The Real Estate Mango

Short Sales Drive You Crazy? Help Is On The Way…HAFA is coming to a bank near you..April 5

Due to the urginf of the National Association of Realtors (NAR), the Treasury Department is going to imrove the short sales process.

So, if you are trying to sell your house because it is worth less than your mortgage, or if you are trying to buy a property that is in this position…on April 5, new rules will make both of these desires EASIER>>>

HAFA which means Home Affordable Foreclosure Alternatives Program will help in the following ways:

• Standard procedures for documents and deadlines
• Provides incentives : $1500 for borrower relocation assistance, $1000 for servicers to cover administrative costs, up to $3000 in short sales proceeds to be distributed to subordinate lien holders
• Program requires deadlines for SHORT SALES….withing 3 business days of receiving an executed purchase offer, the borrower (or agent) must submit a completed Request for Approval of Short Sale to the servicer (bank)
• WITHIN 10 BUSINESS DAYS after the bank receives the RASS and all required attachments, the bank must APPROVE or DENY the request and advise the borrower.

We will see much faster action and more transparancy on Short Sales which have been a bain on our existance.  Banks will have to make quick decisions so we can move on the sale of properties before they are foreclosed.

Both buyers and sellers should welcome this new development.  Call me for further information.  Call me if you want to sell your home or want to buy a great deal.

 

 

 

Aventura Condo Problems…Non Payment of Maintenance Fees…Impact on the Condo…Possible Solution

Condos and homeowners associations are facing a crisis of tremendous proportions when owners stop paying maintenance.  This situation is occuring with alarming frequency.  

As soon as a homeowner stops their mortgage payments, the banks start foreclosure proceedings and then just stop.  They hesitate to foreclose in this market because they don’t want a declining asset on their books.  So they wait.

In the meantime, the homeowners stops paying maintenance fees and the associations cannot pay their bills.  WHAT TO DO!!!

The idea today is mentioned in the Miami Herald in great detail but the jist of it is this…..under the existing law, condo and homeowner associations can foreclose for unpaid maintenance.  If they proceed with this….and take title of the unit, the bank has no choice but to take it back and pay the maintenance (which cannot exceed 12 months back due). 

The reason this works for the associations is because the banks’  lien prevents the association from making a sale.  If they go to court and ask the judge to give the title back to the bank, the bank has no choice but to accept and pay the maintenance owed up to 12 months of deliquent payments.

THIS IS FOOD FOR THOUGHT!!!!

I spoke to a homeowner association member today, who said their lawyers are looking into this scenario.  What will the costs be to the rest of the homeowners?  Is this financially viable?  I will keep you posted.

If you are interested in more information….please call me.   LEE HEUER 305 607 1943   anytime….

Analysis of Sales in Aventura….Regular Properties vs. Short Sales vs. Foreclosures

I have been studying the market in Aventura, very closely and there are some statistics that are interesting.  

The average price per square foot of  all properties in Aventura has been $205 per square foot.

When I look at the average price of foreclosures sold in Aventura, I see an average price per square foot of $ 137

The short  sales average out at $175 per square foot.

This is important because we can see that a normal sale does much better than either of the other two choices and that the buyers make different decisions when buying a property that is not distressed.

When the banks put a  property on the market after a foreclosure, they are offered at lower prices to affect a  quick sale but when the sellers are still holding title but are receiving lower price offers than their mortgages, the banks are able to sell at a better price than if they had already foreclosed.

So if short sales could only be expedited and the process streamlined, many of the homes that are “under water” can yield more decent prices.  The banks have to be able to see the advantage to doing this.  Sellers credit scores are affected by short sales for 3 years but they are affected by many more years by foreclosures

We have a variety of homes for sale in Aventura and as you can see, you have choiceskof REO, Short Sales and Regular Sales so get in touch with me today and check out the greatest values in the latest inventory.

Beautiful, Great Price, Townhouse in Luxurious Golden Pointe, Aventura $390K

Golden Pointe is a great development at the tip of the Waterways Harbor.  It is bound on two sides by water and consists of only 78 townhomes.  It is an exceptionally exclusive area, so quiet, serene and really lovely.

It has been six years since Golden Pointe has offered a home at this price.  This is a truly great buy!!!

