Many recent reports have been conflicting, sometimes showing good signs pointing toward recovery in the market, and other times showing a slide back toward the worst of the housing crisis. It can be hard to get a handle on the direction of the real estate market, but some recent figures from March are shedding some light on foreclosures.
]]> The percentage of borrowers who faced delinquent payments remained unchanged from February to March. But the number of completed foreclosures rose by about 3,000 altogether during the same time period. This increase can be seen in a negative light, but the data also shows that the number from March is lower than the number was in March of 2011, suggesting an improvement in the overall foreclosure statistics.One representative from CoreLogic, a data analysis firm, said these figures may suggest that mortgage loan modifications and short sales are increasingly used to address the problem of foreclose.
Millions of families have faced foreclosure over the last several years. It can be a scary prospect, knowing that you may lose your home and face serious credit ramifications.
Anyone facing a foreclosure lawsuit should know that one of the best options is to stand up to the bank with a strong legal defense. Defending against a foreclosure lawsuit can lead to a successful modification of your loan terms with the bank, allowing you to remain in your home while you work to improve your financial situation.
Source: Reuters, "March foreclosures rise on month, fall on year," Leah Schnurr, May 1, 2012
]]>The report, however, continues the trend we've observed in previous posts: South Florida is the exception. Of the 20 cities that the Standard & Poor's/Case-Shiller home-price index tracks, Miami was one of only three cities where the prices actually increased. Prices fell in 15 of the 20 cities.
]]> All eyes are on the housing market and unemployment numbers as the nation tries to claw its way out of an economic downturn. Sometimes reports conflict, but most news-watchers agree that the housing market in general is in for a long struggle back to acceptable levels.Some people attribute the otherwise negative numbers from February to the usual seasonal decline that comes with the winter months. That could be the case, as other reports and former posts on this blog have noted that sales of previously occupied homes are on the rise, along with the number of permits requested for new residential development in 2012.
While reports of negative numbers in the housing market continue to appear, South Florida is proving to be the exception. With both commercial and residential real estate starting to make a comeback in Broward, Miami-Dade and Palm Beach counties, many residents will want to stay tuned for all the latest developments as they impact this area.
Source: Associated Press, "US home prices drop for 6th straight month," Christopher S. Rugaber, April 24, 2012
]]>This data should interest prospective buyers and sellers alike, indicating that the nationwide housing slump could be in the beginning stages of recovery.
]]> Although the numbers are still below levels that indicate a healthy market, most people involved in real estate will take any good news they can get. And on that front, the report also showed that January and February were the best months for sales of previously occupied homes since 2007. The recent improvement in employment rates has builders more optimistic about the 2012 housing market.As noted in previous posts, the vast majority of indicators point toward an uptick in the real estate market, especially in Broward County. Sellers will hopefully begin to see median sales prices increase, and buyers will want to take advantage of depressed property prices before it is too late.
While the numbers from the Commerce Department report are good, it is important to recognize that the real estate market has a long way to go before a complete recovery can be declared.
There are some initial steps both buyers and sellers can take before jumping into the market. Retaining legal counsel can be one of the most prudent steps. Also, careful preparation prior to engaging in contract negotiations will help in reaching an optimal real estate closing for both sides of the deal.
Source: AP, "U.S. homebuilders request most permits in 3½ years," Derek Kravitz, April 17, 2012
]]>Florida residents with an eye on property in Broward County are likely to take notice of a recent report noting a sharp increase in commercial real estate deals in nearby West Palm Beach. Cash deals have been reported on office buildings and apartment buildings, as well as on new retail leases signed by companies looking to open more locations.
]]> Some of the commercial property that is now selling was on the market for a couple of years, and realtors are reporting multiple bids on certain properties.Developers are also looking to return to the area, according to the report. This comes even as some property in the region continues to move into foreclosure, as is the case with a twin-tower condo complex off of Boynton Beach Boulevard. Office space may be of particular interest to developers who are interested in buying assembled blocks.
Previous posts have mentioned how the residential real estate market in South Florida is heating up, but the reports of improvements in the commercial real estate market are also exciting. With the increase in residential and commercial property deals, local residents may begin to notice the associated benefits of a revived real estate sector. Realtors have indicated that there has definitely been a sudden change in a once moribund market.
