Richard Roux's Blog

TRADE UP! 5 Reasons why this is the BEST market to upgrade!

Richard Roux (Watson Realty Corp., REALTORS) — Tue, 15 Dec 2009 10:29:20 -0800

Via Daniel Dima Batsalkin (Boulevard Realty):

Have you thought about getting that bigger, better house in a better neighborhood?

NOW IS THE TIME!

Whether you need more space, want to upgrade your location, or for any other reason, the current real estate market presents a unique opportunity to capitalize by trading up!

5 reasons why this is the best market to trade up!

1. You will make money NOW on the trade!

Here's how this works. You currently own a condo that was worth $1,000,000 three years ago, and now it's worth $700,000 (that's right, it's gone down 30%!). You may be thinking, I've lost $300,000, right? Wrong!

What you do is go out and sell your condo and purchase the home of your dreams for $1,400,000. That house, three years ago, was worth $2,000,000 and you probably couldn't have afforded it. By buying it now, what you've just done is bought your new home at a $600,000 discount! Just like that, on the trade, you've made $300,000! This doesn't even take into account the money you'll save on property taxes because you're paying taxes on a $1.4M house, and not on a $2M house.

2. ... AND you will make money LATER when you sell your new home!

OK you've listened to my advice, bought that new home of your dreams and traded up. YES! Fast forward five years and the real estate market has gone up 20%. Let's take a look at what has happened. Your old condo is now worth $840,000, for a $140K gain over today's value. Your new home is worth $1,680,000, or $280,000 more than when you bought it today. Just like that, you've made an extra $140,000 on the trade!

3. You can likely buy a house you otherwise could not have afforded, and may not be able to afford again!

Going back to my example above, you probably couldn't have afforded that $2M house three years ago when you bought your condo. You also may not be able to afford it again in 3 - 5 years when the market rebounds. If you've been dreaming about a bigger home or one in a nicer area, now is really the time to capitalize.

4. It's much easier to trade up in a down market than in an escalating market!

I've had clients say that they will trade up when the market "goes back up." Let's take a close look at that. Let's say that 5 years from now, the market is back up 20% from today's values. You then sell your condo for $840,000 and your dream home is now worth $1,680,000. You've gained $140K on your condo (from today's values) BUT your dream home is now worth $280,000 more! That means that, by waiting, you've now spent an extra $140K to buy that house!

5. You'll probably get a better house by trading up in a down market!

The current market presents some very unique opportunities. In most areas, inventory is pretty high and buyers have a lot of great choices. By shopping in this market, you can really get the home of your dreams and take your pick of all the inventory available. In most cases, you can get a good deal on a great property in a terrific area.

The bottom line is that if you can afford it, now is a terrific time to upgrade! Interest rates remain at historic lows and there is plenty of financing available.

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Specializing in Los Angeles area residential real estate, including Los Angeles, Beverly Hills, Brentwood, Bel Air, Santa Monica, Sherman Oaks, Valley Village, Studio City, Encino, Tarzana and more!

Hire me or send me a referral because I have a defined and proven plan of action that I follow every day to help my clients achieve their real estate goals!

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DANIEL DIMA BATSALKIN

Principal Broker | C.E.O. | Boulevard Realty

310.933.4281 | dima@blvdrealty.com

www.blvdrealty.com

Amelia Island Plantation Files for Chapter 11 Bankruptcy

Richard Roux (Watson Realty Corp., REALTORS) — Wed, 18 Nov 2009 11:49:31 -0800

Local papers have reported that Amelia Island Plantation (i.e., Amelia Island Company) Filed for Chapter 11 bankruptcy Friday Nov 13th in order to allow it to operate while a court approved reorganization is being sought. That action should take approximately 30 days. This action should avoid a second court action taken by Prudential Financial Services to have the Company forced into Chapter 7 Bankruptcy (liquidation of assets). Along with the Chapter 11 news, AIC announced that it has signed an agreement with an investor group that was formed to provide short and long term financing to preserve the Plantation and allow it to meet its current payroll and other financial obligations. Look for more details near-term.

AMELIA ISLAND AREA 4 BEDROOM SHORT SALE OFFERED!

Richard Roux (Watson Realty Corp., REALTORS) — Wed, 18 Nov 2009 08:36:59 -0800

MY LISTING: HICKORY VILLAGE GEM (YULEE)- 86339 Sand Hickory Trail (SUBDIVISION: HICKORY VILLAGE), Yulee FL 32097

Beautifully maintained, 2005 sq ft home. This is a 4/2 with separate dining room, living room and great room. Other features include upgraded kitchen, Split bedroom floor plan, two-car garage, covered patio, and full irrigation. Great location; partially fenced. Very convenient to local schools.

This is a short sale. However, an acceptable losing price had been previously negotiated for a buyer who lost patience with the transaction time. So now a "fast track" closing is anticipated. Owner anxious to sell.

Make an offer!

Richard Roux

Watson Realty Corp

904 415-6096

www.ameliaislandresidences.com

Nov 2008 Tax Credit for existing Homeowners- A Question

Richard Roux (Watson Realty Corp., REALTORS) — Wed, 11 Nov 2009 08:53:44 -0800

I've only seen bits and pieces of the new legislation.

