Real Estate Talk with Mey

http://meyling-realestateblog.blogspot.com/

Meyling Calero, is a licensed real estate sales associate for RMG Realty Group Inc. Miami, Florida selling residential real estate and assisting homeowners in distress through-out Miami Dade and Broward County.

Meyling has earned her SFR certification, a Short Sale, Foreclosure Resource Specialist, to be better serve the needs of her customers in today's real estate market. SFR Designees have been trained to understand the many options available to homeowners facing short sales & foreclosures.

For more information on your Real Estate needs or concerns, contact Meyling at MeylingCalero@aol.com or Visit www.MeylingRealEstate.com

Some banks lower appraisals, killing sales

Meyling Calero (RMG Realty Group) — Tue, 13 Jul 2010 22:41:08 -0700

WASHINGTON - July 13, 2010 - It's a common Realtor complaint: A property going to contract appraises for less than expected. The buyer cannot put more down; the seller will not lower the price; the sale falls apart.

In some cases, however, the appraiser is not the cause. Banks - fearful of Fannie Mae and Freddie Mac policies that mete out punishment if a house is over-valued - err on the side of caution by shaving value off the appraisal. If guilty of price inflation, they could be forced by Fannie Mae to buy back the mortgage at a substantial cost. By dropping the appraisal value, they hope to avoid any suggestion that they inflated the numbers.

Frank K. Gregoire of St. Petersburg, vice chairman of the National Association of Realtors' Appraisal Committee, calls the problem widespread. Many sales are "sabotaged by lenders and underwriters arbitrarily reducing the (appraiser's) value estimate."

According to Gregoire, many lenders try to double-check an appraiser's work by ordering a low-cost electronic valuation. The electronic version uses only readily available public records and no on-site inspection, making it less reliable than a true appraisal. However, banks many times get scared if the electronic version is lower than the physical version, and they downgrade the true appraisal value to protect themselves. At other times, they ask the appraiser to explain the price difference, which can also delay closing.

The rules are about to change

Recognizing a problem, Fannie Mae instituted a new rule that becomes effective on Sept. 1. After that date, banks selling their loans to Fannie Mae can no longer simply drop the appraisal value. In guidance issued June 30, Fannie Mae told its participating lenders that they must contact the appraiser to "resolve" disagreements. If that fails, banks must order a second appraisal. In either case, lenders cannot simply drop the original value that supports a sales contract.

A number of appraisers hailed the change as great news.

Pat Turner, an appraiser in Richmond, Va., said that electronic appraisals don't consider property condition and "are often inaccurate." According to Turner, he once did a physical appraisal of a property that a California-based firm also did electronically. Afterward, the lender's review company asked Turner why he did not use one of the comps the electronic firm used. Turner investigated and said he found out that one "comp" was actually a vacant lot, and worth far less than the property being sold.

Fannie Mae's rule change also attempts to deal with other appraiser complaints, such as the use of inexperienced appraisers who travel to unfamiliar territory by clarifying "appraiser selection" standards.

Fannie Mae and Freddie Mac back about half of all U.S. mortgages, and Freddie Mac officials, when asked about Fannie Mae's announced rules, said they're "looking at it."

Source: Kenneth R. Harney

© 2010 Florida Realtors®

Meyling Calero

RMG Realty Group Inc.

Lic. Real Estate Sales Associate

Short Sale Specialist

Home Retention Consultant

http://meyling-realestateblog.blogspot.com/

For more information on your Real Estate needs or concerns, contact Meyling at MeylingCalero@aol.com or Visit www.MeylingRealEstate.com

Banks Repossess 4,000 South Florida Properties Per Month

Meyling Calero (RMG Realty Group) — Tue, 13 Jul 2010 22:25:19 -0700

Article courtsey of Condo Vultuers Sunday, 11 July 2010 19:52 http://www.condovultures.com/home/6335-banks-repossess-4000-south-florida-properties-per-month-in-2010.html

Banks repossessed an average of 4,000 South Florida properties per month in the first half of 2010, representing an 83 percent year-over-year increase for the tricounty region of Miami-Dade, Broward, and Palm Beach, according to a new report from CondoVultures.com.

Miami-Dade led the surge, experiencing a 125 percent spike in repossessions - also known as Real Estate Owned by banks (REO) - on a year-over-year basis. Palm Beach experienced a 112 percent jump while Broward's repossessions increased 42 percent, according to the report based on Circuit Court records from Miami-Dade, Broward, and Palm Beach.

At the current pace, nearly 50,000 properties would be repossessed in South Florida in 2010, which would significantly outpace the modern day high of 30,400 repossessions that lenders took control of in 2009. Lenders repossessed nearly 26,250 properties in 2008 after taking title to 10,100 properties in 2007, according to the report.

"South Florida's real estate market is at a crossroads," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC. "The number of bank repossessions in 2010 is higher than at any time in at least two decades. This additional bank-owned inventory will undoubtedly be coming onto the resale market in the near future as discounted REO product.

"The flip side is, the number of new foreclosure filings in South Florida is down 34 percent in the first half of the year, putting the region on pace for less than 70,000 actions in 2010 compared to 97,000 in 2009."

Despite the spike in repossessions, bank-owned properties still represent only about six percent of the 67,000 residences on the resale market in the tricounty South Florida region as of July 12, according to a new CondoVultures.com report.

South Florida's residential inventory has increased on a weekly basis for five of the last six weeks, representing a 2.7 percent jump in available product since May 31. Still, the overall resale inventory is down more than 37 percent from November 2008 when there were nearly 108,000 residences available in South Florida, according to licensed Florida brokerage Condo Vultures® Realty LLC.

Market conditions aside, another key reason the number of bank repossessions has increased this year is the implementation of a new online auction technology being used by the South Florida circuit courts to clear the backlog. The online auction technology now allows hundreds of properties to be auctioned off more efficiently, industry watchers said.

Before the online auction software was adopted independently in the first quarter of this year, each of three South Florida counties fulfilled the last step in the foreclosure process by holding courthouse auctions as many as five days a week in attempt to clear the backlog of properties. The problem was, only so many auctions could be held each day despite the best efforts by the court officials.

With the new improved online auction process, lenders are taking title to properties from defaulted borrowers at a much quicker pace but still not as fast as before the South Florida real estate crash, industry watchers said.

At the start of the housing crash in 2007, lenders estimated the typical foreclosure would take about six months to repossess a property at a cost of about $40,000 in the loss of debt service, damage, court courts, and attorneys fees. By 2009 as the foreclosure filings were spiking, the process extended out to an average of 18 months with an estimated cost of at least $100,000 per repossession, according to a recent CondoVultures.com report.

Lenders repossessed 15,100 properties between April and June 2010, representing a 152 percent increase compared to the 6,000 properties repossessed during the same three month period in 2009, according to the report.

In the first quarter of 2010, lender repossessed nearly 9,200 properties, representing a 25 percent increase over the 7,300 properties taken back between January and March 2009, according to the report.

Miami-Dade, where Aventura, Coral Gables, and Miami Beach are located, has experienced more than 11,000 bank repossessions this year. After experiencing only 700 and 750 repossessions respectively in the first two months of 2010, the repossessions spiked to 1,300 in March, 1,700 in April, and 2,500 in May. In the month of June, Miami-Dade's repossessions eclipsed 4,000 in 30 days, according to the report.

Broward, where Fort Lauderdale, Hollywood, and Pompano Beach are located, has experienced a more consistent number of bank repossessions in the first half of the year. Broward's monthly repossessions have consistently ranged from 1,200 to 1,900 in 2010, according to the report.

Palm Beach, where Boca Raton, Delray Beach, and West Palm Beach are located, has experienced between 350 and 950 bank repossessions per month in the first half of 2010, according to the report.

Since the housing market crashed in 2007, there have more 91,000 repossessions in South Florida with Miami-Dade accounting for 43 percent, Broward an additional 42 percent, and Palm Beach the remaining 15 percent, according to CondoVultures.com.

"The unknown is how many of the more than 240,000 foreclosure filings initiated in South Florida since January 2007 are going to end up as bank repossessions," Zalewski said. "Right now, the ratio for repossessions-to-foreclosure-filings is about 38 percent and climbing."

