Orlando Real Estate

Homes For Heroes is a wonderful program that is designed to assist Military Personnel, Police, Firefighters, Medical Personnel and Teachers.  The company is based in Texas and has been around since the events of 9/11.  I am proud to say that I am a representative of this program in Seminole and Orange County Florida (Central Florida, Orlando).  The program offers a 25% refund of commission back to the buyer or seller as well as discounts on mortgage origination fees and title fees.  In order to take advantage of the program, buyers or sellers need to register on the home web site www.homesforheroes.com and they will be directed to a representative in their area.  This is a wonderful way to give back to those who put their lives on the line everyday for each and every one of us.

Strong gains in existing-home sales were the predominant pattern in most states during the fourth quarter, with many more metro areas seeing prices rise from a year earlier, according to the latest survey by the NATIONAL ASSOCIATION of REALTORS®.

Sales increased from the third quarter in 48 states and the District of Columbia; 32 states saw double-digit gains. Year-over-year sales were higher in 49 states and D.C.; all but three states had double-digit annual increases.

Total state existing-home sales, including single-family and condo, jumped 13.9 percent to a seasonally adjusted annual rate of 6.03 million in the fourth quarter from 5.29 million in the third quarter, and are 27.2 percent above the 4.74 million-unit level in the fourth quarter of 2008.

Distressed property accounted for 32 percent of fourth quarter transactions, down from 37 percent a year earlier.

Lawrence Yun, NAR chief economist, said the first-time home buyer tax credit was the dominant factor.

“The surge in home sales was driven by buyers responding strongly to the tax credit combined with record low mortgage interest rates,” he said. “With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring with more areas showing higher prices.”

According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage fell to a record low 4.92 percent in the fourth quarter from 5.16 percent in the third quarter; it was 5.86 percent in the fourth quarter of 2008.

In the fourth quarter, 67 out of 151 metropolitan statistical areas reported higher median existing single-family home prices in comparison with the fourth quarter of 2008, including 16 with double-digit increases; one was unchanged and 84 metros had price declines. In the third quarter, only 30 MSAs showed annual price increases and 123 areas were down.

The national median existing single-family price was $172,900, which is 4.1 percent below the fourth quarter of 2008; the median is where half sold for more and half sold for less. “This is the smallest price decline in over two years, with the most recent monthly data showing a broad stabilization in home prices,” Yun said. “Because buyers are taking on long-term fixed rate mortgages, avoiding adjustable-rate products, and trying to stay well within their budgets, the price recovery process appears durable.”

NAR President Vicki Cox Golder said near-term market conditions will remain favorable.

“Mortgage interest rates are expected to trend up later this year, but right now we have very good conditions with steadying home prices and favorable inventory in most areas, especially in the higher price ranges,” she said.

Golder said one of the biggest issues now is for repeat buyer who will have to accelerate their buying plans if they want the expanded tax credit. They have to have a contract by the end of April.

Repeat buyers do not have to sell their existing home, but all buyers must occupy the property they purchase as a primary residence to qualify for the tax credit. Buyers who have a contract in place by April 30, 2010, have until June 30, 2010, to finalize the transaction to get a credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.

Markets by Region

Northwest: Regionally, existing-home sales in the Northeast rose 11.1 percent in the fourth quarter to a pace of 1.03 million and are 33.6 percent higher than a year ago. The median existing single-family home price in the Northeast declined 5.6 percent to $234,900 in the fourth quarter from the same quarter in 2008, but with widely varying conditions.

“In the Northeast, markets with lower median prices that have avoided wide swings, such as Buffalo, are generally showing consistent price gains,” Yun said. “Even so, some of the higher cost areas are showing signs of stabilization, such as Nassau-Suffolk, N.Y., and Boston.”

Midwest: In the Midwest, existing-home sales jumped 14.5 percent in the fourth quarter to a pace of 1.38 million and are 29.9 percent above a year ago. The median existing single-family home price in the Midwest rose 1.1 percent to $141,100 in the fourth quarter from the same period in 2008, with the region accounting for the majority of metro areas experiencing double-digit gains.

