Facing Foreclosure: What to Do Right Now

Foreclosure process takes time

The entire foreclosure process can take anywhere from two to 12 months, depending on how fast your lender acts and where you live. Some states allow a nonjudicial process that’s speedier, while others require time-consuming judicial proceedings.

Once you miss at least one mortgage payment, the steps leading up to an actual foreclosure sale can include demand letters, notices of default, a recorded notice of foreclosure, publication of the debt, and the scheduling of a foreclosure auction. Even when an auction is scheduled, however, it may never occur, or it may occur but a qualified buyer doesn’t materialize.

Bottom line: Foreclosure can be a long slog, which gives you enough time to come up with an alternative. Meantime, if your goal is to salvage your home, think about keeping up with payments for homeowners insurance and property taxes. Otherwise, you could compound your problems by getting hit with an uncovered casualty loss or liability suit, or tax liens.

Have existing-home sales hit bottom?

By Inman News, Thursday, September 16, 2010.

Two leading indicators -- applications for purchase mortgages and the number of homebuyers entering into contracts to purchase homes -- suggest sales of resale homes hit bottom in July and will rebound this fall, economists at mortgage insurer The PMI Group Inc. conclude.

In their latest monthly Housing and Mortgage Market Review, PMI Chief Economist David Berson and analyst Brett Soares make a case that existing-home sales will show "some modest gains" in August, September and even October.

Tax Credits for Adding or REPLACING Insulation

A federal tax credit makes adding insulation an even cheaper way to improve your home's energy efficiency and cut your heating and cooling bills.

DO YOU QUALIFY?

• Your home's R-value is below recommended levels.
• You install qualifying insulation in 2009 or 2010.
• You haven't already maxed out the energy tax credit on other upgrades.

If putting a dent in your home’s heating and cooling bills is a priority, then adding insulation needs to be at the top of your to-do list. It’s a relatively affordable home-improvement project, and the savings can be felt almost immediately. Some DIYers can even tackle the project themselves over a weekend.

Mortgage rates down again???

There's great news for home buyers and for homeowners who want to refinance their existing mortgages.

Rates on fixed-rate mortgages tracked by Freddie Mac hit new lows this week, with 30-year fixed-rate loans averaging 4.42 percent with an average of 0.7 point.
That's down from 4.44 percent last week and 5.12 percent at the same time a year ago, and is a new low in records dating to 1971.

It was the ninth straight week that 30-year-fixed mortgage rates met or set a new record low in Freddie Mac's Primary Mortgage Market Survey.

Having Trouble with the Neighbors?

It may be difficult to reach amicable decisions when it comes to neighborly disagreements, where relationships can be stretched and boundaries pushed if issues are not worked out carefully.

When you share a property line with someone, there will come a time when you will be involved in joint decisions. Should your fence be replaced? Who is responsible for the cracking sidewalk? And can you cut down that overgrown bushes or trees obstructing your view?

Here are some of the most common causes of neighbor disputes, and how to handle them in a "neighborly" way.

Let's talk about staging... I mean SELLING your property

You've heard about home staging right?  Most people have and most people think it's a great idea.  Unfortunately, most of THOSE people don't want to invest the time or money to implement a proper home staging plan to get there house or condo sold.  Make sense?  It doesn't to me either.  Here's a thought.  Only 10% of buyers have the vision of seeing your property and imagining themselves living in it.


For those of you who are interested in staging your property.  Here are my top suggestions for assisting you compete in today's real estate market.  Remember this and repeat it to yourself: The first impression is the only impression.

BuyOwner.com Closes, Turns Over Assets

The largest company for broker-free real estate sales in the United States, is the latest victim of the housing crunch, filing for liquidation in Broward Circuit Court. 

Buy Owner and 18 affiliates filed an assignment for the benefit of creditors July 26, 2010 after turning over all their assets Friday to Michael Moecker & Associates managing director Philip J. von Kahle. Moecker specializes in liquidating companies in receivership.


Experts also say the competitive landscape has changed with the real estate downturn and that simply listing a home on a website is no longer enough to sell a property.


