Homes For Sale: Forclosure and Short Sales: New Legal Tactic to Help Homeowner and Condo Assoc; More Distressed Home Statistics

There is a new mortgage terminator strategy, which is a legal tactic that forces lenders (e.g., banks) to come current with homeowner association dues on distressed homes. The action is a "quiet title action" that requires a lender to prove it owns a property free and clear by foreclosing or giving up its lien.

According to the Community Associations Institute, more than 70% of bank owned houses and apartments are not making regular assessment payments to the boards that operate the properties.

Why would a lender not take title on a foreclosed home and leave it in a "short sale" situation? The answer is in many situations it makes more financial sense for the banks to let things lie. The new strategy will force banks to make a decision as to whether or not it makes sense to hand over title to the homeowners association or come current on fees. The new strategy has been sanctioned by three courts in Florida recently.

Non-payment of association dues puts a financial strain on the community. When not enough funds are collected to pay the bills related to the community, either residents take up the slack or the association reduces the amount of services it provides.

HOA assessment delinquencies doubled since 2005 from 19% of associations reporting delinquency rates of 5% or above, to 65% in 2010. In 2010, 30% of associations have delinquent assessments exceeding 10%. Moreover, 10% or almost 30,000 associations in the US have rates above 20% delinqencies in 2010.

With the new legal tactic in place, associations can take title and force the primary lien holder to initiate it own foreclosure proceeding or release its mortgage so the association can sell the unit to cover the fees owed. This will allow for better upkeep of the communities, help to stave off falling home prices and not place a bigger burden on homeowners who are current with association dues.

I think it is very important for buyers and sellers to understand what is happening in the local markets. As this post discussed, it is important to understand what is happening in individual communities.

As a local Relator, I am aware of what is happening in many of the communities. If you are thinking of selling or buying a home, please feel free to contact me.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

S FL: Homes For Sale: Foreclosure and Short Sale: South Florida Has Many Distressed Properties; To Pressure Homeowners Looking To Sell

According to Moody's Analytics, there were 15 million underwater homeowners in the United States in the first quarter of 2010. More than half, 7.8 million, owed 25% more than what the home is worth.

Moody's estimates almost one-third of the total (more than 4 million) underwater homeowners owed more than 50% of the homes' value. The worst US markets for underwater homes were 1) California (424,000), 2) Florida (121,000) and 3) Illinois (121,000).

The bottom line is the economy is in a holding pattern until these figures can be reduced, in our opinion. Homeowners cannot sell and move up and home improvements are being delayed. We believe this trickles down throughout the whole US economy.

During previous recessions, the housing industry and consumer spending strengthened the overall economy. To put in perspective the current lull in housing, we turn to the National Homebuilders Association's annual homebuilding estimate of 600,000 for 2010. This compares with the US output in new homes of 1.7 million in more normal times. The National Homebuilders Association's economist, David Crowe, does not expect home building to return to its normal levels for another three years (editor's note: estimated to be 2014)

In regards to home prices returning to a point where their mortgage balance was even with current property values-- estimates have put an estimate of 11 years for that to happen. The assumption behind the 11 year estimate is if prices were to rise at an annual rate of 3% per year. we believe an average of 3% annual price appreciation during the next 11 years to be a likely scenario.

I think it is very important for sellers to understand their respective local markets. This will allow them to competitively price their properties and garner the most interest in what seems like a lengthy buyer's market in South Florida.

If you are thinking of selling or buying a home, please feel free to contact me.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

South Florida Real Estate: Homes For Sale: Free Home Search: Country Club: Delray Beach: Mizner Country Club

Free home search for Mizner Country Club and other real estate (preview listings, etc.)-- homes for sale: cut and paste this link into your browser:

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217

Mizner Country Club is one of the premier country club communities in Delray Beach, Florida. There is a mandatory equity membership to the clubhouse in order to live in the community. Amenities include: golf, tennis, fitness center, dining, social events and many other features. The advantageous location is one of the many reasons homeowners have chosen the community. Mizner CC is close to major shopping areas, restaurants, major roads and has almost everything one would need within the confines of the community.

