George Sinacori

Mortgage Debt Relief to Expire

2012-01-11T10:14:00.000-08:00

The Mortgage Debt Relief Act of 2007 was enacted for 5 years during the last year of President Bush's administration in order to relieve homeowners being forced out of their homes of any additional financial nightmare from the IRS relating to the debt forgiveness.

"The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief. This provision applies to debt forgiven in calendar years 2007 through 2012."

Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.

The Mortgage Debt Relief Act of 2007 is due to expire at the end of 2012. In other words, the amount of debt that a lender forgives through a short sale or foreclosure can be taxable in 2013, after the Debt Relief Act expires. So if a house sold $50,000 short of what is owed on the mortgage, then the selling homeowners will owe federal income taxes on that $50,000.

Anyone considering a short sale or walking away from an under water primary residence may want to consider these potential consequences and act accordingly. Short sales take time as do foreclosures in Florida. A typical short sale can take 6 months or longer to close, although recently we've closed several in under 6 months. Lenders have begun to accept short sale contracts more readily, consequently the process can be faster depending on the realtor, servicer and lenders involved.
Contact me directly for a confidential discussion and for more info.

George Sinacori
GES Real Estate, LLC
ges.rellc@ymail.com

ges-realty.com

Why Government Programs Failed

2011-12-13T06:26:00.000-08:00

The Obama administration’s initial foreclosure-prevention programs, launched in early 2009, were intended to help 7 million to 9 million people. So far, they’ve aided about 2 million, and not all of those are out of foreclosure danger.

Programs begun later have also faltered. One intended to help at least 500,000 has helped just a few hundred a year after its launch. Another initiative to extend $1 billion to help the jobless or underemployed avoid foreclosure ended in September, obligating less than half of its funds. The unused money went back to the U.S. Treasury.

As of Nov. 30, the government had spent just $2.8 billion of the $46 billion it had declared in 2009 that it would spend to help resolve the housing crisis, the Treasury Department says. More has been committed, but ultimately a only fraction will be spent, according to the non-partisan Congressional Budget Office.

Since 2009 approximately 2.5 million homes have been lost to foreclosure. An additional 4 million are in the foreclosure process or seriously delinquent, while housing and unemployment issues continue.

Every program that was proposed to help troubled homeowners has fallen short or failed outright. Not even one has been successful. I've yet to see any efforts to help the unemployed find employment. The administration has somehow created a way in which large corporations realize that they can be more profitable with fewer blue collar employees.

The administration’s programs were destined for failure by design flaws, their reliance on a mortgage industry overwhelmed by a historic collapse in home prices, and a brutal extended housing downturn. Nor could they overcome the interests of mortgage investors unwilling to surrender profits and mortgage servicers with greater financial incentives to foreclose on loans than to modify them..

"There was nowhere near the effort to help Main Street as there was to help the banks,” says former senator Ted Kaufman, D-Del., who chaired a congressional oversight panel that oversaw $475 billion in Troubled Asset Relief Program (TARP) funds. Most of that went to banks and the auto industry.

Shaun Donovan, secretary of Housing and Urban Development, said in a recent interview that some administration programs “haven’t reached as many people as we originally targeted.”

Those shortfalls are glaringly evident.

Foreclosure Shopping ? - Consider This

2011-10-23T06:37:00.000-07:00

A recent ruling by a Massachusetts court decided that a homeowner who had purchased a foreclosed home did not have legal ownership of the property and consequently could not resell it. The reason for the ruling was that the bank who sold the property did not properly process the title when they foreclosed on it. Lenders and foreclosure mills who have engaged in robo-signing in order to push foreclosures through judicial systems now face another round of potential liability from this 2nd tier damage.

This decision by the Supreme Judicial Court now casts a cloud over legal ownership to any property where banks may have not properly conveyed clear and marketable title when they foreclosed.

According to an article in the Wall Street Journal about the case, "the problem has gained attention nationwide because of the banks use of robo-signing and other dubious practices that may have broken chains of title in foreclosures." Any unwitting 3rd party who eventually purchased a foreclosed home with a tainted title could be at risk of proving that a clear chain of title exists before selling or refinancing the property. What's scary is that most people don't even know they have this problem until they decide to sell or refinance.

George Sinacori

Why Struggling Homeowners Get No Help

2011-09-13T07:57:00.000-07:00

The administrative mistakes of the largest lenders is surpassed only by their arrogance.

With all the rhetoric spewed on American homeowners by banks and politicians about "continued efforts" to help struggling homeowners you would think that the now depressingly familiar stories of lenders unwilling to help would have stopped. People who deal with mortgage lenders and borrowers hoping for help know that the horror stories continue.

Big banks like J.P.Morgan Chase, Bank of America & Wells Fargo are realizing unprecedented profits.They measure their assets in trillions of dollars. Helping struggling homeowners is not a priority. They make no mistake about that. Bank of America & Wells Fargo have announced that they are cutting 30,0000 jobs. A move likely designed to appease shareholders and likely detrimental to anyone hoping that they may get help through a mortgage modification or some other "foreclosure alternative" they've applied for.

Together the George W.Bush and Obama administration spent over a trillion dollars of taxpayer money to bail out big banks and corporations with no requirement to utilize any portion of that taxpayer money to help struggling homeowners. No "quid pro quo" as it's called. No responsibility or obligation to help hundreds of thousands of struggling homeowners while these same corporations continue to enjoy tremendous profits. The struggle to hold big banks accountable is somehow delegated to state and local governments. Most of these fights are insignificant. They are merely a nuisance to big banks because of their size and financial clout. NY City officials consider banking as important to them as the auto industry is to Detroit.

The Obama administrations parade of mortgage relief programs have failed miserably, largely due to the lack of any requirement by lenders to adhere to them. Any government program that has been touted by the administration as mortgage relief attaches financial incentives for banks. Like a reward for a good grade. It's like asking banks to choose between record profits or "atta boy"

What does it take for the American people to wake up? What would it take for the American public to say "no more"? I struggle everyday with these questions and I always come away with this. I know that the answers are in the American public, not the politicians, not the power mongers and not the corporate giants feeding off taxpayer money. Unless we Americans regain control of "our government" we will continue to spend days and nights struggling for answers in our own lives.

George Sinacori
GES Real Estate, LLC

Welcome to Your Future

2011-08-09T08:12:00.000-07:00

Has reality TV become so much a part of our lives that it now affects the way we interpret things that are in fact, reality?

First let me clarify that I'm not a big reality TV junkie and I'm not big on playing video games like Angry Birds or Black Ops or Guitar Hero etc. What strikes me as alarming is the seemingly overwhelming attitude of so many to "fake it 'til we make it" and an apparent level of success that's attained in real life by doing just that.

We ( Americans ) have a 3 ring circus in Washington that is "large and in charge" basically because Americans put them there. They've sold us all on how they could fix things, like the economy, unemployment, war, health care and housing. The circus that performs for us every day is so entertaining that I have trouble deciding which act to watch. Congress, Senate or The White House!

The enormous malfunction of our government is a debacle, I think we all get that. Americans have made some seriously bad choices by buying into the slick "tell 'em what they wanna' hear" philosophies that we've allowed to so negatively affect our lives, our country and our futures. I wont attempt to analyze the characters that play various continuing roles in the daily standoffs. I'm not going to try to convince anyone that there's a simple fix to the mess in Washington that has spread like a contagion into every city and state in the country. I have to say however that I've never seen any reality show challenge that comes close to emulating the contempt and deceit that the current Congress, Senate and Administration in Washington D.C. spew upon each other in the name of the American people.

The year 2011 will certainly be memorable for so many reasons that I'd rather forget.

We have deep seeded problems at the core of our economic collapse that seem to be afterthoughts, if anything of the conflicts within our government. Jobs and housing have been, from the beginning and remain the biggest problems facing any economic recovery this country may some day attain. Until we begin repairing the damage that led to the collapse we will continue to live in our own futures and in our children's futures. Sometimes I just sit back and think "I don't get it". But then I'll snap back to reality and realize that it's not that complicated. If we just didn't buy into the fakes in the beginning, if we just didn't trust the slick talk and promises it would be simple. Fact is Americans did and it's a mess now. Welcome to your future.

George Sinacori rebuygeorge@yahoo.com

No $ No Help For Housing

2011-07-25T07:30:00.000-07:00

As the Obama administration and Congress continue to plays politics with the American economy it is apparent that there is no money for any new government program aimed at helping the millions of Americans now facing foreclosure or the millions owing more than their home are worth.

Recently during a Twitter town hall,the President acknowledged that the weak housing market was one of his administrations chief burdens.

According to many economists, the fact is that there isn't likely to be any money or political desire to consider any legislation to address the problem.

In my opinion housing remains one of the biggest drags on the American economic recovery. Solving the housing and employment crisis together could have gone a long way toward avoiding the current standoff in Washington over raising the debt ceiling.

Isn't the reason America is at risk of default on it's debt simply because the administration relies too heavily on borrowing. Haven't they borrowed us into a corner while bailing out large corporations that they've considered too big to fail.

How can our government do so much in so little time, sometimes overnight for others while they stand and watch the American consumer struggle daily with higher food prices, continued rising oil prices, foreclosure, unemployment, out of control health care costs.

Most foreclosure now are caused by economic conditions and not by sub prime mortgages. Unemployment may be the biggest contributor to the foreclosure rate and underwater loans may be the second factor. The foreclosure rate continues to climb nationwide with virtually no end in sight. In fact we may now be living our futures.

The only way that could change would be for lenders to reduce the principal owed on both first and second mortgages in order to coincide with current market values. Lowering the principal would give people a ray of hope that they may again someday have some equity in the homes that they've struggled to keep. It would allow others to sell at market prices avoiding any possibility of foreclosure and it would make the nightmares of short sales go away.

While the politicians posture over how much more to borrow and Americans wonder what will happen to us if Washington fails us again the problems facing the economy go unattended, ignored and left to work themselves out.

I have little faith that our government will do what's right for the us, I have great faith that if left to what once was middle class Americans we would find our own way and someday get our country back on track.

Social Protest and Cyber Attacks

2011-07-01T07:25:00.000-07:00

Social protest, historically has been visible through marches and demonstrations and taken to the streets or corridors of government and even corporate offices throughout the world. Who can forget the civil rights movement here in the U.S.A. or the 1989 Tienanmen Square protests in the Peoples Republic of China where 100,000 gathered in civil resistance. Social activism, and civil resistance although non violent acts often evolved into violent encounters. A line from the Rolling Stones song may put that form of protest into perspective with the lyrics "I went down to the demonstration, to get my fair share of abuse".

Social protest is no longer found just in the streets. Cyber attacks on government, municipalities and large corporations are becoming more the choice of the digital generation as a non violent means of seeking change. Groups of hackers, although loosely organized have been using "hacktivism" as an alternative to physical protest effectively enough to disrupt or temporarily disable municipal and corporate websites creating at least major inconveniences. Most hacktivist cyber attacks are motivated by a perceived inhumane condition or denial of basic human rights.

Last week a group of hacktivists declared cyber war against the City of Orlando disrupting various websites including the Mayor's re election campaign and the city's largest redevelopment organization. The attacks were a response to the city's recent practice of arresting members of the Orlando based "Food Not Bombs" anti poverty group for feeding the homeless in one of the city's parks. Over the past 30 days police have arrested some 25 Food Not Bombs volunteers as they provide meals to homeless people. Members of Food Not Bombs released a statement condemning the cyberattacks saying "We have nothing to do with this kind of thing, what is being done is a distraction from the real issue at hand" . The group said that the mayor and the city council are attempting to "criminalize poverty" and intend to "hide the homeless".

Separately a group of hacktivists known as "Anonymous" takes credit and responsibility for the attacks. Although most protest movements are organized by the oppressed group, Anonymous has become known for it's denial of service attacks on prominent high traffic websites worldwide in conjunction with more conventional protests of other organizations. In November 2010, Anonymous conducted several cyber-attacks on the corporate giant MasterCard after the company pulled sponsorship from the anti-secrecy website Wikileaks.

Love it or hate it people will find a way to be heard whenever basic human rights and freedoms are jeopardized, marginalized or compromised. Cyber Attacks may be an effective evolution of peaceful social protest.

George Sinacori
GES Real Estate LLC

Mortgage & Foreclosure Fraud Crackdown

2011-06-16T09:12:00.000-07:00

From foreclosure frauds to subprime shenanigans, mortgage fraud is a growing crime threat that is hurting homeowners, businesses, and the national economy. From industry insiders to straw buyers, nearly 500 people have been arrested in a nationwide mortgage fraud takedown that reflects the coordinated efforts of law enforcement to address the growing problem of crime in the housing industry. The FBI has initiated it's largest mortgage fraud takedown to date with "Operation Stolen Dreams"

“Mortgage fraud ruins lives, destroys families, and devastates whole communities,” Attorney General Eric Holder said at a press conference to announce the results of “Operation Stolen Dreams.” Launched on March 1, 2010, the multi-agency initiative has led to a total of 485 arrests. More than 330 convictions have been obtained, and nearly $11 million has been recovered. Losses from a variety of fraud schemes are estimated to exceed $2 billion. The FBI is currently pursuing more than 3,000 additional mortgage fraud cases, almost double the number from last fiscal year.

The numbers are staggering and even more surprising given the difficulties of legit buyers in obtaining any mortgage financing.

George Sinacori
GES Real Estate, LLC

Bank Regulators Set New Foreclosure Rules

2011-05-10T07:03:00.000-07:00

May 2011 - Banks are scrambling to meet a mid June deadline requiring them to have plans in place on how they will meet a set of new U.S. Regulator guidelines designed to help clean up the foreclosure process. The banks will have an additional 60 days after that to actually put the plans to work and implemt the required changes.

The new rules reportedly will require a single point of contact for borrowers trying to modify loans or in the foreclosure process. Regulators will also require that "appropriate deadlines" be set for banks to give a decision on wether or not a modification or other foreclosure alternative workout can be arranged. Banks will also be required to ensure that staffing is adequate enough to handle the flood of foreclosures and loan modifications in their systems.

Some banks are already taking steps to implement changes and meet the new requirements before the June deadline. For example, J.P.Morgan Chase has announced that it is developing new software programs that will make it easier for borrowers to track loan modification requests. They also claim to now provide each borrower with a "relationship manager"to help them through the loan modification or foreclosure maze.

Citigroup says that they will provide a "concierge" service that will help guide deinquent borrowers at risk of default. Banks and mortgage servicers will also be required to meet new guidelines from Fannie Mae and Freddie Mac that strive for more loan modifications and stronger efforts to keep homeowners in their homes. Servicers will be required to approach borrowers early and frequently after just one missed payment. Fannie and Freddie will reward the servicers for completed modifications and penalize them for failing to meet timelines in the process.

These changes are presently scheduled to go into effect during the 2nd quarter of this year.

George Sinacori
GES Real Estate LLC

Foreclosure Case Heads To Supreme Court

2011-04-18T15:01:00.000-07:00

A South Florida homeowner will have his foreclosure case reviewed by the Florida Supreme Court. Claiming that fraudulent documents were submitted to the court by a law firm handling the foreclosure for The Bank of New York Mellon.

In a case whose outcome could reshape state law the 4th District Court of Appeals has asked the states high court to decide it as a matter of "great public importance". The Supreme Court agreed on Friday April 15th 2011 issuing an order to hear the case.

Roman Pino vs. The Bank of New York Mellon could result in widescale changes to foreclosure cases where there is evidence of fraud in the way that documents have been handled by lenders, servicers and the law firms that represent them. The Appeal Court wrote that in it's request to the high court that "many, many mortgage foreclosures appear tainted with suspect documents".

If the court decides in favor of the homeowner, a resident of Palm Beach County the ruling could affect thousands of foreclosures where there appears to be or there are allegations of fraud and document falsification. This case is being closely watched because The Bank of New York Mellon was represented by a law firm in South Florida that was forced to close last month while under pressure from allegations of fraud, robo signing and false documentation. This firm is one of eight "foreclosure mills" in the state that are under investigation by the State Attorney Generals office for using fraudulent documents. They had handled one in every five foreclosure cases in the state until Fannie Mae and Freddie Mac as well as some lenders, recently decided to
distance themselves from them and stopped giving them business.

The attorney for the homeowner alleged, in this case that his client was the victim of document fraud and that the bank voluntarily dropped the foreclosure case only to refile with another set of documents. He is seeking sanctions againt the lender on behalf of the homeowner claiming that by dismissing the original case they had cut off his fraud claims as well. The Supreme Court should decide if a trial judge should have allowed the homeowners attorney to move forward with fraud allegations before dismissing the case.

George E. Sinacori
GES Real Estate LLC

U.S. Home Prices Continue Falling

2011-03-30T12:27:00.000-07:00

According to the monthly report known as S&P Case Schiller Home Price Index home values have continued to decline through January 2011 leaving many experts wondering when we may see some signs of stability in housing. The reasons the bleeding has not stopped are obvious.

The overall economy is directly affected by the housing crises. Many jobs are eliminated, retail sales are slower and confidence in the economy is lower than it needs to be in order to sustain any economic recovery. As I've indicated in several previous blogs, an economic recovery may not be possible without a housing recovery. The ripple effect as housing prices continue in a free fall provides no positive influence in the lives of so many people dependant on a healthy real estate market.