Has anyone seen a definitive answer to this:

The tax credit of 6500 is for buyers who have lived in their primary residence for the last 5 of 8 years.... But:

•Ø Do they have to make the new home their primary residence?

•Ø Must they also sell their current primary residence?

I.E., could the $6500 tax credit be applicable to a investor?

Thanks for your input!!!

Richard

SHOCK! Lenders make more money on foreclosures than short sales!?

Richard Roux (Watson Realty Corp., REALTORS) — Sun, 08 Nov 2009 08:28:35 -0800

Via Pacita Dimacali - e-PRO, SRES, CDPE, MBA East Bay, North CA real estate (Gallagher & Lindsey):

Lenders make more money on foreclosures than from short sales or loan modifications. That's what Steve Harney converyd in a seminar. He caused an earthquake in San Francisco

When loan modifications are turned down, the next thing we attempt is to do the short sales. And we kinow that lenders turn over the short sale accounts to loan servicing companies who make our lives hell getting short sales approved. As such, we should know that these loan servicing companies make MORE money by letting the properties foreclose than to approve the short sales OR the loan modification.

RUMBLE...GRUMBLE...CRIES OF DISMAY!

Did he just confirm what we were afraid of?

So I researched this topic and found a few articles worth reviewing. How did I miss these? Was I under a rock in a desert?

CONSUMERLAW.ORG REPORt ON "Why Servicers Foreclose when They Should Modify And Other Puzzles of Servicer Behavior"

DAILY PRESS headline. Oct, 30 2009. Do Mortgage Lenders Make More Money when a Loan Goes iInto Foreclosure?

HUFFINGTON POST. Oct. 21, 2009, Foreclosures Are More Profitable Than Loan Modifications, According To New Report

Washington Post. July 28, 2009. Foreclosures Are Often In Lenders' Best Interest. Numbers Work Against Government Efforts to Help Homeowners.

ThinkGlink. October 21, 2009. Loan Modification Help: Why Lenders Are Slow To Provide Loan Modifications

Dayton Daily News. Oct. 17, 2009. Drop in foreclosures called "very scary". Lender's actions show they think properties are not worth pursuing.

Mortgage101.com. October 23, 2009. Mortgage Companies Make More on Foreclosures Than They Do Modifying Existing Loans. (This blog refers to the news article on Huffington Post)

FLASHBACK: Huffington Post, June 8, 2009. Short Sales: Banks Blocking Way Out of Foreclosure Crisis

FLASHBACK: Huffington Post, May 15, 2009. Short Sales Stories. Lenders tend tostic with more familian foreclosure process, losing money for everybody.

UPDATE: Huffington Post, November 2, 2009. Homeowners: "Hey Congress, Get Off You A**"

KNOCKING OURSELVES OUT TRYING TO HELP

So are we engaging in self-flagellation helping our distressed clients with their short sales and loan modification?

Are lenders really more likely to foreclose?

Are the short sale servicing companies really trying to help?

Or are they stalling and withholding their help because they know their leaders would rather have the property burn into foreclosure?

Is there no resolution in signt?

There oughta be a law!

AMELIA ISLAND TOWNHOME FOR SALE

Richard Roux (Watson Realty Corp., REALTORS) — Thu, 05 Nov 2009 09:42:35 -0800

FRONT OF HOME

MY MY NEW LISTING- A RARE FIND IN AMELIA PARK'S GARDEN DISTRICT! 3/2.5 townhome (not a condo) in move in condition. Beautiful home with Master Suite downstairs. Open floor plan with 11 ft ceilings and 18X18 Ceramic tile floors. Wall to Wall carpet in bedrooms. Large front patio and upper balcony offer views or the beautifully landscaped Garden District. Low HOA fees. You can walk to YMCA, stores, church and from this beautiful & unique neighborhood.

CONTACT ME at 904 415-6096

www.ameliaislandresidences.com

Richard

Jacksonville Sea & Sky Spectacular- NOV 6-8, 2009

Richard Roux (Watson Realty Corp., REALTORS) — Tue, 03 Nov 2009 07:35:24 -0800

Jacksonville Sea & Sky Spectacular
November 6-8, 2009
Jacksonville Beach Oceanfront
Free Admission

Visit the City of Jacksonville, Naval Station Mayport and City of Jacksonville Beach, City of Neptune Beach and City of Atlantic Beach as the skies and waterways of the First Coast are transformed into the backdrop for the most exciting air acts and military demonstrations in the world!

This free event features a dynamic over-the-ocean sky show highlighted by the world-famous United States Navy Blue Angels along with other military and civilian flight teams, live entertainment and a street festival featuring static displays of aircraft and military vehicles, simulators, recruitment booths, and kids area and Meet The Performers Autograph Sessions.

In addition, the Sea and Sky Spectacular will also be encompassed within the City of Jacksonville's Week of Valor to celebrate and honor all military branches throughout the community. Week of Valor components will include events held in downtown Jacksonville as well as Naval Station Mayport.