Yun said markets with high unemployment rates in Ohio and Michigan experienced large price swings. “Big price gains in many Midwestern areas are due to a more normal range of home sales in contrast with predominately foreclosed sales a year ago,” he said.

South: In the South, existing-home sales rose 13.8 percent in the fourth quarter to an annual rate of 2.23 million and are 28.2 percent higher than the fourth quarter of 2008. The median existing single-family home price in the South was $153,000 in the fourth quarter, down 2.4 percent from a year earlier.

“Affordable markets in the South that have relatively better local economies are seeing healthy price gains, such as Houston, Oklahoma City and Shreveport, La.,” Yun said.

West: Existing-home sales in the West jumped 16.2 percent in the fourth quarter to an annual rate of 1.38 million and are 18.2 percent above a year ago. The median existing single-family home price in the West was $227,200 in the fourth quarter, which is 8.9 percent below the fourth quarter of 2008, but with many areas showing notable gains.

“Markets in the West such as San Francisco, San Jose and Denver are showing double-digit price increases, and other markets like San Diego and Anaheim have begun to firm up,” Yun said.

A Closer Look at the Condo Market

Metro area condominium and cooperative prices – covering changes in 54 metro areas – showed the national median existing-condo price was $177,300 in the fourth quarter, down 4.8 percent from the fourth quarter of 2008. Eleven metros showed increases in the median condo price from a year earlier and 43 areas had declines; in the third quarter only four metros experienced annual price gains.

Source: NAR

More than a year after the global financial meltdown, Fannie Mae and Freddy Mac remain at the center of the U.S. government’s efforts to keep real estate afloat. So far, the government has given the two companies a total of nearly $111 billion to buy mortgages originated by others, keeping some as investments and repackaging other for sale to investors as securities.

Together, Fannie and Freddie fund 90 percent of U.S. mortgages. They also have reignited lending by state and local housing-finance agencies by guaranteeing $24 billion in debt. And they are supporting the apartment sector by lending to builders and buyers.

The situation is unlikely to change soon because by relying on Fannie and Freddie, Obama can bypass Congress. The government is “running Fannie and Freddie as an instrument of national economic policy, not as a business,” says Daniel Mudd, who was forced out as Fannie Mae’s CEO in September 2008 when the government took control.

Assistant Treasury Secretary Michael Barr defends the status quo, saying that Fannie and Freddie are “owned by the taxpayers in the middle of the biggest housing crisis in 80 years” and the administration’s actions have been “prudent” and “consistent with taxpayer protection.”

Source: The Wall Street Journal, Nick Timiraos and James R. Hagerty (02/09/2010)

Selling 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.

1. Sell low and buy low.
Because all property values are down, the loss on the property a home owner 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.

2. Down-payment help is widely available.
While nothing-down loans have disappeared, it is easy to find down-payment assistance for lower-income and first-time home buyers. Programs vary all over the country, but one good way to find them is to search online for “down-payment assistance programs” and the name of your region.

3. Your uncle has money to share.
Besides the $8,000 first-time home buyer 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.

4. Good help is available.
Really talented real estate practitioners, contractors, and designers are available and eager for business.

Source: McClatchy Tribune, Kate Forgach (02/07/2010)

On November 30, 2009, the Treasury Department released guidelines and forms for its new Home Affordable Foreclosure Alternatives Program (HAFA). HAFA is part of the Home Affordable Modification Program (HAMP). HAFA provides incentives in connection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclosure on a loan eligible for modification under the HAMP program. Servicers participating in HAMP are also required to comply with HAFA. A list of servicers participating in HAMP is available at www.MakingHomeAffordable.gov .

HAFA applies to loans not owned or guaranteed by Fannie Mae or Freddie Mac, which will issue their own versions of HAFA in coming weeks.