Political posturing has resulted in a parade of failed programs at taxpayers expense. The administration promised many things but delivered on virtually none. The creation of Home Assistance Modification Program or HAMP promised to save millions of Americans from foreclosure. "It will give millions of families resigned to financial ruin a chance to rebuild" President Obama said "it will shore up housing prices". Congress set aside $50 billion for foreclosure prevention and the administration projected that 3 to 4 million homeowners would benefit from loan modifications. To date only a small fraction of those numbers have been realized.

By catering to lenders unwilling to provide any necessary mortgage financing to qualified borrowers the government has shown that it's allegiances are most certainly to the biggest contributors to political war chests and not to so called "main street" Americans. Companies servicing mortgage loans are mostly large banks who regularly lose paperwork and quite possibly advise homeowners to do things that may not be in the best interest of the homeowner. Banks deny many who actually qualify for modifications. In some cases lenders may approve a modification only to proceed with a foreclosure filing, misleading the homeowner. These types of tactics are designed to keep the homeowner paying something while the lender pursues the foreclosure action.

Government official haven't gone after, fined or otherwise cracked down on lenders for not complying with programs that they benefit from. Unwilling to flex it's muscle against the deep pockets in the banking industry none of the promises or projections have materialized.

In order to understand the relationships between government and banks we can take a look at Fannie Mae and Freddie Mac. Two Government Sponsored Entities that together hold most of the financial risk involved with mortgage defaults, were appointed by the Treasury to oversee the banks and the foreclosure prevention programs that the administration rushed into place. Obviously not my idea of an independent overseer. In fact Freddie Mac filed documents stating that imposing penalties may "negatively impact our relationships" noting that some of these are our largest source of revenue in mortgage loans. Well, that may say it in a nutshell. Housing and the economy will struggle until we fix what's wrong with the system. That may require putting people in place who truly have nothing monetary to gain.

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American Homeless

2011-03-21T08:50:00.000-07:00

I've made a business out of finding homes for families in South Florida since 1990. The plight of homeless people was never a concern to me because my business requires that you either have a home to sell or that you want to buy one. The homeless simply do not qualify. Whenever I'd see a homeless person begging I was skeptical. I'd rationalize in some way that I needed the dollar more than them or that they really weren't homeless. I'd even named one guy "Scammer Johnny".

Lately however, I've witnessed a growing number of new homeless people. Families losing their homes to foreclosure as a result of unemployment, the economy or just falling victim to predatory lending which ultimately caught up to them.

I'll try not to point fingers here simply because I'd like to focus my attention on the homeless in America and not the reasons for the seemingly continuous growth in their numbers. Although counts vary greatly by state there seems to be an alarming increase in the numbers of homeless families and children showing up at shelters all across the country. In order to provide some measure of the homeless population, the government relies on data supplied to the Department of HUD, obtained from more than 400 volunteer organizations and outreach programs nationally. There's probably a better way to find realistic numbers but again I'll not point any fingers.

Accordingly, there are varying numbers of "sheltered" homeless people, or those who have temporary housing provided by shelters, churches and various volunteer organizations and the "unsheltered". Those who live in the streets, under bridges, in cars, hallways, cardboard crates, makeshift back alley communities, parks and so many other areas not meant for human habitation. According to HUD's national counts 4 in 10 are unsheltered. These folks may be more vulnerable to illness, drug abuse and crimes like robbery, rape and murder than their counterparts. All homeless folks are constantly at risk of catching a disease or a parasite, falling victim to drugs and alcohol which inevitably results in health problems, or of being raped or murdered. The unsheltered are just more likely to face these circumstances. The homeless have no safe harbor. They all lack any feeling of security. Imagine being assaulted in broad daylight and not a person around helps. That's what a homeless person faces every day. That and trying to eat in order to face another day.

Homelessness today is an effect of the economy. People become homeless because they don't have sufficient financial resources to maintain their housing, although some may like to believe that it's a result of psychological and social inadequacies. The challenges that people face financially in today's America are significant. Joblessness, increasing tax burdens, higher energy costs, tougher credit standards, lack of affordable health care and the lack of affordable housing are all contributing factors to the growing numbers of homeless in America. As our homeless population increases our middle class decreases. The level of poverty in the country is beyond reasonable. The gap between the haves and have nots is widening. Putting a face on homelessness and poverty is not easy. It may always be a woven into the fabric of society. Eliminating homelessness may not be realistic or possible either, but allowing it to grow is just as unrealistic and just as unreasonable.

Can we make a difference? I don't know. When I see "Scammer Johnny" or his friends begging these days I'm less pessimistic. I give him a buck if I have one to give. I think about families that have lost homes. About Moms and Dads who lost jobs. I think about so many people struggling to get by another day. Struggling to keep the home that they worked half their lives for in order to give their families a safe and secure place to come home to. I wonder as an American how we let these things continue. I give a little when I can and I hope that somehow it helps.

According to Wikipedia a homeless can be described as an individual who lacks a fixed, regular, and adequate nighttime residence or an individual who has a primary nighttime residence that is a public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings.

George Sinacori
GES Real Estate, LLC

Can Housing & the Economy Recover?

2011-03-13T13:23:00.000-07:00

"Oh what a tangled web we weave when first we practice to deceive."

The American economy is hurting with :

-a housing market that barely has a pulse
-extremely high unemployment
-a government swallowing up massive losses from bad mortgages
-billions in bailout money for " too big to fail " shark infested corporations
-banks unwilling too help troubled underwater borrowers
-banks unwilling to help struggling small business owners

All at the expense of the American taxpayer.

Is the tangled web beyond repair ? When do you draw the line and say it's time to start fresh ?

We've allowed our controllers way too much control. Our American dream, our pride, our independence and dignity have been compromised. Yet the dance continues. The song remains the same.

I can think of lots more cliche's while the politics and posturing continue at the expense of hard working poor and middle class Americans struggling to stay afloat.

What would it take to right the ship?

Perhaps it's time to begin to understand that we are entrenched in a system that doesn't work anymore. At least not for most Americans.

The opportunities to address the deterioration of the housing market should have been the number one item on the agenda in heading off the financial crises. We were once a nation dependant on housing, we now are struggling to survive without it. Home ownership which was a brass ring has become a nightmare for many American families. Opportunities for those who may be in a position to buy a home are presently endless. With so many underwater borrowers it becomes a challenge to find the few that are solvent and are wanting to sell. Folks with equity in their homes aren't terribly inclined to compete with the low ball prices of the foreclosure down the street or the neighbors short sale.

Owning a home in America will surely be a privilege in coming years. Even a status symbol much like it was when I was a boy growing up in New York City. Mom and Dad had six of us and we were renters until I was about 12 years old. It didn't mean much to me, but my father was probably as proud of buying that first house as anything he had done before or after.

Today's financially troubled underwater homeowner is truly only a renter with no equity and an out of touch landlord. After all how can you own a home without equity in it? Banks made bad decisions by tempting borrowers with unrealistic amounts of money based on the banks valuation of the real estate involved. Borrowers responded to relentless marketing and reasoning that they were or could be sitting on a pile of cash. The bank of course had little concern after packaging and selling the loans to investors like government sponsored entities Fannie Mae & Freddie Mac. Today these 2 corporations, after being seized by the government, continued bleeding cash to the tune of $150 billion. Oh by the way "seized by the government" at taxpayer expense. After all, anything the Feds do we pay for don't we?

Banks however continue to flourish and boast about improving stock prices and bottom lines while still paying out lavish bonuses. The criminals who created the mess go unpunished and even rewarded. Just look at Countrywide Home Loans for a shining example of these injustices. That CEO sold to Bank of America and bowed out with a fortune while avoiding any criminal charges.

The tangled web is beyond repair. The country needs fresh ideas with humble heartfelt leadership. Our greatest shortcomings may be that we want to believe in someone and that we go through life with tunnel vision. If America continues trying to fix things that can't be fixed simply because it benefits a few than the majority will continue to struggle as a result and we will evolve into a nation without a middle class affecting everything within it.

George Sinacori
GES Real Estate LLC

An Unrecognizable Housing Recovery

2011-03-04T07:32:00.000-08:00

Normally lower home prices would be good for any housing recovery and good for first time or move up home buyers.

Home sales data indicate an upward tick after 2010, the worst year of sales in a decade. Any momentum however is not coming from the typical homeowner but from cash rich investors who are snapping up foreclosed and distressed properties at bargain prices. Homeowners or first time buyers crucial to sustaining a recognizable housing recovery are not a market force.

While the number of first time homebuyers has declined, all cash deals have increased, accounting for one third of all home sales in January 2011. A record number of foreclosures have continued to depress prices. The median sales price of existing homes in January fell to it's lowest level in 9 years. Lenders are requiring much tighter lending standards and higher down payments from borrowers searching for financing. In most cases the average requirement is 20% down with perfect credit. The inability to find available conventional financing results in fewer buyers shopping for homes and fewer sellers putting existing homes on the market in order to upgrade.

Cash rich investors are only interested in properties at risk of foreclosure or already foreclosed. They can aquire them at bargain basement prices. The average blue collar worker or first time home buyer can't take advantage because they cannot get the credit needed to buy. A major barrier for the first time homebuyer, preventing many from buying even when the median price fell to it's lowest in many years.

A record number of coming foreclosures or "shadow inventory" still loom large over the next 2 years. As prices continue to decline any housing recovery as we know it will also fizzle out. Supported only by cash we may never recognize or look at the real estate market in the same ways we had. Housing may be becoming a cash commodity for those who are willing to play and gamble. Banks obviously are not playing anymore.
George Sinacori
GES Real Estate

Home Warranty Tips Before Buying

2011-02-22T08:46:00.000-08:00

Home service contracts have always been a good way for sellers to entice buyers who may need a little more incentive to move forward while negotiating a sale. It's not uncommon for a home to be advertised for sale with a Home Warranty included. Service contracts typically cover repairs to appliances, air conditioning and heating units and water heaters. As simple as that may sound, all service contracts are not the same and the cost can vary according to the age of the home and items covered. You should weigh the costs and check what the policy allows before deciding on one.

Service contracts normally range in price from $250 to $500 per year. Here are some things to consider before buying on:

- Check customer reviews of the company and the contract at homewarranty.com

- Check the coverage and any exclusions it may have. Will the allowance cover the cost of a replacement if needed. Most offer a depreciated replacement value. If the appliance is 10 years old the actual replacement cost may exceed the allowance. Look for full replacement value.

- Verify what is and is not included. Are all appliances included?

- Are there extra add on services that may be worthwhile? Some have extended plumbing and electrical coverages.

- Are there any added service call fees that you should know about.

Service contracts are always loaded with exclusions and exceptions. Being aware of the exclusions can make a great deal of difference in deciding on one over another.

George Sinacori

GES Real Estate LLC

Springtime A Great Time To Donate

2011-02-17T12:17:00.000-08:00

Spring is historically the busiest time for real estate sales. More homes are sold during the spring season than at any other time of the year.

Homebuyers typically are out in force and sellers spruce up and clean up the clutter in order to attract more buyers dollars. People generally clean out wardrobes, kids rooms, garages and closets anticipating moving. The question I have is what do most people do with all that extra stuff?

Many of us have clothes in excellent condition in closets, drawers and trunks that we rarely, if ever use. Spring may be the best time to clear out some of that good stuff for some good causes.

Consider that 20% of children living in the good old U.S.A. live in poverty. Donating all that extra stuff to some worthwhile charities could make a big difference to some less fortunate family. Donating to those in need can make a difference in the way we feel too. It's important to give back no matter how much or how little we have. There's someone out there that can benefit greatly from a simple act of kindness, consideration and thoughtfulness. Consider that we can give our unused or unwanted treasures new life. Also consider that it will motivate us to clean out some of that clutter that we've been storing for some unknown reason and breath new life into our wardrobes.

Clean out the closets, drawers, trunks, babies stuff, kids rooms, garages and other places that we hide our "remember this shirt" stuff in. Set a plan of attack. Schedule one room a week to ravage and have fun doing it. Donate and feel good. The reward of feeling organized is worth the time. Getting a jump on packing up to move is also a great motivator. Than call and start looking for a house. It will be springtime soon.

George Sinacori be sure to visit Love 2 Play for more.

American Idol's Awkward Nick Fink

2011-02-11T13:49:00.000-08:00

Contestants Nick Fink and Jaqueline Dunford may not be a couple much longer after the debacle Nick pulled in the Hollywood auditions.
OK so Jaqueline and Nick do everything together and love to sing together. They even ran this love bird video on them during their first audition.

Well the harsh realities of the Hollywood auditions had them in different lines, one leaving and one moving on in the competition. Nick was voted off and Jaqueline sent through to the next round. Now I thought that Nick should have gone through. So did Nick. As a result he gave Idol the 2 most awkward moments so far of the 2011 season. Before leaving the stage he begged for another shot claiming that he finished his audition strong and was ready to rock. Randy of course said no way. After all, if Nick gets a second shot so should everyone else, right? Nick began belting out some tunes and voicing his disappointment. Only briefly did he ever indicate any happiness for Jaqueline and her success. He continued while he was exiting the auditorium to sing at the judges table until Randy Jackson finally said something and he left following behind Jaqueline. Outside he again never to my recollection showed any excitement about Jaqueline going through. This girl who should be celebrating was brought down by her boyfriends selfishness. Jaqueline I have a little advice, your moving on, so move on and congrats.

George Sinacori

Foreclosure: Know Your Options

2011-02-07T07:13:00.000-08:00

Understanding Home Affordable Foreclosure Alternatives may very well help you or someone you know avoid the negative effects of foreclosure and in some cases help keep a family in a home. The federal guidelines HAFA was introduced in 2009 and provides options offering incentives to homeowners, servicers and investors in order to accomplish a short sale, loan modification or deed-in-lieu of foreclosure. This last option is rarely the case however and more commonly a short sale is best allowing homeowners to transition to more affordable housing. This video from the administrations Making Home Affordable website can help.

In a short sale the homeowner and mortgage servicer agree to allow the property to be listed and sold for an amount less than what's owed. HAFA is designed to streamline the process and make it easier for a homeowner to work with the loan servicer. A homeowner accomplishing a successful short sale may receive up to $3000 toward relocation expenses. Additionally, mortgage servicers and investors are offered incentives although it should be noted that there is no requirement for them to participate in the program and that ultimately they adhere to their own guidelines.

Deed-in-lieu of foreclosure is another option that homeowners may have. If a homeowner makes a "good faith effort" to sell the property but is not successful a deed-in-lieu may be considered. The homeowner voluntarily surrenders the property and transfers ownership to the lender. Requirements are that the title is clear and there aren't any other mortgages or liens against the property.

In order to participate in the HAFA program servicers are required to evaluate for a loan modification before considering other options. If it's determined that a modification is appropriate the homeowner is entered into a trial modification program.

For more information on Knowing Your Options or for a free brochure call me 561-306-6736 or email ges.rellc@ymail.com

George Sinacori
GES Real Estate LLC

Kids & E-Readers

2011-02-05T07:15:00.000-08:00

In the beginning, e-readers were favored by an older generation. Finding value in the convenience, portability and the ability to enlarge text to a more readable size e-readers were much more sensible than browsing through a book store. Recently however, publishers have noticed a curious spike in sales of young adult genre like "The Chronicles of Narnia", "Hush Hush", "Pretty Little Liars", "Clockwork Angel" and others. In some cases nearly doubling in e-book sales. E-readers and e-books have come down in price now that they are mainstream in the book market. I personally am beginning to witness kids carrying e-readers with cool covers or skins. Books are less expensive in a digital format than they are in print. Saving books doesn't take up space in the kids room. And let's not forget that readers are another technological advance. Kids love technology. All things considered, if I'm a kid and my friends have a Kindle, I want one too. Than it becomes cool. Free books too. Getting these into the hands of kids may get them to read more and watch less TV and video games. Of course if they slip them in their backpack and head off to school, the teachers should approve of them also.
With hundreds of titles free on most e-readers, browsing and downloading a book or reading an excerpt is easy and doesn't require going to Mom or Dad for a ride to the store and some cash to buy this new Harry Potter hardcover. Local libraries are now making thousands of titles available with free downloads while in the library. It could be the device itself or the easy access that kids are finding appealing but they are being drawn to them.

George Sinacori

Angry Birds in Super Bowl Ad

2011-02-03T10:22:00.000-08:00

If you've never played Angry Birds, you should. An online game or more popular app for new handheld devices that is as entertaining as it is addictive. The history of Angry Birds is not important to most of us. How to get it and how to conquer it is. Wildly popular with somewhere around 50 million downloads the game stars of course birds angry that pigs stole their eggs.
The pigs hide in different structures as the birds slingshot themselves at the pigs trying to destroy the structure and the pigs in it. Destroying the structures and pigs earns points and awards the next level of play. OK so this Sunday during the 4th quarter the publisher will reveal in an Angry Birds ad an access code that allows the player to go further into the game by unlocking a bonus level. So while the Pittsburgh Steelers and Green Bay Packers go at it for the Super Bowl 2011 Vince Lombardi trophy millions of people will be anxiously waiting for .....the Angry Birds. Another stroke of genius for the NFL. Heck I'm anxious just to see the commercial. I don't think I'll ever get to the point that I'd need the code. I like the game (and Super Sunday). It's fun when you're bored, but I'm rarely bored. I try to avoid it.

