SOUTH EAST FLORIDA (un)real estate

Webslug - Summary for bocaagency.com

2008-08-19T22:46:00.001-04:00

Webslug - Summary for bocaagency.com

Posted using ShareThis

Florida Homestead Exemption

2008-07-17T23:37:00.002-04:00

Filing for Homestead and Other Exemptions in Florida.

All legal Florida residents are eligible for a Homestead Exemption on their homes, condominiums, co-op apartments, and certain mobile home lots if that is their primary residence. Previously the Homestead Tax Exemption applied to the first $25,000 of the assessed value, but voters approved an ammendment in 2008 to the Florida Constitution that now provides this tax-saving exemption on the first and third $25,000 of the assessed value of an owner/occupied residence. A complicated formula is now used to calculate the amount of benefit applied to the second $25,00 because is does not apply to all taxing authorities, however the bottom line is that the basic homestead exemption is worth approximately $800 in annual tax savings for all homes with a value of $75,000 or higher.

You are entitled to a Homestead Exemption if, as of January 1st, the property is your permanent home or the permanent home of a person who is legally or naturally dependent on you. By law, January 1 of each year is the date on which permanent residence is determined.

If you live in Broward County (Fort Lauderdale Area) You can now file for the Homestead exemption in Broward County Florida ONLINE by going to this link: https://www.bcpasecure.net/onlinehomestead/web/index.aspx or you can file by visiting either of the County's two offices or any of their community outreach events held throughout the county.

The filing deadline for Homestead Exemption for 2008 was: March 3, 2008. There is no cost to file for Homestead if you file by the March 3 deadline. You can file for the 2009 Homestead Exemption any time from now until March 1, 2009.

What You Need When Filing for a Homestead Exemption:

You must bring the following items listed below to file for your exemption:

To claim 100% coverage, all owners occupying the property as Tenants in Common (i.e., proportional share co-owners) must file in person on jointly held property. In the case of a husband/wife ("Tenants by the Entirety") or Joint Tenants with Right of Survivorship ("JTRS"), any one owner may qualify for 100% coverage -- although it is always highly advisable to have all eligible owner-occupants to file. If you are married and the Deed has different last names for a husband and wife, a marriage certificate must be presented if the deed does not indicate the two co-owners are "husband and wife."

Proof of Ownership: Recorded Warranty Deed, Co-op Propriety Lease, Notice of Proposed Taxes or Tax Receipt, if in your name(s). If the PROPERTY IS HELD IN A TRUST, YOU WILL NEED EITHER A NOTARIZED CERTIFICATE OF TRUST OR A COMPLETE COPY OF THE TRUST AGREEMENT. Note: Most taxpayers prefer to use the simple Certificate of Trust form, instead of submitting the entire trust for our review, as it better protects the privacy of your estate planning and other financial matters.

Proof of Permanent Florida Residence: Preferably dated prior to January 1 of the tax year for which you are filing, is established in the form of:

FOR ALL APPLICANTS: Florida's Driver's License (or for non-drivers only, a Florida I.D. Card) is REQUIRED. Note: "Valid Only in Florida" driver license is not acceptable; PLUS either one of the following:

Florida Voter's Registration; or
Recorded Declaration of Domicile.

FOR NON-US CITIZENS, you must have the items listed above AND proof of permanent residency, asylum/parolee status (or other "PRUCOL" status).

If you or your married spouse have a Homestead Exemption in any other county, state or country (or an equivalent permanent residency-based exemption or tax credit, such as New York's "S.T.A.R." exemption) on another property you also currently own, you will not be eligible for a homestead until after you surrender the exemption in that other jurisdiction.

The State-approved application form requests certain information for all owners living on the premises and filing:

Current employers of all owners
Addresses listed on last I.R.S. income tax returns.
Date of each owner's permanent Florida residence.
Date of occupancy for each property owner.
Social Security numbers of all owners filing (including the Social Security numbers of any married spouses, even if not named in the Deed) are required.

Other Exemptions:

Widows, widowers, permanently disabled persons, and qualified senior citizens on fixed-incomes are entitled to additional tax-saving exemptions. With the exception of the $5,000 Veteran's Disability Exemption and the Historic Property Exemption, a Homestead Exemption is required as a pre-condition for obtaining any of the following additional exemptions:

$500 Disability Exemption: One letter or certificate from a Florida-licensed physician stating that you are totally and permanently disabled.

$500 Widows/Widower's Exemption: Spouse's death certificate, newspaper clipping or memorial card.

Additional $25,000 Senior Citizen Exemption: Filing period is January 1 through March 1 of each year. Applicant must be 65 years of age or older as of January 1 (even if other household members are under age 65) and the total household adjusted gross income for last year (2007) must not exceed $24,916. This exemption must be applied for annually (and the annual renewal process is fast and easy).

$5,000 Veteran's Disability Exemption: A copy of your Certificate of Disability from the U.S. Government or the U.S. Department of Veterans Affairs (or its predecessor agency). The disability must be military service-related and incurred during a period of wartime service or by misfortune. The service-related disability must be to a degree of at least 10% before January 1, 2008. The surviving spouse of an eligible disabled veteran may also claim this exemption, provided he/she has not remarried. Note: The veteran must be a permanent resident of the State of Florida. For surviving spouses, the deceased veteran must have been a permanent resident of Florida at the time of his/her death.

Full Exemption for Veteran's Service-Connected Total and Permanent Disability: A certificate from the US Government or US Department of Veterans Affairs. Any honorably discharged veteran with a service-connected total and permanent disability, surviving spouses of qualifying veterans and spouses of Florida resident veterans who died from service-connected causes while on active duty as a member of the US Armed forces are entitled to an exemption on real estate used and owned as a homestead.

Additional Exemption for Combat-Wounded Florida Disabled Veterans: This exemption provides a additional discount from the amount of property taxes on the homestead of a partially or totally permanently disabled veteran, age 65 or older as of January 1, who was a Florida resident at the time of entering military service, and whose disability was combat-related. Under this new law, a veteran will receive a total exemption from property taxes equal to the percentage of combat-related disability (example: a 60% combat-related disability would exempt 60% of the total value of the homesteaded residence from ad valorem property taxes). You will need to provide documented proof your disability was combat related (i.e., copy of Purple Heart Medal award paperwork), a certificate from the US Government or US Department of Veterans Affairs attesting to the percentage of your permanent disability, and documentary proof you were a Florida resident when you entered the military. Note: Florida law did not provide for a surviving spouse exemption in this category.

$500 Disability Exemption for Blind Persons: A certificate from the Division of Blind Services of the Department of Education or the United States Department of Veterans Affairs certifying the applicant to be blind is required.

Full Exemption for Totally and Permanently Disabled Persons: Certificates from two licensed doctors of this state or a certificate from the US Department of Veterans Affairs. To be entitled to this exemption, you must be a (1) quadriplegic or (2) paraplegic, hemiplegic or other totally and permanently disabled person who must use a wheelchair for mobility or who is legally blind. For persons entitled to this exemption under number two (2) above, the prior year (2007) gross income of all persons residing in or upon the homestead shall not exceed $24,289. This amount is adjusted annually and a statement of gross income must accompany the application.

"Granny Flat" Exemption - Taxpayers who build additions onto an existing home or perform extensive renovations to provide living quarters for a parent or grandparent may be entitled to a special exemption equal to the amount of the new construction (up to 20% of the homestead value). To be eligible, the property owner must have a Homestead Exemption on the property where the parent or grandparent quarters are constructed. The construction or reconstruction must be properly permitted and comply with all local land development regulations. Copies of all permits, certificate of occupancy, and plans must be submitted to the Property Appraiser’s Office. Construction or reconstruction must be substantially complete before January 1st of the year in which the reduction is requested. Application must be filed with the Property Appraiser’s Office annually on or before March 1st of each year. The occupant(s) of the quarters must be a parent or grandparent. The occupant(s) must be at least 62 years of age by January 1st of the year in which the reduction is requested. The occupant(s) must permanently reside on the property on or before January 1st. of the year in which the reduction is requested. The occupant(s) cannot receive any benefits requiring a declaration of permanent residency on any other property in any other County or State. The County Property Appraiser’s Office will conduct a site visit annually upon review and prior to approval of the application for assessment reduction.

