of America.

Robaina’s bill, which was still being drafted late last week, would increase lender liability for past due payments for possibly up to two years while providing incentives for those who pay arrears when they initiate a foreclosure. He also said the measure would provide a mechanism allowing associations to collect unpaid fees from renters whose landlords become delinquent.

Berman said it wasn’t uncommon for landlords to continue collecting rent from tenants even after they had entered foreclosure and stopped paying fees.

MORE LIABILITY

A second proposal by Sen. Mike Fasano, R- New Port Richey would extend lender liability to the lesser of 12 months of past due fees and special assesments or 20 percent of the mortgage amount. If lenders fail to make the payment to the association within 30 days of taking title, they would lose the protection of the cap. Rep. Jim Frishe, a St. Petersburg Republican, is the house sponsor.

Cardwell, general counsel for the Florida Bankers Association, said changes to the current law could force lenders to hike interest rates on Florida condo loans or stop writing condo mortgages all together. Lenders, he said, were not likely to risk losing an additional 20 percent of a loan’s value, on top of losses already incurred through foreclosure.

”These bills could severely damage the ability to obtain financing on condos and because of that would do much more damage to condos and condo associations than they would do good,” Cardwell said. Sen. Jeremy Ring, a Parkland Democrat, echoed those sentiments when describing why his bill simply requires lenders to take title on investor-owned units within 12 months of filing foreclosure, with no penalty.

”I want to be very careful here,” he said. “This is not a simple issue and if not done properly can have consequences that are much more permanent.”

Foreclosure Is Not The Only Option

By: David Suta (Miami CBS4)

With a record number of people losing jobs lately manypeople are finding themselves suddenly unable to pay the bills, including their mortgage, but what may be even more confusing are the foreclosure options they might face.

Raul Ramirez is one of those people. Pointing to a foreclosure two houses from his, he told CBS4 reporter David Sutta, “I hope that is not my future. That is my goal. That doesn’t happen to me.”

When Raul and his wife Odlys walk down their block it’s a sobering experience. You see foreclosure after foreclosure, and they could be next. Raul knows it too. “We are in trouble,” he said. Over the last year they blew their savings to keep their business afloat. That business is now gone thanks to the economy. Now they are behind on their mortgage payments.

“Every day is thinking I have to pay that bill. I have to another. I don’t have money. You know it’s terrible for us right now. I can’t sleep at night,” said Odlys Ramirez.

The car has been repossessed; Raul is now delivering printing supplies for minimum wage. He is on the edge of losing everything.

“After working 20 years it’s hard to ask your family for help, to buy a gallon of milk for your daughter. That is tough.”

So far South Florida is on track to have more foreclosures then our record year in 2008. Many homeowners in the Ramirez’s situation don’t know they have options.

SEEK AN ATTORNEY

Attorney Eric Shane of Ferrer & Associates represent hundreds of homeowners facing foreclosure. He says, “The first and most important thing you need to do, who has either been served with a foreclosure or know a foreclosure is coming in the eminent future, is contact a lawyer.”

If you get a notice of a foreclosure, the homeowner needs to contest it within 20 days or else they could lose the home quickly.

“You will be on a fast track to losing your home, and when I say fast track, it could happen as soon as 60 to 90 days; you will be out of the house.” said Shane.

An attorney can keep you in your home up to two years. Over that time they will defend you in court and could possibly even get the mortgage revoked.

“Most people are under the misconception that, ‘hey I haven’t paid my mortgage, that means I don’t have any defenses or the bank is always right.’ That is not the case in every single circumstance. There are plenty of people out there who have been fraudulently placed in these loans. They should have never been placed in these loans in the first place. They didn’t have the means to qualify for that loan. The underwriting guidelines were extremely negligent for a lot of these people,” Shane said.

At the very least attorneys will put the bank through its paces. Often that leads the bankers to modify the loan to something the homeowner can afford. 
LOAN MODIFICATIONS

Frank Obregon with Total Realty Solutions is doing more loan modifications today than anything else. His best advice: Watch out.

“Loan modifications need to be done through attorneys. There are a lot of companies that are sprouting up right now, and they’ve been in business for a year, six months or not even and have no idea how to do these modifications,” said Obregon.

Loan modifications are a great option for someone in foreclosure, but you need to be careful.

“If someone tells you to stop making your mortgage payment (and) pay me. Turn around. Don’t do the business with them. Because that’s not right. You could lose your house.” said Obregon.

Loan modifications change your interest rate and the length of your mortgage to make your payment affordable. Rarely does the bank adjust how much you owe. Obregon says, “you don’t have to make a single late payment and modify your loan. If your loan is going to adjust in a couple of months and it’s going to go up two and half, three percent and you are not going to be able to afford it. You can start doing your modification already.” Homeowners should never pay a fee upfront for a loan modification. The only exception is for attorney’s fees. 

THE SHORT SALE REALITY CHECK

Most people think short sales are better options than letting their house go into foreclosures. Howard Dvorkin is founder of Consolidated Credit, a non-profit company that helps people out debt. He says when it comes to credit, there is no difference. “It’s a better option. It’s an honorable option. But the credit is going to be damaged significantly and maybe even as the same as a foreclosure,” said Dvorkin.

A typical credit score will be his anywhere from 200 to 300 points, “and a two to three hundred point drop can put them from great credit to almost the worst credit out there,” said Dvorkin.

