The Gate Arty Blog - Selling Archive
November Real Estate Sales
Thursday, December 11, 2008 - By Gate Arty
Lakeland real estate sales took a dip for the month of November. In :Lakeland, 116 properties sold, which was down from 151 in Coctober. The average list price was 161,976, up a little from October, while the average sale price was $149,269 which is down from 151,946 last month and well below the prior year’s average of $180,973. Average days on market improved to 106 from 133 in October, but the months of inventory shot up to 25.97 versus 19.89 in October.
For Lakeland, the two price range that dominated most sales was the $200,000 - $249,999 where 13.79% of homes sold and $120,000-$139,999 (13.79%).
In East Polk there were 103 homes closing versus the prior years’ 95 closing and October’s 128 closings. The average list price was essentially unchanged at $136,676 while the average sale price was also nearly unchanged at $125,163. Days on the market improved to 112 versus 118 in October, but the months of inventory increased to 20.24 from 16.43 in October.
For East Polk, the $120,000 to $139,999 price range represented 14.56% of sales while the $100,000-$119,999 price range was in second place with $11.65% of sales.
del.icio.us
Reddit
FacebookOctober Sales
Monday, November 24, 2008 - By Gate Arty
The National Association of Realtors announced that real estate sales for the month of October dropped 3.1% to 4.98 million. This was down form 5.14 million in September. The median sales price dipped to $183,000. This was a decrease of 11.3% and the median figure has not been that low since March of 2004.
Keller Williams Realty merger with Coldwell Banker
Tuesday, November 11, 2008 - By Gate Arty
Keller Williams Realty has acquired Coldwell Banker - Plantation Realty. The Plantation office in North Lakeland adds 15 agents to the Lakeland-based Keller Williams roster. There are already well over 245 Keller Williams agents in Lakeland & Winter Haven. The Plantation office will continue to stay open giving Keller Williams Realty a long-awaited presence in North Lakeland. The purchase of Plantation marks the fifth such deal this year. Other partnerships include: First Heritage Realty, Garden Grove Realty, Imperial Lakes Realty, & NAI Realvest.
Exclusive Tour of Lofts on the Park
Thursday, November 06, 2008 - By Gate Arty
In conjunction with the festivities of First Friday, the Group at Keller Williams Realty will be hosting an Open House tour of The Lofts on the Park. Local residents know that this great building is located on Kentucky Avenue adjacent to Munn Park & Lake Mirror. With the resounding turnout last month, there were requests made for an additional Open House tour. Friday November 7 beginning at 5:30 pm is your opportunity if you have always wanted to see the Lofts! Your hosts will be:
Cathy Oliver - 863 286 6732
Christy Gallant - 863 680 9988
Gate Arty - 863 529 3222
Here is a map to the location: MAP
See you there!
New Home Sales INCREASE!
Tuesday, October 28, 2008 - By Gate Arty
The U.S. Commerce Department reported today that month over month sales of new homes rose 2.7% to 464,000 units in September. This was a huge development, considering most analysts had expected a drop from August. The decline on a year over year basis, however, was more significant as home sales were 33.1% below year ago levels. Perhaps bargain hunters are responsible for the monthly increase.The median home price dropped by 9.1% to $218,400, a level not seen since September 2004. There are BUYING opportunities out there folks! Contact you loocal REALTOR now!
Foreclosures up Again
Thursday, October 23, 2008 - By Gate Arty
RealtyTrac announced today that foreclosure filings were up 71% nationwide, in the third quarter over the same period last year. Astoundingly, approximately 766,000 homeowners had a sheriff show up at the door and with a foreclosure complaint in hand! Six states made up for nearly 60% of the list: Arizona, California, Florida, Michigan, Ohio, and Nevada. Most respected experts believe that this trend will continue well into 2010 as the market absorbs the inventory that is just now coming online.
When Will Real Estate Values Rise?
Wednesday, October 08, 2008 - By Gate Arty
Historically-speaking, home values have ultimately risen after dramatic declines. No kidding, right? Although there isn't any widely known or accepted scientific methodology to pinpoint the top or bottom of any market, experts tend to agree that the following signs indicate an upswing:
1. Real estate values stop declining and begin holding steady or selling side-ways. Although it may seem like commonsense, determining the sales price of a home isn't as easy as it may initially appear. It is important to evaluate sale prices across different segments of the market. For example, luxury homes continue to fall (and thereby lower the mean selling price of all homes in the area) while affordable homes have already showed signs of holding steady.