Historic Property Exemption - Is your property on the National or Florida Registers of Historic Properties? Then, under certain circumstance, you may be entitled to some special exemptions related to your assessed value.

Non-Profit, Religious, Educational & Governmental Exemptions may also be available.

Homestead Exemptions are NOT Transferable

Homestead Exemption does not transfer from property to property. If you had this exemption last year on another property and moved, you must file a new application for your new residence. Notify the Property Appraiser to cancel the exemptions on your former home. Property purchased during last year may show qualified exemptions of the seller. The sellers' exemptions will not carry over to this year; you must apply for your own exemptions, although you will assume any existing exemption(s) for the current year.

Making a Timely First Application

You can now file for Homestead Exemption all year around. There are two filing periods.

"Pre-Filing" for the next year (for owners who purchased properties after January 1 of this year): March 2 to December 31.

"Traditional" Filing Period: January 1 to March 1.

The amount of the homestead exemption granted to an owner residing on a particular property is to be applied against the amount of that person's interest in the property. This provision is limited in that the proportional amount of the homestead exemption allowed any person shall not exceed the proportionate assessed valuation based on the interest owned by the person. For example, assuming a property valued at $40,000, with the residing owner's interest in the property being $20,000, then $20,000 of the homestead exemption is all that can be applied to that property. If there are multiple owners, all as joint tenants with rights of survivorship, the owner living at property filing receives the full $25,000 exemption.

Late Filing for Homestead in 2008 If You Missed the March 1 Deadline:

Applications with Petition - Late Homestead applications will usually be accepted and must be filed at the appropriate County's office. They will also normally help taxpayers prepare the petitions to the County Value Adjustment Board (VAB) for all property purchased prior to January 1 and owned and occupied by qualified applicants. For a late application to be granted for the current year, you must file a petition with the VAB accompanied by a $15 non-refundable filing fee and qualify for the exemption. To late file, your petition and filing fee must be received by the VAB by the September 19, 2008, deadline.

Note: Check with the County Appraiser's office where your property is located for the exact location and rules for late filing.

Receipts, Renewals, and Changes that Cause Ineligibility.

After your initial application for the Homestead Exemption has been made and the exemption has been granted, a receipt will be mailed to you each January 1st for verification that the status and condition of the ownership has not changed in any manner whatsoever.

If you do not receive this renewal receipt from us by March 1, failure to contact this office could result in the loss of your Homestead Exemption for the year.

A new application is required if your property has been sold or otherwise disposed of, or the ownership changes in any manner or when the holder(s) of the Homestead Exemption ceases to reside on the property as a permanent resident.

This annual Homestead Receipt renewal does not pertain to any of the other exemptions and/or classifications.

If you no longer qualify: The law requires you to notify the Property Appraiser's office to remove that exemption by March 1. Strong penalties, going back as far as ten years of back taxed, plus penalties and interest may be imposed on those who do not tell the Property Appraiser to remove exemptions for which they are no longer qualified. For example, if you have rented out your entire property, you would likely forfeit your right to claim a Homestead Exemption (click here to view the applicable statute). Or, if you were receiving a widow's or widower's exemption and remarry, you would no longer be entitled to that exemption.

Save Our Homes Benefit of the Homestead Exemption:

"Save Our Homes" is an amendment to the Florida Constitution that the voters passed in 1992. A taxpayer AUTOMATICALLY receives the Save Our Homes protection starting the year after first obtaining a Homestead Exemption. This law limits the increase in assessed value for properties receiving the Homestead Exemption to no more than 3% or the increase in the Consumer Price Index (CPI), no matter how much larger the increase in just value would otherwise be. The limit does not cover new construction or construction that was not taxed before the "Save Our Homes" limit applied to a particular property. It also does not apply when a property sells, because the new owner starts the limitation all over again once he or she qualifies for Homestead Exemption.

The New Save Our Homes Portability:

The "Save Our Homes" (SOH) Amendment in Florida’s Constitution was intended to prevent homeowners from being taxed out of their homes due to rapidly rising real estate values. It met that goal, but caused many other problems along the way.

That is why Florida voters adopted a "portability" constitutional amendment in January 2008 to allow eligible homesteaded owners to move savings from one property to the next. Homesteaded owners may now move their Save Our Homes (SOH) benefit -- up to $500,000 -- from one homesteaded property to the next within Florida. To be eligible to move these SOH savings, the new Homestead must be purchased within two years of the abandonment of Homestead at the previously Homesteaded property. Owners of Homesteaded properties sold in 2007 will be eligible to move their SOH savings to a newly purchased property so long as it is Homesteaded by January 1, 2009. Portability applies to both upsizing and downsizing in value, based upon specified formulas. Portability may be used an unlimited amount of times and may be used for moves to anywhere within Florida.

The Save Our Homes provision is one of the primary reasons that the property tax amounts can vary so greatly from one otherwise similar property to another.

If you have, or plan to purchase a primary residence in Florida, making sure you have all of your Homestead related tax deductions in place will save you a lot of money, especially in the long run.

Short Sale - Long Time

2008-06-25T07:56:00.000-04:00

The vast majority of residential sales occurring in South Florida right now are Short Sales and REOs. Most properties listed on the MLS at current market prices are actually Short Sales, and most of the remainder are REO's. In a normal market, Short Sales are almost non-existent and REO's are few, but always around and always in demand.

So what are Short Sales and REO's?

A Short Sale is a situation where the Owner of a property is trying to sell it for less than they owe on it - And not pay the difference themselves. The owner wants the Lender (or Lenders) to agree to 'eat' the difference between what the Owner owes and what they are able to sell it for in the current market.

Many property owners, including many would-be investors who bought property during the land rush that they couldn't afford, hoping to flip it quickly for an easy hundred grand, are now finding that they are stuck with a property that is worth half or less than they paid for it 3 years ago, and are unable to afford the payments, sell it, or even rent it for enough to cover the mortgage, taxes and insurance.

So basically, they want out and they want the lenders to take the hit. In order to compel the lender to accept a Short Sale on a property, a detailed package of information must be submitted to the Lender's loss mitigation dept., often with one or more offers on the property, along with complete financial information on the Owner, history of marketing efforts, BPO (Broker Price Opinion) and other documents.

Many current buyers are being lured into the market now because prices have dropped so dramatically over the past year that homes and condos are now becoming affordable again to many people who had been priced out of the market just a couple of years ago. A large number of these buyers have been enticed by the apparent bargains of properties listed at very low prices, only to discover that they had to wait anywhere from 4 weeks to 4 months for a reply to their offer, during which time other offers may have also joined the fray, and ultimately to find that the lender came back with a counter offer that was not only significantly higher than their offer, but higher even then the asking price!

How can a Lender reply with an offer higher than the asking price? Because in most of these cases, the Listing Agent never bothered to find out what the lender would accept before listing the property in the first place. They simply made up a very low price to attract offers, then hoped to send them in to the lender to wait and see what happens a couple of months later - wasting everyone's time and efforts.

Consequently, there are many buyers that have been out trying to purchase a property for 6 to 8 months, have had multiple offers submitted, have spent time and money on inspections and other expenses, and have still never had an offer accepted - even when making full price offers on listings.

There are many other potential problems with Shorts Sales as well, especially if there are tenants currently occupying a property.

Short Sales might be more appropriately called Long Sales, or Long Shot Sales, because in most situations, there is nothing Short about them.

There are, of course exceptions. Those infrequent occasions when the Listing Agent (or someone they hired) has already gone through the process of obtaining an acceptable price and Short Sale Agreement from the Lender, but unfortunately, those properties are in the definite minority.

REO's on the other hand, are properties that have already been foreclosed on and are in the "investor's" possession. This investor can be a bank, or a PMI (Private Mortgage Insurance)company, or FHA, or VA, or Fannie Mae, or Freddie Mac, etc. It is the entity that was the actual mortgage holder on the property, which is often Not the Bank that payments were being made to, or that handled the foreclosure and possible prior Short Sale negotiations.

