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Dear Friends and Customers: We have embraced the "social networking" scene.Our newsletters will now be posted on our Colonial Real Estate Update Blog: http://colonialnewsletter.blogspot.com/ Here's just a glimpse at what's recently been posted.
"Are we there yet?" What we should expect in the next two years, and how we got here.
Join us for this very special REO Forum.....Go here for more details: http://colonialnewsletter.blogspot.com/
Investor Report: Condo Loan Rules---FHA
FHA has come out with its long-awaited rules on condominium loans, and they're a mixed bag for investors, second home and other buyers and sellers. Go here for more details: http://colonialnewsletter.blogspot.com/
Fannie Mae Anti-Flip Restriction on REO Conveyances
It has come to the attention of the Company that Fannie Mae has begun requiring agents who market its REO to include provisions in sales contracts providing that certain anti flip language will be included in deeds. Go here for more details: http://colonialnewsletter.blogspot.com/
90 Day Evicition Notice to Tenants of Foreclosed Residential Properties NEW FEDERAL LAW: An increasing reality in today's economy is that tenants of residential foreclosed properties are finding themselves being evicted overnight from their homes immediately after the completion of foreclosures, often losing rental and security deposits in the process. Go here for more details: http://colonialnewsletter.blogspot.com/
Short Sales Are your short sales closing? Did you know that we provide short sale negotiations with NO UPFRONT FEES to the seller? Would you like to free up your time so you can list more short sales? Call us, we'll explain our success strategies to $$$$ SUCCESSFULLY CLOSE $$$$ your short sales. Call: Maria Elena Arias (305) 785-6228 email : maria@colonialtitle.us or Meyling Calero (786) 318-6825 email: mey@colonialtitle.us
Message from Colonial Guaranty & Title, Inc. We hope that you will follow our blogspot to keep updated on recent news and events that affect your business.
Warmest regards,
Maria Elena Arias, CEO
Meyling Calero, VP
Obama's Mortgage Relief Could Bailout 9 Million Homeowners
by Broderick Perkins/RealtyTimes
The President Barack Obama administration's "Homeowner Affordability and Stability Plan" could help as many as 9 million struggling homeowners, but largely those in lower-cost housing areas.
The $275 Billion Plan, with a March 4 rollout, includes a refinancing program for "responsible" borrowers who haven't missed payments and whose loans are larger than the value of their homes, and a loan modification provision with incentives for lenders to voluntarily modify certain mortgages.
Many Californians and others in high cost areas may not see much immediate relief but federal aid earmarked for those higher-cost areas could come later.
Refinancing
Under the refinancing provision, homeowners with less than 20 percent equity in their homes, who now find it difficult -- if not impossible -- to refinance, will be able to get new loans at lower interest rates provided the new note doesn't exceed 105 percent of the home's value.
A refinanced mortgage replaces the old loan with a new one. The provision targets 4 to 5 million homeowners.
Struggling homeowners in California and other high cost housing markets will benefit less from the plan because the provision only applies to mortgages held by Fannie Mae and Freddie Mac.
During boom times Fannie Mae and Freddie Mac loans were only up to a maximum of about $417,000. The limit was temporarily raised to $729,750 in 2008, when fewer people were buying. This year, the limit went back to $625,000. The latest federal economic stimulus package (American Recovery and Reinvestment Act), which Obama signed in February, returned the limit to $729,750, at least for 2009.
An estimated 60 percent of the home loans made in California in 2006 and 2007 were larger than Fannie and Freddie loan limits. During 2008 about 33 percent of home loans were above those so-called "conforming" levels, according to the California Association of Realtors. Other high-cost regions experienced varied levels of "non-conforming" loans.
"When I saw 'Fannie Mae and Freddie Mac' I said his (President Obama's) team needs to come to Silicon Valley," said Quincy Virgilio, president of the Santa Clara County Association of Realtors.
"This isn't going to help many people here," he added.
Virgilio said the bulk of California's home-owning population lives in major metropolitan areas where housing costs are high.
Loan modifications
The loan modification part of the plan targets 3 to 4 million "at-risk" homeowners, those with a high mortgage debt-to-income ratio and those with mortgages larger than the value of their home or "under water."
A loan modification, unlike a refinance, changes the terms of the existing loan without writing a new one and could serve higher-cost housing markets better than the refinance plan.
Also called a "workout," this provision is open to anyone including those who haven't missed payments, but may be at risk of missing payments. A modification is designed to get payments down to 31 percent of the homeowner's income. That could be accomplished by a reduction in the interest rates or principal, or an extension of the term of the loan, or perhaps a combination.