He believes the only difference a short sale will make comes from Fannie Mae, the largest issuer of mortgages in America. They will allow you to buy a home in three years. That’s two years sooner than if it were a foreclosure. For the Ramirez family, whose credit is already ruined from missing the mortgage payments, their priority is staying in their home.

“This is the house where our daughter grew up for four and half years, and that is the house we want.” said Raul Ramirez.

The family has hired an attorney and is now working with the bank to modify their loan. They hope to keep their American dream alive. “We are trying to keep it alive. Now it’s up to the lender if they want to let the people dream,” said Raul. 

WHERE TO GET HELP

If you are in foreclosure or on the brink of being in foreclosure the Miami-Dade County Bar is hosting a seminar this weekend, March 14, offering free legal advice.  Dozens of attorneys will be on hand to go over your documents one-on-one and offer you advice.  The seminar and the consultations are completely free.  

 

 

If you plan to go it will be at Miami Dade College Wolfson Campus

245 NE 4th Street, Room 3200, Building 3000 from 9am to 3pm.

Task Force to Seek Answer to Foreclosure Court Backlog

The Florida Supreme Court is looking for ways to cope with the overwhelming volume of foreclosure cases coming into the system, including a mediation requirement.

by Miami Herald

To sandbag the flood of foreclosures pouring into the state’s underfunded court system, the Florida Supreme Court announced the formation of a statewide task force on Monday that will look for solutions to the docket backlog while ensuring borrowers and lenders are treated fairly.

”This is a hurricane that has hit our state,” said Miami Circuit Court Judge Jennifer Bailey, who was appointed to lead the 15-member task force.

“Over 75 percent of the incoming cases are mortgage foreclosures. Our dockets have exploded.”

The task force will take specific aim at integrating the growing patchwork of judicial rules that have been established by the state’s circuit court judges as they seek to manage the influx of cases.

Some circuit districts, for instance, require lenders to provide homeowners with contact numbers for nonprofit legal help when filing foreclosure. Others refuse to hear cases when representatives for the parties are not physically present in court. Still others require mediation.

Lenders and others have complained the ad hoc rules have made filing foreclosures more difficult and more expensive at a time when banks are dealing with massive losses from delinquent borrowers.

20% PAST DUE

Florida leads the nation in mortgage delinquencies, with one in five loans one payment or more past due, according to a report last week by the Mortgage Bankers Association. The volume of cases has resulted ”in a tremendous strain on limited judicial resources,” the order said. In Miami-Dade County, Bailey said, foreclosures ballooned to more than 56,000 cases last year.

Statewide, the time needed to complete a foreclosure has increased from roughly 150 days to around 300, leaving homes vacant longer and condo associations hurting from unpaid maintenance fees.

The task force order follows a separate emergency petition filed last month asking the Supreme Court to require mandatory mediation between homeowners and lenders before a final judgment is rendered and a sale date set for a home.

The 11th Circuit Court in Miami-Dade has been evaluating a managed mediation program that has been adopted in other districts. The idea is to facilitate the communication of borrowers and lenders out of court in hopes of lessening the strain on state resources.

‘Literally, we have lenders’ attorneys moving forward on summary judgment hearings who don’t even know when the lender has agreed to modify a mortgage with a borrower,” Bailey said.

The Center for Responsible Lending estimated that 131,400 Florida foreclosures could be avoided by a court-supervised modification, possibly achieved through mediation. Others states have already implemented mandatory mediation.

RESCUE PLAN

There is renewed interest in such programs in light of a $75 billion homeowner rescue plan announced by the Obama administration that seeks to help up to nine million homeowners avoid foreclosure by modifying their mortgage terms or refinancing them into new loans with lower interest rates.

Marc Ben Ezra, a Fort Lauderdale attorney who handles foreclosures for lenders, said there is a huge need for uniform statewide rules. But he said forced mediation is not the answer.

”There are many cases where borrowers are unable to be helped or the lender has already tried to help and they have not been able to reach any kind of accommodation,” he said, “This would slow down the process and raise costs.”

Common Mistakes Homeowners Make When Selling Their Home

By Amy White
Photo: © Stephen Coburn – Dreamstime
Most people believe they know everything there is to know about selling their house. They sign a contract with an agent, hold an open house, and wait for those multiple offers. But some common misconceptions about the whole process could be hurting their odds of receiving an offer. Improve your own odds with a bit of knowledge.

Myth: People are buying your house, not your furniture. You might be selling only four walls and a roof, but most people looking at your house see beyond the basic structure. They are buying a lifestyle. Potential buyers will be looking at the square footage and the solidness of the structure, but they will also notice the battered sofa, the wrinkled bed sheets, and the imposing dining room set. A house might be in pristine condition, but if the furniture is threadbare and tired it will make the entire house seem run-down. Improve your furniture, and improve your chances of selling your house.

Myth: The selling price of your house increases with every upgrade. While some upgrades can increase the selling price of your home, improving your home too much can price you out of the market. To set your renovation budget, research homes in your neighborhood to find out their final sale prices. Your original purchase price and renovation budget together cannot exceed the sale prices of other homes. If you decide to overspend to create a customized dream home, you may never see a return on that investment. But adding square footage to your home, through an addition or a finished basement, may pay off. Book an appointment with your real estate agent before starting any major construction to ensure that you are not overspending.