I specialize in country club communities in Delray Beach and throughout South Florida. Please feel free to contact me for more information on Mizner Country Club or any other community in the area.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

South Florida Real Estate: Homes For Sale: Free Home Search: Country Club: Boca Raton: Woodfield Country Club

Free home search for Woodfield Country Club and other real estate (preview listings, etc.)-- homes for sale: cut and paste this link into your browser:

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217

Woodfield Country Club is one of the premier country club communities in Boca Raton, Florida. There is a mandatory equity membership to the clubhouse in order to live in the community. Amenities include: golf, tennis, fitness center, dining, social events and many other features. The central Boca Raton location is one of the many reasons homeowners have chosen the community. Woodfield CC is close to major shopping areas, restaurants, major roads and has almost everything one would need within the confines of the community.

I specialize in country club communities in Boca Raton and throughout South Florida. Please feel free to contact me for more information on Woodfield Country Club or any other community in the area.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

US / South Florida Real Estate Market To Rebound in 2011?

Sales of existing homes in the US sequentially increased 10.4% during October 2010, according to the National Association of Realtors. This is the biggest gain in the nine-year history of the measurement.

Does this mean the worst is behind us and houses will begin selling at a more robust pace and at higher prices? Or is this a positive number that is being taken out of context?

The positive thinker will point to what seems to be an improving US economy (although slow growth), coupled with low mortgage rates are spurring those on the sidelines to enter the market. With the Federal Reserve recently indicating it will continue its monetary easing, it is likely mortgage rates will remain low. The low rates and many distressed properties offer the perception that now might be offering a once in a lifetime opportunity to purchase a home.

The more pessimistic view is that the number is one data point, and when compared with several years ago, is still not an indication of strong demand. With the supply of houses in the market, a sustained recovery in prices is far in the future, according to a more dampened view of the data.

With the recent increase in US unemployment to 9.8%, from 9.6%, we think the more pessimistic view is more realistic. The economy may be more stable when compared with a year ago; but, there are not enough jobs being created to substantially increase demand, in our view. In addition, the believed oversupply of homes in the market means there should not be much in the way of robust price increases during the 12 months, in our view.

If you are buying or selling a home, please feel free to contact me.

I have provided a link to a property search engine below where you can find and view listings. Contact me for more details on those listings and/or information in the area.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

Case-Shiller Index For September 2010: US Real Estate Market Not Showing Robust Growth

The September 2010 Case-Schiller Index showed the slowest year-over-year growth for any month in the year. Property values rose only 0.6% for September 2010 over September 2009.

The two biggest factors seem to be over-supply of homes and the economy (i.e., almost 10% unemployment). The CEO of homebuilder D.R. Horton recently said he expects sales to remain weak in 2011. He said the company would adjust price points to demand (editors note: seems to be indicating price reductions).

Here's some information from Case-Shiller Index of interest:

============================================================
1-mo 3-mo 1-yr 2-yrs 3-yrs
earlier earlier earlier earlier earlier
============================================================
US Composite-20 -0.71% -0.34% 0.59% -8.75% -24.63%

New York -0.34% 1.01% -0.13% -8.91% -15.41%

Miami -1.24% -0.87% -2.71% -18.51% -41.65%

Boston -1.31% -0.98% 0.42% -2.92% -8.46%

Chicago -1.53% -0.11% -5.58% -15.61% -24.12%


The indications seem to be for continued pricing pressure in the near-term. As we stated earlier, we still believe there is potential for another 5% to 10% slide in home prices during the next 12 months in the South Florida real estate market.

If you are buying or selling a home, please feel free to contact me.

I have provided a link to a property search engine below where you can find and view listings. Contact me for more details on those listings and/or information in the area.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

October 2010 Real Estate Sales Information for Florida (Condo and Single Family Homes)

Is the Florida real estate market beginning to show signs of a bottom?

The October 2010 year-to-date unit price per unit sold for single family homes was up 7% over the previous year, according to housing data recently released by the Florida Realtors. In addition, condominium unit sales were reported to be up 33% over the previous year during year-to-date October 2010.