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Don't forget to sign up for our weekly Market Intelligence Report^TM for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database^TM or view our Video Gallery. Looking for bulk projects direct from developers or lenders? Visit the Condo Vultures® Bulk Deals Database^TM. Our new books, the Official Condo Buyers Guide to Miami^TM , Official Condo Buyers Guide To South Beach^TM, Official Condo Buyers Guide to Sunny Isles Beach^TM, Miami's Great Condo Crash: A Chronicle of the Boom and Bust^TM , and the First-Time Home Buyers Guide To South Florida^TM are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database^TM.

Meyling Calero

RMG Realty Group Inc.

Lic. Real Estate Sales Associate

Short Sale Specialist

Home Retention Consultant

http://meyling-realestateblog.blogspot.com/

For more information on your Real Estate needs or concerns, contact Meyling at MeylingCalero@aol.com or Visit www.MeylingRealEstate.com

House approves homebuyer tax credit extension

House approves homebuyer tax credit extension

Meyling Calero (RMG Realty Group) — Wed, 30 Jun 2010 08:58:26 -0700

By Tami Luhby, senior writerJune 30, 2010: 8:44 AM ET

NEW YORK (CNNMoney.com) -- The House of Representatives voted Tuesday to give first-time homebuyers three more months to close on their purchases and land an $8,000 federal income tax credit. But the Senate had better act fast - the deadline is currently Wednesday

The bill doesn't help anyone currently shopping for a home. Buyers must have signed a contract by April 30 to qualify for the tax break. At issue is when the deal must be finalized.

The House voted 409 to 5 to delay the closing deadline to Sept. 30 in a stand-alone measure. The move comes nearly a week after the Senate failed to advance a much larger jobs bill that contained the tax credit provision.

The smaller House bill would raise the deficit by $9 million over a decade. An estimated 200,000 people may miss out on the tax credit because they won't be able to close by close of business Wednesday. Many are trying to take advantage of short sales, which are complicated deals to complete.

The measure also seeks to reduce fraud associated with the credit. Some 1,300 prison inmates are thought to have claimed and received more than $9 million in tax credits, according to a Treasury Inspector General for Tax Administration report released earlier this month. The bill would allow the Internal Revenue Service to disclose tax return information to prison administrators.

Senate Democrats introduced a similar bill Tuesday, with Majority Leader Sen. Harry Reid, D-Nev., saying the measure "should be passed swiftly."

In a related move, the House failed to pass a measure extending the deadline to file for unemployment benefits until Nov. 30. More than 1 million people are estimated to have exhausted this lifeline since the deadline expired earlier this month. The provision, which would raise the deficit by $34 billion, was also included in the Senate bill that failed to advance last Thursday.

The House is expected to take up the legislation again on Wednesday. The Senate bill introduced Tuesday evening would also extend benefits through November.

Meyling Calero

RMG Realty Group Inc.

Lic. Real Estate Sales Associate

Short Sale Specialist

Home Retention Consultant

http://meyling-realestateblog.blogspot.com/

For more information on your Real Estate needs or concerns, contact Meyling at MeylingCalero@aol.com or Visit www.MeylingRealEstate.com

Do you HAM before you HAFA?

Meyling Calero (RMG Realty Group) — Wed, 30 Jun 2010 08:49:13 -0700

Home Affordable Modification
Many homeowners are struggling to make their monthly mortgage payments perhaps because their interest rate has increased or they have less income. A Home Affordable Modification will provide them with mortgage payments they can afford.

Home Affordable Foreclosure Alternatives
Many homeowners may feel that they can no longer afford their home, but want to avoid the negative effects of foreclosure. The Home Affordable Foreclosure Alternatives Program offers homeowners $3,000 to help transition to more affordable housing when they complete a short sale or deed-in-lieu of foreclosure.

For more details on the HAM and HAFA program and how it can benefit you and your client please feel free to contact me.

Colonial Guaranty & Title , Inc. located in Miami Fl is providing FREE Seminars on the 411 of these two programs...

Here is the Direct link for Elibality to the HAM or HAFA programs...

http://makinghomeaffordable.gov/eligibility.html

Meyling Calero

RMG Realty Group Inc.

Lic. Real Estate Sales Associate

Short Sale Specialist

Home Retention Consultant

http://meyling-realestateblog.blogspot.com/

For more information on your Real Estate needs or concerns, contact Meyling at MeylingCalero@aol.com or Visit www.MeylingRealEstate.com

Modified mortgages faltering

Meyling Calero (RMG Realty Group) — Fri, 25 Jun 2010 08:38:52 -0700

WASHINGTON - June 22, 2010 - More troubled mortgage borrowers are failing out of the Obama administration's foreclosure-prevention program than are winning permanently lower home payments, the government reported Monday.

Borrowers who qualify for the Making Home Affordable program receive a three-month trial modification, and if they stay current on payments, they can receive a permanent modification.

Over about the past year, 340,459 homeowners got permanent modifications under the Making Home Affordable program. But 429,696 trial modifications and 6,357 permanent modifications were canceled, often for reasons such as no income verification.

That means about 35 percent of the 1.2 million homeowners enrolled since March 2009 were later found to be ineligible or failed in the permanent modification phase, leaving some to question whether the $50 billion program uses taxpayer funds wisely.

"How much money are we spending for each modification?" says Dean Baker, co-director of the Center for Economic and Policy Research in Washington, D.C. "It's money for banks, not for homeowners. The money spent per homeowner to keep them in their home is going to be pretty high."

About half of homeowners who didn't qualify for a permanent modification still got alternative modifications worked out with their lenders, according to government data from the eight largest mortgage servicers. Seven percent wound up in foreclosure and 3.6 percent in bankruptcy, 9.8 percent brought their loans current, 1.1 percent paid off their loans, and 2.1 percent gave up their homes through a short sale or deed in lieu of foreclosure.

"The bulk of people in those situations are getting alternative modifications with reduced payments," says Herb Allison, assistant Treasury secretary.

The redefault rate among borrowers in the program is about 2 percent, officials said.

The number of trial modifications being launched is slowing. Just 30,099 trials were started in May, compared with 47,160 in April and 91,000 in January.

Allison says the administration is "well on track" to meet its goal of helping up to 4 million homeowners avoid foreclosure. Efforts such as servicers' alternative modifications are included in reaching that mark.

That could be confusing to some housing advocates who mistakenly thought up to 4 million homeowners would get a modification under the federal program, Baker said. But "I don't believe it was a deliberate effort to mislead."

Copyright © 2010 USA TODAY, a division of Gannett Co. Inc., Stephanie Armour. All rights reserved.

Meyling Calero

RMG Realty Group Inc.

Lic. Real Estate Sales Associate

Short Sale Specialist

Home Retention Consultant

http://meyling-realestateblog.blogspot.com/

For more information on your Real Estate needs or concerns, contact Meyling at MeylingCalero@aol.com or Visit www.MeylingRealEstate.com

A Real Estate Recovery in 2013 ???

Meyling Calero (RMG Realty Group) — Fri, 25 Jun 2010 08:29:16 -0700

Economists speaking at the recent annual meeting of the National Association of Real Estate Editors said the housing market likely will not recover until 2013.

Stan Humphries, Zillow chief economist, said home prices continue to decrease, and he sees the "tremendous amount of shadow inventory" delaying recovery. "We think the market will be flat in nominal terms for three to five years," remarked Humphries. "We are not going to hit bottom and see a V-shaped recovery."

Meanwhile, Fannie Mae chief economist Doug Duncan said it will be another three years before new household formation and housing starts pick up. Duncan believes home prices will fall another 1 percent to 3 percent before bottoming out in the third quarter.

Both Humphries and Duncan said the federal home buyer tax credits shifted demand so that buyers took action earlier than they would have otherwise. "We're going to see a payback in July and August," noted Humphries.

Source: Inman News, Glenn Roberts Jr. (06/07/10)

© Copyright 2010 Information Inc.

Meyling Calero

RMG Realty Group Inc.