2. Inflation. While inflation tends to hurt those on fixed incomes, or those who put money into savings accounts, it tends to help those who own commodities and hard assets like real estate, since the price of goods and services tend to rise in relation to inflation.
3. Lack of alternative investments. One of the reasons real estate gained such a great deal of appeal in recent years was a lack of viable alternative investments. Following the burst of the "dot-com" bubble, investors were seeking new ways to obtain greater returns on their money. Savvy investors always gravitate toward the segment which provides the best return on investment. Real estate has experienced a major decline, but so has each and every other form of investment, right?
4. Eased lending standards. The availability of credit and affordable low-interest rates is yet another major impetus toward creating rising real estate values. Credit-availability allows potential home buyers to obtain mortgages. Increased mortgage output in the lending industry, leads to more sales in the real estate sector, creating more demand for housing, thus eventually increasing property values.
Chase acquires Washington Mutual
Friday, September 26, 2008 - By Gate Arty
After months of speculation, Washington Mutual became the largest U.S. bank to collapse to date. Although WaMu shareholders have no reason to celebrate, those at JP Morgan Chase seized an opportunity. Chase bought WaMu’s $307 billion in assets and $188 billion in deposits for a mere $1.9 billion, which actually goes to the FDIC. The bank will also re-capitalize by selling some of its stock to raise $8 billion. JP Morgan Chase will now have 5,400 branches in 23 states. Wall Street’s reaction was positive on news of the acquisition, while shares advanced 10%. Investors believe the company continues to scoop up assets cheaply that will eventually provide substantial shareholder return. Once again, proving that those properly positioned in this market will succeed & seize investment opportunities. Top-to-bottom, investors large & small will buy assets that will eventually increase in value.
Market Turmoil
Wednesday, September 17, 2008 - By Gate Arty
The recent turmoil in the financial markets has been nothing but staggering. Storied institutions such as Bear Stearns and Lehman Brothers are essentially gone. Merrill Lynch was scooped up by Bank of America for a song. The US government has come into rescue Fannie Mae and Freddie Mac, but it figured at some point there is a risk of doing too much bailout.
What does all this mean for the real estate industry?
Get ready for more wild rides. Now that equity markets have proven an unsafe and risky investment, more and more real estate investors will be coming out to play. And now that financial institutions are filing for bankruptcy, this will setup even greater liquidation among those real estate assets.
Which means that more wealth will be created for some individuals now than ever before, and frankly this type of wealth creating wasn't even possible when things were considered "good." Sure things are plain awful out there for some investors, but for others this is the opportunity that comes around only once a decade, or perhaps a century. The only thing that resembles this is the S&L crisis in the 1980s, where 747 savings and loan associations failed.
Will there be more government subsidized bailouts? Many are asking why Lehman Brothers was not rescued. Well, enter the economic concept of moral hazard.
Let me ask you a question. Have you ever bought rental car insurance? You know, after you pay for it you feel a little free when your driving someone else's car, right? I know with rental cars I love to take the corners sharper, gun the engine, and basically get “my monies worth,” knowing full well that if I bang up the car, I've got nothing to lose (other than my health if I bang it up too much!). Now please don't forward this e-mail to Avis and get me on their blacklist!
Same concept for the government. They bailed out Bear Stearns. They bailed out Fannie Mae and Freddie Mac. But if they were to bail out yet another financial institution, particularly one that we can all live without, there would be a sense of carelessness that would encourage future speculators.
So what's the story here? In this case, the government wants them not to intentionally cut off their toes, but rather if they see gangrene they go to the hospital rather than awaiting their financial windfall. Lehman Brothers financial woes, due in large part to bad bets on real estate and its related securities, means that the economy is frankly in worse shape than many think. There will be more collateral damage. Lehman's unwinding will cause damage to other financial institutions as inevitably the interest rate swaps (which the Wall Street Journal reported may run into the millions) and other financial instruments affect other institutions, too.