For more info see:

http://www.coj.net/Departments/Recreation+and+Community+Services/Special+Events/Sea+and+Sky+Spectacular/default.htm

Richard

www.ameliaislandresidences.com

Jacksonville Listed as Top Retirement Area.

Richard Roux (Watson Realty Corp., REALTORS) — Tue, 03 Nov 2009 07:26:26 -0800

The Jacksonville HOMEBUYER reports that the Jacksonville area ranks No. 14 on a new list by Forbes of America's 40 "recession-proof" retirement cities. Forbes said it considered such factors as average income for seniors, current and expected home prices, job-growth predictions through 2014, the also ranked 13th for number of sunny days, eighth for income of residents 65 and older, 14th for median home price, 32nd for home price change predicted for 2009-2014, 13th for cost of living and 15th for median housing cost.

Contact me if you are looking for a home in the Jacksonville area, any where from Amelia Island southward to Daytona Beach (which includes the greater Jacksonville area).

Richard

www .ameliaislandresidences.com

DENTAL HYGIENE AND SWINE FLU

Richard Roux (Watson Realty Corp., REALTORS) — Sat, 17 Oct 2009 13:09:38 -0700

It's a beautiful blue sky and low humidity day in Amelia Island.

I just read an interesting article on oral health. In case you haven't thought about it, your toothbrush can be a source of swine flu and other diseases. Here's some oral health care tips:

Get a new tooth brush 4 times a year.
Get a new tooth brush at the start and end of an illness.
Sterilize your toothbrush weekly. (Boil in a microwave safe cup in your microwave)
Store your toothbrush separately from other family members
When you are ill use a travel tooth paste tube. Germs can get on the family's toothpase tube.
Wash your hands after you brush

Have a great day!

Richard

www.ameliaislandresidences.com

Pro Tennis Event Scheduled at Amelia Island Plantation, Nov 13-22

Richard Roux (Watson Realty Corp., REALTORS) — Wed, 14 Oct 2009 15:17:07 -0700

I see that there's a Men's Futures Tournament schedule at Amelia Island Plantation, Nov 13-22. These could be players ranked as high as 200^thin the world. The first three days there's no admission charge and admission is only $10 thereafter. Too good a deal to pass up. For details call the AIP Tennis shop at 227-5145.

Jacksonville Sea & Sky Spectacular Coming 6-8 Nov

Richard Roux (Watson Realty Corp., REALTORS) — Wed, 14 Oct 2009 07:37:22 -0700

Looking for a great reason to visit Amelia Island? Try this event that's only 30 minutes away:

Jacksonville Sea & Sky Spectacular
November 6-8, 2009
Jacksonville Beach Oceanfront
Free Admission

Join the City of Jacksonville, Naval Station Mayport and City of Jacksonville Beach, City of Neptune Beach and City of Atlantic Beach as the skies and waterways of the First Coast are transformed into the backdrop for the most exciting air acts and military demonstrations in the world!

This free event features a dynamic over-the-ocean
sky show highlighted by the world-famous United States Navy Blue Angels along with other military and civilian flight teams, live entertainment and a street festival featuring static displays of aircraft and military vehicles, simulators, recruitment booths, and kids area and Meet The Performers Autograph Sessions.

SOME QUALIFIED MILITARY MAY RECEIVE TAX CREDIT EXTENSION

Richard Roux (Watson Realty Corp., REALTORS) — Wed, 14 Oct 2009 05:19:34 -0700

As the tax credit deadline gets closer, I have a little bit of good news for our military clients serving (or having served) overseas. The House of Representatives voted unanimously Monday to extend the deadline for the home buyers' tax credit for one group of Americans.

HR 3590 will allow eligible military personnel and foreign service and intelligence officers to apply for the $8,000 tax credit for one year beyond its current November 30 deadline. Those meeting the underlying requirements for the credit must also be serving overseas or have spent at least 90 days deployed outside of the country during the current calendar year. It is expected that about 350,000 military personnel and an unknown number of federal employees may be affected by the new law.

The bill, introduced by Representative Charles Rangel (D-NY) because it was thought that families serving overseas were being passed over for this one-time opportunity to purchase a home. It passed the Housed passed with 416 votes and 16 abstentions.

It is anticipated that the bill will also be approved by the Senate, but it is not law yet.

Richard

See my WEB site: www.ameliaislandresidences.com

North East Florida Condo Comparison Info

Richard Roux (Watson Realty Corp., REALTORS) — Thu, 08 Oct 2009 09:31:34 -0700

I just surveyed a number of CONDOS from Amelia Island southward including Jacksonville Beach, St Augustine, Palm Coast, Daytona Beach and Daytona Beach Shores for a Mid-Atlantic second home buyer. In doing so I also established a partnership with a number of local agents. I have compiled subjective comparative information on my findings. If you are looking for an 2/2 or 2/3 condo on or near the ocean the Florida east coast, ask me for the info. Send an email to: richardroux@watsonrealtycorp.com, or call 904 415-6096.

