Archive for March, 2010

To Rent or To Buy

by Justin Miller on March 29, 2010 in General News with No comments

I have written a lot about this lately but here is another article geared towards those retiring but it does show the average rent and mortgage payment for Miami.  Remember that you want to look at the price to rent ratio.

For anyone weighing a move, one of the easiest ways to approach the buy-versus-rent question is to use the “price-to-rent ratio,” says Dean Baker, co-director at the Center for Economic and Policy Research in Washington, D.C.

http://online.wsj.com/article/SB20001424052748704541304575099882517652948.html?mod=djemITP_h 

Foreign Buyers Return As Dollar Rallies

by Justin Miller on March 29, 2010 in General News with No comments

Some seem to be trying to beat prices getting too high because of a dollar rally and betting that home prices are bottoming out.  I know that the article is referencing New York but I am sure this holds true in other parts of the country including South Florida.

http://www.msnbc.msn.com/id/36033352/ns/business-real_estate/ 

Short Sale Over Foreclosure

by Justin Miller on March 29, 2010 in Foreclosure, Short Sales with No comments

Here is another article on doing short sales over foreclosures and how it could get easier starting April 5th “Under the new Home Affordable Foreclosure Alternatives program, borrowers will earn a $3,000 “relocation incentive” and servicers will get $1,500 for handling a short sale.”

I am not sure how I feel about a $3,000 relocation incentive but I guess if it keeps people from destroying their homes and stealing the appliances it’s not a bad idea.  Remember the banks don’t have to participate in this. 

I have heard good things about the new software Bank of America and some others are using called Equator where documents are uploaded into this system so the banks don’t keep losing your documents.  Here’s a question, with all of the rules banks have to follow when it comes to protecting a borrowers identity stating that you have lost a package you would think is a class action lawsuit waiting to happen since their personal information is all over this documentation.

http://money.cnn.com/2010/03/29/real_estate/short_sale_explosion/index.htm?section=money_realestate&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_realestate+%28Real+Estate%29&utm_content=Google+Reader 

How To Make You Happier With Your Home

by Justin Miller on March 29, 2010 in General News with No comments

I really liked this article because it really is the small things in life that can make us happier.  It talks about how most people’s homes are worth less and that many think a larger home and/or bigger ticket items will make them happier but research shows it doesn’t. 

“Light and color have a definite impact on people’s emotional response,” says Alison Whitelaw, a San Diego architect and vice president of the Academy of Neuroscience for Architecture, a group that brings research scientists and designers together.

Make sure to click on the links to “Upgrades to your first and second floors” at the bottom.

http://money.cnn.com/2010/03/26/real_estate/home_fixes.moneymag/index.htm?section=money_realestate&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_realestate+%28Real+Estate%29&utm_content=Google+Reader

FHA Announces Principle Reductions

by Justin Miller on March 26, 2010 in Loan Modification with No comments

Below is the link for what FHA just announced.  Please Note:  It hasn’t been implemented yet. 

If you are an optimist and do NOT have an FHA loan feel free to read it. They are saying that “total mortgage debt for the borrower after the refinancing cannot be greater than 115% of the current value of the home – including both first and any other mortgages.” 

See page 2 of the PDF where it states that you must be current on your mortgage, a primary residence, etc.

http://portal.hud.gov/portal/page/portal/ver-6/HUD/federal_housing_administration/docs/from_the_desk_of_April_2010.pdf 

Help For The Unemployed & Underwater Homeowners

by Justin Miller on March 26, 2010 in General News with No comments

I’m not writing anything on this because I just don’t think it will happen or will only help a limited number.   Feel free to click on the link for yourself.  Remember the Hope for Homeowners loan where they were supposed to do the same thing???

http://money.cnn.com/2010/03/25/news/economy/foreclosure_prevention_unemployed_underwater/index.htm?section=money_realestate&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_realestate+%28Real+Estate%29&utm_content=Google+Reader

Florida FHA Default Rates

by Justin Miller on March 26, 2010 in FHA Loans with No comments

This should really be of no surprise to anyone.  With property values depreciating, people still spending more than they should, unemployment, condos, etc. Miami’s FHA default rate is at 17.92%, ouch.

I can’t argue this statement.  “Much of the blame lies in Florida’s famous condo market, which collapsed during the housing bust. The controversial practice of seller-assisted downpayments is also contributing, as is the scarcity of jobs and the severe decline in home values.”

Anyway, as I have mentioned time and time again, I think FHA is still writing bad loans.  I won’t be a dead horse and will leave it at that.

http://money.cnn.com/2010/03/26/real_estate/FHA_defaults_Florida/index.htm?section=money_realestate&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_realestate+%28Real+Estate%29&utm_content=Google+Reader

Florida Save Our Homes Amendment

by Justin Miller on March 26, 2010 in Property Taxes with No comments

I am just going to copy and paste the info from the article because I am not an expert when it comes to this.

The 1992 amendment to the Florida Constitution – which limits annual assessment increases to 3 percent – has resulted in “sometimes dramatically disproportionate tax burdens” among homeowners and is clearly “an unintended consequence of what has come to be regarded as a flawed policy,” the organization said.

Now, a new constitutional amendment, Amendment 3, will appear on the ballot in November. If approved, it would reduce that 10 percent limit to 5 percent, potentially crippling Florida’s economic future, the TaxWatch report says. It compares that scenario to the way that Proposition 13 has contributed to the near-bankrupting of California.

http://www.bizjournals.com/jacksonville/stories/2010/03/15/daily29.html 

Bank of America’s Principle Reductions – The Catch

by Justin Miller on March 25, 2010 in Loan Modification with 1 Comment

I saw a lot of articles on this yesterday and I said to myself “I will believe it when I see it.”  Again, I am not a pessimist but everything something is announced on helping the housing crisis it never ends up doing everything it was supposed to and quite frankly, it never even comes close.

Well yet again there is a catch to this.  It is supposed to help around 45,000 borrowers but “Before you get your hopes up, keep this in mind: These 45,000 borrowers are a small subset of the bank’s customers. Principal forgiveness will be offered only to people who got certain kinds of loans from Countrywide Home Loans. Bank of America bought Countrywide in 2008.”

http://www.cnbc.com//id/36023591 

Housing Trends

by Justin Miller on March 24, 2010 in Mortgage Education 101 with No comments

The article below has 6 trends to keep an eye on.  Although they are all good tips the most important in my opinion were that even though you can get a distressed property 30% below what normal sellers are it can come with a lot of hidden costs as I have mentioned in the past.  Make sure to hire a great home inspector.  As far as the part about competing against cash buyers, consult a real estate expert with regards to that. 

The other is low interest rates.  I know I sound like a broken record when it comes to this but it is true.  Rates will go up and the low rates right now can help to offset part of a decline in property values.

And lastly, condo financing is tough.  Make sure you deal with a mortgage professional who not only is an expert but will do the due diligence upfront that can save you money.

http://money.cnn.com/2010/03/18/real_estate/housing_prices.moneymag/index.htm?section=money_realestate&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_realestate+%28Real+Estate%29&utm_content=Google+Reader

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