The home has 1900 square feet, a large front courtyard, a one car garage, and a balcony and a patio, three bedrooms, two and a half baths.

Being Offered aat $390,000

Golden Pointe is the only development in the Waterways that has the exclusive right to use the gorgeous amenities at the world class spa at The Point Of Aventura, an adjacent property including tennis.

Please  call me today to see this home.  Lee Heuer  305 607 1943 

Miami Herald Says Real Estate In South Florida Will Improve In 2010

I don’t always agree with the opinions of  the writers of the Miami Herald but after having seen the graphs in my office meeting, this morning, I agree.

We are seeing a steady decline in inventories and an uptick in buyers in the marketplace.

Why is this?  Prices, for one.  Prices have been lower than they have been in ten years and people who are really interested in buying can see that.  Condos and houses that were beyond reach are now very affordable. Government programs, like first time buyer tax credit, are very popular and many are buying to take advantage of this offer.

Townhouses in Aventura that were selling for $500 to $575 in 2005 are now selling for $350 to $375.  Condos in Aventura that were selling for $350k in 2005 are selling for $150.

The Miami Herald predicts a 1.5% increase in sales for 2010 which may not sound like much but before this we were seeing a minus 2.7 % loss each year.  Anything on the plus side is a win.

Latin American economies are doing well.  If tourism from Latin America picks up and from this influx, we can see more sales of properties, that will be a very good outcome.

The only dark note is the forthcoming foreclosures that have not come into the market, yet.  When they do, prices will dip, again but sales will be stimulated by the good prices and once this inventory is depleted, we can see some stabilization  in the market place.

The big message here, is that if you every thought of buying, now is the time.  Nothing stays the same.  The good deals will not last!  Waiting is not an option.  Look through this site for all the properties in Dade, Broward and Palm Beach counties and call me to go out shopping!!!

Online Foreclosure AUCTIONS In Florida For The First Time

To allieviate the backload of foreclosures on the court calendars, Foreclosure Auctions, will start on line!

This new system will replace the traditional courthouse procedure and will save Dade Couinty 750k in costs as well as reduce the tremendous backlog of foreclosed properties.

This system will handle 4x the amount of foreclosures per week and potential buyers can bid from anywhere in the world.  This is the most innovative procedure ever seen in Dade County and if it works as expected, inventories should decline sharply and with less supply, the demand will stabilize the market and eventually bring up prices.

For more details on how to get started, please call or write to me. 

 

 

10 Day Limit On Short Sales May Give A Jolt To Aventura Real Estate

Almost 830,000 homeowners in Florida owe more on their mortgages than their home is worth.  The Treasury has a new regulation that requires banks to make decisions about short sales withing 10 days of receiving a fully executed contract.

This new rule can be good if there is only one lien on the property and if all the paperwork is available as soon as the contract comes in.  

Many weeks ago, I submitted a contract on a duplex in North Miami Beach and did not  hear from the bank, in any way, for three months.  At the end of that time, I was told that the bank was sold and that the new bank, Bank of America, would have to start the review all over again.  Needless to say, the buyers were fed up and  backed out.  This is a story I have heard time and again.

The new rule does not apply to FNMA or FREDDIE MAC.  They are working on their own rules.

The banks have abused the short sale concept.  They are really holding on to offers while they hope the market will turn around and they can get more later.  The real outcome that happens is that more properties linger on the market, dragging prices down even further.

Short Sales exist to avoid foreclosures but they exist on paper, only.  Buyers are so wary of short sales, that many refuse to look at the properties.  Even when they are advertised as Approved, it doesn’t mean much.  The bank doesn’t have to abide by this. 

Many realtors don’t know how to accurately and correctly draw up a short sale.  All this is very frustrating for the potential buyer. 

Banks are waiting while the market is still falling and the prices that they refuse today will be even lower tomorrow. 

We will watch and wait to see if this new rule has any teeth and if the banks follow the new guidelines. 

For more information.  Contact me.

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan Modifications Can Have Major Perils….Read small print before signing….

Under the Home Affordable Modification Program called HAMP some very dangerous events can occur.

The banks have the ability to modify a loan with a three month trial period, during which time, the interest rate is adjusted to a low rate and is calculated on a fixed 30 year basis.   So far, so good…..then the banks say if you do well, make all the payments on time during the trial period, they will make the loan permanent.