However, when looking at a year-over-year comparison of October 2010 housing results in Florida, the market does not seem to be trending in the same direction.

The statewide existing median condo sales price of $82,400 in October 2010 was 22% below October 2009; unit sales were also down 5% during the same timeframe. The median existing single family home price fell 3% to $136,600 in October 2010, versus October 2009; the number of units sold decreased 21% on a year-over-year basis in October 2010.

What does this all mean-- I think we are still looking at an uncertain housing market in Florida. Buyers still seem to be anxious about the economy and sellers are somewhat hamstrung by the declining home prices.

If you are buying or selling a home, please feel free to contact me.

I have provided a link to a property search engine where you can find and view listings. Contact me for more details on those listings and/or information in the area.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

US: Jumbo Mortgage Loans Up; To Increase Sales Of Luxury / Country Club / Waterfront Real Estate In Delray Beach / Boca Raton, Florida?

Lenders wrote $18 billion in jumbo mortgages during 2Q 2010, which is up 20% sequentially. Some analysts feel this reflects a confidence the stability of the US real estate market on the higher end of the market. Jumbo loans are usually more than $417,000; as such, these mortgages tend to be for homes in the higher-end of the market.

These jumbo loans are considered more risky because they are not guaranteed by FHA, Fannie Mae or Freddie Mac because the amount is above the conforming limits set by these government-backed agencies. Could this mean the higher-end real estate market is set for a rebound in price?

Working with both buyers and sellers in the country club and luxury housing market in South Florida, I can attest to the fact that there are worries on both sides of the equation. The result is gridlock as there is in many other segments of the real estate market.

As a Realtor who specializes in luxury, waterfront and country club communities, I believe the higher-end market segment is beginning to show signs of increased movement. The recent increase in the amount of jumbo loans underwritten is another sign things are moving in a positive direction.

Those who want to sell their homes have more potential buyers due to the increase in loan activity. On the other side of the coin, those who would like to upgrade into, or upgrade within, the luxury market now have more financial flexibility at their disposal to do so.

With the apparent mitigation of lenders' anxiety in writing the riskier jumbo mortgages, I think it will give buyers and sellers more confidence in the upper-market housing segment. As a result, I expect to see more activity in the next year.

If you are buying or selling in a luxury home or country club community or looking for waterfront homes in South Florida, please feel free to contact me.

I have provided a link to a property search engine where you can find and view listings. Contact me for more details on those listings and/or information in the area.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

Predictions On Foreclosure and Short Sale Real Estate In Boca Raton, Florida

Executives at major US banks and real estate experts recently testified before the US Senate Banking Committee in Washington, DC about problems with the foreclosure process. Much of the recent problems stem from the litigation regarding the irregularities of the foreclosure process; prior pieces have discussed the issue in detail.

The Congressional Oversight Panel recently released a report predicting the potential problems in the foreclosure process could be significant. Greater disrputions than we've already experienced in the US housing market has been predicted as a possibility.

The current problem of lenders having to prove they own the mortgage loans is predicted to lead to a drop in foreclosure sales. The theory is the banks would favor short sales during this period of difficulty in actually foreclosing on homes.

Experts believe the delay in foreclosures will mean less price competition in the short-term and long-term a record high amount of bank foreclosures by mid-2011. The theory is that after the ligitation mess is worked out, the delayed foreclosures, and those that were in limbo because of the litigation, will all be worked out at the same time. Should that happen, one might expect to see US home prices fall yet again, as a new wave of lower-priced inventory enters the market.

As a Certified Distressed Property Expert (CDPE) and a Realtor, I can help both buyers and sellers navigate the ever changing distressed property landscape.

If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

Moody's: Strong Job Growth Predicted For Florida In 2011; Will This Be A Catalyst For The Florida Housing Market?

Moody's Economy.com, an economic consulting firm, predicts strong job growth for the state of Florida during 2011. Moody's predicts Florida will experience the strongest increase in jobs during 2011 when compared with all the states in the US.