Myth: An open house is the best way to sell a home. Only 5 percent of homes sell through an open house. The Internet, particularly the Multiple Listing Service, has become the fastest and most convenient way to view homes. Potential buyers see all the properties for sale in their area and compare the features of each, all without leaving their own home. Buyers can view hundreds of properties in a day using MLS, but only a handful of homes through open houses. Instead of holding an open house each weekend, try extensive advertising on the Internet and in local newspapers. And if a potential buyer wants a private viewing at an inconvenient hour, allow it. People at your open house might be curious, but someone who has requested a private viewing is interested in buying your home.

Myth: Base your price on potential profit.
The price of your home needs to be based on fair market value, otherwise you will never see an offer. You might need the profits from the sale to finance the purchase of a new home, or to pay off debt. Still, you can never raise your asking price to satisfy your own needs. Buyers will comparison shop. They will compare your house to other homes in your neighborhood, and if every feature but the price is equal, you will lose a sale. Remember that an asking price is not static. Considering market conditions, you may have to reduce your price to see that offer.

Tips to Avoid Mortgage Insurance

By Susan M. Keenan
Photo: © Norman Pogson – Dreamstime

First time homeowners looking to keep their monthly costs down should try to avoid private mortgage insurance (PMI) when buying a home. After all, this added cost could defeat the purpose of shopping around for the lowest interest rate for mortgages, the lowest APR, and the fewest chargeable points. Don’t spend money on something you don’t need or want.

Avoiding Private Mortgage Insurance is Possible
You can easily avoid private mortgage insurance if you put down 20% of the purchase price of the home. If you don’t have the available cash to do so, you should look into getting a small secondary loan. Talk to your lender about arranging your finances to include a primary mortgage of 80% of the purchase price and a secondary loan to increase your down payment so that it reaches the necessary 20%.

Before the lending environment tightened it was easy to obtain a small secondary loan at a minimal monthly cost. In today’s market, a secondary loan is still an option. It is more difficult to qualify and the interest rates are higher. If you can obtain a small secondary loan at a reasonable interest rate, the added monthly cost of the secondary loan may be less than the cost of private mortgage insurance. Ask your lender about your options. Your goal is to avoid the added cost of private mortgage insurance, and have more disposable cash each month.

A Larger Down Payment Means More Money in Your Pocket
If the thought of obtaining a second mortgage is a bit frightening, the alternative to avoiding private mortgage insurance is to save up a larger down payment. It will be difficult, especially if you are already cutting corners. But, if you put off making unnecessary purchases, cut back on entertainment costs, and trim your grocery bill, you should be able to accumulate enough money to help you meet your goal of 20% of the purchase price.

Save More with Lower Homeowner’s Insurance Premiums
Even if you avoid private mortgage insurance, the monthly expenses of owning a home add up quickly. Trim your cost by shopping around for the best rate on a homeowner’s insurance policy. Keep in mind that there are often discounts for bundling insurance policies such as car and life insurance, safety devices, and security systems.

New First-Time Homebuyer Tax Credit!

Photo: © Ericsphotography – iStockphoto

The recent $787 billion economic stimulus bill includes an $8,000 first-time homebuyer tax credit. If you are familiar with the $7,500 tax credit for last year, the new $8,000 tax credit is similar, but with some improvements; the tax credit doesn’t have to be repaid, the home purchase date has been extended, and there is a $500 increase in the credit amount. It’s not a big change, but for those ready to buy, the new tax credit is an added incentive.

Here are the new qualifications:
The home must be purchased on or after January 1, 2009 and before December 1, 2009. People who purchased a home last year are covered by the $7,500 tax credit and are not eligible for the $8,000 tax credit.

Miami-Dade Foreclosure Facts

 By Izzy Buholzer

Have you thought about buying a foreclosure? Here some statistics before you start the adventure:

The total amount of Foreclosures available for sale in Miami-Dade as per April 5, 2009 are 2,183! What price range are you intersted in? See below how many are availble.

Available:                              Price Range:
1,451………………………………..less than $150k
  568………………………………..$150k to $300k
  113………………………………..$300 to $500k
    52………………………………..$500k to $1Mio.
      7………………………………..$1Mio or more

Order your customized Free Foreclosure List in your price range and area you are looking for! Take advantage of this opportunity to start building wealth in real estate today!

Izzy Buholzer – Lic. Realtor
Phone: 305-476-8000
www.ibmiami.com

Advice For Young Homebuyers

By E. E. Kane
Photo: © Sandra Gligorijevic – Dreamstime
When a lot of really smart people agree on something, you can usually count on their advice. And most smart (old, sage) people agree that you should put off buying your first house if you have just graduated from college. The stereotypical twenty-something has: student loans, car loans, credit card debt, expensive tastes, and an entry-level job.

But the beauty of being young is that if you believe you can be different, maybe you can. Look closely at your finances and circumstances. If you meet the criteria, buying a house now might be a smart move.

Ask yourself these questions:

Will you need to move in the next 2-3 years?
If so, wait to buy a house. You will lose on closing costs and fees, and you can’t be sure home values will rise enough by then to make a short-term investment worth it.
Do you have job security?
Maybe you work for the family business and intend to take a leadership position at 32, or you’ve realized your dream and opened a beauty salon in a snazzy part of town. If you are happy in your career and are certain that you have job security, you are ready to buy a house.