Lic. Real Estate Sales Associate

Short Sale Specialist

Home Retention Consultant

http://meyling-realestateblog.blogspot.com/

For more information on your Real Estate needs or concerns, contact Meyling at MeylingCalero@aol.com or Visit www.MeylingRealEstate.com

May Shows a Continued Strong Pace for Existing-Home Sales

Meyling Calero (RMG Realty Group) — Fri, 25 Jun 2010 08:21:15 -0700

Washington, June 22, 2010

Existing-home sales remained at elevated levels in May on buyer response to the tax credit, characterized by stabilizing home prices and historically low mortgage interest rates, according to the National Association of Realtors®. Gains in the West and South were offset by a decline in the Northeast; the Midwest was steady.

Existing-home sales¹, which are completed transactions that include single-family, townhomes, condominiums and co-ops, were at a seasonally adjusted annual rate of 5.66 million units in May, down 2.2 percent from an upwardly revised surge of 5.79 million units in April. May closings are 19.2 percent above the 4.75 million-unit level in May 2009; April sales were revised to show an 8.0 percent monthly gain.

Lawrence Yun, NAR chief economist, said he expects one more month of elevated home sales. "We are witnessing the ongoing effects of the home buyer tax credit, which we'll also see in June real estate closings," he said. "However, approximately 180,000 home buyers who signed a contract in good faith to receive the tax credit may not be able to finalize by the end of June due to delays in the mortgage process, particularly for short sales.

"In addition, many potential sales are being delayed by an interruption in the National Flood Insurance Program. Florida and Louisiana, also impacted by the oil spill, have the highest percentage of homes that require flood insurance."

As the leading advocate for homeownership issues, NAR is supporting Senate amendments to extend the home buyer tax credit closing deadline through September 30 for contracts written by April 30, and to renew the flood insurance program. "Sales and related local economic activity would have been higher without delays in the closing process or flood insurance issues," Yun noted.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 4.89 percent in May from 5.10 percent in April; the rate was 4.86 percent in May 2009.

The national median existing-home price² for all housing types was $179,600 in May, up 2.7 percent from May 2009. Distressed homes slipped to 31 percent of sales last month, compared with 33 percent in April; it was also 33 percent in May 2009.

NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said home prices have been stabilizing all year. "With distressed sales at roughly the same level as a year ago, the gain in home prices is a hopeful sign that the market is in a good position to stand on its own without further government stimulus," she said.

"Very affordable mortgage interest rates and stabilizing home prices are encouraging home buyers who were on the sidelines during most of the boom and bust cycle," Golder said.

Pending home sales are expected to decline notably in May and June from the spring surge, but Yun added that job growth and a manageable level of foreclosures are keys to sales and price performance during the second half of the year.

A parallel NAR practitioner survey³ shows first-time buyers purchased 46 percent of homes in May, down from 49 percent in April. Investors accounted for 14 percent of transactions in May compared with 15 percent in April; the remaining sales were to repeat buyers. All-cash sales were at 25 percent in May, edging down from a 26 percent share in April.

Total housing inventory at the end of May fell 3.4 percent to 3.89 million existing homes available for sale, which represents an 8.3-month supply⁴ at the current sales pace, compared with an 8.4-month supply in April. Raw unsold inventory is 1.1 percent above a year ago, but is still 14.9 percent below the record of 4.58 million in July 2008.

Single-family home sales declined 1.6 percent to a seasonally adjusted annual rate of 4.98 million in May from a pace of 5.06 million in April, but are 17.5 percent above the 4.24 million level in May 2009. The median existing single-family home price was $179,400 in May, which is 2.7 percent above a year ago.

Single-family median existing-home prices were higher in 16 out of 20 metropolitan statistical areas reported in May from a year ago. In addition, existing single-family home sales rose in 18 of the 20 areas from May 2009.

Existing condominium and co-op sales fell 6.8 percent to a seasonally adjusted annual rate of 680,000 in May from 730,000 in April, but are 32.6 percent above the 513,000-unit pace in May 2009. The median existing condo price⁵ was $181,300 in May, up 3.4 percent from a year ago.

Regionally, existing-home sales in the Northeast fell 18.3 percent to an annual level of 890,000 in May from a surge in April, but are 12.7 percent higher than a year ago. The median price in the Northeast was $240,200, down 2.2 percent from May 2009.

Existing-home sales in the Midwest were unchanged in May at a pace of 1.33 million and are 22.0 percent above May 2009. The median price in the Midwest was $150,700, up 2.2 percent from a year ago.
In the South, existing-home sales increased 0.5 percent to an annual level of 2.15 million in May and are 22.9 percent above a year ago. The median price in the South was $159,000, up 1.0 percent from May 2009.

Existing-home sales in the West rose 4.9 percent to an annual rate of 1.29 million in May and are 15.2 percent higher than May 2009. The median price in the West was $221,300, up 7.4 percent from a year ago.

The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

Article source: Realtor.org

Meyling Calero

RMG Realty Group Inc.

Lic. Real Estate Sales Associate

Short Sale Specialist

Home Retention Consultant

http://meyling-realestateblog.blogspot.com/

For more information on your Real Estate needs or concerns, contact Meyling at MeylingCalero@aol.com or Visit www.MeylingRealEstate.com

Florida's Existing Home, Condo Sales Rise in May 2010

Meyling Calero (RMG Realty Group) — Fri, 25 Jun 2010 08:07:46 -0700

ORLANDO, Fla., June 22, 2010

- Sales of existing homes in Florida rose 18 percent in May, marking 21 months that sales activity has increased in the year-to-year comparison, according to the latest housing data released by Florida Realtors®.

A total of 16,745 single-family existing homes sold statewide last month compared to 14,172 homes sold in May 2009, according to Florida Realtors. The statewide existinghome median price of $140,400 in May was slightly higher - by $300 - than April's statewide existing-home median price of $140,100. It marks the third month in a row that the statewide existing-home median price has increased over the previous month's median.

Across the state, a variety of housing opportunities continues to be available at attractive prices while mortgage interest rates remain historically low, said 2010 Florida Realtors President Wendell Davis, a broker with Watson Realty Corp. in Jacksonville. "Favorable conditions like this spark buyers' interest," Davis said. "However, like the rest of the world, Floridians are deeply concerned about the long-term ramifications of the April 20th explosion of BP's Deepwater Horizon oil rig, which killed 11 people and triggered the oil spill disaster in the Gulf of Mexico."

Seventeen of Florida's metropolitan statistical areas (MSAs) reported higher existing home and existing condo sales in May. A majority of the state's MSAs have reported increased sales for 23 consecutive months.

Florida's median sales price for existing homes last month was $140,400; a year ago, it was $143,800 for a decrease of 2 percent. The median is the midpoint; half the homes sold for more, half for less.

The national median sales price for existing single-family homes in April 2010 was $173,400, up 4.5 percent from a year earlier, according to the National Association of Realtors® (NAR). In California, the statewide median resales price was $306,230 in April; in Massachusetts, it was $295,000; in Maryland, it was $244,943; and in New York, it was $197,000.

According to NAR's latest industry outlook, factors such as a return of buyer confidence, stabilizing home prices and an improving economy are supporting the market in the federal homebuyer tax credit's wake. "The housing market has to get back on its own feet," said NAR Chief Economist Lawrence Yun, "and now appears to be in a good position to return to sustainable levels even without government stimulus, provided the economy continues to add jobs."

In Florida's year-to-year comparison for condos, 6,779 units sold statewide last month compared to 4,845 units in May 2009 for an increase of 40 percent. The statewide existing condo median sales price last month was $98,700; in May 2009 it was $113,500 for a 13 percent decrease. The national median existing condo price was $171,000 in April, according to NAR. Interest rates for a 30-year fixed-rate mortgage averaged 4.89 percent in May, close to the 4.86 percent averaged during May 2009, according to Freddie Mac. Florida Realtors' sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state's larger markets, the West Palm Beach-Boca Raton MSA reported a total of 887 homes sold in May compared to 737 homes a year earlier for a 20 percent increase. The market's existing home median sales price last month was $235,200; a year earlier it was $232,900 for an increase of 1 percent. A total of 877 condos sold in the MSA in May compared to 676 units sold in May 2009 for an increase of 30 percent. The existing condo median price last month was $99,600; a year earlier, it was $107,500 for a decrease of 7 percent.