The modification plan is open to anyone with any loan that has a balance under Fannie Mae and Freddie Mac limits, which now as high as $729,750.
The modification program, also designed to standardize a hodge-podge of modification efforts by lenders, also comes with incentives for both homeowners and lenders.
Loan services get up to $4,000 for modifying mortgages and borrowers got a principal reduction of up to $5,000 over five years for paying on time.
Credit market boost
Obama's plan also calls for an infusion of $200 billion into the government-owned Fannie Mae and Freddie Mac. The bundle should help lower interest rates and spur more borrowing.
Ken Rosen, chairman of the Fisher Center for Real Estate and Urban Economics at the University of California-Berkeley and the Rosen Consulting Group says more relief could come to high-cost areas.
Obama administration's plan also seeks to change bankruptcy rules to allow judicial mortgage modifications to reduce mortgage balances to fair market value provided the borrower sticks to a court-ordered payment plan.
National Association of Consumer Bankruptcy Attorneys (NACBA) applauded the judicial workout proposal.
"Ever since the mortgage foreclosure crisis erupted into the public view in 2007, a broad array of consumer, civil rights, housing, community, labor and other organizations, as well as economists, have advocated judicial mortgage modification relief as an effective approach to stemming the growing tide of foreclosures - a solution that, unlike every other solution being considered in Washington, comes at absolutely no cost to U.S. taxpayers," said NACBA president Carey Ebert of Fort Worth, TX, in a prepared statement
DO YOU KNOW THAT......
The IRS has announced that it will expedite requests for lien releases and subordinations by distressed homeowners who are seeking to restructure their mortgages or sell their homes at a short sale. The new procedures are designed to shorten the typical 30-day processing time. The procedures for applying for a release of the property are contained in Publication 783 available at http://www.irs.gov/pub/irs-pdf/p783.pdf . The procedures for applying for a subordination when refinancing are contained in Publication 784 available at http://www.irs.gov/pub/irs-pdf/2
"Success does not create Happiness.....Happiness creates Success...Be Happy"....unknown
Here's to your success,
Maria Elena Arias, CEO
Meyling Calero, VP of Public Relations
Real Estate Outlook: Signs of Turnaround
by Kenneth R. Harney/RealtyTimes
Are we somewhere near the "tipping point" for real estate, where an accumulation of positive economic and government policy developments starts moving housing toward higher sales and stabilized prices?
This week there are some strong signs that we just might be there.
Tops on the list: The massive stimulus bill signed into law by President Obama is certain to pull buyers into the market who otherwise would have stayed on the sidelines.
The new tax credit in the legislation goes up to $8,000 and is non-repayable -- unlike last year's ineffective credit program. It' s intended for "first time" purchasers, but under the program definition, you're a first timer as long as you haven't owned or co-owned a house during the previous three years.
You might have sold your long-time home in 2005 or early 2006, and haven't owned a house since, but you still qualify as a first timer for the $8,000 credit this year.
Most economists aren't sure just how many additional home sales the credit will stimulate, but even Mark Zandi of Moody's Economy.com says the "credit is a plus for the housing market." Brian Bethune, an economist with IHS Global Insight, says the $8,000 credit will not only push large numbers of consumers to buy homes, but will also "buffer the rate of decline in home prices" by creating more demand.
A second major government initiative announced last week should also be helpful: The Obama administration's massive $275 billion relief program to keep three to four million home owners out of foreclosure, and to refinance three to four million mortgages where owners can't otherwise qualify for a new loan because of property value declines.
The giant assistance program has its critics, who say it will reward people who bought pricier homes than they could really afford. But that's not the point here: The fact is that, costly though it may be, the program could prevent foreclosures and price declines in neighborhoods across the country.
Still another positive sign: Home buyers and owners are beating a wide path to their mortgage lenders not only to refinance but to take out new loans to buy houses. Total applications for new mortgages last week exploded -- up by an extraordinary 48 percent, according to the Mortgage Bankers Association. Applications for conventional loans to buy houses were up by 11 percent.
Part of the reason was that rates fell again -- this time to an average of just 4.99 percent for 30 year fixed rates and 4.7 percent for fixed rate 15 year loans.
The opportunities here are pretty tempting ... and it looks like buyers are getting the message.
A word from some of our Strategic Alliances..... For Investors.....
As a result of the American Recovery and Reinvestment Act of 2009 loan limits in some counties have been increased!
Broward, Miami-Dade and Palm Beach counties are back to $423,750 until December 2009. St. Lucie is $375,000.
Remember, when you close on a purchase, before you resell to an FHA buyer, the loan must season for 90 days. Numerous hard money borrowers are paying off on the 91st day. Folks, FHA is the way!
