Archive for the 'Real Estate News' Category
Justices adopt Florida foreclosure mediation rules
Related Posts: Credit & Finance, Government, Real Estate News
hiLenders will be required to pick up the tab for investigating and verifying ownership and then try mediation before foreclosing Florida home mortgages under new rules approved Thursday by the Florida Supreme Court.
The rules are designed to help Florida’s judicial system better cope with a flood of foreclosures. They follow a December administrative order by Chief Justice Peggy A. Quince telling local judges to adopt a uniform mediation program.
Florida has the nation’s fourth-highest foreclosure rate. Almost 400,000 cases were filed in Florida’s courts last year.
The rules and corresponding legal forms were proposed by a pair of Florida Bar panels.
The investigate-and-verify rule should help prevent those kinds of errors and give judges greater authority to sanction lenders who do make false allegations, the justices wrote.
The decision was unanimous except for a rule that will require prior approval of a judge before a foreclosure sale can be canceled. Justices Charles Canady and Ricky Polston dissented.
Last-minute cancelations have needlessly delayed other sales, again clogging the system.
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Sell now ??????
Related Posts: Real Estate News, Real Estate Sales
hiSelling a property in this tough market can seem like a challenge. Here are four factors that actually make this a good time to post a For-Sale sign:
• Sell low and buy low. Because all property values are down, the loss on the property a homeowner sells is really only a paper loss because the next property he buys also will be a bargain. If he buys smartly, when prices come back up in a few years, he’ll be in better shape.
• Downpayment help is widely available. While nothing-down loans have disappeared, it’s easy to find downpayment assistance for lower-income and first-time homebuyers. Programs vary all over the country, but one good way to find them is to search online for “downpayment assistance programs” and the name of your region.
• Your Uncle Sam has money to share. Besides the $8,000 first-time homebuyer tax credit and the $6,500 move-up credit, there are an array of energy tax credits that can make home improvements pay off in cash.
• Good help is available. Really talented real estate practitioners, contractors and designers are available and eager for business.
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Florida Insurance Update
Related Posts: Real Estate News
hiOn the next to last day of the 2008 session of the Florida Legislature, lawmakers amended a major insurance bill to include two almost identical windstorm rating disclosures. The first required the rating to be disclosed to purchasers of homes that are 1) located in the windborne debris region, 2) insured by Citizens Property Insurance Corporation, and 3) have an insured value of $500,000 or more. This disclosure was repealed by the 2009 Florida Legislature and never went into effect.
The second disclosure becomes effective in Jan. 1, 2011, and requires it to be given to purchasers of homes in the windborne debris region. As part of that disclosure, buyer would receive the home’s hurricane resistance rating, three separate improvement plans that a homeowner may use to harden the home, including the cost of each plan (at the end of the My Safe Florida Home program, the three plans averaged $3,000 to $7,000), and information about insurance premium discounts.
Realtors say the new disclosure, if not repealed, will stigmatize virtually all applicable properties since most homes haven’t been hardened. It will add significant costs to each transaction as buyers reduce their purchase offer after they receive the windstorm disclosure, much as they sometimes do now when they receive a less-than-satisfactory home inspection report.
The disclosure, if not repealed, creates even more problems. It makes an inspection virtually mandatory for listed homes, for example, in order to get the disclosure information. Currently, nothing else mandates an inspection at the time of sale
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FHA Relaxes anti-flipping Rules
Related Posts: Credit & Finance, Government, Real Estate News
hiEffective yesterday, the Federal Housing Administration (FHA) started providing mortgage insurance for some home purchases in which the seller bought the property and held it for less than 90 days.
The agency changed what is known as the “anti-flipping rule” to speed up sales of renovated homes in communities with too many bank-owned and foreclosed homes, says FHA Commissioner David H. Stevens. Waiving the 90-day rule encourages private investors to buy vacant properties, fix them up, and quickly sell them to buyers who are eligible to buy them using FHA financing.
The waiver is limited to sales that meet the following general conditions:
• All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
• In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender meets specific conditions.
• The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.
• Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD’s website: http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf.
Source: Washington Post (01/30/2010)
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Helpful information on Home Buyer Tax Credits
Related Posts: Credit & Finance, Government, Real Estate News, Real Estate Sales, What If Realty News
hiHere are some helpful things the IRS wants you to know about the credits.
• The credits are available only to buyers purchasing primary residences. The IRS defines this has the residence where you spend most of your time.
• There are two credits available. One is for first-time buyers, or those who have not owned a home in the past three years. The maximum for this credit is $8,000 and, unlike a previous credit, this one does not have to be paid back. It applies to purchases made this year between Jan. 1 and April 30.
• The government broadened the credit in November to include some buyers who already own houses. Those buyers are eligible for a credit worth up to $6,500 for purchases made between Nov. 7 and April 30. In order to qualify, the buyer must have owned a primary residence for at least five consecutive years out of the past eight years. This credit also does not need to be paid back.
• There are income and price requirements. If the home was purchased after Nov. 6, it can cost no more than $800,000. Also, if purchased after that date, individuals cannot earn more than $125,000 and married couples filing jointly cannot earn more than $225,000.
• You don’t have to wait until 2010 to claim your credit, even if you buy this year. Purchase a home before the April 30 deadline and the credit can be claimed on this year’s taxes.
• If you’re claiming the credit, a paper filing is necessary. Only taxpayers not claiming the credit can file electronically. Dobzinski said buyers can still use electronic forms, but must print them out and mail them in, along with form 5405.
• Unlike last year, buyers claiming the credit must prove they are eligible. This is because some people filed for the credit last year, even though they had not purchased a home. You’ll need to send the HUD settlement statement along with the tax form. If you’re claiming the longtime owner credit, also include proof, such as copies of mortgage interest statements, property tax records or homeowner’s insurance records.
• Keep in mind that the credit is for your primary home. If you decide to rent or sell the home within three years, the credit must be repaid.
• Buyers claiming the credit will have to wait longer than usual to get the credit because of the need to file by paper. Expect to wait four to eight weeks, instead of the typical two weeks when filing electronically.
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