George Sinacori

Super Bowl 2011 Ad

2011-02-02T10:43:00.000-08:00

3 million dollars has to buy a lot. I mean not just prestige but a lot. That's what advertisers are paying for a 1 minute ad in this game. The commercials are always normally entertaining. Plenty to talk about, chat about critique and enjoy. Even if they hit us in the funnybone do they justify themselves dollars and sense wise? Check out this ad for Careerbuilder scheduled to air during this years Super Bowl.

Hey a lot of people go to work everyday and encounter lots rude & irresponsible people before they ever get to the office. The commute alone is enough to make some say "enough". Sometimes the ads hit the funnybone and the target. How many classic Super Sunday ads can we remember. I'm looking forward to that part of game day as much as the game itself. Although that wouldn't be true if my NY Giants were in the game. Than I care little about the commercial and just want the G-men fired up and ready. I guess that's how Pittsburgh Steeler and Green Bay Packer fans feel this week.

George Sinacori

Pittsburgh Steelers Land For Super Bowl XLV

2011-02-01T06:22:00.000-08:00

Game faces on the Pittsburgh Steelers arrived in Dallas for Super Bowl 45 vs. the Green Bay Packers. Coach Mike Tomlin, QB Ben Rothlisberger, NFL defensive player of the year Troy Polamalu, James Harrison, Antwon Randel-El all looked like warriors getting ready for the battle of their lives. Hines Ward, all decked out in wild west attire looked more like a happy fan having a great time this Super Bowl week hoping to go back to Steeler Nation with another Super Bowl Championship.

This NFL Super Bowl XLV in Dallas at the Cowboys new stadium could sell more tickets than any Super Bowl to date. They've even set up tents outside the stadium to accommodate the more than 100,000 fans that they expect to attend. I've never been to a Super Bowl game but I have been to the NFL Experience. That's an event previously held on the grounds of the hosting stadium, although I believe they changed that this year. I love the NFL Experience and Super Bowl but I think I'd prefer watching the game at home, comfortably with commercials of course.

George Sinacori

rebuygeorge.com

Banks Illegally Foreclose On An American Hero

2011-01-29T09:27:00.000-08:00

Sgt. James B. Hurley (pictured) was foreclosed, his family evicted and their home sold while the Sergeant was deployed in Iraq on active military duty.

Violating the law seems to be OK as long as your a large financial institution like Deutsche Bank or Morgan Stanley. A Federal judge ruled that these institutions violated a federal law. The Service Members Civil Relief Act (SRCA) is designed to protect active military personnel from creditors due to the nature of and responsibility to the service they perform. Hurley's home and property was sold by the bank, after evicting his wife and children in 2005, less than 2 months before the Sergeant returned from war disabled and retired.

Sgt. James B. Hurley near his former home

Even today, 7 years later these banks continue their court battle in order to avoid paying Hurley any punitive damages claiming that he only has a right to fair market value of the home when it was sold. Clearly this is not the only screw up by banks and just as clearly people like the Hurleys continue to suffer under the heavy handedness and incompetence of banks and the attorneys that represent them. It is beyond appalling to me. Hey lets give these banks a big fat bailout from our tax dollars so they can continue screwing people like the Hurley's every day. Courtesy of a story in the N.Y. Times

George Sinacori

Avoidable Financial Crisis

2011-01-28T08:04:00.000-08:00

According the conclusions in a report by the Financial Crisis Inquiry Commission, government failings as well as corporate greed & ineptitude by several financial institutions are the greatest contributors to what was an 'avoidable" disaster, the financial collapse of 2008. The Federal inquiry casts blame upon the Federal Reserve for allowing shoddy mortgage lending excessive packaging of loans in order to sell them to investors taking risky bets on securities backed by those loans. The report points blame to several financial institutions as well as the Fed.

Fault lies with Fed Chairmen Alan Greenspan for failing to stem the flow of toxic mortgages and Ben Bernanke for failing to foresee the crises calling the actions of both Fed Chairmen negligent. Treasury secretary Tim Geithner was also cited for failing to recognize signs of trouble while he was president of the Federal Reserve Bank of New York.

- “The captains of finance and the public stewards of our financial system ignored warnings and failed to question, understand and manage evolving risks within a system essential to the well-being of the American public." In one of the reports findings it quotes bank executives admitting that they paid little attention to risks or the inevitable consequence of those risks that the American public continues to suffer and endure. When housing collapsed, risky short term loans and assets collapsed resulting in financial chaos and panic.

The commission interviewed 700+ witnesses and will post the report online as well as transcripts of the testimonies.

George Sinacori

Abacus Directory - Seo Friendly Web Directory

American Idol Contestant Chris Medina and Aerosmith's Steven Tyler

2011-01-27T07:30:00.000-08:00

American Idol judges Steven Tyler, Jennifer Lopez, & Randy Jackson again showed they are very human when Idol contestant Chris Medina wheeled his girlfriend in to meet the judges on the 3rd American Idol 2011 show. Apparently Chris' fiancee was involved in an accident that caused her brain injuries 2 months prior to their planned wedding. The wedding was postponed but Chris and her Mom became her primary care givers, after she awoke from a 90 day coma.

After Chris's audition with a rendition of the Scripts "Breakeven" he was asked by judges Jennifer Lopez and Steven Tyler to "go get your girlfriend" ,"we got to meet her", " bring her in" . Chris of course complied wheeling in his girl and all 3 judges went over to meet her. Steven Tyler was especially moved by the moment giving her a kiss and some comforting words. Steven was still emotionally shaken after sending Chris through to the next round.

Although singing talent and success in the world of music abound with Steven (Aerosmith), Jennifer Lopez and Randy Jackson, it seems this will be a much more sympathetic group of American Idol judges than what we've been accustomed to. Question is will they be too sympathetic ?

George Sinacori

Taco Bell Beef or Filling? Think Inside the Bun

2011-01-26T08:15:00.000-08:00

Hey I luv my Taco Bell, taco meat filling and now I'll probably eat more than before.
A Montgomery, AL law firm has put a target on the back of of Taco Bell In a class action law suit claiming that Taco Bell's advertising is false & alleging that what Taco Bell calls "beef is really not according to the standards of the USDA . Rather they are made with "taco meat filling". Some of the ingredients in taco meat filling may actually be better for me than "beef" or as the USDA defines it "flesh of cattle". I'm just saying ingredients in "taco meat filling" like wheat,oats & water can't be bad.

Taco Bell is owned by Yum Brands which owns & operates KFC, Pizza Hut, Taco Bell & Long John Silvers fast food chains and undoubtedly has deep pockets. A target for any enterprising law firm to go after.

A statement from the president of Taco Bell Corp. Greg Creed,: regarding the Class action law suit is posted on the Taco Bell company website:

"At Taco Bell, we buy our beef from the same trusted brands you find in the supermarket, like Tyson Foods. We start with 100 percent USDA-inspected beef. Then we simmer it in our proprietary blend of seasonings and spices to give our seasoned beef its signature Taco Bell taste and texture. We are proud of the quality of our beef and identify all the seasoning and spice ingredients on our website. Unfortunately, the lawyers in this case elected to sue first and ask questions later -- and got their "facts" absolutely wrong. We plan to take legal action for the false statements being made about our food."

OK lets's see now Greg. You can't buy advertising like this. I'll personally eat more Taco Bell assuming now that it's not all "flesh of cattle". Listen up Yum Brands it's time to "Think Outside the Bun"!

George Sinacori

Tricks & Traps of Foreclosures - Buyer Beware!

2011-01-25T10:12:00.000-08:00

Considering buying a foreclosure? Here are some tips that may help. When dealing with a bank for an REO (Real Estate Owned) property expect tricks & traps at every junction. Here are just a few that you'll want be aware of.

- "AS IS WHERE IS" - Banks sell properties in a strictly as is condition. If you look at a foreclosure and it needs substantial work to make it livable, don't expect that the bank will make these repairs prior to closing. Anything short of an environmental or health hazard will ultimately be the buyers responsibility. Make sure your inspections are thorough even if it costs a bit more initially.

- "Real Estate Disclosures" - There aren't any! The bank has never seen or lived in the property and has zero knowledge of the history, prior or existing defects, or the surrounding areas. typically a Sellers Disclosure is obtained by a buyer prior to submitting an offer. Don't expect any from a bank.

- "Contract Terms" will change - Your initial offer may be accepted verbally however, soon thereafter you will receive a whole new set of documents & addendum's to review and sign ASAP if you expect the contract to move forward. You'll find that many of the terms, times and conditions are very different than what you thought was accepted. The only thing that is accepted is "price". All other conditions will be incorporated in the bank or investors contract. Take it or leave it.

- "Escrow Deposit"- You will likely be required to work with the banks chosen escrow and Title Insurance company. They will rush you for your deposits and afterward take their time on processing the required signatures and meeting deadlines. Typically they are slow and unorganized "Foreclosure Mills".

Have realistic expectations. Work with a Broker who is familiar with the process and potential complications. Call 561-306-6736 or email directly with any questions about buying a foreclosure.

Bears QB Jay Cutler Gets Punked

2011-01-24T07:48:00.000-08:00

Chicago Bears Quarterback Jay Cutler spent more than half of the NFC Championship game standing on the sidelines with "knee injury" much to the dismay of teammates, NFL players & ex-players. They all questioned his toughness and resolve as an NFL Quarterback in Tweets during and after the game.

"Hey I think the Urban Meyer rule is in effect right now....when the going gets tough.....QUIT
Maurice Jones Drew
" All I'm saying is that he can finish a game on a hurt knee...I played a whole seasonon one"
Maurice Jones Drew

"If my knee was hurt or my acl/mcl/pvl sprained, I would not be standing up on the sideline"
Kirk Morrison

"Knee Gate in Chicago"
Anthony Armstrong

"It def looked like it"
Lance Moore

"I hurt my knee 4 times playing football never once did I stand on the sidelines"
Ross Tucker

"If I'm on Chicago team, Jay Cutler has to wait till me & the team shower dress and leave before he comes in the locker room"

FDIC Issues an Email Scam Alert

2011-01-23T06:50:00.000-08:00

According to an American Bankers Association communication last week, one of the first 2011 FDIC Special Alerts has been issued to warn consumers about an email scam that uses the alleged suspension of your deposit insurance coverage as a ploy to obtain personal info from you. The email scam states that the FDIC has withdrawn insurance coverage on your account due to activity that violates of the Patriot Act.

It further states that coverage will be withheld until account info can be verified and provides a link (of course). Watch this video from the FDIC and,

George Sinacori
rebuygeorge@yahoo.com

Is Randy Jackson Missing Simon Cowell Yet?

2011-01-20T12:26:00.000-08:00

Unless you're living under a rock you know that the new 2011 season of American Idol kicked off this week with 2 new judges. Aerosmith front man, screamer, rocker Steven Tyler and J-Lo. I already miss Simon Cowell and as the season goes on, I can see his no nonesense candor being missed by a lot more people than me.
The first auditions were more like a honeymoon than a singing contest. Randy seems to not want to ruffle any feathers and J-Lo is as sweet as a Bronx girl can be. Steven Tyler seemed amazed that anyone outside of Aerosmith could actualy sing.

Reportedly this 10th season premier show lost viewers as compared to last season to the tune of being down 13% with approximately 26 million viewers.

Hopefully they make some good choices and the show is as entertaining as oh lets say Carrie Underwood & Bo Bice were. That may be a real stretch and beyond what they'll be able to do but I'm still walking around saying "really...J-Lo & Steven Tyler" go make music.

States sue BofAm over Loan Modification failures

2010-12-22T12:40:00.000-08:00

Attorneys general in Arizona and Nevada filed civil lawsuits Friday against Bank of America Corp., alleging that the lender is misleading and deceiving homeowners who have tried to modify mortgages in two of the nation’s most foreclosure-damaged states. Bank of America violated Arizona’s consumer fraud law by misleading consumers who tried to reduce their monthly payments to keep their homes, state Attorney General Terry Goddard said.

Hundreds of homeowners kept making their mortgage payments because Bank of America repeatedly assured them that their loans were being modified. Instead, many lost their homes anyway. According to Goddard, "They were deceived into continuing to make mortgage payments when they had no hope of saving their homes.”

Nevada and Arizona are among the states hardest hit by homeowners who have defaulted on mortgages in the last few years as adjustable payments soared, people lost their jobs, and home values collapsed. One out of every 99 households received a foreclosure notice last month in Nevada, according to RealtyTrac Inc., and Arizona’s rate wasn’t far behind.

The Arizona attorney general’s office was deluged with consumer complaints and launched an investigation more than a year ago. The Arizona lawsuit, filed in Maricopa County Superior Court, alleges that the bank has repeatedly violated the consent agreement that was expected to lead to loan modifications for thousands alleging that Bank of America failed to make timely decisions on modifications and went ahead with foreclosures. The lawsuit asks for contempt citations against the bank for violating the consent agreement with the state. It also seeks restitution for consumers, civil penalties, legal fees, plus $25,000 for each consent agreement violation and up to $10,000 for each violation of the Arizona Consumer Fraud Act.

Nevada’s complaint accuses the bank of operating its loan modification program in violation of the Nevada Deceptive Trade Practices Act. It seeks civil penalties and restitution along with other fees.

For more info on foreclosures, loan mods, short sales, buying or selling real estate in todays complex evolving housing market contact me directly at 561-306-6736 or email : ges.rellc@ymail.com

http://ges-realty.com

George E. Sinacori
GES Real Estate, LLC

Foreclosed Family Reclaims Home

2010-10-18T10:15:00.000-07:00

Former homeowners reclaim foreclosed property:
VENTURA, Calif. – Oct. 18, 2010 – One possible outcome of the foreclosure crisis could be a fight between former owners of foreclosed homes and lenders. An example of what might become a larger trend happened in California, where a couple and their nine children used a crowbar to break into their former home. Their lawyer recommended that they take this step, according to AOL’s HousingWatch.com.
The former owners, Jim and Danielle Earl, say they were trying to catch up with their payments when the lender sold the property to Conejo Capital Partners. Many Realtors will find this very familiar scenario happenening to clients every day.

The Earls say it’s unclear who actually owns the loan. Reportedly the original lender was Washington Mutual, which became JPMorgan Chase. The Earls say that Chase failed to properly assume the loan and didn’t have the right to sell it, nor could Conejo Capital Partners legally sell it.

According to the Earls’ attorney, “They may claim we’re violating the law and we’re claiming they violated the law. Typically, the authorities will say this is a civil dispute, but the question is, who owns the home? Because whoever doesn’t is trespassing.”

Source: The Wall Street Journal, Emily Peck (10/13/2010)

Homebuyer Tax Credit Causing Chaos

2010-09-18T05:33:00.000-07:00

Sept 18, 2009

It seems as though the Federal Homebuyer Tax Credit in 2008 & 2009 did it's job to help boost home sales, although hundreds of thousands who took advantage of the credit are now be told by the IRS that they'll have to give it all back.

In it's typical fashion, the Fed has created confusion, and chaos with misunderstood stipulations, changes mid stream and language that even those who wrote it would be hard pressed to understand.

Over 2.6 million supposedly eligible buyers bought homes and filed for the credit receiving a total of approximately 19 billion dollars in tax breaks. Nearly half of those who received money for the credit on 2009 tax returns will have to return it according to a Federal audit by the U.S. Treasury. Additionally a recording error may cause the IRS to seek repayment from tens of thousands more even though they are entitled to it.

Part of the chaos is a result of Congress enacting 2 different types of credits according to when a homebuyer purchased a home. The rules in 2008 required repayment of the credit up to $7500 over 15 years. A zero interest loan. Congress later changed the program for buyers in 2009 eliminating the repayment requirement, although those who purchased in 2008 are still obligated to repay. (See my blog Homebuyer Tax Credit Changes.)

Confused yet? Don't be it gets better ! Apparently the IRS contributed to the chaos by recording the wrong purchase dates for approximately 73000 homebuyer in 2009, meaning that they will be asked to repay as if they purchased in 2008 under the first version of the bill.

If you purchased a home recently and took advantage of the credit, as many of my own clients did keep good records and have your accountant review the credit requirements with you. There so many variances and stipulations related to this tax credit that I would be all day listing them and in the end listing them in vein. After all the IRS, Treasury and Congress can create confusion whenever and wherever they choose to now can't they?

See my blog on Homebuyer Tax Credit Changes for more on the differences between the credits, purchase dates etc.

George Sinacori

GES Real Estate, LLC

561-306-6736

rebuygeorge@yahoo.com

Florida Foreclosure Mills Under Investigation

2010-08-15T05:31:00.000-07:00

August 15, 2010
In a bombshell announcement earlier this week, Florida Attorney General Bill McCollums office announced that they have begun investigations into at least several of the largest foreclosure law offices in the state for allegedly submitting false required documents to the courts in order to speed up foreclosures. The law firms, known more appropriately as "foreclosure mills" which have been served with subpoenas are accused of widespread falsification of documents and fraudulent unfair and deceptive trade practices. These firms represent many of the largest lenders in the country and file thousands of foreclosures actions every month. Some have indicated that the unlawful practices are even nationwide.