REO's, in contrast to Short Sales, are priced close to what the Investor/Bank will accept and you will never get a counter offer higher than the listed price, unless there are multiple simultaneous offers that create a bidding situation. Also, you will typically get an answer on an offer in 2 to 7 days, instead of 1 to 4 months.

If you're out looking for a real estate bargain, look first for REO's. In most cases, Short Sales should be considered as an option of last resort.

Home prices in South Florida "easily" could be 20 percent to 30 percent higher by 2013

2008-06-16T23:22:00.003-04:00

Home prices in South Florida "easily" could be 20 percent to 30 percent higher by 2013, the chief economist for the National Association of Realtors said Thursday.

Addressing local real estate agents during a conference at the Biltmore Hotel in Coral Gables, Lawrence Yun countered the persistent pessimism of experts who insist the region's housing market will continue to struggle before rebounding slowly during the next few years.

USA Today recently identified Yun as one of the nation's top 10 analysts on a list measuring accuracy in forecasting. But real estate observers say he is overly optimistic because he works for the national Realtors' group, whose goal is to promote home sales.

"He does his best to present a positive spin on data that's not based on reality or fact," said Delray Beach housing analyst David Levin.

Yun called 2008 a "year of cleanup" and says the second half will be better than the first because mortgage markets are improving nationwide and across South Florida. Foreign investors and Baby Boomers will boost home sales during the rest of 2008, he said.

Although year-over-year home prices have been falling steadily in Palm Beach and Broward counties since the summer of 2006, Yun said price increases could happen here again as soon as this year.

A decade from now, sellers and agents will look back on this as a "small blip on the radar screen," Yun said. "The long-term fundamentals are terrific."

During his presentation, Yun described the 30-month housing slump nationwide as a "short-term phenomenon" and said the economic climate is not leading to a recession. He also said there soon could be a shortage of housing because builders have cut back production during the past few years.

Newsweek this month called Yun the "Little Orphan Annie of forecasters" for his consistently upbeat predictions in the face of dire market conditions.

Citing an oversupply of homes for sale and property tax and insurance concerns, Levin said there's nothing to indicate that South Florida's housing picture will improve as quickly and dramatically as Yun suggests.

"There's no definitive data that says Baby Boomers are going to choose Florida. Florida ain't so cheap anymore," Levin said.

In a new housing survey of the Miami metropolitan area, which includes Broward and Palm Beach counties, properties stayed on the market an average of 152 days. That's by far the longest in the nation, according to a May report of 26 metro areas released this week by real estate firms Altos Research LLC and Real IQ.

Area housing experts agree that sales will pick up once prices drop to a level that's acceptable to most buyers. And a recent report from Deutsche Bank indicates that South Florida home prices still have to fall substantially to return to the affordable price levels of 2000 to 2003.

In Palm Beach County, prices would have to fall 38.1 percent from now until the end of the housing slump, the report says. Broward County prices would need to drop 36 percent.

Real estate agents attending Thursday's conference sponsored by the Realtor Association of Greater Miami and the Beaches said they're seeing increased activity in the market. They say home buyers are getting mortgages, despite reports of tighter lending requirements at South Florida banks.

"For the right person with the right credentials, the money's still there," said Terri Bersach, a Coldwell Banker agent in Miami.

Find any Home or Condo for sale in South Florida. Complete Information. Free MLS Search

2008-06-16T22:39:00.002-04:00

Whether you are a first time buyer, an experienced investor or anywhere in-between, we have lots of useful information for you about Real Estate in all of Southeast Florida - including homes for sale, townhomes and villas for sale or for rent, condos for sale or for rent, water front property, beach front property, investment property, vacant land, luxury homes, large estates, retirement communities, vacation homes and new construction.

Everything for sale in Broward County and Southeast Florida is available right here on our Site - from single family homes on the water, to golf course properties, ranch style estates, beach front condos, retirement communities, family communities, pet friendly communities, starter homes, investment real estate and anything you need, we have it all. You choose the lifestyle you want and we'll show you the properties. From Miami Beach to Palm Beach, South Florida Real Estate encompasses many diverse communities.

Search all you want with no need to register and no obligation at all. If you're not sure where you want to start looking, just contact us and we will be happy to help you with anything you need. There is never a cost or obligation and we will not share any of your information with any one else.

Search 109,701 real estate properties for sale in South East Florida:

Miami Dade County: 40,702
detached homes: 15,502
condos / villas / townhouses: 25,200

Broward County: 38,207
detached homes: 15,984
condos / villas / townhouses: 22,223

Palm Beach County: 30,792
detached homes: 14,658
condos / villas / townhouses: 16,134

LICENSED Real Estate AGENTS Needed, LEADS Provided, Great COMPENSATION

2008-05-22T09:20:00.002-04:00

Looking for a full time dedicated agents to work on our team and handle
buyers and renters supplied by us in Broward, Palm Beach and Miami Dade county.

We offer real estate agents the opportunity to be real independent
contractors while offering them the highest level of support to match their
level of training and experience and the best compensation plan on the market.

With Access USA Realty, Inc. this is how it works:

We offer real Buyers and personal assistance and interaction including
lead generation and pre-screening, along with personal help with customer and
transaction management and Full broker access 7 days a week.
We give leads for Real Buyers and Renters with team splits ranging from
50% to as high as 90% (90% under $50k, 75% $51k - $100k, 60% $101k to $200k
and 50% over $200k). Anything that you get as a referral of those and all
personal business is paid at 90% with NO transaction fees charged by the
company.
YOU keep the ENTIRE COMMISSION except for 10% on your own
business you get.
Agents are free to charge their own transaction fees up to $495 (except on
team leads) that they keep 100% of.
All bonuses on referral and personal sales are paid at 100%.
Listings are paid at 90% as well, plus you keep 100% of transaction fees.
Rentals are paid at 90% even on team leads, Agent Referrals are paid at
100% minus a $70 processing fee.
There are NO other per transaction fees, NO Franchise Fees, NO Desk Fees,
NO administration costs, NO Marketing fees, NO production quotas, NO mandatory
meetings.
24/7 office access with Free phone and fax use including Free long
distance, FREE copy machine use, FREE computer use with 6mb high speed
Internet
Agents costs for business cards and Board Affiliation Change are
reimbursed on their first transaction.
Sale of an Agent's personal residence is Free.
If you leave the company you are paid your commissions on all pending
transactions regardless of when they close and you can also take their
listings with you (almost no other companies offer that).

Best Compensation Around

The compensation plan we offer is the best on the market you can find. It
offers both real customers on a team basis, plus pays very high splits on your
own business. None of the other big operations offering "real" leads does
that. With them, you operate at the company split, which can be as low as 40%,
for ALL transactions.
You are an Independent Contractor and are treated like one, keeping
virtually all of what you earn. Talk to one of our agents about us. You will
find them smiling all the way to the bank. Again and again. Put the money you
earn into YOUR pocket.

There are no games, tricks, or surprises. It is as good as it sounds. Feel
free to contact us regarding any question you might have, as we looking forward
to hearing from you...

Please send your questions to our email or call to schedule the
appointment.