On the sales front, the play is buy low sell low or offer the property for rent or rent to own. While the median price of SFH's has fallen, volume is up as savvy buyers scoop up bargains.
You will see this trend continue as South Florida in many segments is at the bottom. Don't miss the boat and remember the Dweckism, "It is time to assume asset acquisition position".
Learn how to Bubble Proof your business from the master himself, Frank McKinney at the next BRIC meeting on March 12th.
Contact David Dweck to attend at:
David Dweck - Boca Real Estate Investment Club [david@daviddweck.com]
"Success does not create Happiness.....Happiness creates Success...Be Happy"....unknown
Here's to your success,
Maria Elena Arias, CEO
Meyling Calero, VP of Public Relations
Dear Freinds,
As Real Estate professionals, we see the constant shift within the industry. Today's market calls for Loan Modification Advisors. Don't tell another prospect or client "I can't help you" again. Add Mortgage Modification as an additional Financial Service.
Become a Loan Modification Advisor today !.
To learn more about how you can become a Loan Modification Advisor and add Mortgage Modification as an additional Financial Service with minimal work and Maximum support, attend our Thursday Evening Webinars and download the Free Home Loan Modification Report.
To view a Free Loan Modification report click below
http://modifymydebtnow.com/freereport.php
Once you have registered for the for the Free Report, you can view our Webinar Calendar.
here is this weeks webinar link https://www2.gotomeeting.com/register/716039589
Sign up for Home Loan Education and Learn How to Earn Income Helping Others Webinars.
Attend the next webinar and you will have the information you need to be a Trusted Advisor and offer Mortgage Modification and never say "I can't help you again." If you want to get started immediately, please contact me and I will send you the link to get signed up.
"Success does not create Happiness.....Happiness creates Success...Be Happy"....
Here is to your success,
Meyling Calero
Colonial Guaranty & Title, Inc.
Good Evening,
As some of you may already know we, Colonial Guaranty & Tilte, Inc. and Modify my debt now will be host weekly LOAN MODIFICATION SEMINARS FREE at no cost to you.
We value you time and your business and in return want to provide you with valueable information that may help you and your business grow and produce extra income.
Come join us for educational information on todays loan modification market.
Home Loan Modification Education FREE - Find out What Is It, How Does It Work And What are Your Options Every Thursday 7:00 pm to 7:45 pm
https://www2.gotomeeting.com/register/418867155
Learn How to Earn Income Helping Others FREE - Here you'll find out more about who we are how you can earn a long term and residual income from being involved with our organization Every Thursday 8:00pm to 8:30 pm
https://www2.gotomeeting.com/register/195166782
I look forward in reading your thoughts and in hopes of assisting you with your Real estate Title Insurance needs in the near future.
Warm regards,
Meyling Calero
Top of the morning friends...
Here is a Daily Teaching from the book "The secret" I would like to share with you this week.
"Why is it that most often you find that top-quality cars are kept immaculately clean and tidy by their owners , while the older cars are often dirty and messy inside?
The difference is the evidence of APPRECIATION.
Appreciation of what you have brings what you want."
We often at times say to ourselves "When will business pick up?" but the truth of the matter is how many times do we say " WOW ! I am still in the buiness dispite it all and I appreciate it."
We all should embrace and apprecaite the fact that we are still in the game and when the business does pick up we will be there to work it.
Please feel free to contact me should you have any Real Estate Title Insurance needs. We are here for you 24/7 Anytime, Anywhere.
I look forward in hearing from you soon.
Have a great and successful week,
Meyling Calero
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Foreclosure fix..... By Tami Luhby, CNNMoney.com senior writer Last Updated: February 9, 2009: 7:08 AM ET
NEW YORK (CNNMoney.com) -- This much we know -- the Obama administration wants to set aside between $50 billion and $100 billion to address the foreclosure crisis.
But how exactly officials plan to address this bear of a problem remains to be seen.
Treasury Secretary Timothy Geithner is expected to lay out plans for the $350 billion remaining in the financial industry bailout package on Tuesday.
Geithner was originally scheduled to unveil the program Monday, but the Treasury Department announced Sunday that it was pushing back the plan by a day to allow Geithner and others in the Obama administration to focus on getting the stimulus bill passed in Congress.