Under investigation are:
- Law Offices of Marshall C. Watson, P.A.
- Shapiro & Shipman, LLP
- Law Offices of David J. Stern, P.A.
- Florida Default Law Group

Many mortgage loans are bought and sold over and over in "credit swaps". The original or executed notes and assignments must accompany the foreclosure filing in order to obtain a "Final Judgement" by the courts which is basically a foreclosure. The apparent inside joke has been that these documents may never be found at all and fraudulent documents are created in order to accomplish or just speed up the process. The foreclosing lenders and their representatives typically will manufacture whatever may be required knowing that most borrowers have no representation and will never contest the action. A foreclosure can be stopped or delayed by a judge until the proper documentation is produced. Some judges have dismissed foreclosure actions because of false or questionable documentation by the attorneys filing the foreclosure. Widespread reports by attorneys representing borrowers and the courts have finally moved the Attorney General to open an investigation.

Based on the broad scope and the overwhelming evidence of fake documents being submitted, judges should now have no confidence in any of the documents presented to them by these foreclosure mills. Furthermore, in my opinion, this exhausting race to foreclosure should slow to a point where borrowers are actually allowed a legitimate opportunity to accomplish a short sale or some other type of foreclosure alternative.

Condos for Less Than the Cost of a New Car

2010-08-07T10:10:00.000-07:00

With so many condos in South Florida available for less than the cost of an average priced new car it's no wonder I've been running my tail off this summer. Buyers with cash are taking full advantage of the overwhelming wealth of inventory now glutting the market. In many cases buyers are looking for deals on several at a time hoping to grab up a couple and make some extra cash monthly. Holding them a few years or more until the market stabilizes is not difficult since the rental market for inexpensive homes and condos is strong.

Cash is king in these instances. In many cases lower real estate values and stricter financing regulations make it difficult to obtain any financing on these condos. That together with the fact that foreclosure sales are often awarded to cash buyers with no financing contingencies. Some savvy buyers are building up a small inventory of real estate that may in fact become their financial salvation in the future. Others are just looking for ways to live inexpensively while maintaining ownership interest in property.

International buyers seem much more eager than domestics to snap some of these properties up. Seeing the advantages of having a place of their own when visiting the area and not being as affected by the economies in their countries they are taking full advantage of opportunities and benefitting from the seemingly unending depression of the American real estate market, particularly the one here in South Florida. Opportunities continue to pour into the marketplace. The tremendous backlog of foreclosures still being accumulated should allow this market trend to continue for some time to come.

If you or anyone that you know is considering buying or selling a property in Southeast Florida please contact me directly at 561-306-6736 or by email ges.rellc@ymail.com or rebuygeorge@yahoo.com

Homemade Mortgage Modification

2010-06-03T06:50:00.000-07:00

An amazing phenomenon is occurring in households all across the nation. Growing numbers of people today are providing themselves with there very own homemade mortgage modifications. This type of financial remedy doesn't beg a lender for permission. With lenders and loan servicers either unwilling or simply not capable of helping with loan modifications, borrowers are just not paying and offering ultimatums. Lenders are being told either help me stay or force me out.

According to statistics published by LPS Applied Analytics, a company that provides services to many of the nations largest banks and financial institutions, the average borrower currently in foreclosure is delinquent some 438 days before being evicted. More than 650,000 households have not paid anything in 18 months and of those the lender hadn't even begun to take any action against nearly 20%. The numbers are staggering. The NY Times reports that 1.7 million foreclosure procedures have been initiated as many borrowers are choosing not to pay for something that isn't worth even half of what they owe on it. Any moral qualms are quickly dismissed by the belief that the banks created the situation and maybe now it's payback time.

Call it self preservation, selective foreclosure, or whatever term suits the situation. The fact remains that people are beginning to take charge of their own lives while lenders continue looking for ways to minimize losses. In some states lenders can pursue foreclosure outside the courts which can be a speedier process. In states like Florida, New York and others, judicial foreclosure is required. This slows the process considerably. Lenders seem to be more willing to allow time for some sort of alternative like a short sale in these states and generally, given the numbers on the horizon, may be reluctant to take many properties back at all.

For more info on foreclosures,short sales, buying or selling a property in SE Florida call me directly at 561-306-6736 or email ges.rellc@ymail.com
www.ges-realty.com

Short Sale or Foreclosure Seem To Be The Only Choice

2010-04-16T12:28:00.000-07:00

Home foreclosures are accelerating. More than a year after the government launched HAMP (Home Affordable Mortgage Prevention) a program to aid financially distressed borrowers, many more are losing their homes.

Modifications now look like nothing more than a band aid, temporarily stopping the bleeding for a few. Eventually just about everyone who owns a home will either need to sell or will decide that it's beneficial to just walk. People are beginning to ask "is it worth sacrificing health and well being" in order to avoid losing a house. As the housing market continues to struggle, more and more are deciding that it's time to move on. After all if the market isn't going to recover any time soon it may be time for folks to begin considering their own personal recovery.

With foreclosures again on the rise many are attempting to move a property through a short sale whereby a seller will sell for less than what is owed on the mortgage. A tedious and complicated process because the first mortgage lender will decide how much they'll accept after all outstanding debts against the property are considered, including any HELOC or 2nd mortgage. A short sale requires that the property be listed with a Realtor and required documents must be submitted to the lender.

Foreclosure filings in March totaled 367,056, jumping nearly 19 percent from February and up almost 8 percent from March 2009, according to RealtyTrac.
It was the highest monthly total since January 2005, when RealtyTrac began issuing its reports.
Lenders repossessed nearly 260,000 properties in the first quarter – a record for any quarter, and a 35 percent increase from a year earlier, RealtyTrac said.

More than a year after the Obama administration launched its foreclosure prevention program, only 230,000 homeowners have gotten permanent modifications with lower monthly mortgage payments, (according to a report Wednesday by the Treasury Department) while more than 1.4 million homeowners received offers for trial modifications, which typically last for three months. A band aid.

The Home Affordable Modification Program (HAMP) is lagging well behind the pace of the crisis, and most homeowners in financial trouble will never receive help, according to a report this week by a congressional oversight panel.
For every borrower who avoided foreclosure through the federal program last year, another 10 families lost their homes, that report said.

For more info or for a complimentary consult please call or email me at 561-306-6736 or rebuygeorge@yahoo.com

Federal Mortgage Campaign Set To Expire

2010-03-09T05:59:00.000-08:00

According to Freddie Mac rates on mortgages dropped below 5% again last week, just a few weeks before a government program designed to help keep rates low is scheduled to end.

The average rate on a 30 year fixed rate mortgage was 4.97% last week or down from 5.05% a week earlier. Rates had been as low as 4.71% in December of 2009 but have hovered close to 5% since then being held pretty much in check by a Federal Reserve program hoping to spur more home buying by lowering the cost of obtaining a loan.

The Fed set aside $1.25 trillion to buy mortgage backed securities. That campaign is scheduled to end or expire on March 31. Questions remain as to how effective the program has been. Most home buyers did not see any significant change in the cost of obtaining a new mortgage, although guidelines for lenders making mortgages have changed.

The other part of the equation of course, to encourage more lending by banks into the mortgage markets has not seemed to work at all. Data provided by the National Association of Realtors shows that pending sales, (homes in contract) of existing homes dropped 7.6% in January from December. That is the lowest reading since April 2009 and a disappointment. That index had declined for 2 of the past 3 months and was widely expected to improve.

Some market analysts think that mortgage rates may begin to rise once the Federal program ends later this month. This may be a good indication that potential home buyers and sellers should get into a contract and lock rates now.

If you or someone you know have been considering buying or selling a home in Southeast Florida please call me directly at 561-306-6736 or drop me an email at rebuygeorge@yahoo.com.

For more info on buying and selling visit www.ges-realty.com . It's easy to use and totally free. What could be better than free in this economy?

Streamlining the Short Sale Process

2010-02-11T08:05:00.000-08:00

Hoping to positively influence the nations housing market by shortening and simplifying the short-sale process, the Treasury Department released new guidelines for borrowers, lenders and loan servicers. Adding another acronym to its list of government-sponsored programs, (this one is called HAFA) Home Affordability Foreclosure Alternatives.

The new guidelines offer incentives to borrowers and loan servicers for utilizing a short sale in order to avoid foreclosure. Some of the key features of HAFA include:
- Seller / Borrower can recieve up to $1500. for relocation expenses
- Borrowers are fully released from any future liability for the debt.
- Treasury Dept. will share the cost of clearing junior liens from 2nd mortgage holders in order to help release any claim that may interfere with the short sale process.

According to the Treasury Department publication,
"The program will publish streamlined and standardized documentation, including a Short Sale Agreement and an Offer Acceptance Letter. Creating one standard set of documents that the industry can use is expected to minimize the complexity of these transactions and significantly increase use of the short sale option."

The property must be listed with a licensed real estate broker and no foreclosure action can take place during the marketing period as long as the seller/borrower is acting in good faith. There is a maximum marketing period of 1 year to ensure that everyone is moving as quickly as possible in order to accomplish the short sale. Currently expiration of the program is scheduled for Dec. 31 2012.

For a complete text of the Treasury Departments guidelines please call me directly at 561-306-6736 or email rebuygeorge@yahoo.com. You can also go to my website at http://www.ges-realty.com/

FHA Policy Changes Require More Skin In the Game

2010-01-22T06:19:00.000-08:00

January 21, 2010. Proposed Federal Housing Authority (FHA) policy changes this year will require "more skin in the game from borrowers" according to FHA Commissioner David Stevens in a statement released yesterday on the HUD website.

Following is an outline of these changes:

- New loan to value and credit score requirements. Borrowers with a credit score below 580 will be required to put a minimum 10% down. Borrowers with a credit score of 580 or above will still be allowed the traditional 3.5% down payment.

- Upfront mortgage insurance premium (MIP) will increase to 2.25% (presently it is 1.75% of the loan amount).

- Additionally FHA will pursue conditional legislative authority to increase the annual MIP according to the financial health of FHA: "triggered either by a decline in the capital ratio below the two percent requirement, or by a certification by the Secretary that the higher cap is necessary".

- Allowable seller concessions or seller contributions to borrowers closing costs etc. will be reduced from 6% to a maximum of 3%.

Commissioner Stevens went on to say that he hopes to implement all changes by early summer after going through the appropriate channels and notification process. He also states that these policy changes will not disrupt the housing market and will contribute to it's future sustainability.
To read the complete statement go to hud.gov.

Considering the increase in capital outlay for even the best FHA borrower any prospective borrowers should act now, or at least before these changes are implemented. If you have questions about FHA insured financing or just buying a home in todays market please call me directly at 561-306-6736 or email rebuygeorge@yahoo.com

To search for available FHA homes in Southeast Florida please visit my website at
ges-realty.com

George Sinacori: Foreclosure Trends in Palm Beach County

2009-12-28T17:05:00.000-08:00

George Sinacori: Foreclosure Trends in Palm Beach County

Foreclosure Trends in Palm Beach County

2009-12-28T12:19:00.000-08:00

In today's housing market it's no secret that Florida ranks among the top states in foreclosure activity and in property value decline. After a year of government spending, bailouts and intervention that distinction remains unchanged. Last month Florida received the 2nd highest amount of new foreclosure filings nationally, second only to California. Other than steep declines in home values and drastically reduced sales activity little else has changed in the Florida housing market through 2009. Although the new year promises a (different) housing market, current foreclosure trends indicate that the pace of foreclosure activity will continue.

Information obtained through RealtyTrac shows that foreclosure filings over the past 2 months in Palm Beach County, FL have increased. County wide, home prices have declined since June and apparently remained unchanged since September. RealtyTrac reports that 18,096 homes in Palm Beach County received some form of foreclosure filing. Interestingly the greatest value or savings as indicated by foreclosure sale price to average sale price was in Boca Raton where sales trends indicate an average sale price of $244,300 while average foreclosure sale price was $164,750. A difference of 34-35%.

Changes in the short sale process (selling a property for less than what's owed) now scheduled to become effective April 2010 may help some homeowners. Legislation has already been passed simplifying the short sale process by requiring lenders to make the application process uniform from lender to lender thereby reducing the time involved in closing a short sale and hopefully making them a bit more appealing to a ready, willing and able buyer. Many would be buyers shun short sales due to the lengthy process and lack of response by lenders to short sale requests, although when properly submitted the process does work.

If you or anyone you know are interested in buying or selling a property in South East Florida please call 561-306-6736 or email me for a no obligation discussion of todays foreclosure market and the short sale process.

Changes To Mortgage Originators Compensation Ahead

2009-12-02T09:26:00.000-08:00

Radical changes in loan officer pay practices laid out by the Federal Reserve Board in late August mean that major alterations in how the industry works could be around the corner.

“Yield-spread premiums [YSPs create a conflict of interest between the loan originator and consumer,” the Fed states in its rule proposal. A 120-day public comment period is slated to end Dec. 25, 2009.

In its 195-page rule rewrite, the Fed asserts that consumers don’t know what they’re paying loan originators, and as a result they are often being taken advantage of. “Creditors’ payments to mortgage brokers are not transparent to consumers and are potentially unfair to them,” adds the Fed.

Payments from lenders to brokers often include a YSP, which results in a higher rate for the borrower. “Yield-spread premiums … present a significant risk of economic injury to consumers,” notes the Fed in its rule proposal. “Currently, consumers typically are not aware of the practice or do not understand its implications and can't effectively negotiate its use.”

The Fed adds, “The Board’s recent consumer testing suggests that many consumers do not shop for mortgages and often rely on one broker or lender because of their trust in the relationship.” By not shopping a consumer may not get a competetive rate, according to the Fed.
Under the proposal, consumers still could choose a higher rate loan if they want to finance closing costs. However, the Fed rule would “prohibit any person from basing a loan originator’s compensation on the loan’s rate or terms.”

For more on mortage loans, and current rates contact me directly at 561-306-6736 or rebuygeorge@yahoo.com

Visit my website at http://www.ges-realty.com to search for properties anywhere in SE Florida

Homebuyer Tax Credit Changes

2009-11-07T06:07:00.000-08:00

Congress has extended and expanded the homebuyer tax credit. The modifications extend through April 30, 2010” and become effective when the President signs the bill. Ideally Dec.01. Changes made to the current credit become effective on that date, as well. Most significantly the time allowed has been extended through April 30, 2010 for contracts and through July for closings. i.e.: A contract after April 30,20010 with a June closing would not be eligible. Income limits have been increased for both single and
married couples and the tax credit is not limited to firsttime homebuyers. A cap on the price of an eligible home will become $800,000. where there previously wasn't any. Following is an outline of these changes as published by the NAR.

Firsttime Buyer –
Amount of Credit $8000 ($4000 married filing separate)
Firsttime Buyer Definition for eligibility: may not have had an interest in a principal residence for 3 years prior to purchase

Current Homeowner –
Amount of Credit $6500 ($3250 married filing separate)

Definition of eligibility - Must have used the home sold or being sold as a principal residence
consecutively for 5 of the previous 8 years

Termination of Credit - Purchases after April 30, 2010
So long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Income Limits -
(Note: Increased income limits are effective as of date of enactment of bill)
$125,000 – single $225,000 – married
Additional $20,000 phase out

Limitation on Cost of purchased home
$800,000 effective date of enactment

Purchase by a Dependent is ineligible effective the date of enactment.

Antifraud Rule - Purchaser must attach documentation of purchase to tax return.

If you have questions regarding the newly expanded Homebuyer Tax Credit please call or email me directly. George Sinacori 561-306-6736 - rebuygeorge@yahoo.com

The photo above is a 3BR 21/2 bath 2 car garage home in NW Deerfield Beach, FL and is priced in the low $200,000. See this and more great home listings at http://ges-realty.com

Higher Mortgage Loan Limits

2009-11-03T04:29:00.000-08:00

Higher Fannie Mae, Freddie Mac & FHA mortgage loan limits were set temporarily higher as part of the economic stimulus and recovery initiative. These currently higher limits are due to expire and revert back to the previous lower limits at the end of this year (2009). This week Congress approved a resolution extending the higher loan limits through 2010.

Jupiter Farms 4/2 pool home
$399,900 561-306-6736

The resolution, which needs the presidents signature, extends the present loan limits for FHA, Fannie and Freddie through the 2010 calendar year at 125 percent of local median home sales prices, up to a maximum of $729,750 in high-cost areas. The floor for FHA is $271,050; the floor for Fannie Mae and Freddie Mac conforming loan limits is $417,000.