Richard

Common Mistakes A Blogger Makes

Richard Roux (Watson Realty Corp., REALTORS) — Mon, 07 Sep 2009 10:52:21 -0700

Via Brad Andersohn ~ Community Manager (ActiveRain):

Common Mistakes A Blogger Makes

These are some areas that can have an impact on you and your Blogging experience. No matter who you are and what you do for a living, if you decide to start Blogging, here's a few suggestions that might help make your Blogging experience more enjoyable and successful. These following suggestions are NOT intended to isolate any one individual, network, or community. In fact, these suggestions come from an entirely different perspective which you'll discover at the end of this post.

Finish What you Start

Some folks simply don't finish what they start. They become inconsistent and give up too soon to experience the results and rewards that can and will come from their Blogging efforts. Don't give up. Stay the course. You will only get out of it what you put into it. A quitter never wins, and a winner never quits.

Be Creative With Original Ideas

Don't try to imitate other people. Be Yourself and don't be afraid of who you are and what you choose to share. You are unique and bring something of value to the table no matter who you are. Finding your own voice is really nothing more than using the same voice you talk to others with on the phone and in person everyday. You are original, now just be creative and share your originality.

Have a Purpose and Be Professional

Networking and Blogging require some time, direction, and focus. Avoid the pitfalls of being hurried, sloppy, and unprofessional. Your Blog and content are a direct reflection of who and what you are. Autograph your work with a signature of "quality!" Always be professional, ethical, moral, and kind towards others.

Mix it Up With a Variety of Content

Only posting charts, statistics, and marketing reports etc. will make your Blog seem like a marketing machine. Add a little color and flavor by creating a variety of personal, business, and hyper-local posts. You'll find that offering a variety of content on your Blog will bring you a variety of readers and visitors.

Know Your Topics and Share Your Experience

Not being informed about subject matter can be a "Bloggers Nightmare!" There's nothing worse than getting sucked into questions you can't answer. The research and time it takes you to find out about a topic or subject matter and get answers can be consuming and discourage you from Blogging again. Better to share what you do know and your experience, than to claim you're the expert at something you're not.

Engage Your Readers

Writing with no substance can be harmful or even fatal to your Blog. Writing content that draws the reader in and makes them want to come back for more should be the goal. Often, Bloggers will post articles that share only their view point and they aren't open for discussion.

Use Visuals To Make Posts Appealing

Try not to always write articles that are just a "Wall Of Words" No visuals or photos, or even worse... bad photos can do more harm than good. Having posts that are cosmetically pleasing to the eye will help to draw readers in and bring your topics to life.c

Be Careful Overselling - Everyone's a Buyer

Purely self-promoting blogging can come across to others as not giving anything of value, even though your product or service is the greatest on the planet. Remember that everyone wants to buy, but no one wants to be sold. This in my opinion is one of the key differences between WEB 1.0, and the new WEB 2.0 world.

Protect Your Reputation

You can't please all the people all of the time, but coming across in writing like you are scolding the reader, whether in a post or a comment, can lead to frustration and discouragement to both author and reader. Sharing your opinion just as I am here is better than creating deliberate conflict. Always treat others online as you would offline and in person.

Be A Blogger, Not Just A Visitor

Not enough content or consistency will slow down your traffic and returning visitors. Try to not be repetitive or let your Blog become stale. Finding the proper balance of how many times to post each week is up to you. I suggest a minimum of 2-3 times per week. Your readers will come back as often as you post. Whatever works for you, just be consistent.

Interacting, Conversing, Dialog and Threads

Being unresponsive to the readers and their comments will have a negative impact on your Blog. If you just "post & go" never returning to engage or converse with others, then the value of a good thread or conversation will be lost. Many Bloggers create posts where the greatest value actually comes from the dialog in the comments.

What's In A Title

Everything. Not just for SEO either. Having a catchy title can make the difference of whether someone wants to read your post or not. Taking a bit more time to come up with a good title that is relevant is worth the extra effort. Don't take title's for granted, and be careful using a catchy title that has nothing to do with your subject matter or topic.

Be Part of the Solution and NOT the Problem

Complaining, writing with negativity, and using a blog to attack others may be attractive to a certain audience, the question you have to ask yourself in this case is, "Is this the audience I wish to attract?" When sharing your opinions and experiences where there is a negative or questionable subject matter, try to find the roses and not the thorns, something that will help and benefit your readers.

Write With Transparency

Some Bloggers like to cut and paste from pre-written content that may not even be their own. Not being transparent can easily be detected in ones writing. Somehow that little 10pt font has a way of revealing more than you think. Be yourself, be sincere, be honest, and just be you. Don't plagiarize! As simple as this sounds, it is difficult for some, but must be overcome if you want to be a successful Blogger.

Participate - Read, Write, and Comment

This is a big and common mistake. Taking time to read will only help you learn and grow. Taking time to write will only better your Blog post quality and increase your traffic, visitors, and business. Taking the time to comment on others posts will only build your reciprocating visitors and traffic and will do miracles for building new and exciting relationships.