Source: The Palm Beach Post, "Realtors report increase in commercial deals," Alexandra Clough, April 16, 2012
]]>The bad part for sellers is that when foreclosed homes flood a real estate market, the value of homes in that area significantly drops. Foreclosed homes sell for deeply discounted prices, as banks try to unload the inventory to recover at least some of their losses, resulting in a drop in prices for other homes in the area.
]]> Some industry professionals are predicting that the nationwide housing market may be in the first stages of a broader recovery. Previous posts have noted that the real estate market in Florida is definitely showing signs of heating up, particularly in areas such as Broward County. In fact, some reports are showing that recent foreclosure rates in many parts of the country are actually decreasing for the first time in years.However, not everyone is as optimistic about the market. Some people are predicting that a sizeable shadow inventory is set to enter the market and effectively lower home prices in many parts of the country.
In the meantime, South Floridians should keep in mind that now is a buyer's market. Residential real estate markets throughout the country reflect the historic bargains available for house hunters and investors. And as the summer selling season gets underway, banks will probably be looking to make even more of their shadow inventory available for bidding.
Source: U.S. News & World Report, "How 'Shadow Inventory' Hurts the Housing Market," David Francis, April 10, 2012
]]>A recent article in Forbes details five steps individuals who are looking to jump into the residential real estate market should take if they want to ensure the strongest position to buy.
]]> First is deciding whether you're ready to be a homeowner. This is a rent vs. own debate, and which side wins out should depend in part on where in the country a potential buyer is looking to purchase. For South Florida residents, the benefits of being a homeowner definitely look to be the better option.The other four steps mentioned in the Forbes article deal with preparing yourself financially for a real estate transaction:
These are all sound financial planning tips that can let potential buyers know where they stand economically, allowing for better negotiating leverage and preventing a situation in which the desired purchase is outside the buyer's financial capabilities.
To these five steps, a sixth should probably be added: ask a professional for advice when you need it. Shopping for residential real estate can be complicated. The contract terms of real estate agreements are not always easy to understand, and a professional who knows the ins and outs of real estate law will be able to explain each step of the process.
Source: Forbes, "What Every Prospective Homeowner Should Know," Erik Carter, April 3, 2012
]]>The Miami Association of Realtors has reported that the median sales prices for condominiums and single-family homes in Broward County have risen since this time last year. Median sales prices throughout the state have done the same, and there does not seem to be any reason to doubt that the prices will continue to rise.
]]> Perhaps the most eye-popping number reported was the 33 percent drop in inventory listings of residential property. That's right -- inventory of residential real estate in Broward County has dropped by a third in the last year. One the other hand, the nationwide inventory report cites recent increases.These numbers indicate that this could be the perfect time to get into the Broward County real estate market, whether you are an investor or a potential homeowner. The data indicates that international buyers are taking notice of the opportunities, with 68 percent of all Broward County residential sales being made in cash. The reports state that almost 90 percent of international buyers have been using cash to purchase Florida property.
However, no matter the type of buyer or seller you are, it is important to prepare thoroughly before finalizing a deal.
As with most transactions, the devil is in the details with real estate agreements. Complications often abound. From offer to inspection and from acceptance to closing, minding the details is the key to a successful real estate purchase.
Source: World Property Channel, "Greater Ft. Lauderdale Home Prices Continue to Rise, Aided by International Cash Buyers," Michael Gerrity, March 27, 2012.
]]>Of those mortgages backed by Freddie Mac and Fannie Mae, Florida has a higher delinquency rate than any other state in the nation. It is estimated that the average number of days it takes to process a foreclosure in Florida stands at approximately 806, which is over twice the national average.
]]> This information probably comes as no surprise to most Florida residents. It has been widely reported that Florida suffered some of the worst of the effects of the housing bubble burst, and property owners know this best of all.Foreclosure is a scary prospect for just about any homeowner, and trouble with mortgage payments has become a common occurrence since the national economy turned for the worse. Although recent economic news is turning positive, it could take a while before Florida residents see any change in the housing crisis that hit our state harder than most.
The good news is that there are options for those individuals and families who find themselves in a tight spot with their mortgage lenders. Families can avoid foreclosure by pursuing a loan modification. Or, if a foreclosure lawsuit has already been served, a solid foreclosure defense can make the difference in keeping or losing a home.
In any case, it is important for people who are having mortgage difficulties to know that they are not alone. There are options to ensure a better future.