For local median home sale prices in Southeast Florida call me at 561-306-6736 or email rebuygeorge@yahoo.com

A Fun Halloween Day Trip to a Haunted Mansion

2009-10-27T04:37:00.000-07:00

Stranahan House a Historic Haunted Mansion

Fort Lauderdale, FloridaFort Lauderdale founding father Frank Stranahan built this Florida vernacular-style house for his new bride, Ivy, in the year 1900. Built of Dade county pine, the place changed functions as often as Stranahan changed professions: The house served as a post office (and Stranahan as the county's first postmaster), a community center, and a town hall. Overwhelmed by losses during the collapse of the 1920s and a hurricane in 1926, the owner ended his life on the grounds. Ivy, Fort Lauderdale's first schoolteacher, went on to lease the ground floor as a restaurant and continued to live in the upper quarters until her death in 1971. The home was then acquired by the Fort Lauderdale Historical Society, which began a restoration in the 1980s.The place now stands in its 1913 configuration. According to John Marc Carr's Haunted Fort Lauderdale, up to six ghosts inhabit the home, including the ghost of Frank Stranahan himself. The Stranahan House docents dressed in Victorian mourning clothes will escort you through the parlor, staged for a Victorian funeral, and a tour of tombstones dating back to the 1800s. Call 954-524-4736 for more information.

Lenders Fail to Modify Homeowner Loans

2009-10-22T07:00:00.001-07:00

Politics and corporate greed continue to eat away at the hearts and wallets of American homeowners and the American dream.

According to Bankrate.com just 2000 homeowners have received loan modifications beyond the typical 3 month trial period nationally in the 7 months since the administration issued it's guidelines to lenders in order to help homeowners avoid or avert foreclosure. That equates to approximately 4 successful modifications per month per state. Lenders will typically stall short sale efforts simply because they can't see beyond dollars and cents. If the Bankrate.com information is correct they have danced around and away from folks asking for modification assistance and the Fed isn't concerned.

The Obama administration's claims of 500,000 homeowners being helped may be little more than political grandstanding again at the expense of homeowners who have been brought to their knees financially leaving many without any other recourse but to eventually walk away and try starting over somehow.

If you need help or have question regarding todays real estate and mortgage markets in SE Florida please call me directly 561-306-6736 or email your questions to rebuygeorge@yahoo.com Find more information about the SE Florida Real Estate market at GES-Realty.com

Appraisals & The Home Valuation Code of Concuct (HVCC)

2009-09-24T07:24:00.000-07:00

On May 1, 2009 Fannie Mae and Freddie Mac implemented the HVCC (Home Valuation Code of Conduct) as a result of government pressures to reform valuation methods related to residential mortgage loans.

The impact of the HVCC has been chaotic. A myriad of inherent flaws with valuations methods has created more downward pressure on housing prices which in turn has contributed to a lagging housing recovery. Not the least among the unintended consequences of the HVCC has been the use of foreclosed and other distressed properties as comparables. Other inappropriate practices indicate that appraisers work in areas where they don't know the market. In many instances the value of comparables is determined by an exterior inspection only because the appraiser is unable to or unwilling to inspect the interior .

The following is an overview of the HVCC.

- Appraiser Selection

All members of the lender’s loan production staff are forbidden from selecting, retaining, recommending or influencing the selection of an appraiser.
Loan production staff consists of:

Individuals who are involved in origination, underwriting, presenting credit offerings for approval and credit decisions Any person who reports to a loan production staff member or is compensated on a commission basis upon the successful completion of a loan.

- Quality Control on Appraisals

Lenders agree to perform quality control tests on at least 10% of appraisals by use of retroactive or additional appraisal reports or other appropriate method.The quality control testing must be performed on randomly selected appraisals The lender must report the findings of the quality checks to the Independent Valuation Protection Institute (IVPI)

- Hotline Notification

Lenders must notify appraisers and borrowers of the IVPI’s telephone and email hotline for complaints concerning any improper or attempted improper influence on appraisers or the appraiser process.Lenders must notify every appraiser of the hotline in a separate letter. Each borrower must be notified of the hotline in a cover letter accompanying the appraisal.

- Effective September 1 2009:

Fannie Mae requires all lenders to obtain a signed and processed Form 4506 from all borrowers at application and again at closing. Form 4506 is an IRS document that allows a lender to verify a borrowers tax returns through the IRS.

According to a report by FAR (Florida Association of Realtors) housing industry groups such as the NAR (National Association of Realtors) and the NAHB (National Association of Home Builders) are calling on federal regulators to address the problematic HCVV and to develop "clear and concise guidance" for the use of foreclosed or distressed properties in appraisals in order to develop more realistic valuations in appraisals based on truly comparable properties.

For more information and updates on the HVCC please feel free to call me, George Sinacori, GES Real Estate, LLC directly at 561 306-6736 or email me at rebuygeorge@yahoo.com

Lessons In Defining the Next American Dream

2009-09-09T06:46:00.000-07:00

Housing prices peaked 40 months ago in May 2006. What have we learned from the great housing bubble and crash ?

Obviously, we have learned that housing prices can be extraordinarily volatile. No one can ever again say foolish things like housing prices never fall. People who bought with a standard mortgage in the years close to the boom have lost all of the equity in their houses. Buyers and lenders should never again think that an area’s recent price increases are the sign of a strong market where prices have nowhere to go but up. In the long run, price increases are followed by price drops, and caution needs to be taken in booming markets.

The second lesson of the housing debacle is that there is extraordinary pain in both housing busts and booms. When housing prices soared, ordinary Americans found it increasingly hard to afford a house. During the boom, many hoped that housing prices would stop rising and even decline, not understanding the terrible impact that declining housing prices would have. Large swings in housing prices, can be extremely painful.

The third lesson is that the response to the American housing crisis has been incredibly foolish. We've used public resources to encourage ordinary Americans to bet all they could on the housing markets. We have allowed billions of tax payer dollars to bail out of firms that had lost on those mortgage gambles. We continue to provide billions of tax payer dollars to the same institutions that were instrumental in creating the bubble that burst what once was the American Dream.

All of these "lessons " leave me wondering what the next American Dream will be.

Perhaps a much less volatile, more comforting lifestyle with a reassurance that we live in a country that cares for it's citizens emotional, financial and physical well being. That the people we've put in charge are truly capable of handling those responsibilities. That we the people and our families are the beneficiaries and not the victims of big business and big government.

For more on today's housing market call 561-306-6736 or email rebuygeorge@yahoo.com

Free $- Time Running Out For Homebuyer Tax Credit

2009-09-02T09:57:00.000-07:00

Free $ Are You Getting Yours?

National Association of Realtors estimates that about 1.8 to 2 million first-time buyers will take advantage of the $8,000 First Time Homebuyer tax credit this year, with approximately 350,000 additional sales that would not have taken place without the credit.

Buyers have little time to act because they must complete the transaction by Nov. 30 to qualify for the credit. Unless extended, contracts signed but not completed by that date will not be eligible – it is taking approximately two months to complete home sales in the current market. If it's a short sale it can be longer.

© 2009 FLORIDA ASSOCIATION OF REALTORS®

contact me at 561-306-6736 for more info or email rebuygeorge@yahoo.com

1st Time Homebuyer Tax Extension Possible

2009-08-29T06:29:00.000-07:00

Bills to extend the maximum $8,000 tax credit for first-time home buyers, which expires Nov. 30, are pending in both the U.S. House and the Senate.

Sen. Christopher J. Dodd, a Connecticut Democrat and chairman of the Senate Banking, Housing, and Urban Affairs Committee, is co-sponsor of a bill with Georgia Republican Sen. Johnny Isakson that would raise the credit amount to a maximum of $15,000.

Senate Majority Leader Harry M. Reid of Nevada favors an extension of the current credit.
He was quoted by the Las Vegas Sun saying, "It's something we can get done."

Odds are that the credit will be extended and broadened to cover all buyers next year, but the chances of the amount increasing aren’t as good, observers say.

Source: Washington Post Writers Group, Kenneth R. Harney (08/22/2009)

For more on the First Time Homebuyer Tax Credit contact me at rebuygeorge@yahoo.com

George Sinacori

Automatic MLS Updates

2009-08-21T07:52:00.000-07:00

Now buyers and sellers can easily stay on top of their market areas.

Automatic MLS Updates are a way for you to gain access to MLS properties as soon as they hit the market. If searching homes in SE Florida is becoming tedious and you don't want to or aren't quite ready to work with a Realtor than you should use my Automatic MLS Updates system.

It's an easy to use system that asks you to submit your search criteria so that every time a new listing matching your search comes on the market you'll get it in your email. i.e.

1-Click on the Automatic MLS Update link

2-email the search criteria including,

-type of property (single family, condo, townhome, etc.)

-# bedrooms & baths

- Community or city in SE Florida

- Price range

- Any preferences such as pool, pets, schools, age restrictions

3-The criteria will be entered into an automatic update search and you'll receive emails with any new listings attached as they come available just like Realtors receive new listings every day.

Buyers and sellers can now get complete new listing information as soon as it hits the MLS.

Automatic MLS Updates

Short Sale Failures Frustrate Sellers

2009-08-11T07:55:00.000-07:00

Home sellers are as frustrated as Realtors when the deal involves a short sale, as most home sales do these days. A recent survey revealed that only 23% of short sale contracts actually get to close. Although buyers come pre approved for financing and prices are market value, a host of problems still plague the short sale process. Rapidly falling appraised values due to neighborhood foreclosures combined with the snail like pace of lenders processing short sale packages are the heart of the problem (in my opinion).

Delays by lenders allow impatient buyers to walk away while values deteriorate to a lesser price than contracted for. A more efficient system may in fact reduce pending sale times with a more workable window and help to hold sales together. Short sales, after all should be seen as a way to prevent foreclosures and related costs to lenders. It's frustrating that with a way to avoid those costs many wind up in foreclosure anyway as a result of prolonged waiting periods. many lender delays are a result of insufficient staff and a lack of short sale experience and processing systems. Delays may also occur as a result of Realtor inexperience in submitting documents or informing buyers and sellers of the length of time involved.

Some lenders are considering or at least examining ways to shorten the process and short sale approval time by getting BPO's (appraisals) and setting bottom line prices in advance of a contract. Ideally this lets a seller and realtor offer a property for a price that has already been accepted by the lender. The Treasury Dept. expects to provide lenders with a standard set of documents as well along with added incentives to help move the process along. Both steps in the right direction and an inevitable step in the evolution of home selling. More and more short sales are becoming the standard for home selling. The need for expeditious systems is now.

If you're trying to sell or buy a home please call 561-306-6736 or email me for more valuable information. Go to GES Realty.com for any real estate searches or click the link in the left margin to search properties.

Home Prices Reach Bottom?

2009-07-29T05:06:00.000-07:00

According to this 7/28/09 S&P Case Schiller Housing Price Index report prices may have bottomed in some areas. Homes prices are definetly affordable although a closer look into the index report reveals that many cities are still seeing declines in prices and that sales activity may be a result of investors.

Banks Accused of Delaying Foreclosure

2009-07-26T07:00:00.000-07:00

Are banks holding back foreclosures and creating a false or temporary market bottom? According to a July 24,2009 article in the Miami Herald some analysts believe just that. Inventories of foreclosed and short sale homes have dramatically declined over several months as banks have been less inclined to take back more properties. For example, typically in Florida a judicial foreclosure filing takes approximately 6 months. Presently that time frame is more likely to be a year or longer.
I believe that banks are ill equipped to handle this new market of foreclosures and short sales. They don't have the personnel or the resources to actually take a property over and than turn it around quickly to market and sell. That being said it would seem more beneficial to not take on any more than they can handle. It's important for banks to exhibit a healthy or sustainable bottom line these days. Taking in non performing assets like an avalanche of foreclosed properties would not project the image that they need under the scrutiny of the Fed. It only makes sense that they should delay taking these properties back.
How about short sales? Would it benefit banks to process short sales faster than they have? If my analogy is right it seems that may be a good next step. If I have an asset that becomes a liability I sell it if at all possible. I think most people would unless there were some type of emotional connection to it. Why then, if banks are dragging there feet on foreclosures wouldn't they streamline the short sale process and rid themselves of the liability? Is it greed plain and simple? Maybe they're just not that sharp after all.
For more info and recent statistics email me or call me directly 561-306-6736 . Visit my website for info on buying, selling, tax credits, available foreclosures, short sales and existing homes.

Appraisals: Crippling the Housing Recovery

2009-07-22T07:57:00.000-07:00

Lower appraisals are one of the biggest problems sellers, buyers and Realtors are faced with today. Because mortgage amounts are based on an appraiser's estimates of value, appraisals are a crucial cog in the machinery of the housing market. That cog may have ground to a halt recently.

Newly enacted federal government guidelines compounded by lenders putting pressure on appraisers to be very cautious of plummeting home values have crippled the already slow housing recovery. When a home is placed on the market, normally the fair market value is considered to be comparable to other homes sold at "arms length transaction" prices. In today's market these transactions are few and appraisers will use distressed, foreclosed or short sale prices as com parables.

An inappropriate approach by an appraiser using sales of distressed properties drives down prices on everything. A person not under water but needing to sell may be subject to the perceived value of an unjust appraisal because of the foreclosure down the street. I and many other Realtors have listed homes that would have closed at list price only to be appraised lower due to a foreclosed or short sale closing occurring during our marketing activity or while we were in contract waiting to close.

I may tweak a few appraisers with this post but I have to say it. Much of the housing bubble run up was directly related to over valued appraisals. Appraisers today are being more cautious. The bubble or run up in values and the low ball appraisal are results of pressure on appraisers from lenders. At some point the dog needs to wag it's own tail and begin to take control of itself.

For more on selling your home, home values, mortgage rates and available properties call me directly at 561-306-6736, email me directly , visit me on Twitter , or go to ges-realty.com

First Time Homebuyer Guidelines

2009-06-16T11:51:00.000-07:00

Buying your first home can be daunting. There are lots of factors to consider before buying, like your lifestyle. Ask yourself what your needs are and if owning a home will fill those needs. It 's important to consider that buying a home is more than a financial investment, although it can be rewarding in years to come. Even when housing prices don't increase rapidly buying your first home can prove to be a sound financial decision. The equity you build can help fund things like a college education for a child or your own retirement. Mortgage payments are like forced savings. As long as they are made and left untouched the savings will grow.The longer you stay in a home the more equity you'll build.

Once you've decided on buying your first home you should have a price range in mind and a short list of communities that will fit that lifestyle that we mentioned. The price is going to be determined by how much home you can afford. Get pre-approved for a loan before looking at properties. It's not fun to fall in love with a home that you ultimately can't afford. Remember that there are going to be ongoing expenses as well. In addition to the mortgage payments there are utilities, cooling and heating, property taxes, assessments, insurance, repairs and services like landscaping as well as replacement of appliances. Condos and town homes may not have the same maintenance requirements as single family homes . Older homes are often less expensive than newer but may require more attention and repair.

Most homebuyers today begin thier search on the internet. Find a site that is easy to navigate and doesn't require you to register in order to search for homes. Once you've located a number of desirable homes and communities you'll want a professional Realtor to help you. Make sure that the Realtor is licensed and has MLS access. Ask plenty of questions about the area your considering. A good Real Estate Broker can be a valuable source of information and can easily guide you through the home buying process. Look for an experienced Broker with solid market knowledge. Your Broker's knowledge and ability to negotiate for you can save you time and money.

Remember that you will want to sell this someday. The more information you gather before buying, the better that purchase will look in the future.
If you have questions about buying your first home or selling a property please call me directly at 561-306-6736 or email me at rebuygeorge@yahoo.com

Protections For Renters Living In Foreclosed Homes

2009-06-06T09:22:00.000-07:00

A bill passed by both houses and signed by the President on May 20, 2009 titled "Helping Families Save Their Homes" establishes among other provisions, some level of comfort for renters unwittingly caught in the foreclosure crisis. Many renting families have become victims of the foreclosure crisis by not knowing that the home is being foreclosed. Without warning they may be told that the home now belongs to the bank and that they have 48 hours to vacate. A provision of this bill finally addresses the problem and provides some security for renters of foreclosed homes. Helping Families Save Their Homes establishes protections for renters living in foreclosed homes.

According to Senator Dodd of Connecticut and a U.S. Senate publication: "One of the overlooked problems in the foreclosure crisis has been the eviction of renters in good standing from homes that go through foreclosure because owners of those homes, unbeknown to the renters, have not been paying their mortgage. The bill will require the bank that forecloses to honor the existing leases, for renters on a month-to-month basis, provide a 90 day notice. If the bank sells the property to an intended owner occupant, 90 day notice is required. Parallel protection are provided for Section 8 tenants.

Senator Chris Dodd is Chairman of the Senate Banking, Housing and Urban Affairs Committee.

Other provisions of the bill reportedly are designed to help prevent foreclosures and increase the availability of consumer and business credit. Some of these are listed as:

- Expand Access to Hope For Homeowners

- Increase funding for Foreclosure Prevention

- Provide New Resources for Homeless Americans

- Increase borrowing authority for FDIC and NCUA (National Credit Union Association).

For more information on this new legislation or answers to questions about buying selling or renting in Southeast Florida please call me directly at 561-306-6736 or email rebuygeorge@yahoo.com.