Customer Satisfaction Winner
Thursday, August 28, 2008 - By Gate Arty
Keller Williams Realty ranks highest among real estate companies in satisfying home buyers according to the J.D. Power and Associates 2008 Home Buyer/Seller Study. The inaugural study measures customer satisfaction of home buyers and sellers with the largest national real estate firms. Overall satisfaction is determined by examining three factors for the home-buying experience: agent (65%); office (21%); and services (13%). In the home-buyer segment, Keller Williams achieves a score of 831 on a 1,000-point scale, and receives highest ratings from customers in all three factors.
The study finds that despite the popularity of home-buying and -selling resources on the Internet, real estate agents are key to customer satisfaction with real estate companies. A large proportion of both home buyers and sellers rely on the Internet to facilitate the buying or selling process, with 68 percent of buyers saying that they used Internet tools to help them in the purchase process and 61 percent of sellers reporting that they used a Web site listing to market their home. In addition, among home sellers, online methods are the most important aspect of marketing. However, the agent factor carries the greatest importance among the factors that comprise overall satisfaction among both home buyers and sellers.
The study also finds that the average time a home for sale remained on the market was slightly more than six months, although home sellers represented by the top-ranking real estate companies report that their homes were on the market for slightly less time—approximately five and a half months, on average.
Additional noteworthy study findings include the following:
- Nearly one-half of respondents (46%) report using recommendations from family or friends to find their real estate agent.
- Approximately 28 percent used the Internet, while 23 percent used an agent they had used previously and 11 percent used a printed real estate guide.
- On average, home buyers were shown approximately 13 homes before making a purchase.
- Home sellers report that, on average, their home was shown approximately 11 times and approximately five open houses were conducted before the sale occurred.
The 2008 Home Buyer/Seller Study includes 3,670 evaluations from 3,205 respondents who bought or sold a home between April 2007 and June 2008.
Foreclosure vs. Short Sale
Sunday, August 24, 2008 - By Gate Arty
What follows is a brief synopsis of the differences between a FORECLOSURE and a SHORT SALE and their affects on certain issues.
Fannie Mae Loan: A homeowner who loses a home to foreclosure is ineligible for a Fannie Mae backed mortgage for a period of 5 years. Homeowners who successfully negotiate & close a short sale will be eligible for A Fannie Mae backed mortgage after only 2 years. For investors that allow a property to go to foreclosure, a Fannie Mae backed investment mortgage will be unattainable for 7 years!
On any future 1003 application, a prospective borrower will have to answer "YES" to question C in Section VIII of the standard 1003 that asks: "Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?" There is no similar declaration or question currently regarding a short sale.
Credit Score: A foreclosure can lower a credit score anywhere from 250 to over 300 points. Typically this will affect a score for about 3 years. A short sale will only affect your credit report to the extent that late payments will be reported. The satisfaction of the mortgage resulting from a short sale will be reported as paid or negotiated. This can lower the credit score as little as 50 points just as long as all other payments are being made. The affect of a short sale can be as brief as 12 to 18 months.
Credit History: Foreclosure will remain as a public record on an individual's credit history for 10 years or more. A short sale is NOT reported on a credit history. In this instance, the loan is typically reported, "paid in full, settled."
Market Update - July Real Estate Sales
Wednesday, August 20, 2008 - By Gate Arty
The MidFlorida MLS reports that the Lakeland Association of Realtors closed 164 homes & the East Polk board reported 120 sales in June. Overall there were 284 homes sold in Polk, up from 282 homes last month. A year ago in June 2007 there were 275 homes sold, so the news should be reported that Polk sales are up from last year!
The average list price in Lakeland decreased to $180,303 from $183,672 last month, and the average sales price decreased to $169,351 from $171,773 last month. The average days on the market increased to 134 from 124 last month. In East Polk, the average list price decreased to $147,019 from $165,987 last month. The average sales price dropped to $136,876 from $153,489 last month. The average days on market decreased to 151 from 155 a month earlier.
What price categories sold last month? In Lakeland the majority of sales occurred in the $140,000-$159,999 price range, which represented 11.59% of all sales (19 units). Both the ranges of $120,000 - $139,9999 price range and $160,000 - $179,999 represented 10.37% of sales, or 17 units sold. The upper end market remained sluggish, with only one home selling for over $800,000 and 13 homes selling for over $350,000 (last month 11 homes sold for more than $350k).
In East Polk there were 18 sales in the $120,000 - $139,999 price range, which represented 15.00% of total sales. The second most popular category was $140,000-$159,999, which represented 12.50% of the market (15 sales). The upper end also was sluggish, with only 2 homes selling for over $350,000, down from 6 last month.