The company predicts a 3% increase in jobs in 2011 over 2010. The construction industry is expected to account for the largest part of the increase in jobs; the estimate is for a 27% increase in positions in the field. Others areas of growth for Florida jobs is predicted to be in the following industries: mining, leisure and hospitality, education and health services; ranging in growth levels of 5% to 3%.

The large percentage of unemployed workers and the continued loss of jobs in the state is among the biggest reasons for the large amount of distressed properties in the state of Florida, in our view. Should more jobs be created in the state, we think this would atleast help provide a floor for housing prices. The reason is simple, less distressed properties on the market for sale and more money available to purchase homes.

However, given the current state of the economy, it is still not clear that jobs will rebound as robustly as Moody's predicts. However, it is a good sign for our prediction of a housing bottom during the next 12-to-18 months.

Markets tend to run in advance of actual results. The housing market should be no different. So, if Moody's is indeed correct in their assessment of job growth in the state of Florida, those buyers "on the fence" should start to act now.

If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

South Florida 3Q 2010 Real Estate Picture, According To Zillow

As we expected, the prices of homes in the South Florida market continued to decline during 3Q 2010; this according to real estate firm Zillow.

The large number of distressed properties and the weak job market continue to cause hardship for homeowners in the market.

Zillow reports the peak for home values in the South Florida market was June 2006. Zillow estimates home values in the market have fallen 53.5% since June 2006 to 3Q 2010. Among the 25 markets followed by Zillow, the South Florida market dropped the most during this time.

Of the single family homes in the South Florida market, Zillow estimates 42% are "underwater", meaning they owe more on the mortgage than the home is worth.

Prices continue to fall in the market in order to keep up with the distressed properties in the area. Zillow reports 21% of homeowners in the South Florida market reduced the listing price on their home during 3Q 2010.

We think the trend will continue in the foreseeable future, meaning home values will not appreciate during the next year. However, we see the market bottoming out during the next 12 months.

In order to track our predictions, we include the following information: According to Zillow, the South Florida median selling price fell as follows:

--Single family home prices were down 7.8% from last year in 3Q 2010, to $221,200;

--Condominium prices were down 14.2% from last year in 3Q 2010, to $109,800.

Another intresting tid bit to track our theory: Esslinger-Wooten-Maxwell Realty estimates short sales and foreclosures (i.e., distressed property) accounted for more than 60% of home sales during 3Q 2010.

If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

Real Estate Appraisals: What Sellers and Buyers Should Know

What some sellers and buyers do not understand is that a home appraisal can kill some deals.

Sellers must realize the home should be priced within a reasonable range of the appraised value. The reason is that a buyer may want to purchase the home at a higher price; however, the mortgage company may deny the loan based on the appraised value of the subject property.

Three common issues to be aware of as it relates to home valuation/appraisals:

1) In areas with many foreclosures and short sales, appraisers are sometimes left with little choice but to include them in the comparable analysis. This tends to reduce the appraised value of the subject property. Certain states that have a large number of distressed property sales, such as Florida, should be mindful of this.

2) Lower the credit score and/or the higher debt-to-income level, the greater the scrutiny of the colleral's value (i.e., home valuation). If there is some uncertainty, the extra focus on value could impact whether or not the lender approves the loan at the appraised value.

3) The fluctuations of the market can make some sellers apprehensive about selling at market value as they may start to believe the value will appreciate.

Sometimes sellers tend to want to get as much for the home as they can. And this is reasonable; however, it may wind up killing a deal when a lender is involved. On the other hand, some buyers fall in love with a home and are willing to pay more than fair value. If the buyers have "iffy" credit history or "just enough" to meet the loan-to-value requirements for a loan, they may be denied by their lender.

Please see some of our previous pieces on home and market valuations.

If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

August 2010: US Property Values Continue To Fall; Florida In Top Five States

According to CoreLogic, a company that analyzes the real estate market, 78 of 100 metropolitan areas experienced year-over-year price declines in August 2010; this compares with 58 in July 2010.

Some states actually showed a price increase.

The five states with the highest price increase in August 2010 was as follows:

Maine up 5.8%
New York up 3.7%
Connecticut up 2.5%
Virginia up 2.4%
South Dakota up 2.1%

The majority of the states encountered a price decrease.