HAFA is a complex program, with 43 pages of guidelines and forms, designed to simplify and streamline use of short sales and deeds-in-lieu of foreclosure. HAFA:

•• Complements HAMP by providing a viable alternative for borrowers (the current homeowners) who are HAMP eligible but nevertheless unable to keep their home.
•• Uses borrower financial and hardship information already collected in connection with consideration of a loan modification.
•• Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).
•• Prohibits the 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).
•• Uses standard processes, documents, and timeframes/deadlines.
•• 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 for allowing a total of up to $3,000 in short sale proceeds to be distributed to subordinate lien holders (on a one-for-three matching basis).
•• Requires all servicers participating in HAMP to implement HAFA in accordance with their own written policy, consistent with investor guidelines. The policy may include factors such as the severity of the potential loss, local markets, timing of pending foreclosure actions, and borrower motivation and cooperation.
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 December 31, 2012.

If you would like additional information regarding this program and how we can assist you use the email button. Provide us with your name and a valid email address along with a contact number. One of our team members will assist you with additional information.

This article was provided by the National Association of Realtors

It’s a question most home buyers are asking themselves right now.  It has been said repeatedly that now is an unbelievable time to buy a home. Home prices are down and interest rates are at historic lows.  Which means that your affordability is greater than ever.  But in this volatile economy, we can’t help but wonder – will home values will continue to decline?  And are interest rates really going to go up?  If so, when is the right time for me to buy and take advantage of the market?  Hopefully, this chart will help you understand the dynamics of your affordability when it comes to home prices and interest rates.  While we can’t determine whether or not home values will decrease, increase or stabilize in the near future, it is pretty much a guarantee that the interest rates will go up.  Trying to time the market is risky – especially when you’ve already got a golden opportunity in front of you!

Tighter lending requirements for loans insured by the Federal Housing Administration may leave some borrowers unable to get mortgages, but economists are divided on the impact they could have on housing’s recovery.

The changes, aimed at strengthening the FHA’s reserves in the face of rising foreclosures, shouldn’t hurt too many borrowers, officials say.

CALCULATOR: How much house can you afford?

“We don’t expect this to have a significant impact on the housing market,” says FHA Commissioner David Stevens, adding that “the moves are designed to get the reserves back up.”

The FHA is playing a greater role in the mortgage market, insuring about 30% of new loans, up from 3% in 2007. Growing defaults have cut its reserves below the level mandated by Congress, leading to fears that it might need a taxpayer bailout.

FHA-insured mortgages are attractive to borrowers, however, because down payments are only 3.5%. That won’t change under the new policies the FHA announced Wednesday, which are to take effect in spring or early summer. Among them:

•New borrowers will have to have a minimum credit score of 580 to qualify for a 3.5% down payment. Those with lower scores will have to make at least a 10% down payment. The average credit score of FHA-insured borrowers is 693.

•Allowable seller concessions will be reduced from 6% to 3% of the sale price. The change is intended to discourage inflated appraisals.

•Buyers will have to pay an upfront mortgage insurance premium of 2.25% of the total loan amount, up from 1.75% now. A $150,000 mortgage would require a payment of $3,375, or $750 more.

“It will slow the growth in demand,” says Joel Naroff, of Naroff Economic Advisors. “Any time you put up roadblocks, fewer people will qualify. This is just the beginning of clearer and more specific requirements so we don’t get into the mess we got into again. In the short term, it will have an effect, but it won’t be a huge effect.”

Dean Baker, co-director of the Center for Economic and Policy Research, says he expects the new FHA requirements will have a significant impact on borrowers, especially first-time home buyers. Those who are denied FHA-insured loans, he says, are usually unable to qualify elsewhere.

“It’s a big deal,” Baker says. “Some will be unable to get loans. This will have a big hit on the market.”

Baker says it’s not surprising that FHA needed to take such steps, because it’s risky for lenders to issue loans with 3.5% down during a time of declining home values and rising unemployment.

While the stiffer requirements may leave some borrowers out of the marketplace, some economists say the measures are necessary to protect the FHA from losses.

Lawrence Yun, chief economist at the National Association of Realtors, says very lax lending and FHA insolvency could hurt the housing market worse in the future.

He says he doesn’t believe the requirements will stall the housing market in light of current low interest rates and a federal tax credit for first-time and repeat home buyers.

