Real Estate News

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WALKABILITY

 Type in an address and Walk Score will rate its "walkability" on a scale from 1 to 100. Experts say more people are moving to urban areas as a way to spend less money on gas, though convenience and exercise also play a role. On the Web site - http://www.walkscore.com - visitors can key in an address to get that home's individual walkability score, though the Web site also rates cities, identifying San Francisco, for example, as the most walkable city in the United States, mainly due to the close proximity of amenities. The Center for Neighborhood Technology - which insists a shift in transportation spending is necessary to make mass transit more efficient - says individuals reduce their annual gas expenses by as much as $2,100 when they live in urban areas versus outer-ring suburbs.

WCI COMMUNITIES

WCI Communities filed for Chapter 11 bankruptcy protection after the home builder failed to get additional financing in the face of massive losses. The company's Watermark real estate brokerage - which does business as Prudential Florida WCI Realty, its WCI Mortgage business and certain other joint ventures - is not affected.

FIRST-TIME HOMEBUYERS

Tell first-time homebuyers it's time to commit: A provision of the recently-passed federal housing recovery bill gives first-time buyers an interest-free loan of up to $7,500 in the form of an income tax credit. The benefit ends June 30, 2009.

FHA LOANS

Are you a buyer considering a foreclosed property that needs some work? You may be interested in finding out more about an FHA loan known as a 203k rehab loan. Industry experts think these loans could help buyers who need to rehab foreclosed properties that were vandalized or stripped by previous owners.

CONDO CONVERSIONS

Condo conversions were like a game of musical chairs - the last projects to convert lost out when the real estate market stalled. Now many of those condo-conversion owners find that the developer has retained controlling interest in the property, and they have almost no say in the operation.

SHORT SALES

Short sales sound like a dream: The seller escapes foreclosure. The buyer gets a bargain price. The bank holding the home loan eats the difference. But the deals can be incredibly cumbersome to negotiate, and in an NAR survey, 94 percent of Realtors who have worked with a short sale say they have had problems. RAPB Bulletin - June 24, 2008

News On Misappropriation of Funds
from Scott, Harris, Bryan, Barra & Jorgensen, P.A.


Misappropriation of closing funds is the glaring headline right now. The demise of Flagler Title Company may have you wondering what happens to people who have been injured by such actions. Law firms and licensed title agents are authorized to issue title commitments and title policies by title insurers, such as First American Title, Attorneys’ Title, Fidelity Title, etc.. These title insurers typically are liable for the actions of their agents in connection with the issuance of a title commitment or title policy. If no title commitment or policy has been issued, Florida Statutes still provide recourse against the title insurers. Buyers and lenders receive a closing protection letter that states that the title insurer agrees to reimburse them for actual loss arising out of fraud or dishonesty on the part of the title agent. Florida law requires a title agent to maintain an errors and omissions policy in the amount not less that two hundred fifty thousand dollars. Florida law also requires a title agent to maintain a fidelity bond or employee dishonesty coverage in the amount not less that fifty thousand dollars. However, when an act of misappropriation typically occurs, all funds in the escrow account are at risk and the amount of the policy and fidelity bond is typically insufficient to cover the claims. Fortunately for the public, the title insurers agree to reimburse for actual losses arising out of the fraud or dishonesty of the title agent handling your escrow funds.

More information about defalcation is available on the web site of Scott, Harris, Bryan, Barra & Jorgensen, P.A. at: www.scott-harris.com.
 

EQUITY CREDIT LIMITS

Banks and other lenders, wary after the subprime collapse, have been suspending many home equity lines of credit because homeowners' debts have exceeded their homes' property values.(far 6-10-08)

MORTGAGE RATES

Rates on 30-year mortgages edged up this week to an average of 6.09 percent, the highest level since March, as investors worried about inflation threats, according to Freddie Mac's weekly nationwide survey.(6-5-2008)

ASSOCIATION FORECLOSURES

Property foreclosures by homeowners associations, while still rare, are becoming more common in Florida. They generally involve only a small amount of money owed, but the associations sometimes move quickly because they generally don't collect any money if the mortgage lender initiates the foreclosure process.(far)

HOME SALES

Florida Realtors reported positive signs in their local housing markets during first quarter 2008, noting a slower rate of expansion for inventory levels and an increase in pending home sales in some areas. Another positive note: A total of 8,581 existing condos sold statewide during the quarter, up 8.3 percent over fourth quarter 2007. "If we look at what is happening month-over-month for 2008, it appears that the bottom may be here," says 2008 FAR President Chuck Bonfiglio. "We are now seeing more activity, more sales and even prices starting to rise in some markets."

"Prohibition of private transfer fees. SB 464 by Sen. Dave Aronberg (D-Greenacres) and HB 391 by Rep. Charles McBurney (R-Jacksonville) outlaw the practice of private transfer fees, a costly problem for future homebuyers. Here's how the scheme works: In a property's covenants, codes and restrictions, a property owner reserves the right to receive a percentage of all future sales -- usually 1-2 percent. But buyers and sellers are often unaware of this fee until they've entered into a purchase contract. The practice artificially devalues property and impedes the sales process.s"(this is proposed and needs to be signed by the gov. )

PROPERTY TAX AMENDMENT

Florida's Taxation and Budget Reform Commission voted yesterday in favor of a constitutional amendment to decrease property taxes in exchange for higher sales taxes, providing it's approved by 60 percent of voters in November.