The five states with the biggest price decline in August 2010 was as follows:

Idaho down 14.0%
Alabama down 10.4%
Utah down 7.3%
Oregon down 6.3%
Florida down 6.2%

The decline in home prices in the United States from the peak in April 2006 until August 2010 was 28.2%. If distressed properties were not included in the calculation then home prices were down 19.6%, according to CoreLogic.

Please feel free to post an opinion or question and we will try to address them in future posts.

If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

3Q 2010 US Housing Foreclosure Report

The foreclosure problem worsened during the third quarter of 2010 in the United States as activity picked up across the nation.

During July 2010 through September 2010, home foreclosure actions remained most prevalent in four main states: California, Nevada, Florida and Arizona. These areas tended to see skyrocketing home values during the boom years. What followed was elevated levels of unemployment when compared with the US as a whole, the collapse of home values and increased foreclosure action.

The trend of increased distressed property seems to be spreading to other areas in the United States. High unemployment and slow job growth has caused homeowners to fall behind on their mortgage payments; this in turn, has led to home price uncertainty.

According to RealtyTrac, a firm that tracks default notices, home auctions and repossessions, 133 out of 206 metropolitan areas with at least 200,000 residents saw an annual increase in foreclosure activity during 3Q 2010.

During 3Q 2010, the highest rankings of foreclosures to households was as follows:

1 Las Vegas-Paradise, Nev.

2 Cape Coral-Fort Myers, Fla.

3 Modesto, Calif.

4 Stockton, Calif.

5 Merced, Calif.

6 Riverside-San Bernardino-Ontario, Calif.

7 Miami-Fort Lauderdale-Pompano Beach, Fla.

8 Phoenix-Mesa-Scottsdale, Ariz.

9 Bakersfield, Calif.

10 Vallejo-Fairfield, Calif.

11 Orlando-Kissimmee, Fla.

12 Reno-Sparks, Nev.

13 Sacramento-Arden-Arcade-Roseville, Calif.

14 Boise City-Nampa, Idaho

15 Deltona-Daytona Beach-Ormond Beach, Fla.

16 Fresno, Calif.

17 Visalia-Porterville, Calif.

18 Naples-Marco Island, Fla.

19 Palm Bay-Melbourne-Titusville, Fla.

20 Lakeland, Fla.
Source: Fox News

As a Certified Distressed Property Expert (CDPE), I can help both distressed homeowners navigate the process of a short sale. In addition, my expertise will help those who are seeking to take advantage of distressed properties that are currently in the marketplace.

Please feel free to post an opinion or question and we will try to address them in future posts.

If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

The US Foreclosure Fiasco And What It Means For The Market

The recent stalling of foreclosure actions stems from procedural problems.

Affidavits lenders file in regards to summary judgment foreclosures states certain facts that the signer indicates personal knowledge of. An example would be the amount owed on the mortgage. The affidavits are submitted as fact with respect to the summary judgment process.

The problem arose when depositions taken by lawyers for homeowners showed GMAC and Chase Bank did not have adequate time to review and certify all the facts. A review by these attorneys showed the lenders signed more than 10,000 affidavits in regards to foreclosure action in one month.

The issue will most likely slow down the eviction process just when lenders started to make progress in getting through their respective "distressed property" backlog. In August 2010 lenders started 283,000 foreclosures, which is up from 220,000 in April 2010.

Karl Case of the famed Case-Shiller Housing Index is quoted as saying the foreclosure document flaws might, "actually get the lenders to the table and encourage them to work out deals that are to the benefit of everybody." The theory is that if foreclosures are delayed or never happen, the housing market might hit a floor.

We think the uncertainty this might have would make the US housing market more unstable. The stock market, for instance, does not like uncertainty-- I doubt those looking to make a large investment in a home would like additional confusion.

The US housing market will reach a bottom when the majority of "distressed properties" have been flushed out of the market, in our view. Whether through natural sales and/or with the assistance of investors, the housing supply and demand must come back to an equilibrium in order to acheive balance, in our view.