It is unclear if Geithner will unveil a specific plan for tackling foreclosures Tuesday. But the administration has said for weeks that it will devote more resources to helping homeowners than its predecessor. "We will implement smart, aggressive policies to reduce the number of preventable foreclosures by helping to reduce mortgage payments for economically stressed but responsible homeowners, while also reforming our bankruptcy laws and strengthening existing housing initiatives like Hope for Homeowners," wrote Larry Summers, director of Obama's National Economic Council, to congressional leaders last month. Finding a foreclosure fix is daunting, experts said. It eluded the Bush administration, which preferred to try to entice mortgage services to voluntarily modify loans without committing government funds. Click here for the rest of the story here
http://money.cnn.com/2009/02/06/news/economy/TARP_foreclosures/index.htm?postversion=2009020907
Surviving Short Sales....
Frustrated trying to get a short sale closed? We've got tips for making the transaction run more smoothly. Go here to read more. http://floridarealtor.imirus.com/Mpowered/imirus.jsp?volume=fr&issue=1&page=21
Remember that Colonial Guaranty & Title is here to help you close your Short Sale deals. We are happy to negotiate the short sales for you. Please feel free to contact either Maria@colonialtitle.us or Mey@colonialtitle.us for more information on our Short Sale services..
What's all the hype about Facebook, LinkedIn and Twitter......read on.....
Use Facebook and LinkedIn to reduce spam and build your referral network Using social media is one of the best ways to eliminate spam. Only people you approve can send you messages. Furthermore, when you meet a potential buyer or seller, invite them to join your LinkedIn network where they can see testimonials from past clients, access your list of preferred vendors, and contact other helpful resources in your community.
Social media -- the best way to reach your consumers?
According to keynoter Gary Vaynerchuk, the best way to succeed online today using social media is to "embrace your DNA." This means being honest about who you are and being transparent (i.e. being as open as possible about all aspects of the real estate transaction). Vaynerchuk also shared what he did to sell wines from his store. Here are his stats: billboards yielded 170 orders; direct mail 302 orders; radio 240 orders; Twitter 1,700 orders. The first three advertising media cost considerable amounts of money, while Twitter costs nothing. The key is to engage in the conversation and to avoid doing infomercials about you. For the rest of the story....go here: http://www.inman.com/buyers-sellers/columnists/berniceross/tech-tools-real-estate-survival
UPCOMING EVENTS AND WEBINARS
Quick Start Loan Modification Advisor Training 101
We are hosting an Educational Meeting on Mortgage Modifications. As a Mortgage and Real Estate Professional you have been bombarded by numerous requests and offers from Mortgage Modification Companies.This seminar will empower you to know the various options available to you and your clients so they can SAVE THEIR HOME !
By attending this seminar you will learn the following:
1) What is a Mortgage Modification
2) What are a client's options including Forbearance, Short Sale, Deed in Lieu of Foreclosure
3) What types of Mortgage Modification Companies are Available
4) What is the benefit of an Attorney Affiliated Modification Company
5) Income opportunities and How to Evaluate which compensation program is best for you
By being informed in Mortgage Modification you will be in a better position to garner client trust and thus increase your income from Mortgages through added referrals and a Trusted Advisor Relationship
Immediately following this seminar we will have a Client Educational Seminar that will provide your clients with the options they have available to them so they may make informed decisions about their home with You as their Trusted Advisor.
Stop losing clients because you can't affect a mortgage for them. Attend this seminar and bring an Associate with you.
Feel free to forward this invitation to your Financial Colleagues
log on to Thu, Feb 12, 2009 7:00 PM - 7:45 PM EST for this weeks webinar.
Quote of the week
Those who are fired with an enthusiastic idea and who allow it to take hold and dominate their thoughts find that new worlds open for them. As long as enthusiasm holds out, so will new opportunities. - Norman Vincent Peale
Warm regards,
Meyling Calero, VP of Public Relations
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| This message was sent from Meyling Calero to email@example.com. It was sent from: Meyling Calero, 1790 west 49 street #215, hialeah, fl 33012. You can modify/update your subscription via the link below. |
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Dear Friends: Enjoy this week's Real Estate Update.
Washington Report: Seizure of Fannie and Freddie
by Kenneth R. Harney/Realty Times
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The dramatic seizure of Fannie Mae and Freddie Mac by the federal government has had no downsides for real estate -- although it could ultimately cost taxpayers billions if the companies' loan portfolios continue to bleed red ink.
So how does that all sort out for individual home buyers, sellers, builders and real estate professionals?
Here's a quick overview with a Washington perspective: Fannie and Freddie provided -- and will continue to provide -- liquidity to the American home mortgage market ... that is, plenty of money for qualified buyers and refinancers.
They're not going away. Only their top brass pulling down eight figure annual salaries and $100,000 country club membership perks are going away.
And most lamented of all in the corridors of Capitol Hill, the two companies' notoriously generous political action committees, which put $3 million into the campaign coffers of carefully selected congressional and Senate leaders in recent years, are going away.