Can you save for a down payment?
The bad news: gone are the days when moneylenders offered loans with no or very low down payments. The good news: you are a bit safer from signing your name to a risky loan offer. If you can’t borrow it from relatives, start saving now. In some cases it might be a better idea to save toward a down payment instead of making double payments on student loans or credit cards.

Can you afford to maintain a home?
Deciding how much house you can afford includes much more than just monthly mortgage payments. Be sure to factor in property taxes, home insurance, neighborhood fees, maintenance and repairs.

How much debt do you have, and what are the interest rates?
Mortgage lenders will look at your debt before deciding if they will carry you, and what interest rate they will offer. If your accumulated debt is manageable, and you’ve been cutting down the principal, not simply making interest payments, you may be ready to invest in your own home, instead of paying someone else rent.

Simple Spring Décor

By Gail Gill
Photo: © Brenda Carson – Dreamstime

It’s easy to give your home a spring makeover with some of these simple decorating ideas, and you don’t need to spend a lot of money to achieve a wonderful new look for your home.

Enjoy Your Outdoor Spaces
Brighten up your outdoor entertainment area with pots of flowers and brightly colored cushions. If your outdoor area does not have a roof, invest in a patio umbrella. An umbrella will provide shade on warm spring days and add a touch of color to your outdoor setting.

Create a Stunning New Bedroom
Choose a new bedspread or quilt cover decorated in soft pastel shades or large flowery prints to brighten your bedroom. Hang a matching flower print on your bedroom wall or frame an enlarged photograph of spring flowers to enhance your bedroom’s appearance.

An alternative for spring is to decorate your bedroom with vibrant colors. Striped bedspreads or quilt covers with plain, matching cushions provide a lovely, fresh look. You can complement this look with framed pictures on your walls, which have been painted by your children.

Subtle Changes in Your Living Room
Alter the look of your living room with new couch covers in bright colors or floral patterns. Cotton couch covers are inexpensive to buy or make and are easy to care for, as the covers can be laundered at home.

To create a new look in your living room, rearrange the furniture. Buy a new coffee table and put a vase of fresh flowers on top as a colorful spring centerpiece. If your living room has a fireplace, replace firewood with a dried flower arrangement or put a live plant in your open fireplace.

Add Light to Your Bathroom
Lighten up your bathroom with bright, colorful towels, a plant growing in a pretty pot, and a glass bowl filled with seashells, or tiny shell patterned soaps. Either sew or buy new floral curtains, or if you prefer a more contemporary look, buy sleek, white blinds.

Spring is a time of new beginnings. With a colorful and inexpensive home makeover, you will have created a lovely home for your family’s enjoyment throughout the spring season.

RealtyTrac: Florida No. 4 in nation for foreclosures

South Florida Business Journal – by Susan R. Miller

Florida ranked fourth in the nation in the number of homes going into foreclosure in the first quarter. Only Nevada, Arizona and California had more, according to RealtyTrac.

In fact, those four states, along with Illinois, which ranked fifth, accounted for nearly 60 percent of the nation’s foreclosure activity during the three-month period.

 

Nationwide, there were 803,489 properties that went into foreclosure in the first quarter, a 9 percent increase from the previous quarter and a 24 percent increase over the same quarter last year. One in every 159 housing units received a foreclosure notice during the first quarter, RealtyTrac said.

“On a positive note, it appears that demand is up in some of the harder-hit areas, particularly on bank-owned REO properties that first time homebuyers and investors see as bargains,” RealtyTrac CEO James J. Saccacio said in a news release. “But, it’s unlikely that this increased demand will be enough to offset the growing number of foreclosures in the pipeline, accelerated by rising unemployment rates.”

Florida saw 119,220 foreclosure filings, a 36 percent increase from the first quarter of 2008, with one in every 73 housing units receiving a foreclosure notice. However, the state saw a 12.19 percent decrease in the number of foreclosures in the first quarter when compared with the fourth quarter of last year.

Keith Fleischer, an agent with Keith Owen REO Collection in Weston, handles nothing but foreclosures. He said he’s seen the number of foreclosures dwindle in the last couple of months.

“Two months ago, we were breaking upward of 100 [foreclosures] and now I have six that are active,” Fleischer said.

That may have been due to the foreclosure moratorium many banks self-imposed, following in the footsteps of Fannie Mae and Freddie Mac. Others stopped filing foreclosures as they waited for the Obama administration’s plan to rescue some homeowners.

“What we are seeing is a big bottleneck, but as soon as someone decides to pop that top, here we go again,” Fleischer predicted. “I think we will start to see everybody shake the stuff loose.”

Indeed, according to a report in The Wall Street Journal, several lenders – including J.P. Morgan Chase & Co., Wells Fargo, Fannie Mae and Freddie Mac – have increased foreclosure activity in recent weeks.

In South Florida, Broward County led the way in the number of foreclosure filings, with 12,793 homes, or one out of every 63, going into foreclosure. That’s down 14.4 percent from the fourth quarter, but still up 17.9 percent from the first quarter of 2008.

Miami-Dade saw 12,420 homes, or one in every 78, go into foreclosure. That was down 37.87 percent from the fourth quarter, but up 6.13 percent from the first quarter of last year.

In Palm Beach 5,264 homes, or one out of every 121, went into foreclosure. That’s down 20.35 percent from the fourth quarter, but up 11.8 percent from the same quarter last year.

Nevada continued to report the nation’s highest state foreclosure rate in the first quarter, with one in every 27 housing units receiving a foreclosure filing – more than five times the national average.