As a Certified Distressed Property Expert (CDPE), I can help both distressed homeowners navigate the process of a short sale. In addition, my expertise will help those who are seeking to take advantage of distressed properties that are currently in the marketplace.

Please feel free to post an opinion or question and we will try to address them in future posts.

If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

Is The US Housing Market Recovering Or Not?

The fundamental issues of this article is: 1) is the US housing market recovering and 2) why or why not?

As can be surmised from some of our recent postings, the US housing market seems to be stabilizing, at best. In certain regions of the country we are seeing more improvement than in others. However, in my opinion, the US housing market is not in a sustained recovery as of yet. Overall sales of homes are lower now than they have been at any point in the past ten years.

The question then becomes: with all of the avenues taken by government agencies in order to stimulate the housing market, why is there no recovery, yet?

The primary reason is obvious, the economy is still on unsettled grounds. In my view, the small business owners, self-employed and real estate investors have been severely damaged during this prolonged recession. Small businesses have been an engine of job growth and investors have helped to expedite getting housing supply and demand in balance in previous downturns.

One of the main things the government agencies have tried to do in order to help heal the housing market is lower borrowing costs. Reduced rates lowered the cost of owning a home and helped spur borrowing to grow businesses; this in turn helped spur job growth and economic development.

The Federal Reserve has pushed interest rates to extremely low levels and mortgage rates are near historic lows. Why is this not working? and why should those interested in buying, selling or investing in real estate care?

Let's take the second question first: we should care because tracking the trends is important to understanding the market.

Why has lowering the interest rates not worked so far? Here's my opinion:

1) rates are near historic lows for the "prime" customers. Essentially those that do not need a loan and are low credit risks are getting the advantageous loans. I have had several clients start out as cash buyers and then turn into taking a mortgage-- why? lenders are offering very advantagous rates-- to those with good credit.

2) Private mortgage backed security market imploded. Only those guaranteed by the quasi-government Fannie Mae and Freddie Mac are able to sell its mortgages into the market. With "Fannie" and "Freddie" essential bankrupt if not for government intervention, the agencies are guaranteeing only the better creditworthy loans.

3) Underwriting requirements have become much stricter. Full documentation and much less discretion by lenders in borderline cases.

4) Prospective homeowners need loan-to-value ratios that are more in the 70% range. Lower credit scores means more downpayment and increases to the mortgage rates. People need more cash down and the low rates for the most creditworthy do not apply to folks with FICO scores of mid-700s and below.

5) Appraisals are much more cautious in the comparables and the psychology seems to be an expectation of further deterioration. Therefore, the appraisals are conservative; this leaves the lender feeling as though it has less collateral-- means higher rate and more of a downpayment required.

6) Consumer psychology is such that those that might have taken a risk and bought a home in the past are holding back. Not sure of their future earnings and delaying large purchases. Why buy a large ticket item when you are not sure you will be able to afford it or if you think the value may decline in the next six months-- why not just wait.

7) Many homeowners are stuck-- they are underwater on their homes, meaning they owe more on the mortgage than the home could be sold for in the current market. Many of these people want to downsize and move on. However, the reality is they are stuck until values increase-- assuming they can hold the home during that period of time. If not, it becomes another distressed home on the market (i.e., short sale or foreclosure).

8) Lenders are not offering loans to investors-- they need to come up with all cash needed. The days of securitizing and selling investment paper is a thing of the past, for now. That means, even savvy investors-- those that could take advantage of the excess supply are less likely to soak up some of the excess supply. This continues to leave the supply and demand curve out of equilibrium-- for now.

We will continue to monitor these issues going forward. We think these are some of the key issues for those who are involved in the real estate market. Please feel free to post an opinion or question and we will try to address them in future posts.


If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

2Q 2010: Florida Housing Foreclosure Snapshot

After commenting on the foreclosure market in the US, now let's tackle the Florida foreclosure market during 2Q 2010 (please see previous piece on US foreclosures). Florida's foreclosure situation is not good, but not the worst in the country.

