The Central Florida Real Estate Update

Yesterday the Treasury along with the President released the details on a program I wrote about earlier dealing with the time issue of short sales, but it doesn’t stop there. They not only dealt the time issue a blow but also addressed the loan shortfall issue of sold price vs mortgage amount by implementing no cash contribution, promissory note, or deficiency judgment is allowed for the difference.

More great news is this program is also focused at non Fannie or Freddie loans which are the bulk of the loans with problems that had nowhere to turn as past programs didn’t include them.

Remember, the first step in a short sale is to get the property listed and show price adjustments, this along with your hardship will get the bank attention and the process done and get your family back on track quicker.

Contact me for more information, Broker Dave 407-330-0060

Fed housing program encourages short sales

WASHINGTON – Dec. 1, 2009 – The Obama Administration, through the Treasury Department, announced new housing guidelines yesterday. While a series of announcements highlighted different programs, the National Association of Realtors (NAR) focused on changes that will make it easier for real estate associates to deal with short sales and “deeds in lieu of foreclosure.”

The program’s official name is the Home Affordable Foreclosure Alternatives Program (HAFA), and it’s part of an existing initiative, the Home Affordable Modification Program (HAMP). HAFA applies to loans not owned or guaranteed by Fannie Mae or Freddie Mac, which cover over half of all U.S. mortgages; however, Fannie and Freddie will issue their own versions of HAFA in coming weeks.

While HAFA’s goal is simple – increase the number of short sales and “deeds in lieu of foreclosure” by simplifying the process – the rules are complex, and it comes with 43 pages of guidelines and forms. Among other things, HAFA:

• Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).

• Prohibits servicers from requiring a reduction in the real estate commission agreed upon in the listing agreement (up to 6 percent).

• Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed.)

• Provides financial incentives: $1,500 for borrower relocation assistance; $1,000 for servicers to cover administrative and processing costs; and up to $1,000 for investors.

The program does not take effect until April 5, 2010, but servicers may implement it before then if they meet certain requirements. The program sunsets on Dec. 31, 2012.

Broker DaveDave Lowe, Broker Orlando Home Store 

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Tax credit extension passes House and Senate

WASHINGTON – Nov. 5, 2009 – The $8,000, first-time homebuyer tax credit has not yet been extended beyond its Nov. 30 end date, but it’s very close to gaining a longer life.
The extension was added as an amendment to an existing bill, HR 3548, that extends unemployment benefits. The U.S. Senate passed that bill on Wednesday and, after debate, the U.S. House passed HR 3548 this afternoon. It now needs only President Obama’s signature to become law, and the White House has indicated it will sign it, perhaps as early as tomorrow.

Until the president signs the bill, however, it is not law.

In addition to extending the tax credit for first-time homebuyers under the current rules, the bill adds a smaller tax credit for move-up homebuyers who have lived in the house for five of the past seven years. The bill also increases the income limits of homebuyers from $75,000 (single) to $125,000; and from $150,000 (married) to $225,000.
 

Broker DaveDave Lowe, Broker Orlando Home Store 

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Banks express hope for fed short-sale effort

WASHINGTON – Aug. 7, 2009 – The federal government is launching a program to simplify and speed up the short-sale process by providing standardized documentation, cash incentives to lenders, and a $1,500 moving allowance to borrowers. Holders of second liens will get up to $1,000 to relinquish their claims.Banks say the short-sale process has been taking so long because both their employees and real estate practitioners are learning as they go.David Sunlin, vice president in charge of short sales at Bank of America, says he hopes the new government plan will help. “About half of short sales never close. We see it as a big lost opportunity, and we need to improve the rate we close them,” he says.Wells Fargo says it has cut its short sale average turnaround time from 90 days to 30 days by preparing a guide from real estate practitioners and putting in place procedures to handle short-sale requests.The federal government first announced its short sales initiative in May at the annual Washington meetings of the National Association of Realtors®.Broker Dave Orlando Home Store

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Source: USA Today, Stephanie Armour (08/05/2009)© Copyright 2009 INFORMATION, INC

Pending home sales: Upward trend continuesWASHINGTON – Aug. 4, 2009 – Pending home sales are up for the fifth consecutive month, the first time in six years for such a streak, according to the National Association of Realtors® (NAR).