Free MLS searches and up to date information on how to buy or sell, including short sales and foreclosure are available at ges-realty.com

Foreclosure Trends in Southeast Florida

2009-06-01T06:21:00.000-07:00

While the economy continues to struggle, home prices are still falling under the pressure of foreclosures and short sales. Here in Florida a staggering 11% of home loans are in some stage of foreclosure ranking it first in the country for defaults. With home values continuing to fall the foreclosure rate will surely increase through this year. Prices can't stabilize until the oversupply is at least equal to the demand. According to information provided by Zillow.com approximately 71 percent of homeowners in two Southeast Florida counties who purchased homes in the past 5 years are underwater or owe more than the home is worth. Lenders are finding that loan modifications aren't working as many borrowers fall behind again within a year of the modification. These are borrowers who may have escaped the foreclosure process but will return given time. According to information provided by RealtyTrac, preforeclosures still account for the largest piece of the foreclosure pie. This is the time that lenders, sellers and buyers should recognize as opportunity and take advantage of. This is the time to short sell and avoid the whole foreclosure mess.

The pie chart above indicates current foreclosure trends in Palm Beach county. Of almost 15,000 homes county wide in the foreclosure process 89% are in the preforeclosure stage. That of course does not mean that they will all be foreclosed or that they are all currently for sale. What it does mean is that there are still a lot of homes that need to be sold at current market prices.

Statistics provided by RealtyTrac over the most recent 2 quarters show that the largest decline in values in the county occurred in Boynton Beach and Stuart respectively while the lowest average foreclosure sales price was in Delray, West Palm Beach and Boynton. The total number of foreclosures sales in the county was up slightly in April. The greatest value being in a 3 bedroom home between $100K and $200K. These show the largest decline in price and the greatest number of available properties.

Being aware of market trends has always been important to anyone considering buying or selling a home. Today it's more important than ever. Understanding price trends can make or break a buyer. Current sales trends and the short sale process is key to a seller looking to get their life and finances back on track. Lenders need to streamline the process if they expect to minimize the loss. Todays market is primarily a short sale market and will be for the foreseeable future. The real estate market today is complicated. Buyers and sellers need good, solid, trustworthy information from an experienced reliable source before getting into it.

I encourage anyone in South Florida needing assistance with the process to call me at 561-306-6736, email me your questions or go to ges-realty.com for more information..

Record Low Rates May Be Rising

2009-05-11T08:15:00.000-07:00

According to mortgage giant FreddieMac, 30 year fixed rate mortgages rose last week to an average of 4.84% from 4.78%. The low of 4.78% was recorded twice in April, as rates held below 5% for 8 consecutive weeks. FreddieMac's records date back to 1971.

Lower fixed rates have stirred the refinance markets as borrowers seek to lock in a low fixed rate that may not be available for very long. Many economist believe that mortgage rates will remain unchanged or fall further over the next 30 - 45 days.

Although mortgage rates have fallen dramatically over recent months, qualifying for a loan is much tougher. Lenders have tightened credit, reduced credit lines and only offer the best rates to borrowers with solid credit. According to Congressional legislation passed last week lenders offering other than traditional fixed rate mortgages would be required to verify a borrowers credit history and income and make a reasonable determination that a loan can and likely will be repaid. Additionally the loan should show a net tangible benefit for the consumer.

Being able to meet the tougher criteria can be a real benefit to anyone willing to invest now as we bounce along what seems to be the bottom. For some of the most incredible opportunities in the South Florida real estate market take a look at some of the properties I have available in great locations like Boca Raton, Jupiter Farms, Pt. St. Lucie, Boynton Beach, Deerfield Beach.

Anyone buying or selling a property should call or visit our website at ges-realty.com to learn more about how to buy and sell in today's tough economy.

561-306-6736

rebuygeorge@yahoo.com

ges-realty.com

Is Housing Nearing Bottom?

2009-05-02T06:25:00.000-07:00

May 2, 2009 - As the housing market slowly moves closer to bottoming, rates on 30 year fixed rate mortgages tied a record low this past week.
Average rates on the 30 year fixed rate mortgages fell to 4.78%. A year ago average rates were 6.06%. A considerable difference for any borrower. A new 30 year fixed rate mortgage taken today could mean a savings of $165 monthly or close to $2000 a year.

Inventories are dropping as homes have become more affordable. Recently inventories of single family homes month to month in certain areas of South Florida that I like to watch closely have declined by 30% or more.As availability declines and prices begin to stabilize, lower more affordable mortgages are attracting more buyers.

Some REO or bank foreclosure inventories still not showing on the market could stall the momentum as lenders again begin to process and place foreclosed inventories on the market. It's my belief that once a bottom is recognized these lenders will indeed flood the market with inventories, creating another round of competition between sellers, albeit on a more even playing field, where pricing is key.

If rates remain low and prices bottom, affordability would than be more related to individual incomes, credit and employment stability. Housing may very well be near bottom. The underlying question may now be - will other economic conditions recover or lag behind housing?

Homeowners & Government Bailouts

2009-04-20T10:08:00.000-07:00

In all of this I don't see much help or hope for Troubled Homeowners , Foreclosures, Housing, Real Estate, Home builders or the real estate industry. With much of our tax $ now going to help banks and financial institutions bail themselves out in order to continue doing business, few people are able to sell their homes because would be buyers can't get loans. Property appraisals are less than what's owed. Banks and lenders are still slow to respond and reluctant to take losses making sales of properties and purchasing a property frustrating for everyone involved. Looking at the numbers it's absolutely staggering to me that they still don't get it.

Here is how the NY Times reported much of the distribution of TARP $ through April 01.

Beyond the $700 billion bailout known as TARP, which has been used to prop up banks and car companies, the government has created an array of other programs to provide support to the struggling financial system.
Through April 1, the government has made commitments of about $12.1 trillion and spent $2.5 trillion. Here is an overview, organized by the role the government has assumed in each case.

The Government as Investor
$7.7 trillion
Spent: $1.4 trillion
Includes direct investments in financial institutions, purchases of high-grade corporate debt and purchases of mortgage-backed securities issued by Fannie Mae, Freddie Mac and Ginnie Mae.

The Government as Lender
$2.3 trillion
Spent: $680 billion
A significant expansion of the government's traditional overnight lending to banks, including extending terms to as many as 90 days and allowing borrowing by other financial institutions.

The Government as Insurer
$2.1 trillion
Spent: $340 billion
Includes insuring debt issued by financial institutions and guaranteeing poorly performing assets owned by banks and Fannie Mae and Freddie Mac.

Federal Home Loan Bank securities:
The Treasury and the Federal Reserve have begun buying debt and mortgage-backed securities from Fannie Mae, Freddie Mac and Ginnie Mae.
$1.5 trillion

Troubled Asset Relief Program (TARP):
In return for bailout cash, the Treasury now owns stock in hundreds of banks, General Motors, Chrysler and the insurer A.I.G. The largest recipients are A.I.G. ($70 billion), Bank of America ($45 billion) and Citigroup ($45 billion cash and $5 billion in support of a loan guarantee).
$700 billion

A.I.G. The Federal Reserve has provided seed money to create investment vehicles to buy, hold and possibly dispose of bad securities held or insured by A.I.G.
$53 billion

Bear Stearns The Federal Reserve bought distressed assets from Bear Stearns to facilitate its sale to JPMorgan Chase.
$29 billion

A.I.G. A line of credit offered by the Federal Reserve that the insurance company has partly tapped. The Treasury announced on March 2 that the line of credit will be reduced to about $25 billion. And instead of paying back the outstanding debt, A.I.G. will give the government a preferred stake in two of its international subsidiaries.
$60 billion

Fannie Mae/Freddie Mac The companies were put into conservatorship and the Treasury initially pledged up to $200 billion to cover their losses. Freddie Mac has now received a $14 billion infusion.
$400 billion

Citigroup - The government is backing the bulk of $306 billion in loans and securities. This amount does not include direct investment through the TARP program.
$249 billion

Bank of America - The government is backing loans and securities worth $98 billion. This amount does not include direct investment through the TARP program.
$98 billion

Stimulus - American Recovery??

2009-02-14T09:11:00.001-08:00

Now that "Stimulus" has become an everyday word we, the good tax paying, corporate rescuing, stimulus funding Americans find ourselves preoccupied wondering.... "what's in it ?" Even more important ..."what's in it for me ?" Relatively very little is the answer. But than as long as they throw us a bone here and there, we should be humbled and awe inspired at the abilities these great and powerful decision makers have in figuring all this complicated stuff out.

First let me say that they haven't even begun to figure anything out. I have lots of issues with the handling of the Economic Tsunami fiasco being called the "American Recovery & Reinvestment Act of 2009"

Providing banks with billions of dollars in (taxpayers) bailout money with no requirement as to how that money could be used should never have happened. But it did. Not addressing the core or root of the problem, which is housing is still another short sighted, arrogant, ignorant message that our fearless politicos unashamedly send. The message is simple, when it comes to housing banks are more important than individual homeowners.

I tend to look at economic problems in business as if they were a barrel of water with a hole in the bottom. Unless you plug the hole you'll never refill the barrel. In order to plug the hole we need to address housing which requires addressing property values as they relate to mortgages. Unless lenders agree to modify each and every mortgage to current market value the barrel bottom will remain unplugged. Marking down mortgages to market value could quickly stabilize housing. People could confidently sell a property at market without "permission" to reduce the amount owed from a bank allowing sellers to sell with their heads above water. Banks and lenders could concentrate on loaning money to borrowers rather than foreclosing on properties. Many buyers who have gone back to the sidelines after a horrific experience with a short sale attempt would come back into the market and begin buying again. This time directly from sellers. Buyers and sellers today are not market makers. In what there is of a housing market banks and lenders are today's market makers. In order for any free market to thrive and survive it must be comprised of buyers and sellers. When you take them out of the equation (one or the other) there is no market. Stabilizing mortgage values in housing will stimulate spending even further. Any homeowner having or anticipating problems going forward would feel much more confident spending if they weren't so preoccupied with the unknowns. Sellers of homes would again become buyers and stimulate new construction. Buyers of homes buy furniture, TV's, appliances, equipment. Corporations hire when consumers spend, consumers spend when they are confident in the future, housing has always been the key and from my perspective it remains the key. Plug the hole in the barrel before you throw more water into it or it will just drain out of the barrel as it has since the first stimulus attempt in 2008 under the previous administration. And the subsequent $700 billion failed corporate bailout last year. You can't fill a leaky barrel. Fix housing, reset mortgages to today's market value and we can restore the economy.

First Time Homebuyer Tax Credit
One of the items in the "new" Stimulus revisits a failed attempt from the previous plan. Last years legislation approved a First Time Homebuyer Tax Credit up to $7500 with certain restrictions. This shortsighted piece of legislative work required that the credit be paid back to the government, albeit interest free, over a prorated period to the IRS and in full if you sold before it was fully paid back.

The "new revised edition" of First Time Homebuyer Tax Credit allows up to an $8,000. tax credit or 10% of the value with no requirement to repay. Provisions come with income levels that begin to phase out for individuals earning over $75,000 and married couples filing jointly earning more than $150,000. It is available to First Time Homebuyers (anyone who has not owned a home in the past 3 years) buying a home between Jan. 1, 2009 and Dec. 1, 2009 . The credit is forfeited if the property is sold within the first 3 years of ownership.

"Hooray" they got it right this time but my goodness why do they have to fail before the light goes on. Is this going to help? The last measure was an absolute failure and this one is doomed as well until the correlation between home values and outstanding mortgages are seriously attacked.

I'd be remiss if I failed to mention a couple of other "perks" from the stimulus, unrelated to housing that you may benefit from.

- In 2009 you are eligible to receive a tax credit up to $400 per individual and up to $800 per married couple based on 6.2% of your earned income. This fades once incomes of $75K for individuals or $150K for couples are reached. You are eligible whether or not you have a Federal tax liability. This according to a summary of the stimulus bill that the Senate Finance and House Ways and Means committees released.

- If you're fortunate enough to be able to buy a "new" car this year the taxes both State and Federal are deductible. Stipulations are on income limitations.

- Unemployment benefits are not taxed up to the first $2400 of benefits you receive.

- Health Insurance. If you get fired, your company is required to allow you to pay to keep your health insurance, generally for up to 18 months. Now, the federal government will subsidize 65 percent of the premium for up to nine months. You need to have been forced out of your job between Sept. 1, 2008, and Dec. 31, 2009. There are also income limitations in the year you receive the subsidy.

Here's a link to the text of the Legislation which at this writing had not been signed into law by the President.

I've attempted to list some of the items that you and I may directly benefit from as the hundreds of billion of dollars are dispersed in yet another attempt by a clueless Congress, Senate & Administration to "get our economy back on track."

Please call me directly with any questions relating to mortgages, home values, loan modification, refinancing, or buying or selling a property.

George Sinacori

561-306-6736

877-566-2430

rebuygeorge@yahoo.com

http://www.ges-realty.com/

Todays Mortgage Rates

2009-01-15T09:48:00.000-08:00

Todays Fixed Rate Mortgage
Current mortgage rates are much more attractive than I can ever recall. A qualified borrower may now be able to obtain a 30 year fixed rate mortgage for less than 5%. Todays rate is an incredible 4.87%. It's amazing.

Anyone with any type of adjustable rate mortgage taken years back should be taking a hard look into reducing or solidifying that mortgage payment for the long term. Considering that many of us will now be forced to remain in our current homes for many years to come a low fixed rate mortgage makes sense. Selling a home today is difficult. Market prices are below what most are willing or even able to accept. Homes selling are either foreclosed properties being discounted by lenders or short sale properties with a lenders agreement to accept less than what they are owed on the current mortgage. These sales make todays market and consequently todays market price. Buyers willing to take advantage of todays rates and prices are looking to foreclosed homes first. Unless a private seller is able to compete with these market prices thier home understandably will not sell.

Alternatively a homeowner may consider a loan modification. Many lenders today are willing to reduce the interest and monthly payments on mortgages that they currently hold in order to keep a good borrower in that home. A loan modification makes sense if your mortgage is higher than the market price of your home. In other words, as a result of the decline in home values and your lenders overzealous lending practices in the past, you are upside down in your home mortgage. Loan modification and refinance require similar documentation although they are completely different. For example with a refinance you can shop for a new rate, term and lender. A loan modification must be negotiated and provided by your current lender. In a modification the lender decides what to offer you, if anything and you than have some time to decide if you'll accept the newly presented terms. If you choose to accept, a new payment plan will begin on a predetermined date. Rarely will a lender reduce the principal amount owed on a loan. More likely the rate is lowered below current fixed rates for a period of 3 or 5 years reducing the monthly payment accordingly.

Refinancing until the market mends may be the best next step. A new fixed rate loan at todays historically low rates may reduce your present or future monthly payments considerably. The monthly savings on a $100,000 mortgage at 7% refinanced to 5% is approximately $125 monthly. On a $200,000 mortgage the savings is $257 monthly. That's more than $3000. a year. If you were to invest that same $3000 recieving a nominal 3% annual return will give you approximately $16,400 after 5 years. That makes sense. Lowering monthly payments in order to save money in a very tough economy is not just good, it's a giant step in the right direction.

Call me directly with any questions you have on refinancing, buying or selling a home, loan modification, or current mortgage rates and terms. I'll be glad to help. 561-306-6736.

How Mortgage Relief Options Work

2008-12-19T09:02:00.000-08:00

Loan Modification - Short Sale - Deed In Lieu - Forbearance

Forbearance -Temporarily suspends all or a portion of your monthly payment, followed by a formal plan using another option listed here to return your account to a current status. Your hardship is expected to be short term in nature, or you know that you will be able to pay a particular amount on a specific future date and continue with your payments from that point forward.

Repayment Plan - Adds a portion of past due amounts to your regular monthly payment until your account is current. Your hardship is expected to be short term in nature, and may even be over, and you have the ability to make an increased payment for a short period of time.

Partial Claim - Returns your account to a current status using funds from your mortgage insurer or guarantor. Your mortgage is insured and your hardship is short term. Subject to mortgage insurer or guarantor approval.

Modification - Makes your payment more affordable by permanently changing one or more of the terms of your original note and mortgage. Delinquent amounts can sometimes be added back into the loan balance. You can afford a reasonable payment that is less than your current payment and/or you don't have enough cash to bring your loan current.

Assumption - Transfers title to a credit-qualified buyer, even if your loan is non-assumable. You can not make any payment but want to avoid foreclosure.

Short Sale - Allows you to sell your home for its current value, even if it is worth less than what you owe when you can not make the payments but want to avoid foreclosure.

Deed-in-Lieu of Foreclosure - Transfers title to the property back to lender to satisfy the amount you owe. You can not make the payment but want to avoid foreclosure and you have had your home listed for sale for at least 90 days. This option is reserved for the most extreme situations and is subject to investor approval.

For more information or help with these options please call me directly at 561-306-6736 or send an email to rebuygeorge@yahoo.com .

Loan Modification & Credit Solutions

2008-11-21T08:44:00.000-08:00

Is your property worth less than your mortgage?

Are you having difficulties keeping up with your mortgage payments? Are you carrying high credit card and other unsecured debt? Has your credit score been hurt as a result? Many of us today can answer yes to at least one of these questions and some are facing all of these problems with little or no help.