Mark Zandi, of Moody’s Economy.com, agrees the changes won’t have significant impact.

“It does highlight more broadly that policy support for the market is starting to wane. The tax credit will end in April; now, the FHA rule changes,” he says. “Policymakers are slowly exiting from their unprecedented support of the housing market to see if it can function on its own.”

 SOURCE: http://www.usatoday.com/money/economy/housing/2010-01-20-fha-home-mortgage-loans_N.htm

Florida’s condominium market is getting some attention from Fannie Mae, which is granting “special approval” status to hundreds of condominium properties. A team of six Fannie Mae assessors in Florida will review hundreds of condo properties across the state that don’t currently meet Fannie Mae eligibility guidelines and will review requirements like occupancy rates and financial stability. Those granted special approval that did not previously meet guidelines, will be eligible for Fannie Mae-backed mortgages. Two experts on the South Florida market said the move is a step in the right direction, but is certainly not a cure-all. Normally, Fannie Mae requires that up to 70 percent of a new project’s units be presold and no more than 49 percent be owned by investors, while no more than 15 percent of the unit owners can be 30 days late paying association fees. Waivers have been granted on a case-by-case basis through the Project Eligibility Review Service, which launched last year. The announcement Thursday streamlines the process for lenders and catalogues projects across the state that are Fannie Mae-eligible. Projects deemed eligible will be listed on www.eFannieMae.com as project reviews are completed. Qualified borrowers wishing to purchase units in these projects will be eligible for financing. “This new initiative is geared toward providing maximum support for Florida’s distressed condo market as we continue to provide liquidity to the housing market more broadly, said Fannie Mae’s Karen Pallotta in a statement. “The state’s condo market has been particularly hard hit by the housing downturn and we are working with the industry and our partners to do all we can to stabilize the market and help spur recovery.” Moe Veissi, National Association of Realtors First Vice President and broker-owner of Veissi & Associates in Miami said in a statement, “NAR applauds Fannie Mae for taking this important step to make condo loans more readily available in Florida. Our state is probably the hardest hit as far as the condo market is concerned, and Fannie Mae’s new effort to take a closer look at project eligibility could go a long way to putting projects back on a healthy financial track.” Grant Stern, of Morningside Mortgage Corp. in Bay Harbor Islands, said the move is a step in the right direction, but there’s still a need for a secondary market for the mortgages. Fannie Mae is dealing with the aftermath of a decision last year that made Florida an exception market for condo lending. “Last year, they went Herbert Hoover on the condo guidleines, and made them entirely too tight,” he said. “Fannie Mae has so damaged its lending program for condominiums that very few lenders even want to issue the loans. Even in the buildings that are Fannie Mae approved, you still can’t get private mortage insurance, so you still need a 20 percent down payment.” “This won’t put Humpty Dumpty back together again, but maybe we’ll find a few pieces,” he said. Peter Zalewski, managing principal for Condo Vultures in Bal Harbour, said even in circmustances where Fannie Mae has given approval for a building, “the lender will often find excuses not to provide funding.” At the end of the day, the financing is just not there and flowing, he said. He sees the latest move as bringing in the cavalry, but it still has a long road to ride. Zalewski, who deals mainly with cash purchasers, finds that buyers who need financing often have to pay a 15 percent to 20 percent premium because sellers realize a deal may fall through months later. The special approval designation is granted for periods of between nine months and 18 months. It can be assigned to existing condominium properties only. The move by Fannie seems to support concerns voice in a June South Florida Business Journal article that reported that U.S. Rep. Ron Klein was ready to seek funding for more staff at Fannie Mae to plow through a backlog of project eligibility reviews for condominium buildings. Fannie Mae’s official response at the time was: “We aren’t aware of any significant backlog.” Klein said he heard from bankers and developers – and even Fannie Mae officials themselves – that processing a flood of waiver requests is a tall order for six Fannie Mae employees in Washington, D.C. Charlene Bender, senior VP at Regent Bank in Fort Lauderdale, said waiting for waivers was a problem for some bulk buyers interested in local condo buildings. Bender asked Klein about his progress on the issue at a luncheon sponsored by law firm GrayRobinson, P.A. at Fort Lauderdale’s Riverside Hotel. Klein assured the audience he would seek to add as many as 20 staffers to help move the process along. All contents of this site © American City Business Journals Inc. All rights reserved.