Broker DaveDave Lowe, Broker Orlando Home Store

Seminole County Schools Ranks in the TOP 5% in the Country! 

Seminole County is bordered with Orange County (City of Orlando)

SCPS HIGH SCHOOLS -

Link showing country boundarys and cities that make up Seminole County.

ALL Seminole County Public Schools 4-Year High Schools (in May 2008) rank in the Top 5% of the nation for the fifth consecutive year!

Broker Dave

Dave Lowe, Broker Orlando Home store

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Florida comes through, while the Feds talk. 

Beginning July 1, those who quality for the federal $8,000 first-time homebuyers tax credit will be able to apply for downpayment assistance before they close on the purchase of their home, and then repay the amount borrowed when they get their tax refund. The program will operate through local county housing administrators, though details are still being worked out.

Are you a First Time Buyer that qualifies for the loan to purchase a home but due to the way the $8,000 Tax Credit program is structured as a buy first then wait months for the credit on your taxes, help is on the way!  

As many as half of all would-be first-time buyers do not have enough cash on hand for a down payment and closing costs, according to building and real estate industry estimates. By advancing these consumers as much as $8,000 at closing, many more would be able to afford the purchase.

Officials at the National Assn. of Home Builders say the bridge loan feature could double the total number of home purchases stimulated by the 2009 tax credit program to more than 300,000, depending on how many private lenders and state housing agencies participate.

Although the $8,000 tax credit carries the name “first-time home buyer,” eligibility extends to anyone who hasn’t owned a principal residence during the last three years. The credit amount from the IRS is the lesser of 10% of the purchase price of the dwelling or $8,000.

If you are using the full $8,000 credit on an FHA loan that requires 3.5% down payment you would qualify to purchase a home valued up to (+)(-) $228,000.

Remember the 3.5% down payment on the loan is different than the closing cost,

Orlando Home Store’s 20% Buyers Rebate helps you with your closing cost, visit our website for details.

Broker Dave

Dave Lowe, Broker Orlando Home Store

Buyer Incentives

Seller Savings

First Time Buyer Information

Free Orlando Area Foreclosure List

Orlando Shows Signs of Rebound

Hello and thanks for taking time to view my ‘Orlando Real Estate Newsletter’, I research the web and print media for information that helps keep you on the leading edge of the Real Estate Market.

Below is a brief bio about me, for a more in-depth version take a moment to visit my website Orlando Home Store. Once there you will see my hands on experience with new construction building and how my wife Patty and I operated a manufacturing facility producing a product from raw materials for the Advertising Industry.

As a Real Estate Broker I spend my time helping Sellers & Buyers find innovative ways to approach their needs, the best way to do this is by expanding my personal real estate knowledge. I do this through webinars, reading publications, attending continuing education classes, networking and using the internet.

I have gained clients and friends throughout America and the World and my experiences along the way have helped me grow personally.

Let me show you how Two4One of Orlando and Broker Dave can help you.

And while you are reading the topics below don’t forget Two4One of Orlando’s,

Full Service with Buyer Rebates & Sellers Discounts!

Real Estate News Sections (read it all or scroll down to the information you need)

• Mortgage insurance protects homeowners against job loss
• First-time homebuyers must close by Nov. 30 - contract not enough
• Mortgage Rates
• Florida’s existing home, condo sales rise in March 2009
• Housing Market Indicators
• The upside of Florida real estate: 15 market positives
• HUD sees signs of stabilization

Mortgage insurance protects homeowners against job loss

Homeowners worried about losing their jobs can protect their mortgage from foreclosure with a special insurance that pays the debt.

Officially called “involuntary unemployment insurance,” the coverage is triggered when a homeowner loses his or her job.