Larry Milligan, Broker of Access USA Realty, 954-720-7200 or
954-720-7111

About Our
Employment

Home prices continue sharp descent

2008-05-20T22:51:00.001-04:00

NEW YORK (CNNMoney.com) -- Single-family home prices dropped 7.7% in the first quarter in the largest year-over-year decline since the National Association of Realtors began reporting prices in 1982.
The median sales price fell to $196,300, down 4.8% compared with the last three months of 2007.
Lawrence Yun, the chief economist of NAR, attributed much of the record decline to liquidity problems dragging down high-priced markets.
"These are highly unusual results because there were very few jumbo loan originations in the latest quarter," he said. "So sales are much slower in high-cost areas."
Jumbo mortgages skew results
That sales slowdown changed the mix of houses sold.
In California, according to Yun, homes bought with jumbo mortgages - more than $417,000 - accounted for 40% of all sales before liquidity for these loans dried up during the summer of 2007. Since then only 10% of sales in California involved jumbo loans.
In February, Freddie Mac and Fannie Mae, the government sponsored enterprises that guarantee a market for conforming loans, have raised the $417,000 cap to include mortgages of up to $729,750, but lenders were still charging much higher rates for these "conforming jumbos," between 1% and 1.5% more than ordinary conforming loans. The higher rates are discouraging sales in higher price ranges and so skewed NAR's median price results.
Many of these same markets were also among the hardest hit by the subprime implosion, which forced many lower priced homes back on the markets, again dragging down NAR's results.
That helped put many California and other Sun Belt cities, with their toxic combinations of both high prices and heavy proportions of subprime mortgages, among the biggest losers.
In California, Sacramento prices plummeted 29.2% to $258,500 compared with last year and Riverside prices fell 27.7% to $287,100. Prices in Las Vegas fell 20.2% to $247,600 and those in Phoenix dropped 15.4% to $222,200.
Some Midwestern cities, hard hit by factory closings, also suffered huge losses with Lansing, Mich., prices falling 26.9%. Saginaw, Mich., had the lowest median prices of any of the 150 markets studied; a median house in Saginaw sold for just $65,400.
"You have two themes: the weak industrial economies under increasing pressure by struggles of the Big Three automakers and the deflating of what were once the most prominent bubble markets," said Michael Youngblood, an analyst with FBR Investment Management.
About of a third of the markets did show gains. The best performer in the nation was Binghamton, N.Y., where prices rose 11.8% to $109,700. Then came Peoria, Ill., up 10.4% to $119,000 and Spartanburg, S.C., where prices rose 10.2% to $130,300.
Regionally, in the Northeast, single-family home prices rose slightly, 3.2% to $280,000. But prices in the South dropped 7.5% to $164,200, in the Midwest they fell 7.9% to $142,700 and in the West they plunged 12.3% to $296,300.
Foreclosures put more homes in play
Hurting home prices were big rises in foreclosure rates over the past 12 months, which threaten to get even worse. Delinquencies more than doubled over that time and more than 155,000 lost their homes in bank repossessions during the first three months of the year. With many adjustable rate mortgages (ARMs) poised to reset this year to higher interest rates, defaults could go even higher.
"Yes, but I hasten to say it's not merely the ARMs," said Youngblood. "Fixed rate loans are performing poorly as well."
All that foreclosure activity added to the glut of homes on the market. The total inventory has risen to an average of 10 months worth of unsold homes. In addition, a record number - 2.9 million - of vacant homes are up for sale, according to the Census Bureau.
The big inventory has led to aggressive price slashing and increased incentives by builders looking to sell homes. They've also cut way back on housing starts, which are at a 17-year low.
The pace of existing home sales, at about 492,000 a month, is about a third less than its peak during the summer of 2005.
Condo prices fared a bit better than single-family homes. The median price fell just 3% since early 2007. The worst hit market was the Sarasota area, where condos dropped 35% over the past 12 months to $268,500. Sacramento condo price cratered 33.4% to $147,200. In Miami, prices fell 26.4% to $176,100.
The best performing condo market was about as far from the madding crowds of South Beach as one can get: Bismarck, N.D., condo prices soared 36.4% compared with 12 months ago, to $124,900.
The price declines in falling markets may not have run their course. Some analysts point to low home prices in many Midwestern cities and assert there's not much room for prices to fall but Youngblood disagrees.
"If we'd had this discussion a year ago, we would have said the same thing - how much further can they fall?" he said. "But jobs are declining and people are moving out and you're getting sharper home price declines than you ordinarily would."
Also, according to Youngblood, the sheer volume of foreclosures takes a toll. "Recent studies report that foreclosed properties sell for an average of 20% less than comparable properties that have not been foreclosed on," he said.
As for the bubble markets that have already lost 30% of their values, Youngblood thinks their declines are not over. He expects some to drop another 20% or so through February 2009.
First Published: May 13, 2008: 10:08 AM EDT

Palm Beach County home prices drop 5%, sales down 15%

2007-08-28T10:17:00.000-04:00

South Florida Sun-Sentinel.com

Palm Beach County home prices drop 5%, sales down 15%

By Paul Owers (South Florida Sun-Sentinel) August 28, 2007

Twenty months and counting.

Sales of existing homes in Palm Beach County slipped in July as they have since December 2005. That dismal trend isn't likely to change soon as lenders across South Florida make it tougher for consumers to qualify for mortgages.

Analysts don't expect the housing slump to end until the second half of 2008 or later, in part because the recent credit crunch is thinning an already small group of would-be buyers.

The county had 605 sales last month, down 15 percent from 714 in July 2006, the Florida Association of Realtors said Monday. The median price dropped 5 percent to $372,200 from $390,100 last year.

The market for existing condominiums looked particularly bleak in July, with year-over-year sales falling 14 percent and the median price plummeting 23 percent to $178,200 from $231,300 a year ago. It's the first time the median has dropped below $200,000 since September 2005.

Meanwhile, the percentage price decline in the county's existing condo sales was the second-worst showing among the state's 20 metropolitan markets, behind Lee County's 33 percent slide. The huge drop is an indication that less expensive condos were selling, and certain owners were desperate to unload them, analysts say.

Some South Florida lenders are reporting rises in mortgage applications, as people hedge their bets and shop around for loans, but actual loan approvals probably aren't increasing because sales continue to lag, said Mike Larson, a housing analyst with Weiss Research in Jupiter.

Existing sales and median prices could be even worse this fall in South Florida because those numbers will reflect the credit tightening that spread this month beyond risky borrowers to include people on solid financial footing.

"There's more pain to go through," said John Burford, senior vice president and chief economist with The International Bank of Miami.

Kathy Connors put her five-bedroom Wellington home on the market in January. At the time, she was asking $655,000, a price she now concedes was too high.

The manicured property inside the gated Isles at Wellington development has a hot tub, a spiral staircase and a balcony outside the master bedroom. But with no offers and only a handful of prospective buyers stopping by, she has slashed the price to $549,900.

"Just getting people in here has been the problem," said Connors, 53, a medical laboratory sales representative.

Her new real estate agent, Polly Parker of Re/Max Advantage Plus in Boca Raton, said homes that attract little interest probably are overpriced by at least 5 percent. If no buyers step forward, the properties could be overvalued by 10 percent, Parker said.

"Houses sell because of amenities, location and price," she said. "If you have all three, you'll sell the house."

Sales fell 24 percent across Florida, with the median dipping 5 percent to $237,500 from $250,400.

Nationally, total existing-home sales slipped 9 percent from a year ago, and the median price was down 0.6 percent to $228,900 from $230,200, the highest monthly price on record. The median means half sold for more, half for less.

The number of unsold homes nationwide shot up to a record level in July, rising by 5.1 percent to a record level of 4.59 million properties.

With a bloated number of homes and condos also available in South Florida, it'll take years to whittle down the existing inventory, Weiss' Larson said. And still more properties are expected to come on the market as people lose their homes to foreclosures.

"Buyers are being picky, taking their time, choosing their spots," Larson said. "We're not going to all of a sudden flip a switch and start selling houses. It's going to be a gradual process."

Paul Owers can be reached at powers@sun-sentinel.com or 561-243-6529.

Broward home prices down 2% as sales drop 22%

2007-08-28T10:13:00.000-04:00

South Florida Sun-Sentinel.com

Broward home prices down 2% as sales drop 22%

By Paul Owers (South Florida Sun-Sentinel) August 28, 2007

Three years and counting.

Sales of existing homes in Broward County declined in July, just as they have for 36 of the past 37 months. That dismal trend isn't likely to change soon as lenders across South Florida make it tougher for consumers to qualify for mortgages.

Analysts don't expect the housing slump to end until the second half of 2008 or later, in part because the recent credit crunch is thinning an already small group of would-be buyers.

The county had 559 sales last month, down 22 percent from 721 in July 2006, the Florida Association of Realtors said Monday. The median price dropped 2 percent, to $373,700 from $380,400 last year.

The market for existing condominiums in Broward also took a hit in July. Year-over-year sales fell 19 percent, and the median price slid 10 percent, to $187,200 from $209,100 a year ago.

The median price is the level at which half sold for more, half for less.

Some lenders are reporting rises in mortgage applications as people hedge their bets and shop around for loans, but actual approvals probably aren't increasing because sales continue to lag, said Mike Larson, a housing analyst with Weiss Research in Jupiter.