Ironically, although Fannie and Freddie claimed that they lowered mortgage rates, the reality is that the biggest impact they ever had on ordinary folks' interest rate quotes was when the feds busted in and took them over.
Rates dropped anywhere from half a point to three quarters of a point within the first week, slashing hundreds of dollars off monthly principal and interest payments for thousands of home buyers and refinancers who rushed to lock during the free fall.
Government rule of the bankrupt companies is likely to extend through 2009 -- or as long as it takes for Congress and a new administration to figure out how to reconstruct them.
In the meantime, it should be pretty much business as usual for new borrowers. But don't expect federally-run Fannie and Freddie to get out front and innovate with lower downpayments or easier underwriting standards.
Anyone needing a really low downpayment or more consumer-friendly credit to buy a house will need to turn to FHA, not Fannie or Freddie. Between now and January 1, FHA will be able to do 3 percent down loans of up to $729,750.
After January 1, FHA will offer 3 and a half percent downpayments on maximum loans of $625,500. Fannie and Freddie will have the same upper limit for high-cost areas, but won't be able to come close on downpayments or credit standards.
Bottom line: Weep not for Fannie and Freddie, who drove themselves into bankruptcy. Instead, raise your glass and toast FHA. It's been around since the Depression, its leaders aren't paid millions, and for many home buyers it's going to be the only game in town.
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If you missed the REO FORUM:
Last Thursday's BRIC REO FORUM meeting was informative and I am sure eye opening to many attendees.
We had a huge crowd that heard from so many speakers on numerous topics related to foreclosures.
Here is what a BRIC member sent me Friday:
"About the BRIC/REO FORUM meeting last night, it was one of the most informative meetings I have been to. The REO Forum was eye opening. Now, I've got a better understanding of the "whole" picture of the real state market in South Florida today and in the near future!"
Sincerely, Guy Culverhouse
A few takeaways from this was the insight on the new Fannie/Freddie bailout, the foreclosure timeline, updated short sale information, tri-county foreclosure data, and so much more. This event was recorded and we will let you know when it will be available.
The REO Forum was taped "live". If you would like a copy of the CD to play in your car or home, please make sure to contact me and I will be happy to supply you with this timely and value driven information.
FYI: Sales Volume and Median Sale Prices:
Information supplied by Sun Sentinel
Browse 2008 sales by month:
JAN | FEB | MAR | APR | MAY | JUN | JUL | AUG | SEP
Browse 2007 sales by month:
JAN | FEB | MAR | APR | MAY | JUN | JUL | AUG | SEP | OCT | NOV | DEC
Browse 2006 sales by month:
JAN | FEB | MAR | APR | MAY | JUN | JUL | AUG | SEP | OCT | NOV | DEC
Previous years: 2005 | 2004 | 2003 | 2002 | 2001
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City
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YTD Median Price
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YTD Home Sales
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Palm Beach
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$ 1.2M
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387
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Parkland
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$ 729K
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705
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Highland Beach
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$ 568K
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187
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Boca Raton
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$ 420K
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1,570
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Lighthouse Point
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$ 415K
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251
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| <form enctype="application/x-www-form-urlencoded" method="get" accept-charset="UNKNOWN">
Other CitiesAtlantisBelle GladeBoca Del MarBoca RatonBoynton BeachCloud LakeCoconut CreekCooper CityCoral SpringsDania BeachDavieDeerfield BeachDelray BeachFort LauderdaleGlen RidgeGolfGreenacresGulf StreamHallandale BeachHaverhillHighland BeachHillsboro BeachHollywoodHypoluxoJuno BeachJupiterJupiter Inlet ColonyLake Clarke ShoresLake ParkLake WorthLake Worth CorridorLantanaLauderdale LakesLauderdale-by-the-seaLauderhillLazy LakeLighthouse PointLoxahatchee GrovesManalapanMangonia ParkMargateMiramarNorth LauderdaleNorth Palm BeachOakland ParkOcean RidgePahokeePalm BeachPalm Beach GardensPalm Beach ShoresPalm SpringsParklandPembroke ParkPembroke PinesPlantationPompano BeachRiviera BeachRoyal Palm BeachSandalfoot CoveSea Ranch LakesSouth BaySouth Palm BeachSouthwest RanchesSunriseTamaracTequestaUninc. BrowardUninc. Palm Beach (East)Uninc. Palm Beach (North)Uninc. Palm Beach (Northeast)Uninc. Palm Beach (Southeast)Uninc. Palm Beach (West)WellingtonWest BocaWest BoyntonWest DelrayWest Palm BeachWest ParkWestonWilton Manors
</form> |
WHO SAYS NOTHING IS FREE??????? Well, I found some very valuable information for you that is just that......FREE. This informative video is offered by one of my friends and local Realtor , Justin Zimmerman who just launched
Take a look at what is available to you:
Million Dollar producer call with 3
mega agents on Thursday night at 8pm EST.
http://goodmorningrealestate.com/mastermind
On this call you'll learn:
*news ways to measure and define success!