There are several key elements to the program:

• Borrowers or buyers receive no protection whatsoever when their unemployment is attributable to “mandatory or voluntary retirement”, resignations, dismissals for “willful misconduct” or criminal activities.
• Borrowers or buyers are not eligible if they have already received a layoff notice or termination. Homebuyers who are aware of the possibility of layoffs are eligible unless they are officially informed that their own jobs have been cut.
• Coverage starts one month after unemployment.
• Payments cover insurance and taxes as well as mortgage principal and interest.

Those who are self-employed cannot be covered.  

Questions to ask:

How long has the company been around?

What is their rating?

How have they paid on claims?

First-time homebuyers must close by Nov. 30 - contract not enough

If first-time homebuyers wait until November to sign a sales contract, it’s probably too late to get the $8,000 tax credit. To qualify, buyers must close before Dec. 1 - a signed contract is not enough. New construction should be started by mid-summer to qualify.

According to the National Association of Realtors, a “home is considered as ‘purchased’ when all events have occurred that transfer the title from the seller to the new purchaser. Thus, closings must occur before December 1, 2009 for purchases to be eligible for the credit.”

Noting that deadline, the National Association of Builders kicked off a campaign notifying buyers that if they want the tax credit, they should plan to sign a construction contact soon.

Assuming it takes the full six months, first-time homebuyers should sign a new-home construction contract no later than May 31, 2009.

While it’s possible to rush an existing-home sale and go from contract to closing in only a few weeks, that schedule could cause a problem for last-minute buyers who wait until November. If an onslaught of buyers hope to beat the clock, title agencies and others involved in the closing process could get backlogged during November, and the IRS does not consider “planned closing dates” for the tax credit - only actual closing dates.

To qualify for the tax credit, home buyers must have not owned a home for three years prior to the purchase and have a modified adjusted gross income (MAGI) less than $95,000 for single tax payers and $170,000.

Orlando Home Store offers a Buyer Rebate up to 20% 

MORTGAGE RATES

Rates on 30-year mortgages fell slightly to 4.8 percent this week and remained just ahead of record lows posted this month, according to Freddie Mac. “The housing market is showing further signs of possible improvement,” says Frank Nothaft, Freddie Mac’s chief economist.

Read the full story: Florida Association of Realtors

Florida’s existing home, condo sales rise in March 2009

ORLANDO, Fla. - April 23, 2009 - Florida’s existing home sales increased in March, making it the seventh month in a row that sales activity demonstrated gains in the year-to-year comparison, according to the latest housing data released by the Florida Association of Realtors® (FAR). March’s statewide sales also increased over the previous month’s sales level in both the existing home and existing condo markets.

Existing home sales rose 30 percent last month with a total of 13,085 homes sold statewide compared to 10,080 homes sold in March 2008, according to FAR. Statewide existing home sales in March were 32.7 percent higher than February’s statewide sales. Source Florida Association of Realtors®

Housing Market Indicators

Florida existing home sales:
(month-to-previous-year comparison) 

• 30%

Florida existing condo sales:
(month-to-previous-year comparison)

• 25%

Florida existing home median price:

• $164,600

Florida existing condo median price:

• $172,300

Florida consumer confidence: 

• 65

National existing home sales: 
(month-to-previous-month comparison; all housing types)

• -3%

National existing home median price

• $175,200

National (Freddie Mac) mortgage rate
(all housing types)

• 4.8%

The upside of Florida real estate: 15 market positives

Let’s take a look at some of the opportunities for today and the future of Florida’s real estate market. Follow this link to my blog for the full details. 

HUD sees signs of stabilization

WASHINGTON - May 1, 2009 - The housing market is looking healthier, but U.S. Housing and Urban Development Secretary Shaun Donovan said Wednesday that it is too early to tell if the recovery has taken hold.

“We do have some early signs, I think, that the market is stabilizing. Since January, what we’ve seen is both prices and sales volumes moving up and down around a relatively stable number,” Donovan said.