Arizona posted the nation’s second-highest state foreclosure rate for the first quarter, with one in every 54 housing units receiving a foreclosure filing, and California posted the nation’s third-highest state foreclosure rate, with one in every 58 housing units receiving a foreclosure filing.

Miami Offers Help To People Facing Foreclosure

A new program promises to help qualified families in foreclosure pay the legal fees associated with keeping their home. For one Miami family, they hope this program will help them keep the first house they have ever owned.

Jose Fernandez recently surprised his wife of 17 years with a new house in Miami.

“This was a surprise for me. I found out the day they turned the keys in my hand,” his wife Adianez Fernandez told CBS4 Reporter Jorge Estevez as they talked in the family’s living room.
 
Their dream home is now in foreclosure after Jose Fernandez lost his second full-time job.
 
“That’s why I was falling behind payment bills. Everything was coming at the same time,” Jose Fernandez said.

It was at that time that the family heard of a new program in the city of Miami designed to help families in foreclosure pay legal and late fees associated with keeping their homes. The money comes from the federal government and the homeowners have to prove that, after the aid, they can once again start paying the mortgage.

“It’s a way to get someone through that time because all of a sudden, you have a substantial amount of money that you owe and there is no way to pay it because you don’t have a job,” said Mayor Manny Diaz.

As for the Fernandez family, they plan to stay in their home for as long as they can.

“I am not just going to turn it back to the bank. One way or the other, it’s going to stay with us ’cause it’s enough surprises already,” said Adianez Fernandez, who stands to get $7,500 dollars if they qualify for the program.

For information on this program and to see if you qualify, click here.

Ocean Bank wins development foreclosures in Miami, Hallandale

Ocean Bank continues racking up foreclosure judgments against developers, including a stalled town home development in northern Miami-Dade County and a Hallandale Beach condo conversion.

The Miami-based bank won an $18.2 million foreclosure judgment against Miami-based Ives Dairy Point on April 23. It was based on $16.1 million remaining on a $21.6 million mortgage Ocean Bank gave the developer in 2006 to build the 128-unit town home project.

The partially completed project, along Northeast 10th Court just north of Ives Dairy Road, is scheduled for public sale on Aug. 14 at 11 a.m. at the Metro-Dade Flagler Building in Miami.

Ocean Bank also won a $2.5 million foreclosure judgment against Miami-based Terra Conversions Group on April 20. It was based on the $2.3 million remaining on the mortgage for the 32-unit building at 321 N.E. First Court. The developer sold just four units.

After Ocean Bank filed the foreclosure lawsuit in November the bank signed a stipulated forbearance agreement with Terra Conversions. The bank agreed to hold off on seizing the property. In exchange the developer would monthly payments and waive all defenses to foreclosure if it missed a payment.

Apparently, that plan didn’t work. The 28 unsold units are scheduled for public sale on June 25 at 11 a.m. in the Broward County Courthouse.

Buy a Home in 2009 – Get $8,000 in Tax Credits!

Take advantage of this great opportunity – get a clean tax credit of up to $8,000.00 from the IRS if you buy a home prior to the end of 2009. Best of all, there is no need to repay ever!

You can qualify for the credit if you (and your spouse, if married) have not owned a home in the three years prior to a purchase. To find out more about it visit my website at “2009 Tax Credit”.

Thank you for the privilege of assisting you in the business of real estate.

Izzy Buholzer – Lic. Realtor
Phone: 305-476-8000
www.ibmiami.com

Should You Refinance Now?

By Deanna Lynn Sletten
Photo: © Cheryl Casey – Dreamstime
With interest rates dropping to an all-time low, many homeowners are looking to refinance their home mortgage. Considering the average fixed-rate, 30-year mortgage has been hovering below 5.0%, and a fixed-rate, 15-year mortgage has been in the mid 4.0% range, it is easy to see why refinancing your mortgage is desirable. However, there are a few things to consider before you jump on the refinancing bandwagon.

The Upside: Refinancing May Save You Money
In most instances, refinancing your current mortgage can save you money on interest, lower your monthly payments, help you acquire a better loan type and even allow you to take money from your home’s equity to use for other purposes. All of these refinancing benefits sound great, especially if you are one of the many people who have experienced the downside of the current economic conditions, such as a pay cut or a job loss. Lower monthly payments on your home means more money left in your budget for other necessities and a cash out refinance may help you get current with your bills. Changing the type of loan you have can also be beneficial. If you currently have an adjustable rate mortgage (ARM), you can switch to a fixed-rate mortgage for a lower interest rate and a stable monthly payment. These are all win-win situations.

The Downside: You May Not Qualify to Refinance
Unfortunately, not everyone who wants to refinance will be able to. First, you must have adequate equity in your home to refinance, at least 5-10%. For the many homeowners who experienced a decrease in the value of their home, there may not be any equity left. Lenders have also tightened up their qualifications for a loan, so they will look more closely at your income, outstanding debt and your credit score. If you have lost your job or your income has lowered since your initial loan and if you have acquired more debt or your credit score has fallen, you may find it difficult to secure a new loan.

Also, refinancing isn’t always financially beneficial. If you are adding additional years onto your loan, even at a lower interest rate, you are paying much more than you initially intended to when you bought the house. The closing costs on a refinance can be considerable and may outweigh the actual money you are saving from the lower interest rate. If you don’t plan to stay in the house for several years after a refinance, it may not be worth it.