From April 2010 to June 2010 the highest share of foreclosure sales were as follows:
Nevada: 56% of all sales were foreclosed homes
Arizona: 47%
California: 43%
Rhode Island: 37%
Massachusetts: 35%
Florida: 34%
Michigan: 33%
Georgia: 27%
Idaho: 27%
Oregon: 25%

As we analyzed in greater depth in our previous article, the US had nearly 25% foreclosed homes sold in total during 2Q 2010.

Distressed homes, those that are short sales or foreclosures accounted for 34% of all existing houses sold in August 2010, from 32% in July 2010 and 31% when compared with August 2009; this is according to the National Association of Realtors.

Florida was not among the biggest discounts to market in regards to foreclosure prices versus traditional home sales during 2Q 2010. The price discount for foreclosure sales and market sales are as follows:
Ohio: 43%
Kentucky: 43%
California: 43%
Michigan: 35%
Tennessee: 35%
Pennsylvania: 35%
Georgia: 35%
Illinois: 35%
District of Columbia: 35%

Individual markets and submarkets are important to follow when you are looking to buy or sell a home. A person who understands these markets is very important when taking on a big decision, such as buying or selling a home.

If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

Foreclosure Report: Almost 1 in 4 US Home Sales a Foreclosure During 2Q 2010

Many of my clients looking to buy are asking about foreclosures and short sales. With nearly 25% of all home sales in the US being a foreclosure during the second quarter of 2010, it does not seem like my experience is unusual.

How much longer can we expect high levels of foreclosure activity? According to Realty Trac, the market is on pace to work through distressed properties in about three years. Realty Trac thinks the distressed inventory will largely be worked through by the end of 2013.

How much of a discount to market is the buyer getting with a foreclosure? The latest data suggests a 26% discount when compared with homes not in the foreclosure process. During 1Q:10 homes in foreclosure sold for 27% below the market, according to industry data. So we can see, there's not much movement in price discount.

Is the percentage discount the same in every US home market? No. The highest discounts were in Ohio, Kentucky and California-- at about a 43% discount. So, you need to know your local market trends.

Lenders are expected to take over a record 1.2 million homes in 2010; this compares with around 1 million last year. To give an frame of reference, there were about 100,000 foreclosures in 2005 before the housing bust. And in a normal market, foreclosures account for less than 5% of sales, according to Realty Trac.

Individual markets and submarkets are important to follow when you are looking to buy or sell a home. A person who understands these markets is very important when taking on a big decision, such as buying or selling a home.

If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

Bargain Hunting For Condos In South Florida? You Might Be In Luck

The South Florida condominium market may be ripe for investors given the current conditions of the market. The large number of foreclosures should be advantageous to those looking to invest in the South Florida market.

As we discussed in a previous article, there are new Acts in place to help the large scale investors. However, there are still deals for smaller investors and homebuyers looking for a favorable price.

Median condo prices fell as follows:

Broward County: 14% year-over-year slide in August 2010 to $73,000

Palm Beach County: 24% year-over-year decrease in August 2010 to $84,900.

Where do we go from here?

Some analysts expect prices to fall another 5% to 10% before reaching a stage of price stabilization. These analysts believe it will take a year or more before prices increase consistently.

Individual markets and submarkets are important to follow when you are looking to buy or sell a home. A person who understands these markets is very important when taking on a big decision, such as buying or selling a home.

If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

Florida's Palm Beach County's Home Prices Continue To Fall In August 2010

Florida's Palm Beach County has seen median prices fall in August 2010 and some analysts think the trend could continue through the end of 2010.

Florida's Palm Beach County posted 793 sales of existing homes in August 2010, down slightly on a sequential basis and up 5% from August 2009.

The median single-family home price was $227,800 or 7% below August 2009.

The median price of a single-family home dropped 46% since the peak of $421,500 in November 2005.

What has been the main causes?

The high unemployment rate in Florida at double-digit rates, and an excess supply of homes with many foreclosures in the market.

Where do we go from here?

Zillow.com's chief economist said he'd be surprised if the South Florida region's home prices did not hit "bottom" in 2011.

I think it is important to watch the factors we have previously discussed in an article to get a sense of any particular real estate market (i.e., South Florida or Broward County).