EXCEPT…when you read the small print, you will find that you have waived important notification rights.  The bank can decide to auction the house during this period without notifying the owner.  This is a major problem in this program!

There have been 759,000 loan modifications begun  and only 31,382 have been converted to permanent new loans.

The homeowners see this loan modification program as a social assistance program.  NOT TRUE!!  The banks see it as a stall until they decide whether it is more profitable for them to sell the house rather than perpetuate the relationship with the current owner. 

Banks see the situation from a different vantage point.  The longer the owner makes a full payment, even if he is in pain, the more time passes until the bank can sell for a higher price in the marketplace when they foreclose.  Banks know that real estate is cyclical.  Prices go up in time.  Owners don’t always have that luxury.  They need help quickly expecially since unemployment changes their ability to pay.

Before you accept loan modification terms, read everything, ask every important question.  Until this program is revisited by the government to correct its’ pitfalls, you have to look out for your own interests.

Please call me anytime for more information.

Is Loan Modification A Myth….Wells Fargo Thinks So

Here is a tale of woe.   The story is true but the names and the city will remain unnamed.

Three years ago, a couple, we will call them, Mr and Mrs. Jones, bought a house, at a modest price, and financed it with 20% down payment.  Both Mr. and Mrs. Jones had jobs and they had no trouble paying the $1100 a month mortgage payment.

In March of 2009, Mr. Jones was laid off.  Mrs. Jones was furloughed from her job as a pilot.  They were expecting their first child.

Mr. Jones called Wells Fargo in April of 2009 to apply for a loan modification that had been written about in about every newspaper in the country.  Banks had received bail out money and the government had instructed them to modify loans to avoid foreclosures.  The people were waiting.

Mr. and Mrs. Jones applied for and received unemployment benefits.  All their information was given to Wells Fargo Bank.  They were told that the bank would be in touch.  After three months passed with no word from the bank, Mr. Jones called to inquire.  He was told that they did not qualify for the first program but that they should submit more information and the bank would see what other program would apply.  They were never told what each program was.  This happened again three months later.

Now, we are nine months down the line.  Mr. Jones called the bank and was told they wanted all the information again since it had become out of date and that they had no idea when they would be hearing from them.

While Mr. and Mrs. Jones are making the payments and are never late, the bank does nothing.  If they stop making the payments the bank will change the interest rate for five months and if they make these payments on time, the bank will consider remodification.  If they don’t modify the loan on a permanent basis, the Jones’ will owe the bank the difference between the original payment and the reduced payment.

THIS DOES NOT HELP PEOPLE!   THIS IS NOT AVOIDING FORECLOSURE!  The  banks must be compelled to comply with the wishes of the U.S. government.   Congress must enforce the conditions under which the banks received bail out money.  The road to hell was paved with good intentions.

Aventura Inventory Of Single Family Homes and Condos Is Steadily Declining…this is Good News!!

This is the latest graph showing the real decline in inventory in Aventura.  In November of 2008 there were 1890 properties for sale in Aventura.  As of October of 2009 there are 1404 properties for sale and in the month of October there were 110 sales as compared to November of 2008 when there were only 68 properties sold during that month.

 

This is progress and due to more  realistic pricing by sellers and a general interest in the market place in real estate.  However, if banks would be more inclined to lend the situation would be far better.  It takes a longer time than usual to close a loan.  More documents are required and greater qualifications to borrow are in place.  This adds up to long delays and in  some cases denials.  Even though mortgage rates are incredibly low, what difference does it make when a buyer cannot get a loan.

 

Also, the rates of foreclosures (also the banks fault because they refuse to modify loans or accomodate short sales in a timely manner) are still very high.  Every foreclosure, affects the prices in the neighbor where they occur.  More must be done by banks in coordination with the government to avoid the huge glut of foreclosures that are waiting to get on the market.

 

So..before we can see real change, the banks have to play ball.  Banks are the most integral part of the housing industry. Meanwhile, we are still enjoying the uptick. 

Prices are lowest they have been in 10 years.  It is the best time buy in a generation!!  Interest rates are low!    Interest Rates are 4.63% today.  See my chart, below!

 Call me today, to start looking for that home of your dreams.