Its simple philosophy — cutting costs by eliminating the middleman — hasn’t proven strong enough to carry the company through the recession. That surprises Brad Hunter, chief economist at Palm Beach Gardens real estate consulting firm Metrostudy. 

“I thought they had a business model that would be viable in today’s tough market because it allows people to save the commission. On the other hand, it demonstrates it is so hard to sell a home in this market that you do need a real estate expert to get the job done,” he said. 

Finding Local Officials When You Need Help

From getting a pothole filled on your street to finding out code requirements for your new bathroom, there’s a local government official who can help. The thought of calling around, though, trying to get someone’s attention at City Hall, can seem like a good way to drive yourself crazy. But it doesn’t have to be.

More and more cities, counties, and townships are making it easier to find what you need and to monitor how well they’re responding to requests. And whether you’re a community organizer or a concerned homeowner, you shouldn’t feel like you’re heading into uncharted waters. More than half of citizens had contact with local government within the last year, according to Tom Miller, president of the National Research Center.

Getting started

Every city and town is unique, of course, but basic services for the community and homeowners tend to

Tropical Depression 3 - Florida property insurance binding halted

During hurricane season, it is important for purchasers of property to attain insurance as soon as possible after executing a contract.  Why?  As a tropical depression, storm or hurricane approaches Florida, insurance companies stop binding policies.  If this occurs near or on a closing date and the purchaser is unable to get an insurance policy, the closing will be delayed until the storm passes and the all-clear is given to bind policies again.  A delay in the closing may trigger additional fees or penalties from mortgage lenders.  You could even lose your interest rate-lock.

Why do insurance companies stop binding?  Many people go for years without wind or flood insurance.  When a storm is approaching they decide that insurance might be a good idea.  It isn't fair that these people don't pay into the premium pool until they're very sure they need coverage.  Binding is stopped to prevent this unfair behavior.

Five reasons your house won't sell

Thousands of homes sit on the market with no buyer interest.

The owners always wonder, "Why doesn't my house sell?  Is it because of the bad real estate market?"

It's true, the economy has tanked and unemployment in South Florida is high but there are other reasons a house doesn't (or can't) sell.

1) Price is too high - Realtors everywhere concur that in a buyer's market the biggest obstacle is a high price.  Many sellers think that an interested buyer will 'just make an offer'.  Not true!  Buyers typically are afraid to make an at market offer on an overpriced property for fear of offending the seller.

You need to know about Florida's home insurance increases

Read the article at Sun-Sentinel.com

Where to eat in Fort Lauderdale

Customers are always asking me where to eat in Fort Lauderdale.  It finally dawned on me to create a list of my favorite spots to dine.  So here is the list and many have websites to peruse. Bon appetite!

Aruba Beach Cafe (don't miss Sunday brunch)
Big City Tavern on Las Olas
The Capital Grille
Casablanca Cafe on the beach
15th Street Fisheries (Casual or Formal - most people don't realize you can eat downstairs on the bar deck overlooking the Intracoastal)


Galanga for good Sushi
Himmarshee Bar & Grille (Great starting off point on Friday or Saturday night)
il Mulino - Homemade Pasta (one of my favorites)
Mango's on Las Olas
Poolside food & drinks at the W
Shuck N Dive (laid back cajun)
Zona Fresca (everybody's favorite fresh Mexican)

There are many more great restaurants in the area but these are the ones I visit time and again (too much, actually).

Just listed - 2/2 Intracoastal Condo

Boaters! Imagine walking into a beautiful designer apartment after a long day while enjoying the spectacular Intracoastal views from every room. Step onto the balcony and enjoy the breeze from the Intracoastal Waterway or enjoy a dip in the waterside, heated for year-round comfort, pool. Feeling the stress melt away? If you wish, dock your 45' boat at one of the on-site slips. This home includes an in-unit laundry. Deeded parking. Full service, Doorman building. NOT a short sale or foreclosure sale.