Two charts showing statistics for Florida and the state's MSAs are attached. One chart compares the volume of existing, single-family home sales and median sales prices in May 2010 to May 2009 based on Realtor transactions; the other compares the volume of existing, condominium sales and median sales prices in May 2010 to May 2009 based on Realtor transactions.

"Copyright RAMB, Reprinted with permission."

Meyling Calero

RMG Realty Group Inc.

Lic. Real Estate Sales Associate

Short Sale Specialist

Home Retention Consultant

http://meyling-realestateblog.blogspot.com/

For more information on your Real Estate needs or concerns, contact Meyling at MeylingCalero@aol.com or Visit www.MeylingRealEstate.com

Short Sale Pitfalls

Meyling Calero (RMG Realty Group) — Tue, 08 Jun 2010 23:05:01 -0700

Having been on the buying and selling side of numerous short sales, I've encountered many things that can derail a short sale transaction. While many of these will be beyond your control, it's good to be aware of them before you list your home as a short sale or pursue a short sale as a buyer.

1. Buyer offers too little: Every buyer wants a deal. When you find a home you'd like to make an offer on, make sure your Realtor runs a CMA report (comparative market analysis) so that you'll know the current market value of the home. If the home is priced competitively and is in line with recent sales, I strongly advise making a full price offer, or an offer very close to full price, especially if you LOVE the home. This is beneficial for a couple of reasons. When your offer is submitted to the seller's lender, the lender will either hire an appraiser or get a few broker price opinions (BPOs) to determine the market value of the property. Lenders do strongly consider market value before making a decision. If your offer is fair, the lender is more likely to accept it without making a counter offer. If the lender has to give you a counter offer, it adds time to an already lengthy process. Secondly, because many lenders want to see all offers that come in on the property, if your offer is low, the seller and listing agent will be actively seeking higher offers. If a higher offer comes in, you could get bumped. In many cases, the listing agent will notify all parties that another offer came in and advise all parties to submit their highest and best offer. There's a chance you could retain your position but again, you've added time to the process.

2. The seller changes their mind about selling: I just had this happen to some buyers I'm working with and there's really nothing you can do to avoid this scenario. The sellers decided to pursue a loan modification rather than do a short sale. I've also heard of sellers who were unemployed and needed to sell their home but then got employment and decided to keep their home.

3. The lender wants the right to pursue a deficiency: Generally, in the state of Oregon, if your lender files a Notice of Default and pursues a non-judicial foreclosure on your primary residence, after the foreclosure sale, the lender has no right to a deficiency claim on your primary mortgage. (I am not an attorney and am not providing legal advice. If you are faced with this situation, please contact a real estate attorney to discuss.) What I'm seeing happen more and more frequently is that the lender approves the short sale but includes language in the approval letter reserving their right to pursue a deficiency. If the listing agent or the seller's attorney cannot get this language removed, the seller will often terminate the deal and let the property go to foreclosure. I have heard listing agents tell their seller clients that although the lender includes this language in the approval letter, it doesn't necessarily mean the lender will go after them. I think this is based on the fact that we're not seeing it happen very often right now. Keep in mind that the lender has up to 6 years to pursue the deficiency. Just because we aren't seeing it now does not mean they won't down the road. It's ultimately up to you to take your chances but I would never advise my clients to move forward with a short sale based on the fact that we haven't really seen lenders pursue the seller/borrower. The bottom line is, with that language in the approval letter, they can.

4. The 2^nd lien holder demands more money: Many homeowners have 2 loans (or more) on their property. The 80/20 loan was very popular during the peak when home values were still rising. Let's say the current value of the property is $200,000 and the seller has a first loan in the amount of $280,000 and a 2^nd in the amount of $70,000. In this case, if the property sells for $200,000 the first lien holder loses $80,000 and the 2^nd gets nothing, unless the first lien holder agrees to pay the 2^nd something in order to facilitate the sale. Most often, the 2^nd would rather accept a payoff of around $5000 from the 1^st than let the property go to foreclosure and get totally wiped out. Sometimes they will hold their ground and take their chances because they plan to hire a collection agency after foreclosure to pursue the homeowner.

5. The seller's lender determines that the seller has not truly suffered a hardship: Before the lender will agree to a short sale, the seller has to prove that they are unable to keep the property. There must be a hardship, typically things like divorce, unemployment, or overwhelming medical bills. Wanting to sell your house because you're underwater is typically not a hardship. The buyer may wait for 2-3 months for an answer only to have the lender deny the short sale because they determine the seller should be able to make payments and keep the home.

Unfortunately, you don't have much control over these things happening but you can prepare yourself. If you're considering purchasing a short sale, ask your agent to gather as much information as possible from the listing agent about the seller's situation.

Have the sellers truly suffered a hardship?
How many lenders are involved?
Is the seller committed to a short sale?
Will the seller accept and submit multiple offers to their lender?
Is the seller prepared to move forward even if their lender wants the right to pursue a deficiency?

Short sales are no fun for anyone involved but they'll be around for quite some time. To make the process less painful, make sure you are using an experienced short sale agent, whether you're on the buying or selling side. A special designation is not necessary, but make sure you ask how many short sale transactions the agent has closed.

Meyling Calero

RMG Realty Group Inc.

Lic. Real Estate Sales Associate

Short Sale Specialist

Home Retention Consultant

http://meyling-realestateblog.blogspot.com/

For more information on your Real Estate needs or concerns, contact Meyling at MeylingCalero@aol.com or Visit www.MeylingRealEstate.com

Bank of America reaches out to troubled homeowners

Meyling Calero (RMG Realty Group) — Thu, 03 Jun 2010 20:41:43 -0700

Bank offering loan modifications to 10,000 mortgage borrowers

updated 4:13 p.m. ET, Wed., June 2, 2010

NEW YORK - Bank of America Corp. said Wednesday it has contacted 10,000 of its most troubled mortgage borrowers about its new loan forgiveness program.

The country's largest mortgage servicer expects the first modifications to start in late June, Jack Schakett, a company credit loss mitigation executive, said on a conference call.

In March, the company rolled out a relief plan to reduce the mortgage principal by up to 30 percent for those homeowners who have missed at least two monthly payments and owe 20 percent or more than their home is currently worth. Only certain types of loans originally issued by Countrywide Financial Corp. qualify.

The offer to forgive portions of some customers' total mortgage balances is part of a broader initiative begun in late 2008 under the bank's National Homeownership Retention Program.

Charlotte, N.C.-based Bank of America launched the program after reaching an agreement with state attorneys general to settle charges over high-risk loans made by Countrywide. The loans were made before Bank of America acquired the Calabasas, Calif.-based mortgage lender in mid-2008. Bank of America has since stopped making those loans.

The company will forgive a portion of the principal over three or five years depending on the borrower's situation. The borrower can't miss any monthly payments under the plan to stay eligible.

The bank expects to reach out to about 45,000 customers over the next several years for this program.

Schakett didn't estimate how much money Bank of America may lose, but he said it already has reserved cash for many of these delinquent loans.

"The good news is we believe the loss will be smaller than if we go through foreclosure," he said.

The federal government will pay 18 percent of the forgiven principal under the three-year plan, Schakett said. It will pay the same percentage for three years only under the five-year plan. Bank of America expects to steer most borrowers into the three-year plan.

Shares of the bank rose 37 cents to $15.80 in afternoon trading.

Meyling Calero

RMG Realty Group Inc.

Lic. Real Estate Sales Associate

Short Sale Specialist

Home Retention Consultant

http://meyling-realestateblog.blogspot.com/

For more information on your Real Estate needs or concerns, contact Meyling at MeylingCalero@aol.com or Visit www.MeylingRealEstate.com

Two Types of Sellers. Which are you?

Meyling Calero (RMG Realty Group) — Wed, 02 Jun 2010 22:00:59 -0700

Pick a price, any price for your home. Now wait. Eventually, someday, someone will probably be willing to pay you that price. The question is - Do you have the time or the desire to wait for that to happen or would you rather sell your home now for a reduced amount of money? Welcome to the Price VS Time dilemma that faces all homeowners.