Have some cash for upgrades? Here are budget-minded enhancements to make your home stand out.

1. Tidy up kitchen cabinets.                                                                                                                              

“Potential buyers do open kitchen cabinets and look inside,” says Morrissey. “Home owners can add rollout organizing trays so when buyers peek in, they feel like there’s lots of room for their stuff.”

2. Add or replace tile.                                                                                                                                         

“By retiling very inexpensively, you make a room look way cleaner that it was,” says Javier Zuluaga, owner of Home Repairs and Remodeling LLC in Tempe, Ariz. “Every city has stores that offer $1 to $2 tile, so home owners have to pay only for the low-cost tile and labor to replace a dated backsplash or add a new one. We also use inexpensive tile to upgrade bathrooms.”

3. Add a breakfast bar.

When a wall separates a kitchen from a family room, suggest cutting out an opening to create a breakfast bar. “In one home, there was a cutout in the wall between the kitchen and living room,” explains Matthew Quinn, a sales associate at Quinn’s Realty & Estate Services in Falls Church, Va., who handles estate and real estate sales for family members whose loved ones have passed away. “We left the structure of the cutout, added an oversized granite breakfast bar, and put chairs in front of it. That cost about $600.”

4. Install granite tile instead of a slab.

“Everybody is hot for granite kitchen countertops, but that can be a $5,000 upgrade,” says John Wilder, a general contractor and owner of Fence and Deck Doctor in New Castle, Ind. “Instead, home owners can put in 12-inch granite tiles for about $300 in materials and get very high impact for little money.”

5. Freshen up a bathroom without retiling.

“With a dated bathroom, I recommend putting in a new medicine cabinet for $100 to $150, light fixtures for about $100, a faucet for $50 to $75, and a vanity for $200 to $300,” says Wilder. “And instead of replacing the tile, the existing grout can be lightly scraped and regrouted, which leaves a haze that can be buffed out and will make the tile look brand new. Also install glass shower doors. A French door adds a lot of panache and elegance for $250, and people will notice the door, not the tile. With all that, you’ve done a bathroom remodel for $1,000 to $2,000.”

6. Freshen up the basement.

“If home owners have cement block or poured concrete walls in the basement, suggest they have a contractor fill in cracks with hydraulic cement and then paint with waterproofing paint,” recommends Wilder. “They can then add a top coat to add color. They can also paint the basement floor with a good floor paint, which spiffs it up. The basement may not be finished, but it’s no longer a damp dungeon.”

7. Add a room.

Look for large spaces that can be enclosed to create a new bedroom for just the price of creating a wall. “One time, we closed off a half-wall to an office and added a door to the other side of the room, thus creating another bedroom,” says Quinn. “That $400 procedure, which took a contractor one day, netted about $40,000 in the sales price.” Zuluaga has also added bedrooms inexpensively. “In a two-bedroom house, there was an archway that led to a third room that was used as a den,” he explains. “It had a dry bar where there would have been a closet, so we took out the dry bar and created a closet so the owners had a third bedroom.”

8. Spruce up cabinet fronts.

Suggest home owners update tired-looking kitchen cabinets. Reconditioning is the least expensive move for under $1,000. “If the wood is starting to look shabby from use or contaminants in the air, we take out the nicks and scratches, recondition it with oil, and put new hardware on,” explains Heidi Morrissey, vice president of marketing and sales at Kitchen Tune-Up in Aberdeen, S.D. For $1,500 to $4,000, owners can replace the cabinet doors and drawer fronts, and for $4,000 to $12,000, they can have all the cabinets refaced. “With refacing, owners can change the color of the cabinets by replacing the door and having a new skin put on the boxes,” says Morrissey. “If they have oak cabinets today, they can have cherry the next day.”