Existing sales and median prices could be even worse this fall in South Florida because those numbers will reflect the credit tightening that spread this month beyond risky borrowers to include people on solid financial footing.

"There's more pain to go through," said John Burford, senior vice president and chief economist with The International Bank of Miami.

Jim Mander still is trying to find a buyer for the four-bedroom Davie house he listed more than a year ago.

The property with a pool is set on an acre lot and has been renovated extensively. He originally was asking $789,000, but he's down to $749,000 and getting frustrated.

"I've got a feeling it's not the house, it's not the location," said Mander, 68, who works for a marine distribution company. "It's just the market. My timing was wrong."

If he doesn't sell soon, Mander will try to rent the house. His agent, Debbie Anderson of Prudential Florida WCI Realty, said exasperated sellers are having success as landlords.

"People have the money to rent expensive homes," Anderson said. "They just don't want to pay for them. I think they're afraid that prices will fall even more."

Looking back, Broward's year-over-year home sales increased in October 2006 compared with October 2005, the month Hurricane Wilma hit South Florida and delayed home closings. But otherwise, existing-home sales have been declining since July 2004. Median prices began to fall in Broward last July.

On top of the mortgage mess,many South Floridians are unhappy with state legislators' new property tax plan, saying it will do little to improve the housing climate. They're also not seeing the significant savings in their property insurance bills that Gov. Charlie Crist promised in January.

So if sales are to pick up this year, home sellers will have to lower expectations from the record high prices during the housing boom of 2000 to 2005.

"I talk very seriously with my sellers to let go of what was," said Cathy Prenner, a real estate agent with Campbell & Rosemurgy in Lighthouse Point.

The continued housing slump also is evident in Palm Beach County, statewide and across the nation.

Palm Beach County existing-home sales dropped 15 percent in July, while the median price was down 5 percent to $372,200 from $390,100 a year ago. The condo market was particularly bleak last month, with sales falling 14 percent and the median price plummeting 23 percent to $178,200 from $231,300.

Nationally, total existing-home sales slipped 9 percent from a year ago, and the median was down 0.6 percent to $228,900 from $230,200, the highest monthly price on record. The number of unsold homes nationwide shot up to a record level in July, rising by 5.1 percent to a record level of 4.59 million properties.

With a bloated number of homes and condos also available in South Florida, it'll take years to whittle down existing inventory, Weiss' Larson said. And still more properties are expected to come on the market as people lose their homes to foreclosures.

"Buyers are being picky, taking their time, choosing their spots," Larson said. "We're not going to all of a sudden flip a switch and start selling houses. It's going to be a gradual process."

Paul Owers can be reached at powers@sun-sentinel.com or 561-243-6529.
Copyright © 2007, South Florida Sun-Sentinel

Housing gets mixed outlook

2007-08-08T22:00:00.000-04:00

Tougher lending standards to hold back pace of home sales, but prices will drop less sharply than previously expected, says the National Association of Realtors.

August 8 2007: 10:56 AM EDT

WASHINGTON (Reuters) -- The pace of U.S. home sales will fall further this year than earlier expected, but prices will drop less sharply than previously thought, a leading real estate trade association predicted Wednesday.

The National Association of Realtors trimmed its sales forecast for the sixth straight month but pared back its predicted drop in existing home values.

Existing-home sales should hit a pace of 6.04 million units this year, down from the 6.11 million units it predicted last month.

That number is still above the 5.75 million-unit annual rate that the trade association reported for June. In a statement on Wednesday, the NAR's chief economist, Lawrence Yun, predicted "a modest upturn for existing-home sales toward the end of the year."

Prospective homeowners have faced tougher lending standards in recent months as investors have pulled funding from the once-hot mortgage finance market.

Yun said the recent disruptions "will hold back sales over the short term, but long-term fundamentals are favorable," particularly the growing U.S. population.

The national median sales price for existing homes should ease by 1.2 percent to $219,300 this year, the association concluded. Last month, the trade group said prices should slip 1.4 percent.
The median new-home price will probably fall 2.3 percent to $240,800 this year, the NAR said in its monthly economic outlook.

In a separate report Wednesday, mortgage applications rose for the first time in three weeks as interest rates fell sharply and demand surged. The Mortgage Bankers Association said mortgage applications rose to their highest level since early June.

Find this article at: http://money.cnn.com/2007/08/08/news/economy/bc.usa.economy.housing.reut/index.htm

Home sales rise, while South Fla. numbers remain down

2007-08-08T21:41:00.000-04:00

Associated Press
4:01 PM EDT, August 1, 2007

Pending sales of existing homes rose by 5 percent in June compared with the previous month, a surprisingly positive sign for the beleaguered housing market, a real-estate trade group said Wednesday.

The National Association of Realtors said it was the largest monthly gain in more than three years and that increases in pending sales were reported across the country. However, Lawrence Yun, the trade group's senior economist, wasn't overly optimistic, and the pending sales index remained 8.6 percent below year-ago levels.

``It is too early to say if home sales have already passed bottom,'' Yun said in a statement.In South Florida, sales of existing homes are down as the housing slump lingers.

Broward County sales fell 22 percent in June, while Palm Beach County had a 19 percent drop, according to the Florida Association of Realtors.

Broward's median price in June was $382,000, up 1 percent from $377,400 a year ago. Palm Beach County's median fell 7 percent to $377,900 from $405,500 a year ago.

Since there typically is a period of one to two months between when buyers and sellers sign a sales contract and when the property changes hands, pending home sales in June are likely to be completed between July and August.

The trade group's index of pending home sales rose to 102.4 in June, up from a downwardly revised figure of 97.5 in May.

Wall Street had been anticipating a slight decrease, as analysts surveyed by Briefing.com forecast a decline of 0.6 percent from the original May number of 97.7.

The index, calculated since 2001, is based on a national sample that represents about 20 percent of existing home sales.

It is considered an indicator of how sales will perform in the coming weeks because it measures home purchases in which a sales contract has been signed, but the deal has not yet been closed.

The report is comes amid a flood of negative news about the housing market and the troubled mortgage industry.

A housing index released Tuesday by Standard & Poor's said U.S. home prices fell for a fifth consecutive month in May, the index's steepest drop in about 16 years.

The S&P/Case-Shiller index that covers 10 U.S. cities fell 3.4 percent in May from a year earlier in the steepest decline since the summer of 1991.

Demand for new and existing homes has been hurt as lenders tightened borrowing criteria after defaults started to rise in the market for mortgages offered to borrowers with spotty credit histories.

Numerous mortgage companies are facing troubles. New York-based American Home Mortgage Investment Corp. lost 90 percent of its market value on Tuesday after saying it may have to sell off its assets, and analysts were skeptical about its ability to survive.

Last month, the realtors' trade group projected that home prices and sales would bounce back next year after a dreary 2007.

Sun-Sentinel staff writer Paul Owers contributed to this story.
Copyright © 2007, South Florida Sun-Sentinel

The riskiest housing markets

2007-07-18T10:12:00.000-04:00

A new report projects home-price declines for the next two years. The riskiest markets are in Florida, California, Nevada and Arizona. Here's how to ride out the hard times. By Marilyn Lewis

As if the housing market isn't bleak enough. The Standard & Poors' Case-Shiller Home Price Index reported in late June that home prices dropped more in the first quarter of this year than at any other quarter in the last 17 years. Now, a report from PMI Mortgage Insurance says home values could decline across much of the country for at least two more years.
There's a 34.6% chance on average that home prices will drop in the nation's top 50 markets in the next couple of years, according to PMI Mortgage Insurance's new U.S. Market Risk Index, which heavily factors in recent price volatility.
How far and how fast prices actually fall remains to be seen. But the report underscores the fact that today's market is decidedly different from that of recent years, when homeowners could bank on rapid home-value appreciation. (See the report or hear a podcast here.)

Headed for decline

Not surprisingly, the riskiest markets identified by the index are located in areas that saw rapid price appreciation, a reduction in affordability followed by a rapid decrease in the rate of price appreciation. Of the 15 biggest cities with the greatest risk for price decline -- with more than a 50% chance of lower home values by mid-2009 -- five were in California and four were in Florida.