• Deeded Parking
• 2 Bedroom
• 2 Full Baths
• In-unit Laundry
• 1,250 square feet
• Direct Intracoastal Views
• Full-Service Building
• Doorman
• Dockage available up to 45 foot boat
• 3 blocks to beach, restaurants and shopping
• $262,500

Take the virtual tour: http://vt.realbiz360.com/Listing-419145.html

South Florida Real Estate Update - The Insider's Information

This morning, I spoke with a couple of local, respected mortgage brokers.  Each of whom work for different lenders and both are telling me the same thing: They are just as busy taking purchase mortgage applications as they were before the Federal Tax Credit expired.  What are buyers telling them?  The buyers are looking but they aren't finding much good inventory to purchase.

Here's the good news if you're interested in selling now, before prices further decrease, I am sold out of inventory and need listings.  My proven WoW! Marketing, WoW! Customer Service and WoW! Knowledge are in need of work.  Are you ready to move?  Give me a call or email me right now.

Four Myths of the National Housing Market

From economist Stan Humphries:

1. The housing recession is over

Humphries said home sales have reached a bottom, but prices likely won't find a floor until the third quarter of 2010. Humphries expects South Florida prices to hit bottom later than that.

2. We’ll see a return to historical appreciation rates after prices bottom
The housing bottom likely will be long and flat. Historical appreciation rates won't return for three to five years. Humphries said housing demand is being hurt by the number of underwater borrowers who can't move from their homes. He also says historically low mortgage rates are destined to increase, also affecting demand.

3. The worst of the foreclosure crisis is over
Foreclosure rates are increasing nationally and likely will stay elevated because of the jobless picture and the large numbers of underwater borrowers.

4. The homebuyer tax credits saved our bacon
The credits did stimulate sales, especially during the first wave in 2009. In its second incarnation, however, the tax rebates pulled demand forward from future months. As a result, sales are likely to decline in the second half of 2010.

2013

At least the real estate industry has 2013 to look forward to.

Continuing foreclosures and an "overhang" in housing inventory will likely prolong the housing slump for several more years, said economists who spoke Friday during an annual meeting of the National Association of Real Estate Editors.

While home sales likely reached the bottom of the current cycle last year, home values in many markets are still in decline, said Stan Humphries, chief economist for online real estate search and information company Zillow.

Get Ready, Hurricane Season is Fast Approaching

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  Hurricanes: Protect Your Windows and Doors

  Improvements that protect your windows and doors from hurricanes can lessen damage and lower homeowners insurance premiums. Read
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  Is the Cost of Hurricane Insurance Worth It?

  You need to decide whether the cost of hurricane insurance is worth it to you long before storm clouds appear on the horizon. Read
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  Create a Home Inventory for Insurance

  Create a home inventory before disaster strikes to make filing an insurance claim a smoother process. Read
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  Create a Home Emergency Preparedness Kit

  Having a home emergency preparedness kit could be the key to your family’s safety if disaster strikes. Read
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  Portable Generators: Backup Power at a Lower Cost

  A lower-priced alternative to standby generators, portable generators can keep power running in an emergency, as long as you don’t mind a few inconveniences. Read

Mortgage Rates Hit Yearly Low

U.S. borrowers can get the cheapest mortgages this year, thanks to worries over European debt, and that could keep homebuyers active even after the expiration of a tax credit designed to lift sales.

Mortgage rates fell to their lowest level of the year this week as yields on U.S. government securities fell, Freddie Mac said Thursday. Fixed mortgage rates tend to follow the yield of 10-year Treasury notes.

Are you the reason your home won't sell?

Many home sellers are losing money -- precisely because they're determined not to lose money. So why won't your home sell?

One reason homes are languishing on the market is that owners are suffering from “sunk cost fallacy,” says Ohio State University economist John Kagel.

This fallacy describes the reluctance people have to sell for less than they paid or put into a home, even when hanging on and waiting for the right price will ultimately prove costly.

Risk of real estate price declines drops

Inman News is reporting that the risk of home-price declines in 93 percent of 384 markets tracked at year end 2009 by analysts PMI Mortgage Insurance, Co. decreased.

Affordability and declining foreclosure starts were responsible for the dramatic decrease in the overall risk of price declines according to PMI.  In addition to affordability, lower home prices, lower mortgage interest rates and increasing personal income contributed to the risk reduction.