9. Replace light fixtures.

“In a foyer and in bathrooms and kitchens,” says Wilder, “replacing overhead light fixtures provides a lot of pop for a little money.” If the kitchen has track lighting, Zuluaga suggests the home owner spend $450 to $600 to have an electrician replace it with recessed canned lights on a dimmer switch to add ambience. For about $700, Zuluaga also suggests installing pendant lights over a kitchen island or peninsula.

10. Tech-up the garage.

“Sometimes we replace the garage door opener with a remote touchpad entry system,” says Zuluaga. “That costs about $425 and makes it look like a high-end system.”

Florida’s troubled homeowners and their lenders will increasingly meet at the bargaining table under a state supreme court order issued today that aims to reduce a foreclosure overload.

The administrative order written by Chief Judge Peggy Quince creates a statewide program that requires mediation on all homesteaded properties before a foreclosure hearing is held.

It guarantees homeowners will have an audience with their lender to discuss whether a loan modification or short sale is an option instead of foreclosure.

It also means lenders will be doing more work on the front end of the foreclosure process, and paying for it.

Monday’s order makes lenders responsible for paying a maximum mediation fee of $750 per case, which would help pay for the mediator and cover administrative costs.

Judges hope the mediation requirement will reduce the thousands of foreclosure cases clogging the system — a situation called “horrifying” in an August report issued by Florida’s Task Force on Residential Mortgage Foreclosure Cases.

“Right now, we have a court system that is going to break with the volume of foreclosures,” said Boca Raton real estate Attorney Marlyn Wiener. “We’re at a meltdown point and have to find new ways to manage the situation.”

Each circuit court will approve its own mandatory program, and will have some leeway in how it is managed.

The main parts of the order, however, are the same statewide.

Every residential homesteaded property foreclosure will be referred to mediation, unless the lender and borrower agree otherwise. There are also waivers in the event a homeowner cannot be located or refuses mediation.

The homeowner must be referred to foreclosure counseling prior to mediation.

The mediation must take place no earlier than 60 days and no later than 120 days after a foreclosure suit is filed.

And the mediation must be provided by a nonprofit organization with mediators specially trained and court certified in mortgage foreclosure matters.

“We’re not interested in forcing people to settle, but there seems to be an inability to communicate between the borrower and the lender,” said 11th Circuit Court Judge Jennifer Bailey, chairwoman of the statewide task force.

Judges say they often hear homeowners complain they couldn’t reach their lender, or that their paperwork was repeatedly lost.

Court-ordered mediation may remedy that. But no one thinks it’s a final solution, and some aren’t even sure it’s a good idea.

Sharon Bock, Palm Beach County’s comptroller and clerk of the circuit court, said she’s concerned that while it may alleviate judge workload, it could increase paperwork for her employees.

Foreclosure mediation has been optional in Palm Beach County for at least a year. Bock believes mandatory mediation isn’t a role the court should play.

“This process moves the courts from calling balls and strikes, from creating a level playing field, into the realm of a social service agency, picking sides,” she said.

Real estate attorney Wiener said the order does benefit the homeowner.

“It’s making a judgment call. Who do the courts want to help? If we are going to help, we’re going to help the homeowners,” Wiener said.

A handful of circuit courts began requiring foreclosure mediation earlier this year, including the 19th, which covers Martin, St. Lucie, Indian River and Okeechobee counties.

The Collins Center for Public Policy handles mediation for the 19th Circuit Court.

Of 2,850 mediations the center has handled, about 2,000 resulted in settlements reached out of court.

“I’m optimistic, but this is not a cure all,” said 19th Circuit Court Judge Shields McManus. “There are a lot of investment homes being foreclosed on and there are a lot of cases that don’t settle because the people simply have no way to pay the mortgage.”

Florida by the foreclosure numbers

* 13 percent of Florida home loans were in foreclosure through September. * 6 percent of home loans were at least 90 days delinquent in September. * In November, 53,000 foreclosures were filed on Florida homes.

Source: RealtyTrac, Mortgage Bankers Association & the Palm Beach Post