What if you could lower your mortgage payment to an affordable level? Would you take advantage of an opportunity to reduce the prinipal on your loan or to lower the interest rate?

If you could improve your credit score to a credit rating that you would find acceptable and beneficial would you?

If you could renegotiate most of your credit cards and debt would you?

The answer to these questions is obvious. Of course you would, we all would and with todays credit solutions now we can. As part of our committment to providing "Simply Better" client services GES Real Estate is offering the following additional services:

- Loan Modifications (reduce your payments and keep your home)

- Short Loan Refinance (refinance to a lower affordable mortgage)

- Short Sale Mitigation (sell your property for less than you owe)

- Deed in Lieu of Foreclosure (avoid foreclosure and further obligations)

- FICO Enhancement (quickly and effectively improve your credit score)

- Debt Settlement (free up cash and reduce your credit card debt 50% or more)

GES Real Estate together with a network of attorneys and credit specialists with many years of experience in the credit markets is able to offer any or all of these services designed to help clients emerge from very difficult times with a much stronger more positive financial position while enjoying immediate relief from the financial pressures and uncertainties they now face.

We have all the tools necessary to help in these very trying times. Here are some answers to commonly asked questions regarding Loan Modification:

- You do not have to be late to negotiate a modification or short sale

- Option ARM and negative amortization loans are negotiable

- Non owner occupied homes are negotiable as are duplex etc.

- Rates can be negotiated lower than normal or par

- Terms can be extended beyond 30 years

A loan modification can consist of any or all of the following;

A. Rate lock (i.e. 3 yr fixed, 5 yr fixed, 30 yr fixed)

B. Rate reduction (ie.7.25% to 5.5%, 5.95% to 3.25%, 11. % to 6.5%)

C. term extension (ie.15yr term to 30yr term, 30yr term to 40yr term)

D. Principal Reduction

If you or anyone you know need to lower your mortgage payments to an amount that you can realistically afford, improve your credit score or settle your unsecured debt please call 561-306-6736 or 877-566-2430 or email me at rebuygeorge@yahoo.com for a private consultation.

Preparing Your Home To Sell - The Staging Advantage

2008-11-03T08:01:00.000-08:00

Selling a home today is difficult. It can become costly and time consuming. The way home values have fallen many sellers find it difficult spending any money on getting the property ready for the market. Sellers today are competing with foreclosures, short sales and homes that may be in top condition. Not preparing the home before putting it on the market can put a seller at an even greater disadvantage. Investing a little time and money can help to give you an advantage that can reduce the amount of time it takes to sell and increase the chances that you'll actually sell it for more than you otherwise would have.

As in any market, with some direction and hard work there are preparations that can be made inexpensively. A lot can be done that doesn't cost much at all as long as you're willing to invest the time.

For example:
- Curb appeal. I believe this is where it all begins. Adding inviting color and simple displays to the exterior and garden will help to make the home attractive from the road. Exterior paint may be the greatest enhancement you can make in order to create interest and begin a successful selling process. I've had a client who was approached by an interested buyer before he had a chance to put the ladder and tools away.
- Be sure your front door and entrance way are clean, attractive and inviting. Buyers spend time here waiting for you. A properly staged entrance will create a positive first impression and convey a feeling of comfort. Stage the home to project that first great impression and a welcome feeling.

- Personal possessions should be packed away. It will save you time and allow you to get rid of things that you may no longer want. Buyers will be better able to see the home for what it is rather than focus on your stuff.

- Declutter counter tops, tables, walls, closets, office and laundry areas. Buyers want to be able to see what the home has to offer. Remove clutter and keep rooms as simple as possible.

- Arranging furniture is key to allowing the home to appear open and spacious. I often see a sofa placed across the center of a room greeting buyers with the back of a sofa when they walk into the room. Move sofas against walls and place a chair opposite it. This will open up the room and create a flow.

- Furniture size is sometimes not right for showing a home. Over sized or too much furniture can create doubts as to how large a room really is. Too much large furniture in a bedroom can create concern for a buyer. Properly staged, a room should be accommodating to the furniture in it.

It may be worthwhile to hire a professional to help stage your home. Some sellers only need an initial consultation with the staging decorator. A good home staging decorator will be able to point out what you should keep and what should be removed before you begin showing the house. Ask for recommendations on arranging furniture and artwork. Remember, the way you live is not necessarily the best way to show it to prospective buyers.

For more help with getting your home ready to sell contact me at 561-306-6736 or email me at rebuygeorge@yahoo.com

Carving A Great Jack 'O Lantern

2008-10-21T06:28:00.000-07:00

Enough about the economy and the election and such.This post is going to help in a very different and important way.

Carving a fantastic Jack 'O Lantern for Halloween can be easy, fun and even self fulfilling. Important stuff when we are all feeling the economic squeeze and very vulnerable. So without further delay let's get started and create something that brings a smile to our faces.

First we need to select a Pumpkin to carve. You can carve a real pumpkin from the pumpkin patch or a synthetic that will last from one Halloween to another. Whichever you choose make sure it's large enough and has a good flat or even bottom to it. We don't want to place our masterpiece on display lopsided so be sure that it can stand on it own. Remember when picking a pumpkin to never carry it by the stem.

Now that we have a great Pumpkin we can prepare it. You can draw your design right onto the pumpkin before you begin carving or make a template to use while carving. Making a template works great. Tape it in place on the pumpkin and poke holes about an eighth of an inch apart along the design cutouts. Most variety stores sell inexpensive carving kits. The key to safe carving is sharp tools. Make sure that your saws and knives are sharp enough. The least amount of force that you have to use lessens any chance of any accidental slip. Gut the Pumpkin either from the top or bottom. If you cut out the bottom you can easily place the Pumpkin over a candle or light. If you cut from the top remember to cut an angle inward so that the top can be placed back on without falling inside. You can also cut a notch in the lid so that it's easy to place back in it's spot.

Gutting the Pumpkin can be messy but a good wet-dry ShopVac can make it easy. If you don't have one use a margarine lid or empty tuna can to scrape out the guts. Be sure to get the walls nice and clean being careful not to crack your pumpkin from the inside out. After gutting and for increased stability, carve the smallest pieces out first and work your way to the larger sections. In fact leaving the cutouts in place until your ready to pop them out can help add support until you've finished carving.
Thoroughly gutting and cleaning the pumpkin before you carve it will help preserve it and make it last. Applying a little petroleum jelly to the cuts and edges will help to seal in the moisture and preserve your creation as well. Spraying the whole thing inside and out with Lysol will help to keep any pumpkin killing bacteria away.

Lighting is key to making your creation come alive. A low watt electric light can help reduce heat and any shriveling that may happen. A lighted candle works well inside the pumpkin also. As an added effect you may consider burning some incense or spice inside your Jack O Lantern.

Happy Halloween.

Is Great Credit Still Important ?

2008-10-13T07:46:00.001-07:00

It may seem like an odd topic for discussion or consideration at a time in our economy when overextended credit has gotten us into such a mess. If you've had a difficult time getting a loan lately it can be unsettling although there may be some comfort in knowing that your not alone. Because of the condition of the markets, getting a loan will become increasingly more difficult.

Our credit scores reflect our behavior as borrowers. You may not consider your credit score as important as it was a few years ago being that it's so difficult to get any these days. Credit and credit worthiness still matter for many reasons. You may eventually need a new mortgage because you're relocating for employment or for any number of reasons. You may need your good credit to send a child to college. You may need it to continue using credit cards because your income has fallen or disappeared for awhile. Your good credit may help get you through the difficult, unexpected times that seem to inevitably sprout up on us from time to time. We can't always know when our credit may be a factor but if a need to borrow becomes apparent it could be too late to repair any credit problems.

Our credit is something that we still have control over. We can see our credit history and credit report in the privacy of our own homes by going to annualcreditreport.com . A copy of your FICO score which is the combined credit rating from 3 reporting agencies is available also at myfico.com . Currently the median FICO score is 720 but that number may very well change in coming months. As more people default on loans the average or median score will get lower.

If your considering a new mortgage the rule of thumb now is the larger the down payment the better the rate as long as your credit is good. If you don't have a large down payment there are still good loans available. FHA insured loans require as little as 3% down even if your credit score is below average. It would be great if these conditions for lower scoring people were available for other types of loans. Until they are our credit score is crucial to our survival and we can protect it, improve it and preserve it.

Check your credit report for any possible errors. Look for accounts you may not recognize and report any discrepancy to the credit bureau. They could be an indication of identity theft. Report any incorrect late payment recordings or other derogatory errors that could negatively affect your score. They should respond to your requests in no more than 30 days. Preserving our credit may seem like an exercise now but at least it's something that we each still have complete control of.

For more information on FHA or conventional mortgage requirements or for the latest available mortgage programs and rates call or email George Sinacori 561-306-6736. Visit GES Realty online or any of my websites to search for a home in Southeast Florida.

Taxpayers $700,000,000,000 Handout

2008-10-03T06:55:00.000-07:00

"Wall Street" has never translated to "housing". Try as they may to make them synonymous it isn't so just because someone says it is or want us to believe it. Looking at the players in the current economic debacle, this madcap comedy of errors, I'm reminded how much the Secretary of the Treasury and the Chairman of the Federal Reserve emulate a classic cartoon comic strip of old. Cartoonist Jeff Fisher's characters Mutt and Jeff were business men, almost smart enough to be con men. Mutt was tall and lanky, slightly bent forward while Jeff, his partner, was shorter, a stockier physical makeup and balding with a mustache and beard. I'll give you a moment here to visualize. OK! See any similarity yet? If not here's a link to Mutt and Jeff. Almost uncanny I think.

These two energetic little lunatics were always looking for the easy way to get something. They would attempt the craziest most hair brained schemes and act on them, believing that they couldn't or wouldn't fail. Mutt and Jeff were always surprised to be tossed on their butts, from wherever they were trying to sell their junk by much more sane level headed people.

Our Treasury Secretary and Chairman of the Federal Reserve however have achieved what the fictional Mutt and Jeff only aspired to. They've somehow convinced the most advanced, most sophisticated and supposedly most intelligent government in the world that they need $700,000,000,000. Is that enough zero's? Congress is busy running around convincing each other to vote one way or the other. The House and Senate have each already voted, one no and the other yes to give. What they've forgotten is that the real issue with the economy is still housing. How does Wall Street translate to housing? I just don't get it. A recent First Time Homebuyer tax rebate has not stimulated people to buy houses. A $300,000,000,000 FHA initiative designed to help refinance "troubled mortgages" has done little. Although that was made available only last week I don't see any rush on FHA refinancing. Federal takeovers of both Fannie Mae & Freddie Mac have cost us tens of billions of dollars and still banks and industry giants continue to fail under multi million dollar leadership.

Corporate greed, corruption and politics as usual have put us all on the edge of our seats waiting to see or hear whether or not Mutt & Jeff have made the ultimate score. A taxpayer handout to rescue Wall Street. What happened to rescuing housing? The aforementioned Homebuyer Tax Credit, FHA plan and Corporate bailouts were all initiatives of our Treasury and Fed leaders. These guys weren't thrown out like Mutt & Jeff, they just haven't worked. Hey here's another hair brained scheme. Give them $700B to try to bail out Wall Street. It may not work but heck if you guys are in a giving mood and your pockets keep getting deeper give it up. No guarantees, no need for oversight or regulation, Mutt & Jeff will let you know when it fails. In the meantime Mr. and Mrs. Taxpayer keep watching and keep waiting. Something good may happen someday.

Like the more sane, level headed business minded people that kept throwing Mutt & Jeff out on their backsides, I want to remind everyone of a little word seldom used anymore when it comes to doling out billions of dollars in response to tantrums born of greed and overindulgence.

Just say NO. Say no to the Wall Street power brokers, say no to the corruption, say no to the partisan politics that have lead us to a dark place in our country's history and say No to any more Mutt & Jeff like schemes. Let the corporations and their overpaid CEO's wallow in not being rescued by taxpayers. Let's get the ball back on the court and concentrate efforts on straighten out the housing crisis.

Push the First Time Homebuyer Tax Credit, pressure banks to employ forbearance efforts for troubled borrowers, move forward with the already in place FHA reforms that as of Oct. 1 are available, and let's take a long look at the arbitrary actions of HELOC lenders in capping or eliminating lines of credit in order to accommodate their own selfish greed.

Mutt & Jeff my answer is NO !

Housing, Mortgages and the Wall Street Mess

2008-09-20T07:12:00.000-07:00

For any of us with any type investments, current developments in the financial markets have to be scary. Over the past few weeks we've seen government takeovers of mortgage giants Fannie Mae and Freddie Mac, we've watched powerful organizations like Lehman Brothers slipping into bankruptcy, Merrill Lynch on the brink of collapse and global giant AIG now being rescued by the Fed at a cost that could eventually go over a trillion dollars.

At the root of it all is housing and the "mortgage mess" as Treasury Secretary Henry L. Paulson has reminded us. These occurrences may leave some of us wondering if there ever will be a bottom to housing prices. It seems that each time we think we've taken one step forward, it's actually two steps back. We don't know how or when these events will end nor do any of the so called experts. We do know what the problems are and in hindsight why more continue to surface.

Now may be a great time to find out individually what can be done in order to help reduce at least some of our exposure to financial risk. The problems that some risky mortgages have caused hopefully have taught us all a lesson about interest rate risk. This is something that can be controlled by applying for a fixed rate loan. If your taking a new mortgage a fixed rate means no risk of interest rate changes. If your in an adjustable now you may still have enough equity in your home to refinance it into a fixed rate. Here's a little nugget for anyone with a little extra but not inclined to invest it in anything right now. If you put extra money beyond the monthly mortgage principal payment you effectively earn yourself 6% by ridding some of that debt. An added bonus is that the mortgage will zero out sooner. Keep in mind that any added equity you put toward your mortgage may not be recovered easily as lenders continue to tighten up on home equity loans. It may make more sense to pay down other credit or add some more to a your employers 401k contribution, if your fortunate enough to have one.

Give me a call at 561-306-6736 or send me an email if you need some help buying or selling a property, obtaining a new mortgage or refinancing an existing mortgage.

You can always find loads of info on buying, selling and financing at ges-realty.

Home Equity Lenders Trample Regulations

2008-09-04T08:07:00.000-07:00

Numerous consumer complaints regarding freezing or reducing the available credit on HELOC's or home equity lines of credit have gotten the attention of the Treasury Department, the FDIC and the OTS or Office of Thrift Supervision, a branch of the Treasury Department.

As home values in many areas continue to decline complaints continue to grow that some thrifts are freezing the credit promised to borrowers and that they may be altering accounts that were not supposed to be changed. After receiving what OTS describes as an "uptick in complaints" regarding Savings and Loans reducing or freezing HELOC's, the OTC issued a six page letter to the institutions known as thrifts which spells out their obligations to HELOCs.

The letter of guidance may serve more as a warning to thrifts that they can freeze promised credit only under approved circumstances and not for broad geographic areas that may be harder hit by the housing slump than others. Each loan must be looked at individually in order to determine a "significant decline" in value. Regulation Z has interpreted and considers "significant decline" to be at least a 50% drop in the homes equity from the time the HELOC was issued.
i.e. Assume that a house had a first mortgage of $50,000 and appraised for $100,000. A $30,000 HELOC is opened leaving the available equity at $20,000. The creditor could reduce the available credit if the home value declined to $90,000 or 50% of the equity at the time the HELOC was taken.

The letter of guidance to thrifts goes on to outline legal risks to thrifts violating Regulation Z by stating:...."Regulation Z, which implements the Truth In Lending Act (TILA) sets forth the circumstances under which a HELOC may be terminated, suspended or reduced. Savings associations are responsible under Regulation Z for timely reinstatement of lines of credit that cease to meet the criteria for suspension or reduction." ............."With limited exceptions, Regulation Z prohibits lenders from terminating a HELOC and accelerating repayment" Exceptions include fraud, failure to meet repayment terms and actions adversely affecting the property.

For a copy of the six page letter go to GES Realty.

The FDIC has a hot line for concerned consumers 877-ASK-FDIC

The OTC also has hotline available at 800-842-6929

July Home Sales Increase as Prices Decline

2008-08-26T07:03:00.001-07:00

Homebuyers are taking advantage of depressed prices of existing homes. Home sales in July rose by 3.1% with many of the reported sales being foreclosed properties and private owners pressed to sell for less than they had originally paid for a home. The increase in sales is reported to be the largest single monthly increase since Feb. 2007.

Prices of existing or previously owned homes nationally were 7.1% lower in July than they were a year earlier according to the National Association of Realtors (NAR) as homebuyers took advantage of the lower prices and still favorable mortgage rates. Although sales have increased prices have continued to fall. The rule of supply and demand still applies and should continue putting pressure on prices as available homes for sale continue to outpace sales and more inventory comes on the market. . Anyone who does not need to sell quickly should wait until some of the dust settles before putting a home on the market.

Homebuyers may not want to wait to long on the other hand. It may be wise to grab up a property now considering some of the conditions that may affect buying ability or buying power over the coming months:

- On October 1 of this year FHA is required to have the ability to insure and refinance as much as $300 billion dollars in home loans for existing homeowners. This measure of the Housing and Economic Reform Act of 2008 could significantly reduce the number of homes entering the market over the last 3 months of this year.