The Price VS Time dilemma is the challenge of determining which is more important to you as a homeowner - selling quickly or selling for top dollar. Of course, it's easy to bang the kitchen table with both fists and say I want both, but that's unrealistic. In the real world every homeowner falls into one of two categories: the necessary seller or the optional seller. Let's define these two vastly different types of sellers:

The Necessary Seller: Necessary sellers are homeowners who must sell their home and it's not something they can avoid or put off. Perhaps they have a job transfer or job loss, a pending divorce, health condition, or a financial crisis that is causing them to sell. Regardless of the reason, they need to sell, and the faster the better.

The Optional Seller: Optional sellers are homeowners who have made the choice to sell. They aren't forced to move, they simply would like to make a housing change. Perhaps they want to upgrade to a newer home, a larger property, or just as likely, maybe they are selling to travel or move closer to friends and family. The bottom line is it will be inconvenient if they don't sell, but the world won't end.

So which kind of seller are you - a necessary seller or an optional seller? The answer to this question is key to determining how you resolve the Price VS Time dilemma, but be careful as it's not as easy it might sound. For instance there are tens of thousands of necessary sellers across the nation who desperately need to sell their homes quickly, yet they act as if they are optional sellers. These sellers list their homes for inflated prices and then are shocked, frustrated, or even angry that their homes fail to sell within their pre-set timeframe. Another wrinkle facing both optional and necessary sellers today is the issue of rapidly declining prices in many areas of the country. While in a typical real estate market an optional seller might hold out for top dollar, this strategy can easily backfire in today's market as their home may be worth significantly less the longer they hold out for a higher price. In addition while many optional sellers may not be forced to sell, they may want to sell quickly because of other motivating factors. If this is the case they will need to adjust their pricing strategy accordingly.

If you are having a challenge determining just where you fall on the motivation scale ask yourself this follow up question. If I listed my home for 90 days and it did not sell, what would be my next step - adjust the price or give it a little more time? If your answer is to adjust the price, this would seem to indicate that selling quickly is more important for you. On the other hand if you feel more inclined to give it a little more time, top dollar is more than likely your primary motivator.

To unravel the Price VS Time mystery further sit down with a local agent and give them an honest assessment of the reasons why you are selling. By reviewing what homes similar to yours have sold for in recent months and the time frame it took those sellers to sell, it should help you to set a pricing strategy that meets all of your needs.

Article Source : Truila.com

Meyling Calero

RMG Realty Group Inc.

Lic. Real Estate Sales Associate

Short Sale Specialist

Home Retention Consultant

http://meyling-realestateblog.blogspot.com/

For more information on your Real Estate needs or concerns, contact Meyling at MeylingCalero@aol.com or Visit www.MeylingRealEstate.com

Preparing for Hurricane Season 2010...

Meyling Calero (RMG Realty Group) — Wed, 02 Jun 2010 21:43:57 -0700

Here's what you need to let technology help you through hurricane season:

Storm TVs

In the past, South Floridians relied on portable battery- operated analog TVs during a storm-related power outage. But the national switch to digital television (DTV) broadcast programming last year rendered those old analog sets useless.

You can purchase small battery-operated "digital" TVs. They do not need a digital converter box (necessary to keep analog TVs working after the changeover) to receive a digital signal.

Most local electronics stores will offer an array of new digital-tuner TVs, with price starting about about $100. Watch for special discounts and sales around hurricane season. Bonus: They should offer more channel selection and a much better picture than the sets of old.

Storm radios

Eton ARC FR500 Solarlink weather radio (about $40). This self-powered, solar-powered radio may be your best friend in a storm. Like other radios certified to receive National Oceanic and Atmospheric Administration weather broadcasts, it keeps you in tune with up-to-the-minute weather forecasts, travel condition reports, storm warnings and other safety alerts.

Still not impressed? It also acts as a flashlight, siren and a charger for MP3 players and cell phones.

Where to find it: Amazon. com and EtonCorp.com.

For a list of manufacturers and resellers of models certified to receive NOAA programming, go to weather.gov/nwr/ nwrrcvr.htm.

Surge protectors

Sudden blackouts and power surges can be devastating threats to computers and other electronics. Even if you have surge protectors, it may be time to replace them since their effectiveness diminishes over time.

The relatively inexpensive devices help protect your electronics from electrical spikes that may occur when the voltage returns after a power outage. They can be sold as power strips with at least four outlets and start at about $8. Always check for an Underwriter's Laboratories label.

You can also buy a home surge suppressor, which can shield your entire house. They start at about $150 and should be connected to the breaker box by a professional electrician.

Check packaging for three specifications: Make sure it can handle a minimum of 700 joules, a maximum of 400 volts and a response time of less than 10 nanoseconds. Indicator lights are also a plus. They show when the strip is on and how much life is left in the suppressor. It's also a good idea to replace them every two years.

For tips from Florida Power & Light Co. on selecting the right power protection, go to fpl.com/residential/ power_quality/pdf/ protection.pdf

Talking first-aid kit

This product can be a lifesaver in a pinch. Much like a typical emergency kit, this one has just about everything you'll need in an emergency to treat a burn, broken bone or other injury. But this kit also talks you through procedures too.

Offered by intelligent- FIRSTAID (www.intelligentfirstaid. com) for $149.99, each kit has nine injury specific packs: Breathing, bleeding, shock, head and spine, bone, eye, burns, bites and stings and basics. Each pack has supplies and a voice module that provides audible step-by-step instructions. Users can pause and replay instructions at will.

You can also choose $49.99 version of the talking first aid kit.

Other items

It's also a good idea to make sure you have:

A traditional corded telephone. These phones, unlike cordless, will work in a power outage.

Lanterns. Look for those that work with batteries or fuel.

Battery-operated fans. It can get pretty hot without air conditioning in South Florida. Battery-operated fans can keep you cool until the power returns.

Article source: The Sun Sentinel

Meyling Calero

RMG Realty Group Inc.

Lic. Real Estate Sales Associate

Short Sale Specialist

Home Retention Consultant

http://meyling-realestateblog.blogspot.com/

For more information on your Real Estate needs or concerns, contact Meyling at MeylingCalero@aol.com or Visit www.MeylingRealEstate.com

Some foreclosure prevention tips

Meyling Calero (RMG Realty Group) — Wed, 02 Jun 2010 21:36:16 -0700

A summary of foreclosure prevention tips offered by the U.S. Housing and Urban Development and Brothers Redevelopment Inc. of Denver:

-- Contact your mortgage company as soon as you realize there may be a problem with making payments. Make sure to respond to all mail and other correspondence from the company.

-- Educate yourself about homeowner's rights, foreclosure prevention options and foreclosure laws.

-- Read mortgage documents carefully to become familiar with what would be required if you are unable to make payments.

-- Prepare and follow a household budget to keep spending in line. Try to cut costs on non-essential items such as television subscription services and other entertainment.

-- Look for ways to make extra money by selling non-essential assets, taking an additional job or even renting out a room.

-- Make an appointment with a non-profit housing counselor or local Real Estate professional that undersatnds the market and options available to review your situation and provide any assistance that's needed.

Article Cource On the Net:

U.S. Housing and Urban Development Department: www.hud.gov/

Brothers Redevelopment Inc.: www.briathome.org/

Meyling Calero

RMG Realty Group Inc.

Lic. Real Estate Sales Associate

Short Sale Specialist

Home Retention Consultant

http://meyling-realestateblog.blogspot.com/

For more information on your Real Estate needs or concerns, contact Meyling at MeylingCalero@aol.com or Visit www.MeylingRealEstate.com

Bank of America has new 'forgiveness' program to help struggling homeowners

Meyling Calero (RMG Realty Group) — Wed, 02 Jun 2010 21:31:42 -0700

By Kimberly Miller

Palm Beach Post Staff Writer

Updated: 5:36 p.m. Wednesday, March 24, 2010

Posted: 2:16 p.m. Wednesday, March 24, 2010

Bank of America Corp. will permanently cut up to 30 percent from home loan balances for tens of thousands of struggling borrowers under a new program that some predict will become industry norm.