Refinancing your mortgage could be the perfect way for you to save money or acquire additional money at a time when it is most needed. Be sure to weigh all of your options before deciding to refinance so that it is the right decision for you.

Unique Features Attract Buyers

By J. A. Young
Photo: © John Wollwerth – Dreamstime

Whether you play up an existing interior feature or install something new simply for effect, chances are that buyers will both notice and remember unique extras about your home. The idea is to demonstrate how your home boasts special features that other homes may not. Sometimes even minor interior details, such as a window seat or kitchen wainscoting, can make a home more memorable and attractive to potential buyers.

Transform Empty Space into Unique Space
The creation of new spaces in a home is a great way to make your interior unique. Sellers might consider transforming unused space, such as the area beneath basement steps, into a storage closet or laundry nook. Similarly, attics might be converted into usable space, such as a bedroom, playroom or office, which can have a big payoff at sale time.

Stage Spaces to Suit Several Purposes
If the room already boasts an extraordinary feature like a screened porch or conservatory, be sure to play it up for dramatic effect. For instance, not all buyers will be searching for a greenhouse; so be sure to include great patio furniture or suggest how the space might have alternative uses. A screened-in porch could be used as a seasonal dining area or a sumptuous place to relax. Include items that suggest the many uses the space offers.

Highlight Unique Features with Furniture or Lighting
Completely functional design elements should also be played up for the sale. Keep built-in bookcases orderly and neat. Highlight the fact that buyers can place furniture in front of them—an attractive writing desk or a chaise lounge can create the feel of a classic library. Accent high ceilings or crown moldings with an attractive lighting feature, such as a chandelier.

Add Features to Complement Your Home’s Style
Sellers, who are eager to install new interior features to attract buyers to their home, might consider installing an island or breakfast nook to their kitchen. Pocket doors, period fixtures, decorative arches, and large closets are good selling points for any home. Sometimes a new decorative treatment that emphasizes the home’s period or architectural style can have a significant impact. For instance, stamped tin panels might highlight an arts and crafts era home. A chrome table and chair set might set off a great 1950s kitchen.

Remember, buyers want to know what makes your home special. So, the more unique features you can point out or install, the more likely your home’s interior will captivate onlookers. While some decorative and design features are subjective, if you stick to styles that match your home’s overall architecture or that are universally functional, you will give your home some added selling points.

Lies a new tool in foreclosure

By: Todd Ruger

Published: Sunday, May 10, 2009 at 1:00 a.m.
Last Modified: Saturday, May 9, 2009 at 11:58 p.m.

Foreclosure lawyers want to take back property as fast as possible, and sometimes they do not let the facts slow them down.

 

In case after case, lawyers representing banks are giving false statements in court about who owns mortgages, or whether the homeowner is willing to negotiate, or whether they have completed all the legal steps to put a foreclosed house back on the market.

The errors and fabrications in the court files are seldom caught by judges with hundreds of foreclosure cases before them.

The judges say they can only hope to catch a few of the offending lawyers in hopes of keeping the rest honest.

The courts usually rely on defendants to point out problems in the cases against them. But in foreclosure court, many homeowners make no attempt to defend themselves. Judges cannot step into that role.

“Even the IRS can’t audit every return,” said 12th Circuit Chief Judge Lee Haworth. “We’re an impartial party. You don’t ask the referee at a baseball game to tell whether the people coming in the game are on drugs.”

Since the real estate market in Florida began to slide in 2006, the number of foreclosure cases has gone up 600 percent.

In the first quarter of this year, 4,991 foreclosures were filed in the Sarasota-Bradenton-Venice market, which remains among the top 25 for foreclosures in the nation.

At the same time, judges handling the cases have seen their budgets fall 13 percent.

Most of the foreclosures are filed by out-of-town attorneys from a handful of firms who rarely appear in court in person.

Minutes after a foreclosure attorney told her everything was in order in a recent case, Circuit Judge Donna Berlin was ready to sign off.

Then she happened to glance at the file, and realized that the two properties were in Miami, a few hundred miles outside her jurisdiction.

“I didn’t have time to go through and read it,” Berlin told a group of attorneys at a meeting last weekend. “And it was not something that I normally look at.”

Foreclosure defense attorneys say that even homeowners who plan to walk away from a property should be checking the court file and making sure the lenders’ attorneys are sticking to the truth.

“It’s all across the country, it’s not just here,” said April Charney, a Jacksonville attorney who is a nationally recognized expert in foreclosure defense.

“It’s whatever’s expedient.”

Troubling findings

Nobody knows how common it is for foreclosure cases to be based on untrue statements or incomplete proof.

More than half of all foreclosure defendants simply walk away, and never show up in court to defend themselves.

A Sarasota attorney, Richard Kessler, enlisted a few friends to go through 180 foreclosure cases in Sarasota County looking for errors.

They found three out of four cases proceeded with incomplete or improper documentation.

For instance, the survey found that only one in 12 cases had the documents to prove the company foreclosing on the property was also the company holding the mortgage note.

In half of the cases reviewed, the plaintiff said the mortgage note had been lost.

Kessler contacted Haworth and offered to have his business double check the paperwork for the courts, proposing that his fee could be charged to the company filing the case.

Haworth declined, saying he cannot add such a filing fee, and the courts have no money to pay for the service.

Instead, Haworth is recruiting volunteer law students to review all the cases for foreclosure judges this summer to verify documents.

