The Real Estate Mango

Archive for the 'Breaking News' Category

The 20% Rule in Mortgage Lending And What It Means To The Buyer

On March 1, the Los Angeles Times reported that key U.S. financial regulators have agreed to a miniumum 20% down payment when financing a home.  These mortgages would be exempt from the so-called risk retention standards for banks.

Buyers with less than 20% could face higher borrowing costs, or could be priced out of the market, altogether.

The Office of the Comptroller in the Federal Deposit Insurance Corporation have agreed on this rule.  The Federal Reserve is in  favor, also.  All regulators are supposed to come to an agreement by late April.

There will still be some 5% down mortgages that could be waived for qualified mortgages with more responsibility for the banks holding these mortgages.

If this rule becomes standard,  it may result in less homes being sold, but on the other hand, banks will experience less defaults and it will strengthen the housing market in the long run. It doesn’t help the real estate market when many people buy homes with very little money and only hope they can meet the payments.

We have seen, in the past few years, the  thousands of homes that are in default and facing a foreclosure as well as those already foreclosed.  When it is too easy to take on a debt like owning  a mortgage, it becomes, in many cases, too difficult to hold on. 

Making sure that buyers can truly live up to their obligations will help stabilize the real estate market.

If you have opinions on this pending regulation, please comment on this site.

Gabby Giffords’ Attack and Why It Is a Turning Point In American Discourse And A New Morning In America

After reading so many newspaper articles and blogs and hearing hundreds of remarks on television, I hesitated before I wrote about this fateful event.  I thought everything that could ever be said was said.

But, maybe this hasn’t been said, yet.  Something had to happen to stop the loud chatter, the doomsday scenerios, the angry and sad mood of the country.  Unfortunately, these people who were killed and injured in Tucson had to be sacrificed so that we can become a better country.

I read today, that Rep. King a Republican from New York is pushing for strong gun control.  The House of Representatives stopped their time wasting votes on repealing health care. 

The hate mongering cable news hosts are covering their backs, denying any responsibility, but they are aware that just maybe they stirred the pot too viciously.

I came across more than four programs devoted to examining the causes and treatments of mentally ill people in this country and how badly our system is of diagnosing and treating them and how much better other countries are in handling the very real illness that mental illness is.

We have a lot of work ahead, to make this country safer for all of us.

I hope this will lead to a bright new morning in America.

My Thoughts On Another Beautiful Day In Aventura And How Events Impact Our Lives

I am delighted that the bill to help the First Responders to the 9/11 disaster passed the Senate.  It took nine years…a lifetime for someone suffering from cancer, emphysema, asthma and a variety of other very serious illnesses.  This country will be a better place after passing this bill.

DADT  is a great leap forward for all of us in this country.  It makes me proud that our armed forces will be a democracy like the rest of the institutions in this country. 

The America of legend, is the free, kind, benevolent society for which millions settled here (300 million in the recent census).  A good country has to have heart. 

I am also glad that unemployment benefits have been extended.  I don’t want to see people begging in the streets.  Go to the library and look at the pictures of the Great Depression.  It happened.

In a lighter vein, in these waning days of 2010, I have been looking back on the year.  Real Estate looks a little better in Aventura.  I see inventories shrinking in the best buildings and properties that were in limbo finally sold in short sales.  New families are fixing up the old properties and there is an air of a new start. I have been reading a lot.  There is fabulous book, I just finished called ROOM.  It was so interesting and unique, I read it cover to cover in one day. 

The Aventura Mall is packed with shoppers.  Even at 9 in the morning the stream of cars keep coming.  Another good sign that Americans are feeling better and are optimistic.

As in the song by Paul McCartney LIFE GOES ON.

HAPPY HOLIDAYS

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….

7 Month Extension & Expansion Of The Tax Credit Will Pass In Congress This Week

Great News for Real Estate In Aventura!!! 

After all the bad reports on fraud and misuse of the $8000 tax credit for first time home buyers, Congress has decided that the good out ways the bad and is voting, this week to extend this program for 7 Months and will make it better by including couples with incomes up to $225k which is 55k more than the previous program.

$6500 Maximum credit would be available to move-up homeowners who have lived in their currect residence for 5 of the prior 8 years and they don’t have to sell their previous home to qualify.  THIS IS GREAT NEWS!!!!

Prices are still very affordable.  Certainly, this is the BEST TIME TO BUY.  Interest rates are still low.  (check my chart on this site).  The Government is making it easier to buy than ever.

Click on the homes for sale button on this page and find your dream home and make it a reality and when you see the perfect place…call me and we will get an appointment, today.

Update:  Congress just passed this legislation and it is expected to be signed into law by President Obama.

 

 

 

Federal ‘Cash for Appliances’ Program Will be a Great Help In Buying New Appliances For Your Home

Remember ‘Cash for Clunkers’?  Did you take advantage of that and trade in your old gas guzzler?  Well now you can trade in your old washing machine, old refrigerator, old oven and any old appliance that eats up electricity and get a real break on the price!!

In the economic stimulus package passed earlier this year was a $300 million program offering rebates to buyers of more energy-efficient appliances and other products with the Energy Star label.

This program is a little different, in that each state will run its’ own rebate program.  I am on the lookout to see when Florida will be offering these rebates.  So far, the large chains like Sears and Best Buy are offering cash rebates as are some cities. 

So, ultimately, when you buy, you may be getting a rebate from the store, from the municipality, and from the  Dept of Energy.

The Federal Government wants the public to start buying again.  The public will benefit also, by having lower electricity bills, and making their homes more up to date, always a good thing.

Contact me for further information.

 

 

 

Freddie Mac CFO Commits Suicide

The madness isn’t over, yet.  There are so many people affected by the economic downturn and all its’ repercussions that terrible news comes out, everyday in some way.

David Kellerman,41, Chief Financial Officer, of Freddie Mac, killed himself by hanging, early this morning in his home.  Mr. Kellerman was a new man on the job, replacing the former CFO when the Federal Government  nationalized Freddie Mac.

Freddie Mac is the name of the Federal Home Loan Mortgage Corporation.  Friends said that Mr. Kellerman was staggering under the strain of the job.  New requirements imposed by the government and all the pressures of the new regulations were very stressful.

Tim Geitner, Secretary of the Treasury expressed his sadness at hearing the news as do we all.