I share these thoughts, common mistakes, and suggestions with you today not because of what YOU are doing wrong, but because these are many of the things I have done wrong. I've had to learn much over the past couple years of Blogging. Call it trial and error, but most of what I have learned about Blogging was learned here, and by doing it wrong. At times, I do see others doing the same things. Sharing my own experiences and shortcomings might help you save some time and frustration as you press onward toward your own Blogging aspirations and goals. Making mistakes is how we all learn and grow.

LABOR DAY 2009- MORTGAGE RATES

Richard Roux (Watson Realty Corp., REALTORS) — Thu, 03 Sep 2009 08:12:05 -0700

Sitting on the fence about making a real estate purchase?

Mortgage rates are down!

One of my lenders just sent me the following information. The rates below are based upon a purchase client with 720 credit score and a $200,000 loan amount.

CONVENTIONAL 30 YEAR FIXED 80% LTV - 4.875%
VA 30 YEAR FIXED 100% LTV - 5.00%
FHA 30 YEAR FIXED 96.5% - 4.875%
USDA 30 YEAR FIXED 100% - 5.125% (CERTAIN RESTRICTIONS APPLY)

Learn more about this area: www.ameliaislandresidences.com

FREE AMELIA ISLAND VISITORS GUIDE AVAILABLE

Richard Roux (Watson Realty Corp., REALTORS) — Thu, 20 Aug 2009 04:12:04 -0700

Looking for a great vacation destination on the ocean? Many folks don't know where Amelia Island is located. Even when they do, they get confused by our local terminology.

Amelia island is an Island North East of Jacksonville. The entire Island and some of the adjacent mainland (where there is no beach) is serviced by the Fernandina Beach Post Office, so the mailing address for all those folks is Fernandina Beach, ZIP: 32034. The town of Fernandina Beach is actually just on the north end of the Island. The Island's resort areas of Summer Beach and Amelia Island Plantation occupy the Southern end of the island.

Perhaps all this confusion is really some cleaver camouflage to keep our little secret part of the world a secret. For we know that we have a very beautiful little secret.... and I can share that secret by sending you the 2009 Visitor's Guide..... just go online to my WEB page and ask me for it .... I'll need your email address ..... and there's absolutely no obligation.

Richard Roux

Watson Realty Corp

904 415-6096

GET YOUR INFO ON AMELIA ISLAND AT: WWW.AMELIAISLANDRESIDENCES.COM

Hurricane Season Tool- Hurricane Tracking

Richard Roux (Watson Realty Corp., REALTORS) — Tue, 18 Aug 2009 09:20:46 -0700

Now that we are in hurricane season, I find that it's particularly helpful to have a web site that I can check and get great graphics and storm path update info. I've found that WWW.stormpulse.com is a really great way to track approaching storms. Try it.... it's really worth using.

Also here's a tid-bit about this area. Lots of my friends in Maryland have asked me why I wanted to live on the coast in a hurricane area. I tell them that was one of the criteria I used to select a home-site within Florida. The Amelia Island Area is within the concave shape of Florida's east coast. Storms headed north and hugging the east coast go off shore and are more of a threat to the Carolinas. Take a look at the map and you'll see what I'm talking about. Interested in this topic, email me and I'll send you more info on the area and its weather patterns.

Buying a Home, the Simple Steps to Follow- Part 2

Richard Roux (Watson Realty Corp., REALTORS) — Tue, 18 Aug 2009 08:31:43 -0700

Via Donna Harris, REALTOR® & ASP - Austin TX Real Estate (RE/MAX Austin Skyline):

When buying a home, there are several steps, but if broken down, it's much less intimidating. What else helps? Doing the steps in a particular order.

For example, Part 1 of this series talked about getting Pre-Approved for a mortgage.

The second step is Looking for Homes.

Many people think REALTORS® are tour guides and just drive buyers around to look at houses. This is so far from the truth. You, the buyer, need to learn the areas and decide where you want to live, and a Realtor can't do that for you.

Many buyers aren't quite sure where they want to look, so they want to see listings in several areas. This is not a problem as I can set up several searches in the MLS for you, each with different search criteria.

As the buyer, you then need to take those listings and drive through the neighborhoods to see if you could live there and if these neighborhoods were what you were expecting.

What I mean by this is to not just drive by one time, but to drive by a few times, and at different times of the day. Are you interested to know if kids are around? Drive by a Saturday afternoon or when the school bus stops by the neighborhood. Are you interested to see if the street is lined with cars? Drive by in the evenings.

Drive to and from your office a couple of times, and make sure at least one of the times is during regular rush hour traffic. You might do the drive on a lazy Saturday afternoon with no traffic and be ok with it, but come Monday morning, traffic might add an extra 15-20 minutes. Are you ok with the drive now?

Once you've been able to narrow down areas based on neighborhood and drive times, pick out a good 7-10 houses you want to see.

The average first time home buyer will actually buy a house the first day out looking, within 5 houses they see. Why look at 7-10? To make sure you're ok with the variety and not second guess your decision when only looking at 5.

The average move-up or move-down buyer will buy a house the second day out looking, within 7 houses. If you looked at 7-10 houses the first day, you might actually buy something that first day as well, which is another reason it's good to look at a variety.