*the systems and programs they use!
*why it's easier to sell $2,000,000 homes
*the silly mistakes that cost them big bucks!
*how they relax and spend their free time!
*most challenging part of growing a team!
*what new technology excites them!
On the call you'll meet:
Speaker #1:
Michael Morrison
aka: The Luxury Market Maven
brokerage: Sotheby's International
famous lines: "my average commission is $25,000"
Speaker #2:
Walter B. Williams III
aka: The Rookie Rock Star
brokerage: Sundance Realty
famous lines: "last year I did $500,000"
Speaker #3:
SECRET AGENT-X
aka: The Mega Volume Producer
brokerage: Realty Executives
famous lines: "I'm doing 1,000,000+ in commissions"
Seminars and upcoming events for your consideration:
Short Sale Seminar: Floyd Wickman Productions Workshop, October 3, 2008, Signature Grand.
Mentor with the Millionaires Conference, September 20, THIS SATURDAY, Boca Raton Marriott.
Like to Play Golf????? Want to get rid of some STREZZ???? Looking to have fun while networking???? Women's Council of Realtors Golf Tournament with portion of proceeds to benefit Habitat for Humanity. Register Now to play. Would you like to be a sponsor at the event? Click here for more information:
http://wcrpalmbeach.com/golf/index.html
Would you like to view more articles like this? Log onto: www.colonialtitle.us
Go to the Online Center and Click the Daily News and Advise button.
Knowledge is Power
"Success does not create Happiness...Happiness creates Success...Be Happy"
Here's to your success,
Maria Elena Arias ,CEO
Meyling Calero, VP of Public Relations
Dear friends and customers: Enjoy this week's Real Estate Update......
Banks are forced to sell homes for even less than the owner owed
By Michael Braga
The foreclosure crisis is clearly giving lenders a massive headache, but it is also providing once-in-a-lifetime buying opportunities for homeowners and investors.
During the 12 months ended July 31, lenders issued 7,905 "lis pendens" filings -- the first step in a foreclosure -- against borrowers who failed to make their mortgage payments in Sarasota County, court records show.
During the same period, the 25 lenders with the most foreclosures in Sarasota resold 918 properties that they had seized from borrowers.
"These properties are selling at deep discounts from what they sold for at the height of the boom," said Margaret Amador, a Sarasota-based short-sale and foreclosure specialist.
The Herald-Tribune looked at 66 of 135 foreclosure sales that Deutsche Bank has completed since January and determined that those properties sold on average for 44 percent less than Deutsche Bank was owed by the previous owners.
James Slocum, for example, bought a house at 2210 McTague St. in North Port for $251,9000 in December 2005 and borrowed $226,700 to finance the deal. Deutsche Bank foreclosed on the loan in June 2007 and won a $246,576 judgment the following month.
Deutsche Bank then sold the three-bedroom two-bath house to Matthew White in December 2007 for $138,500, or 44 percent less than the giant German bank was owed.
Similarly, Timothy Delvescovo bought a condominium at the Dolphin Tower in Sarasota in January 2006 for $387,500 and initially obtained two mortgages for exactly that amount. Seven months later, Delvescovo refinanced, obtaining a $498,750 loan.
Deutsche Bank foreclosed in May 2007 and won a $533,849 final judgment in September. The bank then sold the property to Alexey Golubov for $300,000 in March. Once again, the price was 44 percent less than the bank was owed.
The Herald-Tribune examined Deutsche Bank sales closely because the German powerhouse had more foreclosures filings in Sarasota than any other mortgage lender, a total of 833 since August 2007, court records show.
Deutsche Bank is further up the foreclosure list than local heavyweights like Bank of America, SunTrust and Wachovia because it got into the region's housing boom late, said Ken Thomas, a Miami-based economist who specializes in analyzing the banking industry.
"Local banks are usually the first ones in a market, and when they see problems building, they are the first ones out," Thomas said. "Lenders like Deutsche Bank and HSBC were the last ones in and the last ones out."
Bargains to be had
Al Holmes is one of the people who recently scooped up a property out of foreclosure.
"We bought the house we're currently living in," said Holmes, a Sarasota real estate investor and owner of about 20 rental properties. "Under normal conditions we would not have been able to afford it."