“We think having cops on the beat will help,” Haworth said.

‘Any old pleading’

Haworth changed court rules earlier this year to address some of the problems with the out-of-town firms that handle most of the foreclosures in Manatee and Sarasota counties.

He required them to meet with homeowners and try to settle the case.

Lenders widely ignored the rule, and the number of foreclosures being resolved went from 400 a month to just over 100.

Lenders also must file complete paperwork, including proof that they met or tried to meet with the homeowner. Otherwise, their hearings get canceled, costing them money.

But some foreclosure attorneys have simply filed paperwork saying the homeowners declined to have the meeting, whether that was true or not.

Ronald and Sandra Smith requested the mediation meeting with their lender in January. Then they sent financial documents in preparation for the meeting.

A few weeks later, the attorney for the lender, HSBC Bank, filed court papers saying the Smiths had “no interest in the program or declined.”

There is no way to know whether it was a mistake or deliberate, said the Smiths’ attorney, David Morrill of Legal Aid of Manasota. But he is asking for the case to be dismissed because of it.

“I don’t believe an attorney would deliberately do that,” Morrill said. “I just don’t know what happens to all this paperwork we send them.”

Other false statements provided to the courts are more suspect, like the attorney for Deutsche Bank who, to avoid having to refile a case, claimed the international financial giant had changed its name to Aurora Loan Services.

A judge in Miami fined Wells Fargo bank $95,000 late last year because of sloppy paperwork filed by Florida Default Law Group, one of a handful of companies that handle the majority of foreclosures in the state.

Judge John K. Olson blasted Florida Default, saying the firm seemed to believe that “filing any old pleading without undertaking any investigation into its accuracy is perfectly acceptable practice.”

Wells Fargo and the Florida Default Law Group told the judge that the mistakes were employee errors, and that staff at all levels were warned to be more careful.

Phone and e-mail messages left by a reporter for lender attorneys involved in those cases, including Florida Default Law Group vice-president Ronald Wolfe, were not returned.

The notorious Kellogg case

The most notorious case in Sarasota County is that of Betty Kellogg, a 71-year-old disabled widow who twice had her villa put up for foreclosure sale, even though she worked out a settlement with her lender.

Kellogg bought the villa in 2000 after her husband and other relatives died. To pay her medical bills and consolidate her debt, she took a $180,000 loan against her home.

The mortgage broker had inflated her income on the application — she makes $380 a month working part-time; the mortgage broker said she made $2,300 a month.

Kellogg could not afford the loan payments.

“I asked them, ‘Why would you accept me, I don’t really have enough money to qualify for this. They said, ‘Just pay for a couple months and we’ll refinance again,’” Kellogg said.

So when she fell behind and the foreclosure lawsuit was filed last year, she begged with the bank to help her.

“I am just lost. I don’t know what to do,” Kellogg wrote to the lender, Washington Mutual. “Please help me.”

The bank told her it would not proceed with the foreclosure case while they negotiated.

But at the same time, the bank’s lawyers were telling Judge Berlin that Kellogg was not defending herself, and were granted a default judgment. They put Kellogg’s home up for sale.

Kellogg went to an attorney.

Berlin cancelled the sale when she found out what happened.

Less than a month later, the bank filed another motion, saying that the first sale had been canceled because it was not advertised.

Berlin signed the order, and the bank scheduled another sale.

Kellogg, who got a lawyer through Legal Aid of Manasota, went back to the judge again, and the sale was canceled. Again.

“I got so afraid, and I have no money to pay attorneys to fight for me,” Kellogg said. “It’s very confusing. I am not talking to anybody on the phone anymore.”

Real Estate – Alternative to Wall Street?

By Izzy Buholzer
Investing in real estate is almost as old as the construction of property itself. Indeed many business owners who created their wealth otherwise almost unilaterally went on to diversify into real estate investments.

With the recent turbulence in the world’s financial markets many savvy investors are seeking refuge in of the oldest commodities. Here some food for thought why investors are considering Real Estate now:

- Real Estate prices (especially in Florida) have started to bottom out after a steep decline of up to 70 percent since 2005/6.

- Property in sub-tropical climate with a stable sovereign risk is extremely affordable in Florida compared to the rest of the world.

- A straight cash investment into any property should yield a net return on investment (ROI) of 3 to 5 percent (plus potential capital gains).

- A favorable exchange rate is making investments in the US Dollar attractive to foreigners.

- Real Estate is a great “stabilizer” to any portfolio (visit the S&P Case/Shiller Index page).

Let us help you with our free “Buyer’s Assistance Program” for your real estate needs in Miami and the Beaches. We provide you with first-hand access to real estate bargains currently available directly through the MLS or from banks and lending institutions.

 

Izzy Buholzer , Lic. Realtor
Your Real Estate Professional for Life!

Phone: 305-476-8000
izzy@ibmiami.com
www.ibmiami.com

Are You an Ideal Mortgage Applicant?

By Susan Keenan
Photo © Lisa F. Young – iStockphoto
Most lenders check on three main criteria when evaluating a mortgage application. The amount of loan you qualify for and the interest rate quoted will be based on an assessment of your credit score, available cash for a down payment and your ability to make monthly payments. These factors help a lender to decide on their perceived risk in giving you a loan.

What is your credit score?
To qualify for a mortgage, your credit score should be more than 620. Paying bills on time, keeping credit accounts open—don’t cancel existing accounts just before applying for a mortgage—and keeping your credit card debt to a minimum should improve your credit rating.