There are many things to look at when looking at houses, and you'll have to come back for Part 3.

**Are You Packed Yet?**

Donna Harris, REALTOR®
RE/MAX Austin Skyline
www.DonnaHomes.com
Donna@DonnaHomes.com

Austin, TX and the surrounding areas of Lakeway, Bee Cave, Westlake Hills, Cedar Park, Round Rock, Spicewood, Circle-C, Steiner Ranch, and everywhere in between... Whether you're buying or selling, I'll be with you through the entire process.

DATONA BEACH Area Condo Comparison Info Available.

Richard Roux (Watson Realty Corp., REALTORS) — Thu, 23 Jul 2009 08:29:00 -0700

I just surveyed 27 Ocean Front Condos for a Mid-Atlantic buyer. I made up a matrix of subjective information on my findings to aid the buyer who was flying in for a day trip. If you are looking for an 2/2 oceanfront condo on the US East Coast and are considering the Daytona Beach Area, ask for the info. Send an email to: richardroux@watsonrealtycorp.com, or call 904 415-6096.

Richard

www.ameliaislandresidences.com

SHOULD I PAY MY MORTGAGE?

Richard Roux (Watson Realty Corp., REALTORS) — Wed, 24 Jun 2009 05:47:20 -0700

I thought this article was interesting and timely.

Via Richard Zaretsky, Florida Real Estate Attorney (Richard P. Zaretsky P.A. ):

This seems to be THE NUMBER ONE question I get. Unfortunately there are several answers and which is correct for you depends on the Circumstances. I will address the common scenarios in this article.

Policy in my office is to never "tell" - as in "instruct" - our borrower client to pay or not to pay their mortgage. Paying or not paying has a lot of collateral effects and the borrower needs to know what they are before making the decision. We don't make the decision for the borrower (our client) because the effects of paying or not paying are not going to affect me - but they will affect the client, so it is the client that must make the final decision.

Let me make one issue clear - when we are hired to help facilitate a short sale or loan modification it is far easier for us to negotiate with the lender if the payments are late, but it is almost never a requirement. The exceptions to which will be discussed later in this article. Additionally, internal rules change at the banks constantly. A new client came in totally frustrated. They called their bank to help with a modification and the bank said they could not address their situation until they were at least 60 days late. So the near perfect (800+) credit score couple stopped paying for 60 days and then called the bank back. Now the bank says that because they are 60 days late they cannot speak to them about a modification! The point is, if you don't have to be late then why voluntarily create a late payment credit history that will adversely affect your credit-dependent life almost immediately and for years to come?

SO LET'S GET INTO IT - Danger - this is a long article and it covers a lot of ground!

Short Sale:

A borrower that is current and contemplating a short sale wonders if they should stop paying their (first) mortgage. They are upside down and until now they have been current. However they are paying the mortgage at a cost of not paying other bills. (Other or different facts may be that they are paying all their bills but taking the money from savings or a pension fund to make those payments, or they are borrowing money from another equity loan).

Generally, it is not a good idea to get into debt to pay your mortgage, unless you have a solid plan to both (i) keep the mortgage current and (ii) repay the additional indebtedness you are creating. It is not like taking from one pocket to put into another - it is more like taking from someone else's pocket to pay your bills. This would include credit card loans as the source of funds. It all has to be paid back, so if you don't have a plan to pay it back, don't borrow it in the first place! You are only digging a bigger hole for yourself and making it harder to get out of the hole.

If you are taking from your pension or savings money, again you better have a rock solid plan to get that money back into those accounts, or there is no sense in giving up that hard earned and usually irreplaceable retirement money, especially considering these are monies that are usually protected from creditors' judgments including those your mortgage lender could obtain (deficiency judgment)..

Of course the "amount" of money you have "in reserve" comes into consideration. If you have 2 million dollars in reserve and you decide to spend 10% of it to keep the loans current until you can short sale the property, that plan has a basis that the 10% is not going to make a difference in the way you run your life over the remaining time you have left as a mere mortal.

Sometimes, but rarely, we run into a lender that says they won't approve a short sale or modification because the borrower is current with his payments. When we have encountered this it is in most cases associated with a government backed loan, (but later on we will show you why this may be motivated by plain greed on the part of a loan servicer). A properly compiled financial snapshot of the borrower should show why they are current and what will happen if the short sale or modification is not approved.

Your decision on how to proceed should be based on what goal you are trying to accomplish and how you plan to get to that goal (see how to determine your goal).

Mortgage Modification:

Apart for some voluntary government programs regarding (Fannie Mae or Freddie Mac) government involved mortgages, I know of no lender that absolutely will not deal with a borrower who is current with their mortgage payments. Lenders deal with all sorts of situations and "absolutely not" is just not in the vocabulary. A typical borrower calling a lender may hear that they must be late, but that is more of a "vetting" statement than an absolute policy.