Holmes said he and his wife tried to buy the three-bedroom house off 49th Street in Sarasota through a short sale. They offered $280,000. But Lehman Brothers Bank, which had lent $427,500 to the previous owner, declined the offer.
After the bank seized the house, the Holmes entered a new round of negotiations and ended up paying $315,000. By that time, the bank had put a new roof on the structure and made other improvements, Holmes said.
Court records show that the former owner, Marshall Matthews, paid $475,000 for the house in November 2005, and Lehman ultimately sold the house to Holmes for 26 percent less than it was owed.
Holmes said he would love to buy other foreclosed properties. But as a semi-retired real estate investor in the midst of a credit crunch, it is hard to come up with the capital.
"Two years ago, banks were calling me and begging me to borrow money," Holmes said. "But I cannot borrow today unless it's for a private residence."
John Schaub, a local real estate investor and author of a newly released book, "Building Wealth Buying Foreclosures," is in a different situation.
"We have bought a number of houses in the past few weeks," Schaub said. "I buy in specific neighborhoods. When I find a foreclosure I make an offer."
Schaub said foreclosures are easy to find these days. There is either a sign in front of the house, or the lawn looks like it needs serious mowing. Either way, Schaub goes back and plugs the address into the Zillow.com Web site to find out whether the property is on the market and who to contact.
"There is no point trying to contact the lender," Schaub said. "It is best to try to find the local Realtor who has listed the property."
Two local specialists that handle a lot of short sales and foreclosures are Al Dumas of Re/Max Properties and Chip Waterman at Hunt ERA Realty Co.
Amador, who left Coldwell Banker in January, also focuses exclusively on short sales and foreclosures.
She said part of her job involves contacting borrowers on behalf of loss mitigation companies around the country. If the borrowers get behind on their mortgages, Amador tries to help them by explaining their options. If that does not work, Amador assists the lender in selling the property.
"When a lis pendens is filed, that's when the train has already left the station," Amador said. "If you are a Realtor, you have to try to outrun that train."
It is much better for sellers to work out short sales, in which they convince a lender to sell the property for less than is owed, Amador said. Sellers who engage in successful short sales only have to wait two years before applying for an FHA loan to buy another house, Amador said. If the bank forecloses, the homeowner has to wait five years.
"A short sale is the best way out, but you have to find someone who knows what they're doing," Amador said. "The problem is that short sales take time and success is not a certainty."
Loan fund to help develop affordable housing / South Florida Business Journal Monday, August 25, 2008
The National Trust Loan Fund has created a $5 million loan pool to help develop affordable housing in cities across the country, including Miami http://www.bizjournals.com/southflorida/stories/2008/08/25/daily7.html?f=et8
Florida home sales up, prices continue to fall / South Florida Business Journal Monday, August 25, 2008
For the first time in two years, single-family home sales rose in Florida last month, according to the Florida Association of Realtors. However, median sales prices continued their decline http://www.bizjournals.com/southflorida/stories/2008/08/25/daily5.html?f=et8
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Mark your calendars:
Mentor with the Millionaires Conference, September 20, Boca Raton Marriott. Extra terrific event for you to consider.
REO Forum: September 11, 2008, You DO NOT want to miss this special event. Panel of Experts (and I do mean "experts") divulge their REO secrets. This "special program" will be held within the BRIC meeting @ The Hilton in Deerfield Beach. I will be hosting and moderating the panel......a MUST ATTEND event. This will be a SOLD OUT event...rsvp directly to me to reserve your seat. Special invitations will be distributed next week.
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="Success does not create Happiness...Happiness creates Success...Be Happy"
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Meyling Calero, VP of Public Relations
Dear friends and customers: Here is this week's Real Estate Update......
Tax 'Mess' Muddles Short Sales Of Homes
By SHANNON BEHNKEN
The Tampa Tribune
Published: August 13, 2008
TAMPA - As Florida's coffers shrink in the face of a dour economy, confusion over a tax statute threatens to choke the flow of home sales at a time when the state is struggling under the burden of millions of unsold properties.
The problematic statute mandates how much tax people pay when they sell a house.
In typical transactions, the law is clear about paying taxes on the price of the property, but as lenders agree to more short sales - allowing troubled owners to sell homes for less than the mortgage and writing off the rest - there's disagreement over how much tax to charge.
Some say the tax should be charged on the lower price, a practice that is standard across the state.
Others wonder whether the tax should be based on the amount of the mortgage.
Although the difference may add up to only about $300 on a typical short-sale transaction, multiply that by hundreds of thousands of properties across the state and the impact is substantial.
Millions of dollars in lost tax income are at stake for Florida's financially struggling government.