Neighborhood-Based Local Search Filtering and Mapping is Now Feasible for All Web-Based Businesses

2007-07-12T10:11:00.001-04:00

Maponics, LLC announced today the full release of Maponics Neighborhood Boundaries™. Until now, websites offering local search, including social marketing, real estate and Web 2.0 sites, have had to provide search results based upon ZIP Code or city name. By integrating Maponics Neighborhood Boundaries, search results for hundreds of cities can now be filtered and even mapped by universally accepted city neighborhood boundaries. The result - more relevant local search results, more loyal site visitors and higher ad revenue.

Norwich, VT (PRWEB) July 11, 2007 -- Maponics, LLC - a mapping provider to 20% of the Fortune 500™ - announced today the full release of Maponics Neighborhood Boundaries™, a neighborhood map polygon database with the potential to significantly improve the way businesses offer local search. Now companies in local search, social marketing, real estate, and related Web 2.0 industries will be able to offer search filtering and mapping based upon the most user-friendly city geography unit - the neighborhood.

Socially and culturally, people think of city geography in terms of neighborhoods. Until now, the lack of affordable and accurate neighborhood map data has forced sites offering local search to filter searches by city name or ZIP Code™. For major cities, this has meant poorly targeted results spanning too broad or granular a geographic area. The result has been unsatisfied users and lost ad revenue. By offering the opportunity to search by neighborhood, websites will now be able to provide more intuitive, relevant results.

Covering hundreds of the top US cities, the Maponics Neighborhood Boundaries database includes all latitude and longitude coordinates for each neighborhood polygon. It is specifically designed for easy integration into Google™, Yahoo!®, or Microsoft® map mash-ups or into back-end data analysis applications. Unique features include:

Hand-drawn neighborhood map polygons, not aggregations of ZIP Codes or Census Tracts
Neighborhood boundaries validated by over 1000 real estate agents
Continuous city neighborhood data maintenance
Ongoing addition of new cities
Delivery in shapefile, ASCII, or other formats for easy integration
Many auxiliary tables relating neighborhood maps data to ZIP Codes, school districts, and more

A real estate site with Maponics Neighborhood Boundaries integrated - and properties tagged with neighborhood names - lets users filter results to see only those in the neighborhoods they care about. Combine this with neighborhood analytics for the "best" neighborhoods and a powerful value magnet has been created, one that draws users to the site again and again.

In the mobile world, imagine that a couple walking through SoHo in New York City gets a sudden craving for Indian food. With a mobile service backed by Maponics Neighborhood Boundaries, a search for restaurants in SoHo provides all the nearest SoHo options in an instant.

Maponics Neighborhood Boundaries offers several advantages over alternatives, including:

Flexible licensing terms, to accommodate a wide variety of neighborhood map data applications
Neighborhood boundaries that are based upon in-the-field analysis - not a statistical representation
Commitment to excellence - Maponics is a full-service mapping company with a focus on providing high quality mapping and data

The result is far more accurate and much less work than compiling your own city neighborhood data in-house.
For more information about Maponics Neighborhood Boundaries, contact Maponics at 800-762-5158 or visit maponics.com.

Maponics, LLC
America's largest corporations entrust Maponics with their mapping and data needs - including 20% of the Fortune 500. Maponics is located in Norwich, Vermont, with customers throughout the U.S. and Canada.

Top 10 States Surfed Mid 2007

2007-07-12T10:09:00.000-04:00

Washington, DC (PRWeb) July 11, 2007 -- REindex.com, The Site Engine(sm), has revealed the top ten states searched in the first half of 2007. The states with the most real estate searches were: Texas, Florida, New York, California, Illinois, Massachusetts, Pennsylvania, Minnesota, Michigan, and Iowa. This list is being published to assist real estate market hobbyists as well as serious investors. Unlike reports of sales or permit applications, this list reflects where people are searching for real estate. It can indicate where the next moves may be.

"The top ten list is always an interesting report. We usually see the big states in the list, but the remaining members of the list are often a surprise," comments Heath Coker, site manager. The top ten report is not an indicator of a positive or negative real estate market for any state, but is an indicator of Internet search interest. For example, the mid-year 2007 report interestingly includes Michigan. This inclusion is interesting because Detroit has recently been in the news as having more than its share of foreclosures.

The top ten list may be an indicator of future closings. "There has to be a buyer in order for someone to sell, and even in markets that are not appreciating, buyers can find good values," says Coker. "Being on the list indicates that people have an interest in real estate there."

While media reports are mixed about whether investing in real estate is back on the upswing, some areas steadily improve. The number of opportunists looking for a foreclosed "steal of a deal" is increasing, but there are other markets that are still appreciating. Clint Simpson of Greenwood King in Houston says, "The houses here sell fast and we typically have bidding wars that result in a sale above list. All indications are that our market will be strong for the next few years."

REindex provides links to the real estate web sites that home seekers and investors are looking for. As states like Alabama, Texas, and Michigan have announced job growth, the REindex site review teams scour the net for useful real estate sites. REindex makes finding real estate by location much less tedious.

Because REindex.com, The Site Engine(sm), links only to sites that a human reviewer has approved for relevance, usefulness, and location, its pages are used by sellers, buyers, and agents. The Top Ten States Surfed list is a useful tool for real estate searchers at any level of interest.

About REindex.com, LLC:
The company was started in March of 2000 with the vision that real estate companies would have their own web pages that people want to easily find.

New Mortgage Rules Protect Consumers, Risk Removing Credit

2007-07-12T10:08:00.000-04:00

San Mateo, Calif. (PRWEB) July 11, 2007 -- Protecting consumers is a noble goal, says Andrew Housser, co-founder and co-CEO of online consumer portal Bills.com (www.bills.com) -- but Americans now face the risk that protection could go too far, which in turn could restrict credit so that some consumers would be unable to borrow or own a home.

The Federal Reserve held public hearings last month that resulted in new requirements for government-funded lenders. The new rules are intended to curb subprime lending practices some say are abusive. But activists now are pushing Congress to enact legislation that would further restrict subprime lending.

Subprime loans are offered at a rate higher than prime to borrowers who have less-than-ideal credit. Lenders charge this higher rate to make up for the added risk of lending to poor-credit borrowers. The higher interest rate can result in thousands of dollars in additional interest over the life of the loan, but it makes homeownership a possibility for some borrowers who otherwise would not qualify for a mortgage.

According to the Mortgage Bankers Association, nearly 16 percent of homeowners with subprime ARMs were 30 days or more past due on their payments in the first quarter of 2007 -- an all-time high. The new regulations passed in late June require federally funded lenders to verify borrowers' incomes in most cases, provide clear information about mortgage terms and allow borrowers 60 days without penalty to refinance a loan that is about to reset.

"It is a delicate balance between regulation to prevent abusive practices and over-regulation, which actually decreases access to credit, decreases consumer options, and ultimately hurts the people that legislation is trying to help," Housser said. "If regulation is poorly designed, it can work against consumers and their ability to buy a home. Lenders will not bother lending money to consumers if they think it will be too hard to make a profit. The fact is that lenders need to charge risky borrowers higher interest rates to compensate for that increased risk."

Some of the most dangerous practices in the subprime lending industry are:

Stated-income loans: An industry term for these loans says it all: "liars' loans." The subprime industry has used stated-income loans to let buyers obtain any mortgage they request by stating (not proving) their income. Usually, borrowers state an income level that allows them to obtain the mortgage they want -- without regard to actual income. The result: The borrower's income may be insufficient to pay the mortgage.
Sketchy debt-to-income ratios: The finance industry long has held that mortgage payments should be no more than 28 percent of total income, and the total of all debt payments should fall below 35 percent of income. Some lenders have pushed those ratios, allowing borrowers to obtain mortgages that push ratios as high as 50 percent. The result: Payments far beyond affordable, which in turn result in more loan failures.
Loans that reset: According to the Center for Responsible Lending, more than three-fourths of subprime loans issued during a recent period were adjustable-rate mortgages (ARMs). More than 90 percent of those ARMs will jump to a sharply higher interest rate after several years. The result: Payments and defaults jump, too.
Prepayment penalties: Many subprime loans examined in the recent hearings included prepayment penalties. With this provision, homeowners must pay a penalty (often thousands of dollars) if they pay off their loans early. The result: If a homeowner needs or wants to sell or refinance the home, she or he risks all the equity, and more, as a penalty for ending the mortgage.
No-escrow loans: These loans allow for lower monthly payments by excluding payments to an escrow account for homeowners insurance and property taxes. The result: Homeowners are shocked to realize they don't have money to pay the significant bills for homeowners insurance and property taxes that arrive once or twice a year.

