by Tim and Julie Harris

Number 10 I can’t make my house payments, but I do have an ability to pay back all or part of the negative equity. Also, I want to preserve my credit score…is a short sale right for me? Probably, not. In cases where the seller can pay back all or part of the negative equity (usually to the 2nd lien holder), it makes sense for them to work out a repayment plan. The lender will then release the lien and allow the home to close.

Number 9 If I pay mortgage insurance and default on my loan, why wouldn’t that cover the deficiency amount? The mortgage insurance is not there for your protection, just the mortgage lender’s.

Number 8 Do I have to have my home “Approved” by the lender prior to offering it for sale as a short sale? No. Technically speaking there is no such thing as being “Short Sale Approved.” The actual approval only happens with an accepted offer.

Number 7 I just missed a payment and I know I will miss more…how long does the foreclosure process take and is there time to do a short sale? The foreclosure process takes differing times depending on your state. In the Midwest a foreclosure can take over a year. In California its taking 6+ months. Generally speaking a well priced short sale being processed by an educated short sale listing agent will sell and close in less than 120 days.

Number 6 Will I still have to pay property taxes if I do a short sale? Property taxes will always have to be paid as part of any accepted short sale. Whether it’s you or the lender, it depends on their policies and the specific agreement you reach while negotiating the short sale.

Number 5 I owe more than my home is worth and I can’t make the payment. Do I have to somehow qualify for a short sale? The simple answer is NO. If someone can’t make their payment and they are otherwise insolvent, they qualify for a short sale. Note: insolvent simply means their total debts are great than their assets.

Number 4 Do I have to pay income taxes…I have heard that I will get a 1099. Will the loss the bank takes be treated as a taxable gain to me…the seller…is this true? It WAS true, now it’s not. Consult your Tax Attorney or Qualified CPA. Very recently the tax law was modified and now most people who do a short sale will have no taxes due.

Number 3 How do you, my listing agent get paid…who pays your commission? The bank will pay the commission along with all the other usual closing costs.

Number 2 Do I have to miss a payment to do a Short Sale? No. Late last year most major lenders started accepting short sale offers from sellers who have never missed a payment.

Number 1 I want to do a short sale and have a 2nd mortgage, does this make me ineligible? No. Both of your lenders will need to be satisfied in some way to complete the short sale. If your first lender will be paid off by the sale, then you just negotiate the terms with the second lender. Most short sales do involve 1st and 2nd lien holders.

Manatee Protection Protects the spring-shed area for vital manatee habitat. Provides increased land based observation and control of a popular human manatee interaction area. Ensures access to an important area for manatee rescue and release operations. Greatly increases the observation of vital manatee habitat by both the public and law enforcement personnel, allowing for increased reporting of violations and more rapid intervention when necessary for law enforcement operations. Water Resources Restoration of hardwood swamps to help restore natural filtration of storm water returning to Kings Bay. Protecting the immediate spring shed area for the last of the crystal clear springs flowing into King’s bay. Habitat Enrichment Improvement of lake Linda as wildlife habitat including the possible creation of a small impoundment for wading bird, waterfowl and shorebird use. Ecotourism A unique state of the art spring wildlife viewing station which allows the general public to view manatees, fish and the springs in a rich way without manatee disturbance In Conclusion The Fish & Wildlife Services concluded that if the springs and surrounding land were not added to the refuge, “the manatees and their habitat would be negatively affected by the development of a subdivision.” An unprecedented community consensus has formed in support of public ownership of this last totally fresh water spring complex on Kings Bay.

By Steve Liner
BUSINESS MATTERS EDITOR
• March 27, 2008

When Florida's Realtors hosted lunch in the Capitol courtyard Wednesday, they were hoping for good news to go with their Chinese chicken salad. Elected officials gave them a feast.

"Sales in Florida were up 23 percent in February over January," said Florida Association of Realtors (FAR) President Chuck Bonfiglio as he introduced Gov. Charlie Crist.

Crist reported Floridians experienced a 16-percent reduction in home insurance "in the last year." He also cited a "fantastic" lowering of property taxes, anticipating "a $25 billion reduction over the next five years."

"It's not enough, but it's a heck of a start," he said.

"We've reached the turning point (in home sales)," said Florida Chief Financial Officer Alex Sink.

U.S. Sen. Mel Martinez gave a national perspective. "We have a real crisis on our hands," he told the Realtors about the residential real estate market. "We need to do something to draw down the inventory of unsold homes.

"We have to modernize FHA," he said, speaking of the federal home loan program. "We need to return the American dream to young families, and FHA needs to help them."

Martinez said there needs to be "more liquidity" in the market, proposing a five-year tax credit program of up to $3,000 per year.

Response from Tallahassee Realtors also was upbeat.

"Looking at January and February, each month has been better," said Tallahassee Board of Realtors President Patti Ketcham. "I don't know if it's a trend, but it's the right direction."

Meanwhile, new statistics detailing February existing home sales showed the Tallahassee area including Wakulla, Gadsden and Jefferson counties had Florida's most stable prices with a year-over-year loss of 1 percent. Statewide, there was a 16-percent price decline.

Realtors travel to Tallahassee each March for the FAR's Legislative Days. About 800 members attended committee meetings and conferred with their legislators during the two-day gathering.

Realtors noted other signs that real estate sales' downward trend is reversing. Summer Greene from Broward County said her area has seen a 16 percent increase in pending transactions, homes on the market that have sales contracts but haven't closed. She called that a "forward-looking" indicator.

"It's like everybody woke up Feb. 1 and said, ‘Enough of this,'" she said, adding prices have declined and mortgage rates have fallen to the point buyers are returning to the market.

FAR announced this week Florida's existing home sales totaled 8,310 in February, down 25 percent from February 2007. The Tallahassee area posted a 17 percent downturn, from 264 homes sold in February 2007 to 219 homes sold in February 2008.

Existing home sales volume is expected to hold steady through late spring, according to the National Association of Realtors. A gradual recovery is anticipated during the second half of the year as the mortgage market improves.

"We will need to have real increases before we know if this market has found the bottom," Ketcham said.

# Business Editor Dave Hodges contributed to this report.