The plan, announced Wednesday, was virtually unthinkable just months ago.

So taboo was the idea of forgiving principal amounts, that some lenders refused to comment when Ron Faris, president of West Palm Beach-based Ocwen Financial Services, promoted it as a solution to the continuing foreclosure crisis before a congressional committee earlier this month.

But with millions of Americans underwater on their home loans, and increasingly willing to walk away, bank officials said Wednesday that cutting loan amounts is necessary to reduce defaults.

"The banks have been reluctant to come to the reality that 'Houston, we have a problem,'" said Michael Sichenzia, president of Dynamic Consulting Enterprises in Deerfield Beach. "It's inevitable more banks will follow. The cost to administer foreclosures is growing exponentially."

Bank of America, which estimates it has 1.5 million home loans that are 60 or more days behind on payments, calls its plan "earned principal forgiveness."

To qualify, a borrower must prove financial hardship, be two months delinquent in payments, and owe at least 20 percent more on the loan than the home is worth.

The program targets the riskiest home loans awarded during the real estate boom including subprime adjustable rate mortgages and certain loans that have a fixed interest rate for the first two years before adjusting annually.

Under the new plan, which begins in May, a portion of the principal balance will be set aside interest free. That principal can then be forgiven over five years if the homeowner stays current on new lowered payments.

About 45,000 borrowers are expected to be eligible for the program. They will save an estimated $3 billion.

Bank of America became one of the nation's largest lenders when it took over Countrywide Financial in 2008.

"We believe principal reduction on the most severely underwater loans will have a positive impact on homeowners' ability to sustain payments," said Barbara Desoer, president of Bank of America Home Loans.

Desoer said that while Bank of America has modified more than 500,000 loans through its own programs and federal plans, underwater borrowers are reluctant to accept a modification that doesn't include principal reduction. Even when they do accept it, they often redefault.

Traditionally, loan modifications have included lowering interest rates, extending the life of the loan, or giving a principal forbearance, which takes money off the principal initially, but tacks it on at the end of the loan.

"The government has been pressuring them behind the scenes to do this," Sichenzia said about the new plan. "It's not because the banks decided they want to be Santa Claus."

Underwater mortgages are particularly problematic in Florida where 48 percent of borrowers owed more on their home than what it was worth at the end of December, according to analysts at First American CoreLogic.

About 45 percent of Palm Beach County loans, and 56 percent of those on the Treasure Coast are underwater. "Hopefully, five years down the road, when people try to sell their property, they won't be bringing money to the closing table," said Coral Gables real estate attorney Rashmi Airan-Pace, about the new program. "I think this is a really positive move."

But Sichenzia questions how effective the program will be in Florida, where a 30 percent principal reduction may not be enough for people whose home values have decreased by 50 percent or more.

"Yes, this is helpful, but it's not all that it could be," he said.

Find this article at: http://www.palmbeachpost.com/money/real-estate/bank-of-america-has-new-forgiveness-program-to-438657.html

Meyling Calero

RMG Realty Group Inc.

Lic. Real Estate Sales Associate

Short Sale Specialist

Home Retention Consultant

http://meyling-realestateblog.blogspot.com/

For more information on your Real Estate needs or concerns, contact Meyling at MeylingCalero@aol.com or Visit www.MeylingRealEstate.com

Taking a Closer look at the Miami Forclousre market

Meyling Calero (RMG Realty Group) — Wed, 02 Jun 2010 21:20:38 -0700

Over the past couple of years, the economic attention has shifted to the real estate market. Miami is one of the big cities to take a huge chunk from this revitalized industry. There are two sides to the story here, one is the astounding number of properties available for interested investors and home buyers. The other is the fact that people in the real estate market were quick to pounce on the opportunity and started asking too much. Naturally, people will avoid making real estate purchases. Luckily, the foreclosure market in Miami started to turn for the better.

With the foreclosure boom in Miami, a lot of enterprising individuals started putting up their businesses. The idea is quite simple, purchase a foreclosed property particularly those which are sought after by investors and foreign buyers such as Miami beach condos while the market prices are low. Then two options are available: if the property happens to be in good condition, it can easily be sold at regular market rates. But if the property needs a little facelift, then a few renovations here and there can do the job so the property can be sold at its refurbished state at a new market price. Both are highly profitable to say the least.

Some people may be wondering what is in for them from the Miami foreclosure boom if they are not keen on venturing on the real estate business. Well, let me tell you frankly that buying a foreclosed property is not only good for business but for pleasure as well. Yup, you read that right. Consider this, Miami is arguably the hub of some of the most sought after residential estates in the U.S. Miami condos are selling like hotcakes these days. So in case you have long been hoping to acquire your dream residence early at a price that fits your budget, now is the perfect time to do so. You'll surely find what you want because as of the moment, there is a wide selection of foreclosed properties virtually in all areas.

There are different classifications of Miami foreclosures. Some are government owned while a great majority are bank owned. Just to give you an idea, the Federal Deposit Insurance Corporation recently issued some whopping figures. It reported that the cumulative value of Florida foreclosures that have been repossessed by banks rose by almost eight percent in the first quarter of this year to $1.77 billion. What's more, banks not only in Miami but across the state of Florida, are struggling to manage these ‘assets' so most of them are compelled to list them as cheap properties for sale. Banks regularly publish lists of their foreclosed properties on their official websites or in the classified ads of local newspapers.

If you are interested to make a purchase, better act fast because the number of foreclosure listings is gradually beginning to decline as market hunters are purchasing more and more properties. The remaining slots of available properties are made up of apartments, condos and high-priced residences. This is indicative that things are looking good because prices will drop and this will certainly have an impact on the prices of other available properties. In general, the foreclosure market of Miami, including others parts of Florida, is significantly brighter when compared to the rest of the country.

Article source: By Marc Knight |

Meyling Calero

RMG Realty Group Inc.

Lic. Real Estate Sales Associate

Short Sale Specialist

Home Retention Consultant

http://meyling-realestateblog.blogspot.com/

For more information on your Real Estate needs or concerns, contact Meyling at MeylingCalero@aol.com or Visit www.MeylingRealEstate.com

HAFA Guidelines: Do you Qualify ?

Meyling Calero (RMG Realty Group) — Wed, 02 Jun 2010 14:39:40 -0700

HAFA Rules, Guidelines and Qualifications

Do you know the rules and guidelines for the HAFA short sale program? Do you qualify? Unfortunately, not everyone does. To qualify, you must own a home that was purchased before the year 2009. In addition, you must be living in the home as your primary residence, and must have been previously considered for other foreclosure prevention options including loan modification.

Borrowers must also meet HAMP eligibility, but can be either delinquent or current on their mortgage payments. Even if current, the borrower must be able to demonstrate financial hardship.

Here are a few guideline questions to ask yourself to determine your eligibility:

1) Is your home your primary residence? In other words, if you have multiple residences - do you spend most of your time in this residence?

2) Is the amount you owe on your first mortgage equal to or less than $729,750? (Do not include the total of your second mortgage.)

3) Are you having ongoing financial trouble that makes it difficult for you to make your mortgage payments each month?

4) Did you get your current mortgage before January 1, 2009?

5) Is your monthly payment on your first mortgage (including principal, interest, taxes, insurance and homeowner's association dues, etc) more than 31% of your current gross income?

If your answers to all five of these questions are "yes", then it is very likely that you qualify to receive assistance through the HAFA program. If you answered "no" to one or two questions, you may still qualify. To be sure, contact your lender's local office.

Meyling Calero

RMG Realty Group Inc.

Lic. Real Estate Sales Associate

Short Sale Specialist

Home Retention Consultant

http://meyling-realestateblog.blogspot.com/

For more information on your Real Estate needs or concerns, contact Meyling at MeylingCalero@aol.com or Visit www.MeylingRealEstate.com

HAFA : Home Affordable Foreclouser Alternatives

Meyling Calero (RMG Realty Group) — Wed, 02 Jun 2010 14:37:24 -0700

HAFA - Overview

HAFA is an acronym for Home Affordable Foreclosure Alternatives, a government-sponsored program that helps individuals and families who are experiencing difficulty in selling their homes. In conjunction with the Home Affordable Modification Program (HAMP), HAFA was initiated on November 30, 2009 by the U.S. Treasury Department under the Obama Administration with the goal of revitalizing the housing market.