PMI stated it expects risk scores to continue to fall due to slowing (lower) unemployment rates 1st quarter 2010 and onward.  This should prove to be "important new force in reducing the risk of lower prices."  "House prices have dropped sharply relative to incomes in most areas suggesting that prices have fully, or more than fully, adjusted for their unsustainable increases during the housing boom," PMI Chief Economist David Berson said in a statement accompanying the report.

First Housing Price Increase in 3 Years!

Nationally, home prices increased in February 2010 for the first time since 2006. Part of the increase can be attributed to the tax credits to homebuyers and pent up demand.

The Case-Shiller home price index, released on Tuesday, revealed a tight 0.6 percent gain.  Of the 20 cities tracked by the index, 11 showed continued declines.  The South Florida Metropolitan Area (Miami-Fort Lauderdale) saw a decline of a bit less than 0.4 percent.  This indicates that there are still bargain properties available.  There is a light at the end of the tunnel.  The South Florida market typically trails the California markets by about a year.  The three California markets

What to Do If a Contractor Puts a Lien on Your House

Here’s a scary thought: Imagine you’ve just completed a home improvement project and paid the contractor in full for the work. Next thing you know, one of his subcontractors puts a lien on your house—a legal claim against your property that could force your house into foreclosure within a year to pay the debt if you don’t write a check yourself. Turns out the general contractor skipped out without paying the subcontractor, who’s now trying to collect his bill from you. The general contractor can also file a so-called “mechanic’s lien” if you haven’t paid him, even if you’re unhappy with his work.

 

What to do if this happens to you

 

A contractor will usually warn you before he files the lien and it’s worthwhile to either pay the bill (if he’s right that you owe it), negotiate a settlement (if there’s truth in both sides’ claims), or try to work it out somehow before he files the lien. If you can’t, and he drops a mechanic’s lien on you, here’s how to respond—and how to protect yourself from ever receiving one to begin with:

Going Green & Saving Money: Energy Efficient Window Coverings

Many of today’s window coverings are more than pretty—the shades, shutters, blinds, and films currently on the market offer homeowners a variety of sunning and shading options that make a room look nice while giving your heating and cooling bills an extremely green makeover.

Fed to end MBS purchases - Expect mortgage rates to increase

Mortgage rates are expected to rise gradually as the Federal Reserve left a key short-term interest rate untouched Tuesday, but said it would wrap up $1.25 trillion in purchases of mortgage-backed securities this month.
In a statement, the Federal Open Market Committee said its target for the federal funds overnight rate will remain in the range of zero to 0.25 percent, as inflation is likely to remain "subdued for some time."
Although household spending is expanding at a moderate rate, the committee said it remains constrained by high unemployment, modest income growth, lower housing wealth and tight credit.

Detect Termites and Other Wood-Destroying Insects

One of the biggest threats to your house comes in the form of tiny pests that silently and invisibly consume or live in wood—from the sills of your foundation to the rafters of your roof. Known by exterminators as WDIs, wood-destroying insects cause more than $1 billion a year in property damage in the United States, according to Orkin, a nationwide pest-control company.
“It’s not unheard of to see a home with termite damage in the tens of thousands of dollars,” says Greg Bauman, senior scientist with the National Pest Management Association. “I’ve personally seen a home with $1 million in repair costs. It probably would have been better to bulldoze the house.”

Tax Tips for Homeowners Preparing 2009 Returns

You’ve heard it before: Your home is probably the biggest investment you’ll ever make. It’s also probably the biggest tax write-off you’ll ever have. Follow these tax tips for homeowners to ensure that you receive all of the tax deductions and tax credits to which you’re entitled for the 2009 tax year.

Home-related tax deductions, from mortgage interest to real estate taxes, can add up. If you’re married filing jointly with taxable income of $100,000, an extra $5,000 in deductions would lower your tax bill by $1,250. Tax credits, for such things as energy efficiency and homebuying, are even more valuable because they increase your refund (or decrease what you owe) dollar for dollar.
Give yourself a day to organize paperwork and fill out tax forms. Need help? IRS Publication 17, “Your Federal Income Tax,” has the answer to just about any question you can think of, and it’s free. Basic tax software starts at $29.95, and H&R Block charges $187, on average, to prepare a tax return. Full-service accountants charge more, depending on the complexity of a return.