Foreclosures continued to dominate Polk County and we haven't seen much sign of a significant slow down. In July there were 755 foreclosures, down from the record setting number of 888 foreclosures in June. If you consider that all of Polk County sold 284 homes last month, and there were 4,706 Lis Pendens filed so far for the year . . . . WOW! Just to put things in a bit of perspective, however, Hillsborough County had 1,767 Lis Pendens filed. This was up from 1,659 the prior month. Short Sales (Pre-Foreclosures) & other distressed sales will continue to dominate this market for some time.
Insurance NOW
Saturday, August 16, 2008 - By Gate Arty
Experience has shown me that many prospective home buyers shop for homes during the summer months for a variety of reasons. First off, there is more time. Many people take vacation time during the summer months. Other "snowbird" retirees elect to buy a summer home during their regular time here in sunny Florida. More often than not however, the reason involves children. Many parents have told me that they would prefer buying during the summer so they will not have to uproot & disrupt their children's school year midway, in the event that a change of school is necessary.
One important thing (especially in Florida) to consider if you are buying during the summer is HURRICANE SEASON! For buyers who have identified a home and are in the closing process, thoughts of mortgages, inspections, & moving dominate. Another important item to consider is binding your homeowner's insurance policy. One can not close on a purchase transaction without binding insurance coverage if there is a mortgage attached to the transaction. At many points during the hurricane season, writing & binding policies is suspended, however. This can & will delay your closing.
There are two ways insurance companies determine when to temporarily suspend issuing new coverage:
1. When the National Hurricane Center issues a tropical storm or hurricane watch or warning.
2. When a tropical storm or hurricane enters a company’s “storm box.” A storm box is literally a box drawn on a map around a large geographical area. When a name storm enters that "imaginary box," policies are no longer written or bound until the threat of said storm has passed.
There can be delays in real estate closings when availability of insurance coverage is suspended. This is unfortunate, but suspensions only span a couple of days, unless there has been a major hurricane landfall, and then the delay could be longer. When a company suspends binding privileges it only affects those people who don’t already have insurance. If you are in the midst of a closing & have already secured insurance, your closing will not be delayed.
In the event a real estate closings are delayed, the properties are still, of course, insured. If it is a new home, it is still covered by the “builder’s risk insurance.” A re-sale property theoretically would still be insured by the current owner.
Lakeland's USA International Speedway SOLD!
Monday, August 11, 2008 - By Gate Arty
Polk County's many avid NASCAR fans are mourning the loss of an important institution.The USA International Speedway, located at 3401 Old Polk City Road, has closed its doors after its final race On August 2nd and is now under new ownership. The site was previously owned by Bob Brooks, the founder of Hooters restaurants who died in July of 2006. The facility first opened in 1971 with a quarter-mile track under the name Lakeland Interstate Speedway. It was sold in 1995, and has operated as USA International Speedway since. The paved oval stock-car track is nationally renowned as a popular testing spot for NASCAR teams.
Higgenbotham Auctioneers held an Absolute Auction on August 9th where everything was up for sale. All things automotive were sold including equipment, cars, grandstands, pictures, compressors, transmissions, etc. . . . .everything!
The 47-acre tract fronts on Interstate 4, and studies have shown that the North Lakeland site is said to have access to more than 8.5 million people within a 100-mile radius. The new owners are Rockefeller Group Development Corporation and they have acquired approximately113 acres (thus far) of the land off Interstate 4’s exit 38 in Lakeland. The Manhattan-based company hopes to attract a commercial tenant. Rockefeller has plans to build an industrial park on the site with more than 1 million square feet in distribution space. The park would be targeted at large-scale tenants. Construction is scheduled to begin in the first quarter of 2009.
The sale does not include Lakeland Motorsports Park located adjacent to USA International Speedway. That facility, which includes a drag strip and mudbogging pit, is owned by Roy Spiker of Lakeland. Business will continue as usual at that location.
Housing Stimulis Tax Credit
Wednesday, August 06, 2008 - By Gate Arty
A major component of the recent housing stimulis legislation was the temporary first-time home buyer tax credit. According to Census data, first-time home buyers constitute about 40 percent of all buyers. It is thought that the tax credit will stimulate home buying & selling, reduce the amount of inventory in the housing market, and as a result bolster the economy. This incentive is temporary, however. The temporary tax credit is good for a home purchased on or after April 9, 2008 and before July 1, 2009. Buyers can take the tax credit in their 2008 or 2009 tax return. If you purchased the home in 2008, the tax credit is taken on your 2008 tax return. If you buy in 2009, you have the option of taking the credit on your 2008 or 2009 tax returns.