Via the program, borrowers are provided incentives that will help them take advantage of either a short sale, whereas the borrower and the mortgage servicer agree to sell the home for less than the value of the loan; or a deed-in-lieu of foreclosure, whereas the homeowner voluntarily gives the deed of the property to the servicer.

HAFA complements HAMP as an alternative for eligible borrowers, but does not apply to loans that are affiliated with Fannie Mae or Freddie Mac. Reportedly, these organizations have plans to release their own versions of HAFA in the near future.

In simpler terms, HAFA helps people quickly sell their homes by giving them pre-approved short sales terms before listing the property. They are fully released from future liability for the first mortgage debt, and can receive $1,500 for borrower relocation assistance. Investors and servicers can also receive financial assistance through the program for administrative costs, processing fees, etc. The program sounds simple, but is actually quite complex with many guidelines and rules.

Although the program was initiated in November 2009, it officially began on Monday, April 5, 2010 and will end on Monday, December 31, 2012. Experts say that if the program is successful, it will likely be extended and the terms may be adjusted for more to qualify.

To apply for the HAFA program, homeowners should visit or call their banks to inquire about how they can participate. As always get your terms in writing, and be sure to thoroughly read and fully understand any agreements before you sign.

Article source: HAFA Resources

Meyling Calero

RMG Realty Group Inc.

Lic. Real Estate Sales Associate

Short Sale Specialist

Home Retention Consultant

http://meyling-realestateblog.blogspot.com/

For more information on your Real Estate needs or concerns, contact Meyling at MeylingCalero@aol.com or Visit www.MeylingRealEstate.com

MIami Houseing Valuation

Real Estate Home Value site

Meyling Calero (RMG Realty Group) — Wed, 19 May 2010 08:42:13 -0700

Meyling Calero

RMG Realty Group Inc.

Lic. Real Estate Sales Associate

Short Sale Specialist

Home Retention Consultant

http://meyling-realestateblog.blogspot.com/

For more information on your Real Estate needs or concerns, contact Meyling at MeylingCalero@aol.com or Visit www.MeylingRealEstate.com

The Lesser of Three Evils : Short Sale / Foreclosure / Bankruptcy

Meyling Calero (RMG Realty Group) — Tue, 18 May 2010 22:15:13 -0700

Article Source: Real Estate Road Kill

Foreclosure

Foreclosure is a legal process (in most states) that results in the lender regaining title to the property due to nonpayment by the borrower. When applicable, the court awards a deficiency judgment to the lender the amount of which is determined, by the difference between what the house is eventually sold for (minus expenses) and the borrower's mortgage balance.

The foreclosure remains on the credit report for 7 years. The statute of limitations on the judgment varies from state to state and 20 years is not uncommon. New lending guidelines extend the wait period for a new mortgage to 5 years BUT the judgment would need to be satisfied before any mortgage financing is allowed.The combination of the foreclosure and the open judgment is devastating to the borrower's credit score.

Deed-In-Lieu of Foreclosure

The borrower must document economic hardship and an inability to pay. If there is equity in the property (the home is worth more than the balance due) and there are no other liens the lender may consider an exchange whereby the borrower surrenders the deed and is released of any obligation to the mortgage note.

If it is reported as a foreclosure (lender's discretion) it will remain on the credit report for 7 years but there will not be an unpaid balance reported

Short Sale

If the lender is convinced that they cannot collect payment from the homeowner due to financial hardship they may accept a sale price of less than what is owed on the property. The price is normally discounted from a quick sale price in an effort of avoiding the costs and risks of the foreclosure process.

In some cases, usually where there are second liens involved, the borrower may still be obligated for an amount owed but the loan would be unsecured.There are various ways for the lender to report the short sale, the most common of which are "satisfied mortgage" or "paid settlement". As a satisfied mortgage the only damage to the credit score is due to any late payments prior to the sale. A settled account is more damaging as it reflects it was not paid as agreed but, in both cases the damage pales in comparison to a foreclosure and deficiency judgment. How the lender is going to report the short sale is rarely, if ever, a negotiable item.

New mortgage lending guidelines require a 2 year wait after a pre-foreclosure sale.

Bankruptcy

Bankruptcy involves a settlement of debts through a variety of means. Bankruptcy is severely damaging to a credit score and remains on the credit report for 10 years. Because there are no judgments involved the borrower may generally be eligible for new mortgage financing in as little as 2 years from the date of discharge.

Meyling Calero

RMG Realty Group Inc.

Lic. Real Estate Sales Associate

Short Sale Specialist

Home Retention Consultant

http://meyling-realestateblog.blogspot.com/

For more information on your Real Estate needs or concerns, contact Meyling at MeylingCalero@aol.com or Visit www.MeylingRealEstate.com

Is the worst of the foreclosure problem behind us?

Meyling Calero (RMG Realty Group) — Mon, 17 May 2010 15:01:31 -0700

RealtyTrac Inc. is reporting the first annual decline in monthly foreclosures nationwide since it started tracking filings in 2005.

Broward foreclosures were down 30 percent in April from a year ago, while Palm Beach County saw a 7 percent increase.

The Irvine, Calif.-based firm says foreclosures may be leveling off, even though they likely will remain at a high level for a while.

What do you think?

Article source: Sun Sentinel Paul Owers

Meyling Calero

RMG Realty Group Inc.

Lic. Real Estate Sales Associate

Short Sale Specialist

Home Retention Consultant

http://meyling-realestateblog.blogspot.com/

For more information on your Real Estate needs or concerns, contact Meyling at MeylingCalero@aol.com or Visit www.MeylingRealEstate.com

Miami Market update

Meyling Calero (RMG Realty Group) — Sun, 16 May 2010 23:00:45 -0700

Miami-Dade Condo Sales Up 97 Percent

Miami-Dade pending sales of condominiums increased 97 percent in April 2010 compared to April 2009. Single-family homes rose 46 percent in April 2010. 5,818 condominiums were sold in April, up 7.6 percent from the previous month. Pending sales of single-family homes were up 5.3 percent or 4,574 homes.

Total pending home sales in Miami-Dade County increased 6.6 percent in April, up from 9,751 to 10,392 pending sales. In the year-to-year comparison total home sales were up 71 percent compared to April 2009.

In Broward County pending sales of single-family homes rose 5.3 percent or 3,846 homes and condominium sales rose 3.5 percent or 4,679 units. Compared to the previous month, total pending home sales increased 4.3 percent or 8,525 homes.

In the year-to-year comparison single-family homes rose 44 percent in April in Broward County and condominium sales increased 85 percent.

This continues the trend in both Counties of dramatically increased home sales and drop of real estate inventory while prices stabilized.

The data is provided by the Realtor Association of Greater Miami and the Beaches (RAMB) and the Southeast Florida Multiple Listing Service (SEFMLS).

Meyling Calero

RMG Realty Group Inc.

Lic. Real Estate Sales Associate

Short Sale Specialist

Home Retention Consultant

http://meyling-realestateblog.blogspot.com/

For more information on your Real Estate needs or concerns, contact Meyling at MeylingCalero@aol.com or Visit www.MeylingRealEstate.com

Short Sale FAQ's

Meyling Calero (RMG Realty Group) — Sun, 16 May 2010 22:06:12 -0700

What is a Short Sale?

A Short sale aka "Short Pay" is an agreement negotiated with the bank for a payoff less then what is currently owed on the Mortgage to satisfy the Lien. A short sale allows both the lender and the distressed homeowner to avoid foreclosure by selling the property at a loss.

Negotating a short sale can be a very frustrating process for any distressed homeowner. Aside from the frustartions on how to continue payments for the monthly obilgations , taking on short sale a negotiation with the lender is just added on stress that can be delegated to a short sale specialist.


                         You wouldn't go a court hearing with out an experienced Attorney,
                  Why would you go to your Lender without an experienced Short Sale specialist?