The exceptions are some government program guides for modification. The first step to seeing if your loan comes within this exception is to see if it is a Fannie Mae or Freddie Mac loan. You can do this online at the Making Home Affordable site. Many servicers and lenders whose loans are not "government backed" are now choosing to follow this government plan (known as the Home Affordable Modification plan or more affectionately called the "Obama Plan" - see below) for the simple reason that they are being compensated by the government for each successful modification they execute within its guidelines, and either the servicer or lender receive a residual bonus for the loan staying current under the modification. In these cases we have seen non-government backed loans insist on the borrower being late to qualify for modification as well. What is confusing on this point is that when the plan was introduced it included modifications (and compensation for such) for current loans as well. However, we are told time and time again from the lenders directly that they must be late to qualify. There is no such rule in the guidelines.

While this is contrary to what has been published by the government about the plan, keep mind that following the plan and any of its various aspects is entirely voluntary and up to the Lender or servicer. They can pick and chose from this plan as they see fit for their own internal reasons. Here is a more interesting twist - a servicer that modifies a delinquent loan is paid more under this incentive plan than if the borrower were to modify while the loan is current! If the borrower is current, the servicer can receive up to $3,500 in incentive fees from the government. If the borrower is delinquent, the servicer can receive up to $4,000 in incentive fees from the government. Thus it seems that it pays ($500 to)the servicer to encourage a borrower to be delinquent!

We often see a client that fits the profile for modification under this government plan. Some of these plans are said to require that to be qualified the borrower must be late 60 days (see Guidelines page 5 at bottom). But in fact, being late is not a requirement, but only one factor of many (see Guidelines page 16 at the top - "However, a NPV (net present value) positive result is not necessary to qualify a loan for a Home Affordable Modification"). If the goal is to qualify under such a plan as put in place by the lender at that time, then to accomplish that qualification the borrower may need to make themselves late, but that cannot be determined in a 2 minute telephone call with a lender representative. I cringe when we go this route because just like these "plans" came into existence, I can see them change the plan thus leaving the now 60 day late borrower with ruined credit scores that occurred needlessly.

Generally about a quarter of our modification clients never go late and still get a modification offer from the lender. However, keep in mind that nearly all lenders put up as their first line of defense the policy that going late is a necessity to qualify. We can only speculate this is done to deter the enormous inflow of loan modification requests from borrowers that would come in if this was NOT said to be a requirement. It also helps address those in the most dire amount of need first.

The Pro's and the Con's:

The general rule of thumb we use is if you can pay your mortgage and maintain your life's necessities, you may consider keeping the loan current, taking the points in this article into account. However, if you need to choose between buying food or medications and paying the mortgage, the decision that should be made is clear: your life necessities take precedent.

Here are the pro's to consider when in the short sale or modification process. Keeping the loan CURRENT has the following benefits:

a) Your credit score is not dinged until the short sale transaction occurs (and not at all in most loan modifications) and your overall credit score reduction will be minimized, and b) You will remain in good standing with your lender without worry of penalties, fines, or a foreclosure.

The "con's" of keeping the loan current are that:

(a) You will be out of pocket for the monthly mortgage payment (monies which you may or may not need to survive), and

(b) Your lender may question the sincerity of your claimed hardship, and you may be spending funds that would otherwise be potentially (but rarely) forgiven by the lender. In addition, occasionally the lenders in a short sale may require a lump sum payment above the sale amount from the borrower to forgive the debt. Coming up with that money is sometimes the difference between a deal or no-deal. If you can put your mortgage payments aside and stockpile them, it will help you cover that potential lump sum.

A similar pro/con approach applies to GOING DELINQUENT with your mortgage. In favor of going late is being able to keep the unspent mortgage payments in your pocket (or applied towards other necessities as the case may be) in which event your hardship may appear more sincere to the lender. On the other hand, there are very real consequences to going late with your mortgage payment:

a) You WILL incur late fees and other penalties on the late interest. Usually this is not a large issue as it is part of the forgiven debt in a short sale and usually forgiven in a modification, but it is something to consider,

b) Your credit score downgrade will be harder as you will compound the short sale hit with a 30 day late, 60 day late, etc, (and if this is a modification you will make a non-negative credit score event turn into a negative credit score event), and

c) You will eventually cross a threshold (typical industry standard of 90 days late) where the lender will initiate a foreclosure action in State court.

Going Late on Your Second Mortgage:

Often a borrower comes to us and says that they are late on the first mortgage but current on the second mortgage. The second mortgage is almost always totally upside down with no equity left in the property to secure that financial obligation. The borrower says they paid the second mortgage because they had the money for the smaller payment (second) mortgage but not the larger amount first mortgage. Our answer - if you don't pay the first mortgage they are going to foreclose it and then paying the second mortgage is not going to save your house.

Lately we have seensecond mortgage lenders with 90 day late mortgages skipping the foreclosure process (since if they cause a sale of the house it is sold subject to the first mortgage, and thus any buyer still has to pay the first mortgage, which usually makes no economic sense). Instead the second mortgage lender sues the borrower on the promissory note only and gets a money judgment that they can keep for a long time (20 years in Florida).

So if a client says they are paying the second mortgage but not the first mortgage, we usually suggest they look at the common sense approach and what are they likely to gain or lose by doing so.