Tax deductions for non-itemizing homeowners

The last thing taxpayers want to hear is that the IRS has come out with yet another form. But

Great video example of why Ft. Lauderdale is the "Venice of America".

Real Estate Market Update: Off the Cuff

The South Florida real estate market has been changing a bit in the past month.  The changes are good for sellers and maybe not as positive for buyers.  My personal experience this past month while representing both buyers and sellers has been brisk and here’s what has happened.

Last week I listed a beautiful 3 Bedroom, 2 Bathroom, Waterfront home with heated pool and 2 car garage in the Coral Heights area for $374,000.  Showings by Cooperating Brokers began on day one and continued steadily.  This morning the house went under contract after a few days of negotiations to an out of town purchaser. 

Shadow inventory to grow - Hey what's a shadow?

Lenders are likely to add at least 1.75 million homes to their real estate owned (REO) property rolls that will take nearly three years to sell and put pressure on home prices, according to a new report from Standard & Poor's Financial Services LLC.
Loan servicers appear to have "exhausted the supply of plausible candidates for loan modifications and switched their emphasis" back to foreclosure, the report said.
The high redefault rate on loan modifications will also add to the "shadow inventory" problem, analysts at Standard & Poor's said.

Fully Renovated 3 Bed/3 Bath in East Fort Lauderdale

736 NE 16th Street, Fort Lauderdale, FL | Powered by Postlets

Renovated Waterfront 3 Bedroom with Heated Pool

3480 NE 17th Way, Fort Lauderdale, FL | Powered by Postlets

Just listed for $125,000 in Fort Lauderdale

1300 NW 3rd Avenue, Fort Lauderdale, FL | Powered by Postlets

The Truth about Short Sales: Last-minute concessions make or break deal

Buyers often shy away from considering short-sale listings, either because they've had a bad experience or have heard horror stories about the deals that take forever and never close. Buyers' agents sometimes steer their clients away from sales that are subject to the lender agreeing to accept less than what they're owed, because it can mean a lot of work for nothing.
Short sales will probably be a part of the home-sale market for the next couple of years. They provide opportunities for buyers, particularly those attempting to buy a home in a low-inventory market

The New Mortgage Revolution: Walk Away

Interesting article from HousingWatch.com, written by Alyssa Katz Januray 25, 2010:

Big real estate developers do it all the time - like yesterday, when the owner of New York City's Stuyvesant Town complex decided to stop paying its $3 billion mortgage. So why are you still writing a check every month on that mortgage that's much bigger than your home is actually worth?

Good question, University of Chicago economist Richard Thaler says.

Major Changes to FHA Mortgage Guidelines are Good for Buyers

Federal Housing Administration (FHA) loans have filled in the gap for mortgage purchasers who have less than stellar credit.  Without FHA mortgages the real estate market would be losing value at a much faster rate than currently.

In October 2009, FHA announced that its capital reserve fund had fallen below the congressionally mandated level of 2 %.  The drop in capital reserves has lead Congress and the Administration to call for changes to strengthen FHA.

On January 20, 2010, FHA announced major changes to ensure its long-term financial soundness.

Parks Morgan Selected to Serve the Public and His Peers

Most people are not aware that real estate salespeople who are REALTORS are governed by a strict code of ethics. Unfortunately, as in all fields, not every REALTOR acts ethically.  However, the public has recourse beyond courts of law.  The REALTOR Code of Ethics.  Violations of the code can be reported to your local REALTOR board where the complaint is taken very seriously.  Through investigation, interview and review of a committee of peers the REALTOR in question may be fined or even expelled from the Board.

Modified loan on home can hurt!

The last thing many troubled homeowners want to hear is that they could be denied a car loan after they get a chance to modify their home loan.But credit scores can get dinged after a home loan modification, making it more costly or tougher to get a loan or credit card.