"Adjustable rate mortgages, low teaser rates, and interest-only mortgages have served to trap some consumers who bought houses they otherwise would not be able to afford. They either did not understand how their payment could increase over time, or were overly optimistic about their future income potential," Housser said.

"I do not believe it is the government's role to make financial choices for consumers, but they can make sure that consumers at least understand the choices that they are making," he added. "As this issue moves under pressure toward Congress, we may see legislation that forces mortgage brokers to go through budget analyses with their clients, and forces clearer disclosure of how adjustable mortgage payments could change over time. However, the fundamental problem of American consumerism cannot be cured by legislation: People want to acquire more today and worry about paying for it later."

To arrange an interview with Andrew Housser, please contact Aimee Bennett at (303) 843-9840.

Based in San Mateo, Calif., Bills.com is a free one-stop online portal where consumers can educate themselves about complex personal finance issues and comparison shop for products and services including credit cards, debt relief assistance, insurance, mortgages and other loans. The company blogs about consumer finance issues at http://www.bills.com/blog Since 2002, Bills.com and its partner company, Freedom Financial Network, have served more than 15,000 customers nationwide while managing more than $350 million in consumer debt. The company's co-founders and CEOs, Andrew Housser and Brad Stroh, were named Northern California finalists in Ernst & Young's 2006 Entrepreneur of the Year Awards.

Home buyer incentives rise

2007-07-10T10:45:00.000-04:00

At first, let me make this simple statement: ANY cash paid TO THE BORROWER (the person who's credit is used for you "credit partner" folks) without having been fully disclosed on the 1003 (Uniform Residential Loan Application - URLA) is mortgage fraud and a criminal activity in all 50 states.

Buyers latched onto mortgages with all kinds of exotic teaser rates to be able to afford the soaring home prices that sellers were demanding during the boom years.

Now that the situation is reversed, buyers are demanding cash payments and other incentives that may be artificially propping up sales prices - suggesting that the market downturn could be even more pronounced than has been reported.

Gonzalo Sotelo, a licensed real estate agent in Salinas, Calif., said that three times in the past few months, buyers' agents approached him about securing cash back at closing without informing the lender. In the most expensive proposition, an agent proposed having a home with a $539,000 asking price reappraised and sold at $600,000, with Sotelo's client paying back $60,000 in cash to the buyer. Sotelo, of Prudential California Realty, said he turned down the deal

The type of offer Sotelo received prompted his boss at Prudential California Realty, Jose Palma, to devote a recent staff meeting to a discussion of how to avoid potentially fraudulent deals.

"We tell our agents: `There's a black area and a grey area.' I tell them to stay away from the grey area," Palma said.

Offers abound from sellers willing to pay closing costs, several months of mortgage payments and, in some cases, cash.

Buyers are taking the incentives, and economists say the practice could be inflating reported prices and distorting our view that the market is enduring a significant correction.

Fears that overextended homeowners would default on mortgages led banking regulators last month to direct banks to explain the risks to borrowers from interest-only and other nontraditional mortgages, which had helped many home buyers buy expensive homes during the boom. The Government Accountability Office told Congress last month that from 2003 to 2005, nontraditional mortgages rose from less than 10 percent of all mortgages to about 30 percent.

Inflated prices potentially cause harm to banks, which could take a hit if the mortgage holder defaults and the home turns out to be worth less. It also could affect buyers of nearby homes, who may be making decisions based on faulty data.

By Vinnee Tong, The Associated Press. Published: Tuesday, October 17, 2006

Broward County Real Estate Inventory Drops

2007-06-25T00:41:00.001-04:00

For well over a year now, inventories of homes for sale in Broward County (along with most metro Florida Counties) have been rising, while at the same time sales have declined. This has resulted in an excessive inventory buildup which has created a great range of choices and bargaining opportunities for Buyers that had not been available for several years before. However, this also left many Sellers waiting for months for a "real" offer on their property, if one ever came at all.

In spite of this inventory glut, property prices have not retreated as much as might be expected. In fact, some areas have actually seen price increases. Overall however, prices have come down over the past 18 months, especially in the condo market, where the inventory to sale ratio is the worst.

One key factor necessary in working toward a balanced market is reducing the large inventory of properties currently on the market. The other primary factor is increasing the number of Buyers. So far there has been little evidence of change in the various reasons largely responsible for the less than normal amount of Buyers actively in the market. There has also been little change in the number of new Sellers putting their homes on the market - However in spite of this, and for the first time since the market slide began around 18 months ago, inventories in Broward County have started to decrease. This current phenomnon is primarily the result of Sellers giving up on selling their homes for now and either cancelling their listings, letting them expire and not renewing the listings, or changing from trying to sell their property to renting it out for now.

For the first 23 days in June 2007, there were 2428 single family homes newly listed for sale, and 2877 condos newly listed for sale in Broward County. During this same period of time, 565 single family homes went under contract for sale and 552 condos went under contract for sale in Broward County.

This means that for every single family home that sold in the first 23 days of June, 4.3 new single family home listings were added to the market - and for every condo that sold in this time period, 5.2 new condo listings were added to the market. In spite of these figures however, the overall inventory of both single family homes and condos for sale actually declined.

This is because during this period, 954 single family home listings were cancelled or withdrawn and 1066 expired - resulting in a net inventory reduction of 157. Condo inventory declined even more with 1037 condo listings being cancelled or withdrawn and 1738 expiring for a net inventory reduction of 450.

This is a positive step, albeit a small one. This reduction of 157 in Broward single family home listings leaves us with a current inventory of 16,775 homes. The reduction of 450 condo listings leaves Broward County with a current inventory of 23,442. The decrease in single family home listings of 0.9% and condo listings of 1.9% may not sound like much, but it is at least a start in the right direction.

At the current level of inventory/sales, if no more properties were listed for sale and none were removed, it would take 28 months to sell off the existing inventory of single family homes and 41 months to sell off the current condo inventory. If inventories continue to creep down and Buyer activity gradually increases as prices stabilize at more affordable levels, new property tax adjustments begin to take effect and Buyer confidence in the market increases, the inventory to sales ratios can quickly move toward a more balanced and healthy market.

How long this will take remains to be seen, but we may be at the very beginning of a gradual turnaround now. Let's just hope it continues.

Even The NAR Expects Further Housing Price Drops

2007-04-17T10:22:00.000-04:00

Residential real estate's biggest cheerleader, the National Association of Realtors, is predicting a fall in housing prices.
The National Association of Realtors said Wednesday it expects its measure
of home prices to fall this year for the first time since the group began
keeping track nearly 40 years ago.
In its latest monthly forecast, the real
estate group said it expects a 0.7 percent decline in the median price of an
existing home sold in 2007. A month ago it had been projecting a 1.2 percent
increase. Half of all homes sell for more than the median and half for
less.

A 0.7% decline isn't much. Let's hope that's all it is. I'm betting not, though.Neither is Ken Heebner, who is predicting as much as a 20% decline in some markets.
Kenneth Heebner, manager of the top-performing real-estate fund over the
past decade, said U.S. home prices may plunge as much as 20 percent because of
rising defaults on riskier mortgages.
Subprime loans, made to borrowers with
a history of missed payments or untested credit, and ``Alt-A'' loans, which
require little or no documentation, account for about $2.5 trillion of the $10
trillion in outstanding mortgages, according to Moody's Economy.com. As much as
40 percent of these loans may default, flooding the real estate market, Heebner
said.
``It will be the biggest housing-price decline since the Great
Depression,'' Heebner, 66, said today in an interview in Boston. Prices may fall
by a fifth in some markets, he said.
Prices declined by even more in some cities around 1990/1991, and by some measures, housing is even more extended today.
But don't tell that to the average American. Only one in seven believes the value of their house will decline. In a recent LA Times/Bloomberg poll, 32% of Americans think their house will rise in price in the next six months.
Nearly a third of those polled predicted home values in their neighborhood
would increase in the next six months. Only 16% anticipated a decrease. The rest
said values would hold steady.
Call it foolish faith or bold optimism, the
forecast is at odds with the downward trend of home prices.
The National
Assn. of Realtors recently reported that prices fell 2.7% in the last three
months of 2006. Many economists expect real estate to have a rough ride this
year, partly because of rising mortgage loan defaults. ...