- Interest rates are favorable now and may begin to rise as inflation becomes more of a threat.

- The First Time Homebuyer Tax Credit is available until June 30th of 2009. Taking advantage of buying this year allows the buyer to take that credit in 2008.

Anyone needing more information on available homes and prices in Southeast Florida can contact me directly either by phone 561-306-6736 or email at rebuygeorge@yahoo.com. You also may want to visit my website at ges-realty.com .

The Ups and Downs of Florida's Housing Numbers

2008-08-19T08:52:00.000-07:00

Are we beginning to see some light at the end of the Florida Housing Tunnel? According to the Florida Association of Realtors recent MSA (Metropolitan Statistical Areas) reports some areas although still showing declining values are reporting increases in sales. Most notably in South Florida the Ft. Pierce - Pt. St. Lucie MSA which includes St. Lucie and Martin Counties show a monthly increase in sales of existing single family homes through second quarters of 2008 of 34% as compared to sales volume in the same period of 2007. Another MSA that may be on the mend is the Ft. Myers- Cape Coral area reporting an increase is sales of existing single family homes in the second quarter of 2008 of 38% over the same period a year ago. The West Palm - Boca Raton MSAs sales of existing homes is off by only -3% compared to the same period a year ago and may be beginning stabilize into the next half of 2008.

These same areas show similar trends in sales activity for condos with Ft. Pierce - Pt.St. Lucie unchanged, Ft-Myer - Cape Coral an increase of 15% and West Palm - Boca Raton up 6% over a year earlier. Although inventory remains high and prices are still declining some buyers may sense that prices in these areas are now at an affordable level. The MSA numbers include sales of foreclosed homes and of course any short sales that may have been closed as well. Foreclosure sales may account for a good portion of the increases and that may be a positive sign in itself.

Eliminating any of the inventory regardless of how modest the upward trend in sales may be or how it affects prices may be the light that helps lead Florida into a more stable housing market.
Contact me directly for more on the most recent Southeast Florida homes and condo prices, sales and foreclosure activity.

George Sinacori 561-306-6736 or rebuygeorge@yahoo.com

Baby Boomers May Want To Buy Now

2008-08-15T10:34:00.001-07:00

With prices in Southeast Florida at a low, Baby Boomers should consider buying a retirement home now, even if they’re still years away from actually moving. Allowing renters to pay the bills for now can assure a great buy and a stable position without incurring any unwanted expense until retirement.

Here are some great points to consider:

• Buy a home that can be rented for a rate that, after tax considerations, covers the mortgage, real estate taxes and insurance and hopefully gives you a return on your down payment.

• Study housing trends. Look for demographic and economic data. The information can reveal facts that will influence whether or not to buy. For example, big companies going out of business or large chain store closings may be bad news.

• Don’t forget maintenance. Property managers usually charge a percentage of the monthly rent. Family members may do the job for free but could be ill equipped to make repairs.

• Consider financing. Boomers with sufficient equity in their current home can tap it to either buy their retirement home outright or secure a much lower mortgage.

Prices may be bottoming here in Southeast Florida so buying now for the long term may prove to be a smart choice for Baby Boomers considering downsizing the homestead and related expenses.

Search for homes and the MLS here at GES-Realty

George E. Sinacori

GES Real Estate, LLC

Licensed Real Estate and Mortgage Broker

rebuygeorge@yahoo.com

How To Price A Short Sale

2008-08-13T08:40:00.000-07:00

Pricing a short sale in order to get a response from the lender is key to bringing the seller, lender and buyer to a successful closing.

Facilitating a short sale requires that the facilitator understand the various guidelines that lenders use. Each lender may have there own unique requirements but there are some guidelines that are consistent from lender to lender. Without being able to obtain a counter offer from the lender a short sale attempt will never go any further than the initial offer.
That being the case the initial offer needs to be good enough to generate a counter offer.
Lenders rely on appraisals or BPO's (Brokers Price Opinion) in order to determine the value of a property and an offer. If the offer is considerably less than the BPO the lender may not respond at all and has no obligation to.

So, the initial offering price is critical to facilitating a successful short sale. How you get to a price that will generate an offer from a buyer and generate a counter offer from the lender is a challenge. Lenders take time to obtain information before making a decision. The lender is dealing with accepting a loss. The more of a loss the lender endures the longer that process will take. So be prepared for a long wait. If the offer is within range of the BPO or appraisal the lender is much more likely to respond with a counter offer that they can live with.

It is absolutely essential that the facilitator of the short sale be present at the appraisal or BPO. This is where the value that the lender is going to rely on is determined. The appraiser should be made aware of the circumstance if they aren't already. Any deteriorating physical neglect or anticipated expense required to resell the property should be brought to the appraisers attention. Lenders will look at these things as marketing expenses and may be more inclined to move the property before foreclosing in order to avoid repair costs.

Having someone knowledgeable in the short sale process facilitate the short sale is the most important part of the process. If you need help or more information on todays short sale process please contact me directly at 561-306-6736 or just send me an email with your question.

George Sinacori rebuygeorge@yahoo.com

2008-08-08T06:02:00.000-07:00

NAR has published it's June Pending Home Sales Index and it is encouraging. The Pending Home Sales Index (PHSI) is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The June numbers don't reflect activity resulting from the Housing & Economic Reform legislation recently signed. Projections are for a improvement in existing homes sales in the months ahead and stronger gains in the fourth quarter as homebuyers begin taking advantage of the First Time Homebuyer Tax Credit and FHA Modernization.

According to Lawrence Yun, NAR chief economist: " This is welcome news because a rise in contract activity is necessary for an overall housing recovery. With a tax credit now available to first-time home buyers, increases in home sales could be sustained with the momentum carrying into 2009.”

According to the report the PHSI rose 9.3% in the South and sales have remained consistently strong in areas where prices have seemingly bottomed, like Sacramento CA, Las Vegas and Ft. Myers. Yun also noted that builders are still facing higher construction costs and new home sales may not benefit as quickly as existing homes until they are able to reduce inventory and costs.
With mortgage rates remaining favorable many buyers may be sensing the bottom and recognizing that owning a home is again affordable.

contact me at http://www.ges-realty.com , email me at rebuygeorge@yahoo.com or call me directly 561-306-6736

NO IT'S NOT A SHORT SALE!

2008-08-07T14:50:00.000-07:00

More and more I'm being asked by prospective buyers and by Realtors inquiring about a property whether or not it's a short sale. My typical response has been to ask "are you looking for a short sale?" More and more I'm hearing..... "No, we don't want to get involved with any short sale!"

It seems we may be getting to a point when the average agent and the average buyer are going to leave the pre-foreclosure hassles to the seasoned investor and get back to some more conventional ways of buying a home. Any buyer who has had any experience in this area may agree that it's not worth the time it takes to get an answer nor the aggravation of not getting any response at all.

As a Realtor, I would much rather pursue the more conventional methods of listing and selling homes as well. Are we getting to the point where something resembling normal begins to return to this industry? I think I may be better now (although less wealthy) for all of the memorable experiences I've had over the past few years and I may have even learned a few things worthwhile. Although much of what I've learned I'd rather not have to use anymore. I don't know about anyone else but for me It's refreshing to hear "hey...that's not a short sale, is it?" and it's energizing and encouraging to answer..........

"No .... It's not a Short Sale!"

In Fact It Feels Great!

First Time Homebuyer Tax Credit

2008-08-01T05:44:00.001-07:00

One of the provisions of the new Housing and Economic Recovery Act of 2008, signed into law by President Bush on July 30, 2008 provides a First Time Home Buyer Tax Credit. The tax credit is available to qualified first time homebuyers. A first time homebuyer is anyone who has not owned any property in the past 3 years.

- As defined in H.R.3221 Section 36: " FIRST-TIME HOMEBUYER

- The term `first-time homebuyer' means any individual if such individual (and if married, such individual's spouse) had no present ownership interest in a principal residence during the 3-year period ending on the date of the purchase of the principal residence to which this section applies.""In the case of an individual who is a first-time homebuyer of a principal residence in the United States during a taxable year, there shall be allowed as a credit against the tax imposed by this subtitle for such taxable year an amount equal to 10 percent of the purchase price of the residence."
Note: the property may not quailfy for the credit if it is purchased from a relative.

The first time homebuyer tax credit is available to buyers of a primary residence purchased from April 09, 2008 through July 01, 2009. The allowable credit amount is 10% of the purchase price up to a maximum $7,500. Single tax payers with modified adjusted gross incomes up to $75,000. are eligible for the credit and married couples with combined modified adjusted gross incomes up to $150,000 are eligible. The credit is temporary and the amounts taken are recaptured (repaid) in future tax years, up to 15 years of ownership, or when the home is sold.

The new measure is part of the Housing and Economic Recovery Act of 2008. It should stimulate prospective homebuyers who may already recognize the bottom of the market but need another incentive to buy a home in the near future. The First Time Homebuyer Tax Credit is available through June 30, 2009 to qualified buyers. In all probability it will not be available beyond that date. It is a temporary economic stimulus.

Consumers are demonstrating interest in the measure according to the activity reported by the National Association of Home Builders Federal Housing Tax Credit website.

Other provisions of the H.R.3221 include FHA Modernization which increases FHA insured loan amount to 115% of an areas median home price up to a maximum of $625,500 which may in effect allow more working families to take advantage of FHA insured loans. The provision will also allow FHA to guarantee $300 billion to refinance mortgages where homeowners may be facing foreclosure.

Anyone needing more information on the tax credit or on the new loan limits and down payment requirements for FHA insured mortgages or on refinancing into a new loan can contact me directly at 561-306-6736 or email me or visit my website www.ges-realty.com

Can Bankruptcy Save Your Home?

2008-07-24T09:26:00.000-07:00

At the end of the day there's just not enough money! The cost of gas, food, everyday living expenses and the mortgage are beyond manageable. You just can't keep up with the bills. Your always trying to play catch up, sometimes getting by with what seems like smoke and mirrors, until one day you receive the inevitable bad news. Your lender has filed a "Notice of Default" or "Lis Pendens", initiating a foreclosure action against you.

Now the wheels start turning. What to do? How can I stop the foreclosure? How can I keep the house? How can I get relief?

Should you decide to file personal bankruptcy there are a couple of bankruptcy filings that you'll become familiar with. Chapter 7 bankruptcy places an automatic stay on your creditors including your mortgage lender. The stay is temporary however and the lender can continue to solicit the court for relief from the stay. At anytime the court may grant that relief and the foreclosure than proceeds. At best a Chapter 7 may help buy time to sell or reestablish yourself with your creditors. It never stops a foreclosure.

Before filing for personal bankruptcy you will need to complete an approved credit counseling briefing. This can be purchased online at:

http://www.startfreshtoday.com/consumers-site/debtor-education.aspx

For a Chapter 7 filing you'll have to qualify through a Bankruptcy Means Test. Not to worry though, some statistics claim that 96% of all petitioners qualify. The means test is a 2 step process. Your monthly income compared to the median income in your state for a family of your size. If your below the median you qualify. If not you go to step 2 , calculating disposable income over the next 5 years. If it's less than $100 a month, you qualify.

In the unlikely event that you didn't pass the Chapter 7 means test you may still be able to file for Chapter 13. Many people looking to avoid foreclosure choose Chapter 13. It can give you the breathing room you need to get you back on track by combining the automatic stay with a payment plan over the next 3-5 years. Chapter 13 allows you to sit down with your creditors and arrange a payment plan. Once agreed and accepted your creditors, including your lender must abide by the plan. If all payments are made as scheduled, any unsecured debts may be discharge at the end of the plan. This type of filing is intended to help people keep keep their property while they catch up. Of course there will be court and attorney fees that the homeowner will need to pay as well.

In order to qualify for Chapter 13 you must have a regular scource of income and have enough disposable income to cover normal living expenses as well as pay the creditors. There are also preset limits for secured and unsecured debt which fluctuate periodically. i.e. the limit for unsecured debt may be several hundred thousand dollars and secured debt limits may be over a million dollars.

In the end there is no one right solution when it comes to financial difficulties. Whether or not someone chooses personal bankruptcy over another viable alternative depends on that person and the circumstances surrounding them. Call it a workout plan or financial reorganization. Anyway you look at it, avoiding a foreclosure may be the most important thing that anyone can do to save their financial lives.

For more on avoiding foreclosure call me directly at 561-306-6736 or email me at rebuygeorge@yahoo.com or visit my website at http://www.ges-realty.com/ for more answers.

What Foreclosure Leaves Behind

2008-07-23T10:32:00.000-07:00

The Innocent Victims of Foreclosure

It was late and I was tired. A long day already but we still had an hour or more of good daylight to work with when my associate and I drove up the driveway of the single family home in suburban Palm Beach County. A modest 4 bedroom home situated on an enviable sized lot seemed vacant. We were sent to assure that it had been vacated in order for the lender to place yet another REO property on the market.

As quickly as my associate began to open the car door she immediately slammed it back shut exclaiming, "Oh my goodness, look at the size of that dog, I'm not going in there!" Sure enough there was a female Rotti about 130 lbs. standing outside the car looking very protective and fearless. "What are we going to do now?" they asked. I try to keep doggie treats in the car for less threatening occasions and I hoped that I'd remembered to replenish the ziplock baggy. Luckily I had some Scooby Do's. I opened my window, throwing one in front of the car. The Rotti immediately went for it but didn't eat it. She quickly returned to sit now outside the drivers side door........ That would be my door!

Having had a female Rotti of my own I knew a little about the breed. I knew that the female, although smaller is an outstanding watchdog. They are protective of home and family and they can be ferocious or pussycats. I decided I'd ease the window down and see if she would take a treat. As gentle as a pup she took it from me. I knew we were in.
As we exited the car we could tell that the place was abandoned. The front door was open and it became obvious that the family had recently made a hasty retreat. Clothing and toys were strewn about the family room. Threatening notices were piled on the kitchen counter and the dogs bowl was left with food in it, although it seemed untouched. We made our way through the rest of the house and eventually out to the yard. In the center was a childrens playset with a slide 2 swings and a sandbox. Alongside it was a trampoline. An above ground pool was beginning to show signs of neglect with the water turning green and a few dead frogs in the bottom. We went into the covered screened patio where the door had been tied open and found the Rotti's bed. A full sized doggie bed surrounded with toys and family clothing. The Rott went to the bed, lied on it and whimpered.
Our job for tonight was finished. We could come back to secure the place the next day. Hopefully the family will come back for the Rott. If not we would need to figure out how to help her now that it was too late to help her family. She followed us to the car and as we opened the doors she gave us a hearty Rotti bark and ran back behind the house.
The next day she greeted us in the driveway with tail wagging and tongue hanging. She had eaten and seemed happy to see us. Today we had to secure the house so that the lender could begin making it marketable. What were we going to do about our new freind. We decided to canvas the neighbors. We found out that the dog's family was living in the neighborhood with friends and we went to visit.

Mom was home with her kids and the neighbors kids. Dad was at work. She explained that they coudn't take Lucy ( the Rotti )with them and that they were moving out of state to live with relatives until they get back on thier feet.
Her little boy looked up at me and asked "is Lucy going to go to the dog pound?" He told me "I visit her, but Mom and Dad told him not to. I miss Lucy." he said.
We turned to his Mom and asked if it would be OK for him to go back to the house with us and if she would come along. "It would be too hard for me. We raised our kids there. We have lots of memories. I can't, but he only seems to worry about Lucy. He can go with you" she said.
After we went to the nearest store for some baby shampoo and treats all three of us went back to the house. The boy helped us give Lucy the Rotti a bath. They played in the yard as if nothing else mattered. When we were finished securing the place it was again time to leave. Lucy walked us to the driveway barked and ran behind the house. I asked the little boy if he would mind if I took Lucy and found her a home so that she wouldn't go to the dog pound. He asked "will I see her again?"
I brought her back everyday to play with the boy until he left with his family to try and start over. We took Lucy and found her a great home with true Rotti lovers. I miss Lucy too.

For more on avoiding foreclosures please visit my compay website at www.ges-realty.com

Not Your Average !

2008-07-22T09:01:00.000-07:00

Have you seen Hancock ? Not your average Superhero! The kids and I opted for Hulk this 4th of July weekend. I haven't seen Hancock the movie but when I visited the film's website I found something compelling enough to draw me in for sure. Sony Pictures has an essay contest that they've coordinated with the promo and release of the film. The site tells you that the Superhero has teamed up with his PR people and that they want to "pay off the home loan of one deserving family ". Hancocks All Heart campaign asks that a homeowner write a short essay (1500 characters or less) on why you deserve to have your mortgage paid off. Considering the multi million dollar budget it takes to promote a "Hancock" the mortgage payoff, up to $360,000 seems like a bargain for Sony if the promo pays off. It's an insignificant portion of a marketing budget. Sony may be onto something here. Go to the film's website http://www.sonypictures.com/movies/hancock/ and click on the link:

Hancock's Helping Hand Mortgage Payoff Contest.

Maybe Hancock is "not your average Superhero........hmmm........ maybe he's just smarter and more in tune with his audience than the average. He sure got my attention !