Source: sunsentinel.com, "Florida tops in delinquent mortgage loans, report says," March 21, 2012
]]>The girl, whose mother is a real estate broker, purchased the foreclosed home with her mother's help. After completing the transaction, the mother-daughter team set about turning the property into a rental unit. The daughter had been saving money earned through selling appliances and furniture left over in foreclosed properties. Having cleaned up the Port Charlotte home, the family is currently renting the unit out for approximately $700 per month.
]]> Under Florida law, minors cannot own real estate until they reach the age of 18. But the 14-year-old recognized a prime opportunity when she saw it, and she and her mother decided to split the investment. The Port Charlotte area was particularly hard-hit when the housing bubble burst, and current estimates state the area's property is now worth about one-third of its previous overall value. On the whole, the area can be seen as a microcosm for the state of Florida, which currently holds the dubious distinction of being home to 17 of the top 25 metro areas for foreclosures.While the foreclosure crisis of recent years has cost many Americans their homes, it has also provided people interested in real estate investment with an unprecedented stock of potential rental properties. One thing that has not changed, however, is the complexity of real estate transactions. Buyers and sellers alike are undoubtedly aware of the pitfalls that constantly threaten deals from offer to closing.
Whether buyers are interested in making a home for themselves or turning a once broken house into a rental property, consulting with a professional who is fluent in real estate law may be a solid first step toward sealing the deal.
Source: Time, "Mini mogul: 14-year-old girl buys foreclosed house in Florida," Kate Springer, March 13, 2012
]]>Reports are showing that several areas throughout Florida, including Broward County, are among the top regions in the country in terms of demand for residential real estate. In Southwest Florida, the numbers of pending sales and median home prices are both increasing, while the typical number of days on the market is decreasing. Some counties in the state are showing housing inventory numbers at low levels not seen in years. Other areas are showing double-digit increases in the percentages of single-family home sales month over month.
]]> This is good news for Florida, as it is widely assumed that the economic malaise the country as a whole is experiencing will not truly begin to turn around until the housing market stabilizes. Investors in particular have begun to notice the opportunity that potentially exists in Florida's real estate revival if the market is actually finished "bottoming out."Whether selling or buying, most people know that real estate transactions are complex, detail-driven undertakings that can be overwhelming even for experienced investors or homeowners. Contract negotiations, escrow accounts, tax implications and closings are all key parts of many real estate agreements, and each step carries the potential of having the deal fall through.
From loan application to closing, buyers and sellers alike will want to do what they can to avoid the headaches that could result from a failed or faulty real estate transaction. Even if the market is improving, Florida residents should take the necessary precautions to ensure a satisfactory deal.
Source: news-press.com, "Commercial Connection: Florida's housing market enters 2012 with momentum," Gary Tasman, March 3, 2012
]]>As part of the settlement, the participating mortgage servicers must consider alternatives to resolve problematic loans. These options include mortgage loan modifications, principal reductions, forbearances and short sales. Everything is on the table, and everything must be on the table before a servicer can file a notice of default.
]]> The settlement also stipulates that mortgage servicers cannot pursue foreclosure against properties on which borrowers are attempting in good faith to work out their mortgages. In addition, the settlement requires participating servicers to set aside a minimum of $10 billion to reduce outstanding principal owed to lenders.An additional $3 billion will be set aside to refinance mortgages that are currently underwater. (A mortgage is said to be underwater when the value of a home is lower than the amount the borrower owes.) The settlement also sets aside additional money for education, community outreach, financial counseling and legal services.
With the new push for these mortgage servicers to consider workarounds before foreclosure, more homeowners in Florida may find a way out their own financial crises before it's too late. If homeowners do find themselves in a situation in which they are negotiating a new mortgage with a lender, it is important to know exactly what options are available.
Source: Miami Herald, "Signs point to (possible) relief for distressed housing market," Peter Zalewski, Feb. 27, 2012
]]>According to the Circuit Court, the developer owes the loan holder $140.6 million in principal and an additional $25 million in interest for a grand total of $165.6 million. The developer reportedly never completed construction of the Fort Lauderdale condo-hotel, and many of the condo buyers sued to recover deposits.