Perhaps more interesting was that 60% of Americans believe the economy will soon enter into a recession.
Real estate aside, however, the poll of 1,373 adults reflected widespread
unease about the U.S. economy.
Most experts, including Federal Reserve
Chairman Ben S. Bernanke, say there's little chance of a recession.
Americans
have a much bleaker outlook. Sixty percent of the poll respondents said a
recession was somewhat or very likely within the next year.

Problems are spreading to the Alt-A market

2007-04-17T10:18:00.000-04:00

Since the subprime mortgage market began deteriorating late last year, investors and analysts have kept a close watch on Alt-A loans, worrying that problems in higher-grade loans would prove to be a greater threat to the housing market and the economy.
Alt-A loans are made to borrowers with credit ratings that fall between prime and subprime, or to homeowners who have prime credit but are seeking a somewhat riskier loan.
Such loans made up about 10 percent of all mortgages outstanding at the end of 2006 and made up about 18 percent of home loans written last year, according to Moody’s Economy.com.
Together, subprime and Alt-A loans account for about 21 percent of loans outstanding and 39 percent of mortgages made in 2006.

Home prices remain sluggish in Palm Beach, Broward counties

2007-03-28T09:49:00.000-04:00

Paul Owers (Sun-Sentinel.com) writes:

Existing home sales and prices fell across Palm Beach County in February as the
housing slump settles in for what experts say could be another long year.

New revelations of the troubles in the so-called subprime mortgage industry threaten to prolong the housing doldrums, experts say. High-risk borrowers who got home loans during the boom years now are having trouble making the monthly payments and some are losing their homes to foreclosure.

Last month in Palm Beach County, the median price of an existing home was
$374,300, down $16,700 from $391,000 a year ago. Sales plunged 21 percent, to
560 from 707 a year ago.

Those figures mirror what's happening in
Broward County and across Florida. Statewide, sales fell 23 percent and the
median price of $235,500 decreased 3 percent from a year ago.

Nationally, sales unexpectedly rose last month while the median dropped
to $212,800, down 1.3 percent from February 2006.

Analysts expect South Florida's median prices to remain flat or decline through
the end of 2007. The median means half the homes sold for more, half for less.

"Assuming we don't have a recession, I think we'll start seeing some improvement by the end of the first quarter of 2008," said Lewis Goodkin, a Miami-based real estate consultant.

South Florida's overbuilt condominium market also faltered in February. Palm
Beach County had 462 sales last month, down 14 percent from 535 a year ago. The
median price was $209,600, off $11,200 from $220,800 in February 2006.

Meanwhile, spring typically is when families look to buy because they want to be
settled in time for the next school year. But agents agree that most home and
condo buyers are reluctant to commit now because of the uncertainty surrounding
property insurance and taxes.

Florida lawmakers addressed skyrocketing insurance rates during a special legislative session in January, but many people question whether they will receive the savings officials have promised. Legislators now are considering changes that would reduce property taxes, although they have yet to agree on how best to do that.

While some expect a surge in sales once the tax issues are sorted out, analysts fear the looming shakeout among subprime lenders could temper any recovery in South Florida's housing market. Skittish lenders are starting to credit tighten standards, and that will reduce the pool of qualified buyers.

"It used to be that all you needed was a pulse to get a mortgage," said Mike
Larson, an analyst with Weiss Research in Jupiter. "Now people won't be able to
buy or they'll have to spend some time saving up, things they haven't had to do
in a while."

Subprime home loans, made to borrowers with poor credit, have a much bigger share of the region's real estate market than the nationwide average, according to a San Francisco-based mortgage data company.

More South Florida homeowners were late on their house payments last month, compared with a year ago, increasing the risk of foreclosures, according to Plantation-based Realestat.com. Homes in foreclosure eventually will go back on the market, adding to an already-hefty inventory.

The number of homes and condos for sale continues to grow in Palm Beach County.
The number now stands at 33,587, a 10 percent increase from a year ago,
according to the Miami-based Keyes Co. At the current pace, it would take
several years to sell those properties. Many sellers already have been waiting months to find buyers.

Commissions

2007-03-27T23:57:00.000-04:00

In most cases buyers do not pay a buyers agent a commission. The seller pays the commission and the buyers agent receives a portion of it as payment for his or her work. Real estate commissions are always negotiable.
Most local real estate companies charge some kind of a broker commission that is above and beyond the commission paid by the seller. These range from $199 to $475 and are paid at the closing. The amount being charged is stated in the listing contract that seller sign and on the buyer representation contract that buyers sign.
The money collected through these fees goes back to the real estate company. At one company if the agent can not collect it from the buyer or the seller the money is taken out of his or her commission check.
This fee should be pointed out to buyers and sellers when they sign contracts with real estate agents. The fee is listed as a commission and as such is always negotiable.
Please read contracts carefully and look for this fee. Often buyers or sellers don't notice it until they get to the closing. Ask your agent to point it out to you on the contract.

Repairing Your Credit

2007-03-23T02:04:00.001-04:00

Your personal credit history is one of the most important assets you posses. How you manage your credit and your finances can make all the difference in world when it comes to your lifestyle and quality of life, and your ability improve on both. In spite of this fact, most people have less than perfect credit. Even if you have meticulously tried to meet all of your obligations on time, circumstances beyond your control can impact your credit history. The U S Postal Service alone is responsible for millions of late and missed payment entries on American's credit reports. Many things happen to people that can abruptly and drastically change their financial situation. In addition, very many people get in over their head and either just give up and quit paying everybody, or file for bankruptcy. Then there are disputes with creditors for endless reasons and an incredible amount of outright mistakes and errors in reporting by creditors. When you add all of these things up, the vast majority of people in this country have derogatory entries of some type on their credit reports. Many of these items go undetected until the person applies for credit, especially for a big ticket item like a car or home, and they are informed of various entries that were either completely unknown, or were taken care of long ago. If left unattended, general negative credit items will remain on a person's report for 7 years. Bankruptcies and foreclosures remain for 10 years.
While not particularly easy, it is possible to have many of the negative entries on your credit report removed or changed. In most cases however, doing so requires contacting each of the 3 national credit repositories, obtaining a copy of your credit report, and filing a written complaint or response concerning the items you want removed or changed. The credit repository is then required to verify the validity of the entry with the reporting creditor. If the creditor admits to the error, can't substantiate the report, or fails to respond in a timely manner, the entry must be removed from your report. Under current law, once an item has been removed, it cannot be added back simply because the creditor is continuing to report it (in error). There are many companies and individuals who will perform this service for you. Usually not cheaply. Some charge a flat fee up front. Some charge an initial retainer and then charge a fee for each item removed, etc. Some of these people do a good job, and some don't. You can also do it yourself. There is software and many books available on "Credit Repair" that provide standard forms, excuse letters and procedures to follow, or you can simply contact the agencies listed below, follow their instructions and do it all yourself for practically nothing. For your convenience, we have listed the 3 national credit repositories and their contact information below:
NATIONAL CREDIT REPOSITORIES
Equifax Credit Services
1-800-896-7073
P.O. Box 740256, Atlanta, GA 30374
WEB SITE
Experian Consumer Assistance
1-800-727-2893
P.O. Box 596, Pittsburgh, PA 15230
WEB SITE
TransUnion
1-800-888-4213
P.O. Box 390, Springfield, PA 19064-0390
WEB SITE

For the complete text of the Fair Credit Reporting Act check out the Federal Trade Commission's Web Site.