How much can you afford as a down payment?
Lenders want to know how much you can contribute as a down payment towards the purchase. Most lenders limit their funding to 80% of the purchase price. When deciding on your contribution, get an estimate from the lender of the closing costs involved. These costs, which consist of attorney fees, taxes, points, title insurance and such, are due at the time of closing and should be considered when deciding on your total cash outlay for your home.

Will you be able to afford a mortgage payment?
A lender will look into your ability to consistently make monthly mortgage payments. The current mortgage crisis has prompted lenders to scrutinize documents relating to employment, income and assets. Documents such as pay-stubs, letters from employers or bank statements may be submitted for this purpose.

What is your debt to income ratio?
Lenders usually look at two ratios when evaluating mortgage applications. The front-end ratio or debt to income ratio is your monthly principal, interest, property tax and mortgage insurance payment taken as a percentage of your gross monthly income. A value of 28% or less is acceptable.

The back-end ratio is the total of all your debt obligations and commitments, such as alimony or child support, expressed as a percentage of gross monthly income. Lenders check for a value of 36% or less for this ratio. If you are encouraged to take on a higher loan, it is best to exercise prudence and accept an amount that you can deal with.

Despite the best of preparation, crises such as job loss or illness can leave you financially depleted. To ensure that you have sufficient funds to meet your mortgage and other day-to-day expenses, maintain a contingency fund that can cover your financial commitments for a minimum of three months.

Design Techniques to Create a Spacious Home

By Mary White
Photo © Baloncici – iStockphoto
A home that is crowded, cluttered or cramped is unappealing to its occupants and to prospective homebuyers—no one likes feeling confined. Take steps to make your home more appealing by using decorating techniques that can make any home feel spacious and inviting.

Sufficient Lighting – Rooms that are dark tend to look smaller than rooms that are well lit. So make sure that each room in your home has plenty of lighting, and turn on all the lights before showing. To add depth to a room without sufficient overhead lighting, use strategically placed floor or table lamps. By directing ambient lighting directly on the walls of narrow rooms, you can create an illusion of width.

De-Clutter – Rooms crowded with too much furniture, knickknacks, clothing, books, toys, and such, contribute to making a home feel small and overcrowded. Even though you may be selling your home because your family has outgrown it and you are moving to a larger home, prospective buyers shouldn’t get that impression when touring the home. If the home feels too small for the current residents, potential purchasers will likely sense that it will be too small for their needs as well.

Color Techniques – Dark colors make small rooms seem smaller, but light colors make small spaces feel more open. Rich, jewel tones, which can be beautiful in a large room, usually overpower a small space. If you want to use darker colors, use them sparingly, and only as accents. Touches of dark or rich color can add depth, but more than just a little will have a confining quality.

Mirrors as Art Elements – In rooms that are particularly small, or in narrow hallways, use attractively framed mirrors as artwork. Not only are the mirrors themselves a beautiful addition to any space, their reflective properties add depth to a room and visually open up tiny spaces. Placing a mirror at the end of a short hallway will create the illusion that the hallway is double its size.

These simple techniques can go a long way toward helping your home seem spacious and inviting, giving prospective buyers the impression that when they move in, they’ll have room to spare!

Can’t Live Within Your Means? Rethink Your Budget

Photo © Diego Cervo – Dreamstime
If you have been living beyond your means, it’s time to buckle down and stop breaking your budget. Here are some tips that will help you get serious about your financial health.

Review your budget.
Were you realistic about the fluctuation of gas prices and groceries? Did you allow for one-time expenses that you didn’t anticipate? Find out why you are routinely breaking your budget, and adjust it accordingly.

Save, save, save!
To live within your means, you must save money every month for large, annual expenses and for emergencies. Whether you keep a piggy bank, a savings account, a financial spreadsheet or cash in envelopes, stash away money in categories such as, emergencies (loss of a job or a hurricane swept away your home), vehicle and home maintenance and repair, property taxes, and major medical issues not covered by insurance. If your budget allows, save for holidays and vacations—even if it is only five dollars a month. Then turn the key on that account and forget it is there until the real need arises.

Don’t set yourself up to fail.
Leave the checkbook and the debit/credit cards at home when you shop, especially for groceries. Make a detailed list of what you need, carry a calculator, and pay cash.

Give retail windows the cold shoulder.
If impulse purchases are your budget’s Achilles’ heel, don’t go shopping for fun. As the old saying goes, what you don’t know can’t hurt you (and in this case it’s true).

Alter your attitude.
If you follow the above steps and you’re still over-budget, it’s time to make some serious lifestyle changes:

• Start by cutting out what you can live without, or find ways to do the same thing yourself.
• Instead of replacing broken appliances or throwing out clothing that needs mended or altered, employ a repairman and tailor.
• Unhealthy habits are expensive—this would be a great time to break a few.
• If you formerly treated yourself with luxury items, rethink what makes you feel good. How about a free walk in the park, a trip to the library, or doing something for someone else?

Although discipline and cold turkey quitting can be painful (and it is, if it’s your coffee or cigarettes), if you trade feelings of punishment for the reward of achievement, you may jump the current financial hurdle and gain an all-around healthier life.

1100 West Avenue, #307, Miami, FL | Powered by Postlets

1100 West Avenue, #307, Miami, FL | Powered by Postlets

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