]]> According to Donald Trump, his involvement with the property was fairly tenuous. He told a local news source that developers of the South Florida project licensed his name to sell units. The property was initially advertised as the Trump International Hotel and Tower. It was said to be a $200 million project. Apparently, more than 100 people put down deposits on condos.Whenever someone purchases a property, such as a condo, home or business, it is important that the buyer and seller are clear about each other's obligations. Sometimes real estate transactions become extremely complicated, requiring contract negotiations to make a closing truly equitable. Too often, people's expectations are undermined by surprises or delays, and sometimes skilled advice is necessary to help oversee all of the real estate documents and help protect a client's interests should the transaction take an unexpected turn.
Source: palmbeachpost.com, "Unfinished Trump condo-hotel in Fort Lauderdale for sale March 14," Doreen Hemlock, February 21, 2012
]]>In a new sign of hope for residential real estate, developers are planning a 31-story high-rise in Hallandale Beach that will be a combination of a condominium and a hotel. The building is the 22nd high-rise planned for development since the area's condominium market tanked in recent years.
]]> The building, known as the Beachwalk Tower, will have 84 residential apartments and 432 hotel rooms. The building will front the Intercoastal Waterway rather than the ocean, and the development of the new tower was inspired by a number of pre-sales at a nearby condo tower. According to developers, the neighboring tower sold all but eight of its 49 units.The decision to move forward with so many new developments is surprising to some in the industry, considering the tri-county coastal area where the new developments are being planned is still struggling to unload 4,200 units leftover from the previous boom. The theory, however, is that many of those properties were simply built in the wrong location.
If the developers are right and interest is beginning to pick up, it could be very good news for many Floridians looking to sell homes. In moving forward with a real estate transaction, a real estate attorney is the best resource for closing issues, drafting documents and negotiating other essential aspects of investment property and residences.
Source: American Banker, "More Condo Towers Planned for South Florida," Lew Sichelman, Feb. 14, 2012
]]>The term "non-judicial foreclosure" refers to the ability of lenders to foreclose on a property without having to go before a judge. The process creates a significant benefit to lenders because it is cheaper and quicker and allows lenders to get the home back on the market considerably faster. Homeowners, however, may lose many of their protections in the process.
]]> While it is tough to forecast what the actual implications of the new legislation will have on Floridian homeowners, passions are running high. According to supporters of the new law, it does not actually have anything to do with non-judicial foreclosures. Instead, the law streamlines the foreclosure process, staying fully within the court system rather than going around it.Opponents of the law disagree with the supporters' interpretation. Despite assurances from lawmakers that the legislation does not take any rights away from homeowners, critics feel that the law is a step in the wrong direction. According to one critic, the bill does nothing to streamline the foreclosure process, reduce the backlog on the court's docket or benefit homeowners in any real way.
With some people predicting that foreclosures will continue to rise in Florida, and courts already struggling to keep pace with foreclosures, it is clear that legislators need to do something. What needs to be done and how the new law, if passed, would affect the fate of Floridian homeowners, however, remains to be seen. In such a volatile legislative climate, South Florida residents seeking protection from foreclosure of their home may want to discuss their situation with an experienced attorney to ensure their legal rights are respected by both the courts and lenders who aim to foreclose on a property.
Source: news-press.com, "Florida bill seeks to hasten foreclosures," Mary Wozniak, Feb. 5, 2012
]]>It is expected that the settlement will increase to $30 billion if nine other mortgage servicers agree to sign on.
]]> The deal is welcome news for many Florida residents who are struggling with mortgage payments, but a lot of people will surely say that the agreement doesn't go far enough. In any case, the deal signals the most concerted effort so far by mortgage servicers to write down the amount owed by homeowners who have underwater mortgages.Officials indicated that at least 60 percent of the $17 billion in mortgage relief will result from writing down loan principal, which may help more people in Florida and elsewhere avoid defaulting on mortgage payments.
The settlement is expected to offer more than the initial dollar amount of relief, as servicers will receive credits for writing down underwater mortgages. As a result, the $26 billion could turn into $40 billion in debt relief.
The average principal write-down nationwide is estimated to be about $20,000, though in some cases the write-downs will be considerably larger. In order to be eligible to have a loan principal reduced, borrowers must be delinquent on their mortgage payments.
While the recent settlement is welcome news for many Broward County residents who are on the brink of foreclosure, the deal may fail to provide much needed relief for the majority of homeowners who have struggled to successfully make payments even while their home values plummeted. Floridians who are seeking a temporary or permanent loan modification will still want to explore the various legal ways of achieving that end.
Source: USA Today, "Feds, states, banks agree to $26 billion mortgage settlement," Julie Schmit, Feb. 9, 2012
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