Cash Is King in the Housing Market

Current homeowners looking to downsize, upsize or relocate are increasingly using more cash to purchase  their next home.

Despite near record low mortgage rates, homebuyers are finding it advantageous, in the current housing  market to shop with cash. Low returns on money deposited in banks as well as mortgage approval hassles also are pushing homebuyers to consider all cash or mostly cash transactions.


Using cash is a definite way to get discounts when buying distressed properties such as foreclosures or short sales and it's unlikely that the proportion of distressed property will be declining anytime soon.
An enormous number of foreclosures remain in the pipeline and the artificial suppression of that inventory by mortgage servicers has kept the proportion of distressed property lower than it otherwise would be.
Hassles with slow underwriting, accentuated by tardy appraisals, cause some homebuyers to give up on mortgages.

It takes about 60 days to close a ‘non-troubled’ FHA loan. About 30 days longer than it had prior to the housing bubble bursting. Other government insured Fannie Mae and Freddie Mac loans are taking about 45-60 days. Appraisals are also holding things up.

These are the average prices reportedly paid for various types of properties in Florida over the past 12 months :

                              Foreclosure
                    Damaged        Move In Ready               Short Sale                  Non Distressed

Florida         $92,765         $166,155                         $148,716                      $248,575

National       $105,247        $187,415                         $198,054                     $257,338



Looking at these statistics makes you wonder why more buyers and sellers aren't taking advantage of the current opportunities to buy and sell short sales. Many properties that are foreclosed could have been sold earlier as a short sale. In many instances faulty processing of the short sale file by either the borrowers agents or the lenders servicer still make them difficult to embrace. Lack of acceptance by 2nd mortgage holders also contributes to the inability to close a short sale. Typically if Fannie Mae or Freddie Mac are the 1st mortgage holder they will allow a small percentage of the 2nd mortgage balance to that lender. If the 2nd demands more the deal will likely die, opening the door again to foreclosure. Closing a short sale is not impossible. Sometimes the stars align. It requires diligence, communication and patience. Three virtues that actually work.

If you have any questions please call me directly at 561-306-6736 or email me.  I'll be glad to help in any way that I can.

Mortgage Debt Relief to Expire

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

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

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

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

No $ No Help For Housing

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.

Mortgage & Foreclosure Fraud Crackdown

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

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

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

Foreclosure: Know Your Options

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

Tricks & Traps of Foreclosures - Buyer Beware!

 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.

Foreclosed Family Reclaims Home

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)

Short Sale or Foreclosure Seem To Be The Only Choice

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

Appraisals & The Home Valuation Code of Concuct (HVCC)

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

Appraisals: Crippling the Housing Recovery

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

Protections For Renters Living In Foreclosed Homes

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

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..

How Mortgage Relief Options Work

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 .

Preparing Your Home To Sell - The Staging Advantage

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

Can Bankruptcy Save Your Home?

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.