For details, click HERE.
Here's how it works:
- The new law authorizes a temporary $7,500 tax credit for qualified first-time home buyers for the purchase of any home.
- A first-time home buyer is defined as a buyer who has not owned a home during the past three years.
- Single taxpayers with modified adjusted gross incomes of up to $75,000 are eligible to take the full credit. For married couples filing a joint return, the income limit doubles to $150,000.
- Single taxpayers earning between $75,000 and $95,000 can claim a partial credit of less than $7,500 while the phase-out for married couples ends for those earning above $170,000.
- Since the tax credit is refundable, it means that the home buyer can claim the credit even if they owe little or no federal income taxes. In other words, the government would write you a check. For example, if a home buyer owes the federal government $2,500 in federal taxes and qualifies for the $7,500 home buyer tax credit, the taxpayer would receive a $5,000 refund check from the IRS ($7,500 minus the $2,500 owed).
- To reduce the cost to the federal Treasury, Congress has mandated that the tax credit essentially serves as an interest-free loan to be repaid over 15 years. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.
Downpayment Reform
Monday, August 04, 2008 - By Gate Arty
The new Housing and Economic Recovery Act of 2008 contains a provision that forbids FHA from insuring mortgages in which the downpayment comes directly, or indirectly, from an interested third party (such as the seller), beginning October 1, 2008.
On Thursday, July 31, 2008, the FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008 (H.R. 6694) was introduced by several members of Congress. Representatives Maxine Waters, Gary Miller, Al Green and Christopher Shays sponsored this bill that if passed and signed into law will allow downpayment assistance to continue indefinitely.
Housing and Economic Recovery Act of 2008
Friday, August 01, 2008 - By Gate Arty
On July 30th, President Bush signed the Housing and Economic Recovery Act of 2008. All provision details are not yet available, but the major components included broad authority for the Treasury Department to safeguard the nation’s two largest mortgage finance giants (Fannie Mae and Freddie Mac) and a plan to help hundreds of thousands of troubled homeowners avoid foreclosure.
As anticipated, all seller-funded DPA programs will be abolished October 1st, 2008. Meaning the minimum cash investment requirement will increase to 3.5% of the purchase price.
More news to come on this as it becomes available!
Down-Payment Assistance Eliminated?
Wednesday, July 23, 2008 - By Gate Arty
Mortgage programs that offer down-payment assistance (DPA) assisted nearly $80,000 people buy homes in the depressed market of 2007. The Senate and House of Representatives are fast-tracking legislation that would likely abolish DPA programs. The repercussions could be devastating to the already ultra-sensitive real estate market.
DPA programs are operated by nonprofit organizations. These organizations provide buyers with money for their down-payment. In turn, home sellers reimburse the organizations and pay an administrative fee. These loans are insured by the Federal Housing Administration (FHA).
Mortgages with DPA account for almost 40% of FHA’s volume! It has been estimated that if DPA programs are eliminated, the direct impact on real estate could result in an estimated $50 billion in lost real estate sales & mortgages, not to mention the loss of jobs in the building & lending sectors of the real estate industry.
Market Update - June Real Estate Sales
Tuesday, July 22, 2008 - By Gate Arty
The MidFlorida MLS reports that the Lakeland Association of Realtors (LAR) closed 172 homes in the month of June, up from 159 sales in May. To put this in perspective, there were only 114 homes sold in January. The East Polk Board of realtors posted 110 home sales, giving Polk County 282 homes sold for the month.
In Lakeland, the average list price increased to $183.672 from $178,894. The percentage difference between sales price/list price increased slightly to 93.52% from 93.09%. The average days on the market dropped to 124 days on market (DOM) from 135 DOM last month. Again signifying increased momentum in the local market.
In East Polk, the average list price increased to $165,987 from $159,173 last month. The average sales price jumped to $153,489 from $147,806 last month. The percentage difference between sales price/list price decreased to 92.47% from 92.86% and the average days on market decreased to 155 DOM from 163 DOM a month earlier.