Effect of Non-Payment / Late Payment on Credit Score:

This is a big question and nowhere is the answer clear cut. Definitely if you get a report on your credit that you were "late" (in mortgages that means 30 days or more late) then your credit has been "dinged" and your credit score is adversely affected.

Credit scores are used for many purposes, including the amount of credit you can get on a credit card, the interest rate you get on credit cards, car loans and mortgages, your ability and price of life and disability insurance and even car or house liability insurance, your ability to get a certain type of job, or to establish business relationships, and your ability to rent a place to live, to name a few. So credit scores are important. If you want to better understand credit scoring you can see the Federal Reserve Board's Report to Congress from April 2008.

How much your credit score is affected by a 30, 60 or 90 day late report depends on a lot of other factors about your financial well being, your past credit history and myriad other issues. Generally though we have our clients reporting drops of as little as 50 points for a no late payment short sale or up to 150 points for a short sale with multiple late payment reports. We have seen an 800 go to 720 and we have seen a 740 go to 500. It all depends on too many uncontrollable credit issues to be able to give a formula that works for everyone. For a discussion on credit scores this our past article.

Confused?

Rightfully so. The fact of the matter is that we are in uncharted waters and there is no industry standard for Short Sales or Loan Modifications, which makes pinning down exactly what the Lenders may do near impossible. Pile on the fact that there are a large number of lenders out there and each have their own internal policies which change as readily as the tides. The best anyone can hope to do is make an educated decision, set a plan, and be ready for anything.

Copyright 2009 Richard P. Zaretsky, Esq.

Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make. This article is for information purposes and is not specific advice to any one reader.

Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660 RPZ99@Florida-Counsel.com - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide! Shortsales@Florida-Counsel.com New Website www.Florida-Counsel.com. See our easy to find articles at SHORT SALE AND LOAN MODIFICATION TABLE OF CONTENTS

Feranadina Beach/Amelia Island Condo Comparison Info Available.

Richard Roux (Watson Realty Corp., REALTORS) — Fri, 12 Jun 2009 13:46:01 -0700

I just surveyed 18 Condos for a Mid-Atlantic buyer. I made up a matrix of subjective information on my findings to aid the buyer who was fling in for a day trip. If you are looking for an 2/2 oceanfront condo on the US East Coast and are considering the JACKSONVILLE FL/FERANADINA BEACH/AMELIA ISLAND Area, ask for the info. Send an email to: richardroux@watsonrealtycorp.com, or call 904 415-6096.

United States Flag Disposal Services Offered

Richard Roux (Watson Realty Corp., REALTORS) — Mon, 08 Jun 2009 10:35:45 -0700

As part of the June 13th Flag Day Ceremony in Fernandina Beach, old, worn and tattered flags can be properly disposed of at 10 AM, June 13th, Fire Station #20. Flags can also be dropped off prior to this date at the UPS store on Sadler Road, or at the UPS store (across 200/A1) from Target in Yulee.

Amelia Island Paranormal Conference

Richard Roux (Watson Realty Corp., REALTORS) — Mon, 08 Jun 2009 10:27:26 -0700

The Southern Paranormal Research Society will host a workshop and conference here June 12-14. The location will be the Florida House Inn on South Third Street, Fernandina Beach. The conference is aimed at anyone interested in paranormal research. Some of Fernandina's haunted cemeteries, homes and businesses will be visited. Call 261-3300 to reserve a spot in the conference.

AMELIA ISLAND TREASURES TO BE SHOWN

Richard Roux (Watson Realty Corp., REALTORS) — Mon, 08 Jun 2009 10:20:50 -0700

The Amelia Island Museum of History will be opening its archives to the public and sharing some of the treasures normally not available to the public. Interested? The event will be held 5:30 PM , June 12th. There is a small fee for non-members. Call the Museu for details, 261-7378.

PRICE REDUCTION- GREAT OCEAN VIEW HOME- FERNANDINA BEACH

Richard Roux (Watson Realty Corp., REALTORS) — Tue, 26 May 2009 18:38:25 -0700

Great Ocean views from this South Fletcher Av home set back off the street and near the Ritz-Carlton Resort on Amelia Island.

Home's features include:

¨ Beautiful Ocean Views from Main and Upper Levels

¨ Private & Secluded Setting

¨ Approx. 1969 SQ FT (Heated & Air Conditioned)

¨ Open & Airy Floor Plan

¨ Cathedral Ceilings

¨ 3 Bedroom, 2.5 Bath

¨ Master Suite on Upper Level

¨ Beach Home with a Cozy Feel

¨ Decks- main & Upper Levels

¨ Large 2+ Car Garage

¨ Lots of Storage with Bonus Studio/Workshop Area

¨ Rear Parking & Turn-about

¨ Termite Protection

¨ South end location, near the Ritz-Carlton & F.B. Golf Club

¨ Beach Access Across the Street

¨ Adjacent Buildable Lot Available

ORIGINALLY LISTED AT $565K, NOW $450K. Contact me for a showing and/or more information!

Richardroux@watsonrealtycorp.com

904 415-6096

www.ameliaislandresidences.com