HOME SALES

Florida Realtors statewide reported slight gains in existing home and condominium sales from February to March 2008, according to FAR's latest housing statistics. A total of 9,142 existing single-family homes changed hands in March, a 10 percent increase over the previous month. Statewide existing condo sales totaled 3,145 in March, up 13.7 percent compared to February's sales.

SHORT SALES

The short sale process can be so frustrating that some real estate agents and homebuyers have decided it isn't worth the effort. Deals fall apart because the mortgage company rejects the price, and it can take a long time to get an answer, even when it's "no." (far 4/08)

FORECLOSURES

In Florida, the number of homes in some stage of foreclosure dropped 7 percent from February to March, even as the national numbers rose 5 percent, according to the latest research report from RealtyTrac Inc. In the Sunshine State, 30,254 homes reported at least one filing last month.

HOUSING RELIEF

A bipartisan Senate bill to ease the slumping housing market contains $4 billion in grants to local governments to buy and refurbish foreclosed homes, new authority for states to issue bonds to be used to refinance subprime mortgages, a temporary $7,000 tax credit for people buying new homes or properties in foreclosure, and significant tax benefits for builders.

SECOND HOMES

Vacation- and investment-home sales accounted for 33 percent of all home sales in 2007, a figure close to historic norms, according to NAR's annual Investment and Vacation Home Buyers Survey. Lifestyle factors and strong demographics remain positive for the vacation home market, says NAR Chief Economist Lawrence Yun, who notes that "a peak of population is moving through the prime years for buying recreational property."

Pulling up sales today the 21 of march:

From dec1 07 to jan 1 08: 162,  from jan 1 to feb 1 08: 151, from feb1 to mar 1 08:147.   Note that this is for the area from northlake to tequesta drive.  Also these are listed as sales but the contracts are signed about a month before in most cases.

PROPERTY TAXES

Florida's Taxation and Budget Reform Commission, which has the ability to put constitutional amendments directly on the November ballot, will discuss and vote on three property tax plans today in Tallahassee. Each of the plans would reduce property taxes by at least a third for all property owners, and could save taxpayers statewide between $7 billion to $8 billion a year. 2007 FAR President Nancy Riley serves on the tax panel. (3/16/2008) Note that they are planning to make up the shortfall with a sales tax. (john)

SHORT SALES SHORTCHANGE OTHER SELLERS?

Some experts attribute a decline in MLS home listing values to real estate professionals who do not fully understand the short sale process, in which banks accept less than the mortgage balance as an alternative to foreclosing on the home. "The prices they come in with are so artificially low," says Johnson & Associates Inc. broker/associate Kendall Fudge. "If I'm selling my house and I see other homes in the neighborhood that are priced lower because they are short sales, that is going to affect the way a buyer looks at what I'm trying to sell." Some realty firms are specializing in short sales, hoping that the market will stabilize once the inventory of homes is reduced. At the same time, some property agents steer clear of short sales because of the red tape involved; but experts say response times will speed up once lenders' loss mitigation offices begin working at full capacity. Florida Association of Mortgage Brokers President Ritch Workman says real estate professionals can eliminate many of the hassles associated with short sales by knowing how the process works, understanding that they need to get the bank's permission before proceeding with a short sale and ensuring that the paperwork is in order.(far 3/12/08)

INFO AT YOUR FINGERTIPS

What percentage of people in your area are professionals? What percentage have a household income greater than $100,000 per year? The information is out there but not always easy to access. Not easy until now. A Web site - zipskinny.com- makes research easy to find, and it's free to use. Search by zip code or, after clicking on "Florida," select by city for education, marital status, occupation and more.

LUXURY HOMES

Is now the time to buy a $1 million home? A BusinessWeek.com survey of million-dollar homes in 20 markets across the country shows that buyers have plenty to choose from, and that their money will get them a lot of space and high-end amenities.

NEW COMMUNITY

Portosol in Royal Palm Beach with 4 bedroom homes starting at just 300k.   These homes have high ceilings and the community features a club house with pools, walkways and lakes.  Please contact me for more information.

MORTGAGES

If a bank can buy a mortgage loan at a substantial discount through a bankruptcy auction, why can’t the homeowner who carries that mortgage be able to do the same thing? A judge says there’s no legal reason that can’t happen, but banks say the costs would be too high.

Market news

This past month new mortgage applications have gone up.  Looking at the number of listings to the number of contracts signed (which was at 10:1) we see a 6 to 1 ratio.  This is good news for sellers as it may mean the market is picking up and stablizing.  (john 02/06/2008)

PROPERTY INSURANCE

After two days of Florida Senate panel hearings, it appears some of the state’s biggest insurers used loopholes to skirt a requirement that they pass on savings from a state-backed financial safety net to homeowners.

ENDING

It’s no illusion: loans are harder to get. A survey by the Federal Reserve found that a credit crunch started last summer, and 55 percent of respondents have tightened standards for prime mortgages, while 80 percent set higher standards for commercial real estate development loans

FORECLOSURES

The number of U.S. homes in some stage of foreclosure in 2007 was 79 percent higher than in the previous year, according to RealtyTrac Inc., with more than 1 percent of all U.S. households in some phase of the foreclosure process. Florida had more than 2 percent of its properties in some stage of foreclosure last year, according to the company.

TROUBLED OWNERS?

Call the national help line 888 995 4673 to see what their course of action should be-refi, negotiate with lender etc.