Donovan said he was optimistic that President Obama’s policies are bolstering the market.

“I think in particular when you get below the national level what you see is that in markets like California that were the hardest hit, that is where the signs (of recovery) are the strongest,” he said.

Source: Reuters News (04/29/2009)

Visit Orlando Home Store for information on past e’Newsletter’s on topics like:

• Now Is A Good Time To Buy A Home
• U.S. home prices rose 1.7 percent
• Florida Loan Limits Per County (fannie & freddie)
• Help Me Sell, I Want To Buy
• Short Sale
• First Time Buyer
• Refinance
• Link to Foreclosed Properties

And don’t forget your 20% cash back at closing visit our website for details.

Broker Dave

Dave Lowe, Broker Orlando Home Store

Search Here - If you are looking for a home in Central Florida, click and select your area.

Buyer Incentives

Seller Savings

First Time Buyer Information

Free Orlando Area Foreclosure List

Florida’s existing home, condo sales rise in March 2009

ORLANDO, Fla. – April 23, 2009 – Florida’s existing home sales increased in March, making it the seventh month in a row that sales activity demonstrated gains in the year-to-year comparison, according to the latest housing data released by the Florida Association of Realtors® (FAR). March’s statewide sales also increased over the previous month’s sales level in both the existing home and existing condo markets.

Existing home sales rose 30 percent last month with a total of 13,085 homes sold statewide compared to 10,080 homes sold in March 2008, according to FAR. Statewide existing home sales in March were 32.7 percent higher than February’s statewide sales.

And don’t forget your 20% cash back at closing visit our website for details.

Broker Dave

Dave Lowe, Broker Orlando Home Store

Search Here - If you are looking for a home in Central Florida, click and select your area.

Buyer Incentives

Seller Savings

First Time Buyer Information

Free Orlando Area Foreclosure List

First Time Buyer

“The new tax credit provides a great opportunity for first-time home buyers, combined with today’s near record low interest rates, the large selection of homes on the market and very competitive pricing, the tax credit should be the extra incentive needed to get prospective buyers who have been sitting on the fence into the market.”

In addition to being limited to first-time home buyers, the tax credit:

• Is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
• Is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
• Does not have to be repaid.
• Has income limits of $75,000 for single taxpayers and $150,000 for married couples.
• Visit Orlando Home Store and look for the ‘First Time Buyer’ button and you’ll find more detailed information.

The web site at http://www.federalhousingtaxcredit.com/ includes basic information about the tax credit and a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers.

And don’t forget your 20% cash back at closing visit our website for details.

Broker Dave

Dave Lowe, Broker Orlando Home Store

Buyer Incentives

Seller Savings

First Time Buyer Information

Free Orlando Area Foreclosure List

Now Is A Good Time To Buy A Home

• Home prices have moderated, interest rates are at 50-year lows and the supply of homes for sale is plentiful.
• First-time buyers are eligible for an $8,000 tax credit for the purchase of a principal residence between January 1, 2009 and September 1, 2009. The credit does not require repayment. Buyers using financing assistance from state and local mortgage bonds may use the credit, as well.
• There are a number of attractive and safe mortgage products available now, providing additional reasons for buyers to get off the fence and into the market.
• Low interest rates, coupled with price declines give trade-up buyers a unique opportunity to take advantage of market conditions. What an owner may lose on the sell side can be more than recovered on the buy side.

Interest rates are near record lows & homes are competitively priced, if you’ve been sitting on the fence it’s time to make a move to a new home.

The new 2009 Tax Credit provides a great opportunity for first-time home buyers, combined with today’s near record low interest rates, the large selection of homes on the market and very competitive pricing, the tax credit should be the extra incentive needed to get prospective buyers who have been sitting on the fence into the market.

Visit Orlando Home Store for more First Time Buyer information. 

Broker Dave

Dave Lowe, Broker Orlando Home Store

Buyer Incentives

Seller Savings

First Time Buyer Information

Free Orlando Area Foreclosure List