Also, lenders trying to clear their books of homes in foreclosure face much higher expenses when selling the homes.
Meanwhile, industry players fear a bottleneck created by the confusion could halt short sales, one of the largest categories of homes selling now.
"This is an ugly result," said Burt Bruton, a Miami-based real estate lawyer who teaches real estate tax certification courses for the Florida Bar.
"No matter how you cut it, there's going to be some pain for somebody. It's a mess," Bruton said.
For now, it's up to the Florida Department of Revenue to set the record straight. Bob McKee, deputy executive director for the department, said his office has been asked by some legislators and real estate professionals to interpret how the statute applies to short sales.
That's a tough assignment, he said, because the statute does not specifically address short sales.
"Short sales are so new that they could not have been explained in the statute," he said.
"We need to make sure we have all the information we need, and we have yet to come upon something in our legal research to make a decision," he said.
McKee said his office doesn't want to rush to any conclusion because its ruling will be binding, unless the Legislature decides a new statute is needed.
That's something some real estate professionals vow to push for.
A Stack Of Delayed Closings
Short sales are already stacking up at some area title companies where they have changed how they charge the tax.
Gary Davis, who owns First Affiliated Title Services in New Port Richey, said he has decided to charge the tax, called a documentary stamp, based on the higher amount, not the sales price.
The policy change means all the short sales that were in the works at his office had to be sent back to the lender for approval, delaying the closings.
"My feeling is this is nothing to mess around with," said Davis, who is also a real estate lawyer.
"If we were audited and they found out we didn't charge enough, there could be massive penalties," Davis said.
"And I don't want to have to go back and tell the homeowner they have to pay more," Davis said.
This worries real estate agents and financially troubled homeowners trying to close on short sales, said Greg Armstrong, president of the West Pasco Board of Realtors and a director of the Florida Association of Realtors.
Although some title companies won't close without the higher amount of tax paid, some lenders refuse to pay it until the state says it's owed, he said.
"I have six short sales that were ready to go," he said. "Now they're just sitting on my desk."
That could be a big problem, considering the number of short sales in the pipeline.
This time last year, very few lenders would even consider a short sale.
Now, with foreclosures skyrocketing, lenders had to do something.
There were 14,960 foreclosure filings in the Tampa metro area during the second quarter, up 159 percent from the same period last year.
Late last year, the pace of short sales picked up dramatically, and they're so prevalent now that some real estate agents and title companies specialize in getting short sales approved by lenders.
No one tracks the number of short sales, but nearly 20 percent of the 16,677 homes in the Hillsborough County area that are on the market with real estate agents are listed as short sale offers or preforeclosure properties, said Brad Monroe, a real estate agent and former president of the Greater Tampa Association of Realtors.
"Anecdotally, I could easily see it as being double," he said.
Armstrong estimates that has many as 60 percent of the recent sales in the west Pasco County area were short sales.
Phantom Clerk Spooks Industry
The tax controversy started because of a rumor no one can seem to track down. McKee said industry professionals and legislators say they've heard of at least one Florida clerk of circuit court who has started to charge the documentary stamps based on the higher amount. Officials in Bay area counties say they've always used the sales price.
Bruton said he thinks the statute is worded loosely enough that it could include the debt amount. That's why, he said, the Legislature will likely have to hear the issue and consider the consequences.
"The tax is applied to what the sellers get," he said. "And in a short sale, the seller is getting off the hook for the mortgage shortfall."
In Florida, the seller of a property pays the documentary stamp tax, which is 70 cents for each $100.
Consider the sale of a home in which the seller owes $250,000 on the mortgage. If the sales price in today's market is $200,000, the tax based on that price would be $1,400. Since the shortfall is $50,000, the state could have charged an additional $350.
Although that doesn't sound like a deal-breaker on one loan, lenders with lots of short sales could lose even more money. That's on top of millions they're already losing in failed loans. For the state, it could spell a way to make up for budget shortfalls.
There were an estimated $2 billion in documentary stamp taxes collected during the budget year that ended in July. That was more than half what it was at the peak, in the 2005-06 budget year, said Amy Baker, coordinator of the legislative office of Economic & Demographic Research.
State Sen. Mike Fasano, R-New Port Richey, said he understands the state's budget needs but is concerned about anything hindering a turnaround in the real estate market. Fasano asked for the ruling from the state Department of Revenue two weeks ago.
"These properties are already ready to be foreclosed on," Fasano said. "If these short sales don't happen, I'm worried it could really hurt our market."
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Knowledge is Power !
"Success does not create Happiness...Happiness creates Success...Be Happy"
Here's to your success,
Meyling Calero
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