MyServices are FREE, with NO Hidden Costs, and NO UPFRONT payments are required- Realtor's commissions are paid by the short pay lender on short sale transactions...

Below is a Listing of the Most common Frequently asked questions in regards to a Short sale.For more FAQ visit www.MeylingRealEstate.com

1. What is a short sale?

A short sale is the process by which homeowners can sell their home for less money than they actually owe on the mortgage(s). This is accomplished by providing proper documentation to the lender(s) to review the hardship and current market value information and negotiate with the them in order to reduce the mortgage balance to allow the sale. If the sale is approved, the mortgage lender(s) will actually take a loss on the mortgage.

If a bank approves the discount of a mortgage, the home can be sold for a price lower than the amount owed without the seller having to come up with cash to cover the shortfall. The mortgage is satisfied and any foreclosure process stops

2. Will I have to pay capital gains taxes if I sell a property as a short sale?

No. If your bank suggested that, they are ridiculous. Capital gains would indicate that you are in some way "better off" financially because of money you have made. In a short sale, you lose and owe money.

3. We are about to buy a short sale from the bank and are wondering if the bank is responsible for ridding the house of mold or are we?

First of all, if you are buying a house from the bank, it's not a short sale. Second of all, in almost every case where there is a bank-owned property, it will be sold AS-IS. Check the verbiage of your purchase agreement with the bank (or seller). Any purchase agreement should contain a clause referencing who is liable for what. If you signed a purchase agreement that didn't reference the mold or "items required by the home inspection to be completed," then you will be liable.

4. How long does the foreclosure process take?

Complicated question depending on what you consider the start of the "process" to be. Generally, the Bank will send and NOD (notice of default) to the Title Company and trustee. From that time it takes between 3-9 months for the house to go up for auction, during which, you can pay the delinquent amount to "cure" the foreclosure proceedings

5.I owe more than my home is worth. Am I eligible for short sale or is my only option foreclosure or bankruptcy?

Always consult your lender as to what your options are. They are usually short sale, deed-in-lieu of foreclosure (basically an accelerated voluntary surrender), and foreclosure. The banks like to prevent foreclosure when at all possible. They've even been known to lower people's rates and payments because of all the new defaults in '06 and '07. Either way, your first stop should be to get information from your lender on what options they provide

6.I purchased a new home in February, with a first loan of 80% and a second loan of 20%. I listed my old home with the plan of paying my second loan as soon as the old home sold. This home has been listed for over six months and has not sold and the price has been reduced substantially. I have been paying for mortgages on both homes. I am using my savings and I cannot afford to keep paying both. I cannot afford my new home without paying my second loan. Can I short sell it?

You and the rest of the country! Yes! You can do a short sale. The problem you face now is time constraints. Talk to the lender on your old house about their options such as deed-in-lieu of foreclosure. Find out what their short sale requirements and policies are and contact a Local Real Estate Short Sale specialist to start he process.

7. Does a homeowner benefit from a short sale?

First and foremost, a short sale relieves the stress of being in foreclosure and it allows the homeowner to get rid of their big mortgage payment and move on with their lives. A short sale allows you to stop a foreclosure proceeding and get a fresh start. In our experience, this is the primary benefit to the homeowner.

On the credit side, a short sale is arguably the lesser of two evils. Having some late payments, and a foreclosure filed has already done damage to your credit.. However, a completed foreclosure generally does more damage than a short sale agreed to by a lender. Obviously, a bankruptcy significantly damages your credit score.

8. Does it matter what kind of loan I have?

Possibly. In some instances there is a potential risk of a deficiency judgment or a personal note requirement based on the original signed loan contract at the time of Purchase, as opposed to judicial foreclosure. Give me a call and we can discuss the specifics of your situation

9. What is "financial hardship" and why is it so important?

"Financial hardship" is a critical part of the short sale equation. No matter what you hear about banks "not being in the business of owning real estate", they DO NOT easily give homeowners a break. They require GOOD REASON to give a discount for a short a sale.

The only reason a lender will agree to a short sale is if they determine that a short sale will net them more money than proceeding with the foreclosure. Understanding the homeowner's financial hardship plays a major role in the lender's estimation of whether or not it will be paid in full for the mortgage. Lenders will make the borrower pay the shortfall if there is no proof of a financial hardship.

Many homeowners try to use a short sale as a "get out of jail free" card to dump a poor investment. Lenders will not allow this, and it is a waste of time to try. In that Case a Short sale may not be a viable option for you. Contact me and we can go over other possible options.

10. My home is already listed for sale on the MLS, but isn't selling; can I still do a short sale?

Yes, you can and it is relatively common. Some lenders even require that a house be listed for sale before approving a short sale in order to show that a discount is necessary.

11. How long does a short sale take?

A short sale can take 60 to 120 days or longer to complete. This is very important. The process is complicated and takes a lot of time. So to exercise the short sale option, you must act quickly. If you wait until one week before eviction or your foreclosure sales date at the court house steps, the situation can become quite difficult. You can always ask the Judge for an extension of the sales date; however the judge may possibly only allow 30 days to sell the home. This might be very difficult to accomplish DO NOT WAIT.

12. What type of situation is the short sale best for?

Most short sales are accomplished on properties heading toward foreclosure. This means the homeowner is at least 3 payments behind, and the foreclosure process has already begun. Recently however, more mortgages that are simply behind or "in default" are considered short sale candidates without actually being in foreclosure.

Or, if the Homeowner can support enough data that they are in a financial hardship situation and have not yet missed a payment but will probably do so in the near future. Keep Term in a Short sale is "FINANCIAL HARDSHIP" the homeowner must have some type of financial "hardship" which is preventing him from paying the mortgage.

Next, the homeowner typically has no equity or negative equity in the home. In other words, the total balance owed to the lender is equal to, or greater than, the price at which the house can be sold.

Meyling Calero

RMG Realty Group Inc.

Lic. Real Estate Sales Associate

Short Sale Specialist

Home Retention Consultant

http://meyling-realestateblog.blogspot.com/

For more information on your Real Estate needs or concerns, contact Meyling at MeylingCalero@aol.com or Visit www.MeylingRealEstate.com

Miami condo sales Raise

Meyling Calero (RMG Realty Group) — Sun, 16 May 2010 21:59:46 -0700

Miami condo sales were up 46 percent in the first quarter of 2010. 1,920 units sold, up from 1,311. The median sales price slid, however, by 9 percent to $136,100 from $149,000. Single-family home sales rose by 12 percent to 1,530, up from 1,372. The median sales price for homes fell 6 percent from $203,700 to $191,200.

In Florida 16,897 condos sold in the first quarter, rising 67 percent from 10,131 compared to the same period the previous year.

In Fort Lauderdale single-family home sales were up 7 percent, rising from 1,647 homes sold to 1,756. The median sales price fell from $210,200 to $196,700 or 6 percent.

Condo sales in Fort Lauderdale rose 45 percent from 1,893 to 2,739 units sold. Prices fell 15 percent, however, from $84,100 to $71,900.

This continues the trend in both Counties of dramatically increased home sales and drop of real estate inventory while prices stabilized. The data is provided by the Realtor Association of Greater Miami and the Beaches (RAMB) and the Southeast Florida Multiple Listing Service (SEFMLS).

Meyling Calero

RMG Realty Group Inc.

Lic. Real Estate Sales Associate

Short Sale Specialist

Home Retention Consultant

http://meyling-realestateblog.blogspot.com/

For more information on your Real Estate needs or concerns, contact Meyling at MeylingCalero@aol.com or Visit www.MeylingRealEstate.com

Colonial's Real Estate update Blog.... The lastes on our industry

Meyling Calero (RMG Realty Group) — Thu, 09 Jul 2009 10:12:30 -0700

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

Meyling Calero

RMG Realty Group Inc.

Lic. Real Estate Sales Associate

Short Sale Specialist

Home Retention Consultant

http://meyling-realestateblog.blogspot.com/

For more information on your Real Estate needs or concerns, contact Meyling at MeylingCalero@aol.com or Visit www.MeylingRealEstate.com