The hottest price point in Lakeland continued to be south of the $200,000 mark. The majority of home sales in Lakeland occurred in the $160,000-$179,999 price range. The 21 home sales represented 12.21% of all Lakeland sales. Other hot price points were $140,000 - $159,999 representing 11.05% (19 home sales) & the $200,000 - $249,999 accounted for 10.47% (18) of sales. The upper end market remained sluggish, with no homes selling over the $600,000 mark, and only 11 homes selling for over 350,000 (last month there were 8 homes that sold for over $350,000).
In East Polk there were 16 sales in the $120,000 - $139,999 price range, which represented 14.55% of total sales. The second most popular category was $100,000-$119,999, which represented 13.64% of the market (15 sales). The upper end also was sluggish, with only 6 homes selling for over $350,000.
Record Sale for Trump & Apprentice
Friday, July 18, 2008 - By Gate Arty
Donald Trump 'fired' off another record sale this past Tuesday. The Maison de l'Amitié, a 60,000 square foot estate in Palm Beach with 475 feet of beachfront property, sold for a record $95 M. Located at 515 North County Road, the cozy residence typifies Trump's tradmark over-the-top luxuries: a mammoth fountain at the front, a circular gallery boasts a series of trompe l'oeil reproductions of famous paintings, white marble columns, and formal gardens. Of course, the bathroom fixtures simply feature understated 24-carat gold.
The buyer, Dmitry Rybolovlev, is number 59 on the Forbes list of the world's wealthiest people. His net worth is estimated at $12.8 B. the Russian tycoon supposedly covets the property for its expansive beachfront. Trump, the man behind the successful reality television series The Apprentice, bought the property for a meager $41.35 M in 2004. Kendra Todd, winner of the Apprentice (Season 3) spearheaded the renovation of the property, which alledgedly cost a whopping $25 M. Trump originally forecasted an anticipated sales price of $125 M.
Real Estate Foreclosure Opportunities
Monday, July 14, 2008 - By Gate Arty
A turbulent real estate market has presented opportunity for local investors. Polk County has never had as many real estate foreclosures as our present day market. In June alone there were 815 foreclosures. In June of 2007, there were only 381 filings . . . a whopping 114% increase! In all of 2007, there were 5132 foreclosures. Thru June there have already been 4,481.
So what of this opportunity? Buyers, specifically investors, have a treasure trove of real estate inventory to select from. Banks are not in the business of owning real estate. Once a property is foreclosed & in their ownership they will either sell the property at auction, or typically secure the services of a REALTOR to sell the property. It is wise to consult with a REALTOR adept at handling foreclosures, known in the real estate profession as REO (real estate owned) properties. Typically these REALTORS work with several banks & are often the first to know about a property before it even hits the multiple listing service (MLS) database. Working with a REO professional could give you insight on market conditions, incoming inventory, potential resale values, & financing options on rehab properties.
Real Estate Values & Sales on the Rise
Saturday, July 12, 2008 - By Gate Arty
According to the latest report from the National Associaton of Realtors (NAR), real estate values & sales volume appear to be trending upward, in spite of the recent credit crisis and barrage of negative real estate news reports. After reaching a relative low of $195,600 in February of 2008, the NAR reports the median sales price have increased 4 consecutive months. In the month of May (June’s value will be revised on July 24th) the median sales price was $208,600. This represents an increase of 6.6% from the February low! On an annualized basis, home sales volume has also risen.
Mortgage Insurance
Friday, July 11, 2008 - By Gate Arty
Three mortgage insurance (MI) companies filed for bankruptcy this week. Mortgage insurance is insurance to offset losses in the case where a mortgagor (borrower) is not able to repay the loan and the lender is not able to recover its costs after foreclosure and sale of the mortgaged property. Mortgage insurance is typically required on loans where the borrower has less than a 20% down payment.
Remaining mortgage insurers have been tightening their standards and offering borrowers fewer ways to avoid purchasing mortgage insurance. The MI companies have begun categorizing more and more of the country as a "declining market," raising the requirements and making such insurance more difficult to obtain. Stated simply, without MI, buyers will have to put more money down to qualify for loans - perhaps 10%.
During the previous housing boom, borrowers were often able to avoid mortgage insurance by taking out two loans: one that covered four-fifths of the home's purchase price and a second "piggyback" loan that covered the traditional 20-percent down payment. With this type of lending practice now being non-existent, potential home buyers need MI to buy, and the overall buying pool has consequently significantly decreased.
Spring Parade of Homes
Sunday, April 20, 2008 - By Gate Arty
The Spring Parade of Homes, hosted by the Polk County Builder's Association, begins Saturday April 19th and runs thru April 27th. Entries of the Parade of Homes offer up a diverse price range, starting as low as $113,990 to as high as $2,000,000! Need a home with a 2-lane bowling alley & basketball court? Well, perhaps the Grande Floridian is the type of home you require. Whether home shopping or simply browsing the Parade is a terrific opportunity to see the products of the premier builders in Central Florida.
Debt Forgiveness
Friday, April 11, 2008 - By Gate Arty
In my last post, I described the short sale process. Some have expressed concerns about the effect the resulting debt-forgiveness of a short sale has on your tax situation. In prior years, any form of debt-forgiveness on a mortgage was considered earned income. Now, however, the Mortgage Forgiveness Debt Relief Act of 2007 allows a 3-year window for homeowners to refinance their mortgage with no tax penalty on any debt relief that is received. This act will increase the incentive for borrowers & lenders to work together to refinance loans , and realtors to negotiate short sales to avoid foreclosure. This act only applies to principal (homestead) property.
Click here for more information on the Mortgage Forgiveness Debt Relief Act.
What is a short sale?
Wednesday, April 09, 2008 - By Gate Arty
A "short sale" or "pre-foreclosure" occurs when a bank (or lien-holder) agrees to accept a discounted pay-off of a mortgage. In other words, the bank(s) will release the lien(s) that is secured on the real estate, upon receipt of LESS money than is actually owed. Why would any bank accept less than what is owed? Well, it must make financial sense for this to occur. Here's a scenario . . .assuming there is an offer, of course!
First off, the mortgage(s) in question is typically in some stage of default. The bank, faced with a mortgage that is not being paid, must decide whether selling at a discount makes better financial sense than actually going through a long & costly foreclosure process. In our current real estate climate (because of the increasing alarming rate of bank foreclosed properties), most institutions are deciding that short sales are a viable route. Remember, banks and other lending institutions are not in the business of owning real estate. They want good mortgages. Foreclosures are not only time-consuming, but they are expensive.
The bank will not accept just any offer, however. They will have the property appraised to establish approximate market value. If they can negotiate a sales price "close" to that figure, a short sale may then be consummated. If the short-sale offer is not considered valuable enough, then they may opt to foreclose, and eventually sell the property on the retail market once they obtain "possession." This is what we know of as a foreclosure property.
Short sales represent a tremendous purchase opportunity for buyers and especially investors. Since most transactions occur on a distressed level, many sales prices occur below appraised value giving the buyer "instant equity."
Sales Increase!
Monday, March 24, 2008 - By Gate Arty
Sales of existing homes posted an unexpected increase in February. This follows six straight months of declining sales. The National Association of Realtors said that sales of existing homes rose by 2.9 % in February to 5.03 million units. It was the biggest increase in a year and caught most economists by surprise. Most had been expecting a small decline.
By region of the country, sales surged by 11.3 percent in the Northeast and were up 2.5 percent in the Midwest and 2.1 percent in the South. The only region of the country to see a decline in the sales was the West, where they dropped by 1.1 percent
- December 2008 (1)
- November 2008 (8)
- October 2008 (7)
- September 2008 (14)
- August 2008 (11)
- July 2008 (9)
- May 2008 (2)
- April 2008 (8)
- March 2008 (5)
- Arts and Culture (13)
- Business (14)
- Buying (27)
- Central Florida (38)
- CSX Rail (2)
- Downtown Lakeland (23)
- Events and Activities (27)
- First Friday (9)
- Florida Southern College (1)
- Foreclosure (8)
- Lake Hollingsworth (1)
- Lake Mirror (4)
- Lake Morton (2)
- Lakeland (39)
- Mayfaire by-the-Lake (2)
- Mortgage and Finance (17)
- Pre-Foreclosure (4)
- Public Parks (12)
- Public Safety (3)
- Real Estate (34)
- Schools (3)
- Selling (27)
- Short Sales (4)
- Sports (2)
- Sun n' Fun Fly-In (1)
- Tax Issues (3)
- Virtual Tours (20)
View RSS/XML Feed