Individual markets and submarkets are important to follow when you are looking to buy or sell a home. A person who understands these markets is very important when taking on a big decision, such as buying or selling a home.

If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

Florida's Broward County Median Home Prices Fall in August 2010

Florida's Broward County has seen median prices fall in August 2010 and some analysts think the trend could continue through the end of 2010.

Florida's Broward County posted 683 sales of existing homes in August 2010, down 5% on a sequential basis and 16% from August 2009.

The median single-family home price was $206,000 or 5% below August 2009.

The median price of a single-family home dropped 47% since the peak of $391,100 in November 2005.

What has been the main causes?

The high unemployment rate in Florida at double-digit rates, and an excess supply of homes with many foreclosures in the market.

Where do we go from here?

Zillow.com's chief economist said he'd be surprised if the South Florida region's home prices did not hit "bottom" in 2011.

I think it is important to watch the factors we have previously discussed in an article to get a sense of any particular real estate market (i.e., South Florida or Broward County).

Individual markets and submarkets are important to follow when you are looking to buy or sell a home. A person who understands these markets is very important when taking on a big decision, such as buying or selling a home.

If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

July 2010 Case-Shiller Report: US Home Prices Rise 0.6%

The Case-Shiller home price index tracks single-family homes in 20 major US cities. The index showed a 0.6% rise in prices during July 2010 from June 2010. Prices increased 3.2% on a year-over-year basis.

Prices rose in 12 of the 20 markets on a year-over-year comparison during July 2010. The only South Florida market included in the index is Miami; the market was up 0.4% in July 2010 over the previous year, according to the Case-Shiller home price index.

The 3.2% year-over-year increase for July 2010 compares with 4.2% for June 2010. This poses a question for the direction of the US home market:

Are we seeing continued growth or a trend toward slowing year-over-year growth-- thus, leading towards another downturn?

Individual markets and submarkets are important to follow when you are looking to buy or sell a home. A person who understands these markets is very important when taking on a big decision, such as buying or selling a home.

If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

August New Homes Sales Still Slow In US

Annual sales of new homes in the United States were only 288,000 in August 2010. Sales were down 29% from a year earlier and were relatively unchanged on a sequential basis. This was the second lowest sales amount for the month of August on record. The median sales price of $204,700 was down 1.2% from August 2009 and the lowest amount since December 2003.

Sales of new homes increased by 54% in the Western portion of the US and they were up 15% in the Northeastern US during August 2010. However, this was offset by a 26% drop in the Midwest and an 11% decline in the South.

Foreclosures and other distressed properties (i.e., short sales), have been putting a damper on pricing and unit sales of new homes. As a result, builders are cutting back on adding new inventory to the market. Although home construction is up 25% from the bottom in April 2009, it is 75% below the peak new construction that took place in January 2006.

The number of unsold new homes in the US was 206,000 in the US as of August 2010. Experts believe this is about 8.6 months worth of supply. Therefore, it seems unlikely that construction will ramp up during the next six to nine months.

What does this mean to those looking to buy a home now?

It is still a buyer's market. Those looking for a new home have many options and can be choosy. However, for the best deals, home buyers should be focused on distressed properties.

If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

More International Home Buyers In South Florida

I market my properties to a worldwide audience as well as work with international buyers. Non-US clients have become a bigger source of home buyers in the South Florida market recently. I believe the weak US Dollar is among other reasons for the increase in foreign home purchases in South Florida.

Our friends from Canada have been frequent buyers of South Florida homes and we are seeing more Latin and European buyers. I recently spoke with a prospective home buyer from England. We work over the phone and via e-mail in an attempt to narrow down the search for an in person visit. This happens frequently with out of town US buyers, such as those in the New York tri-state area.

A recent survey by the National Association of Realtors brought forth this trend.

The survey stated 65% of Florida Realtors have dealt with an international client in the last 12 months.

Florida Realtors in the survey stated international clients have become a larger part of their business in the past two years (33%). Half of the respondents stated international clients accounted for 25% of their business or less.

Almost 40% of the international client based comes from Canada, according to the survey with 15% from the UK and another 14% from Western Europe. Latin America accounted for another 16% and other countries included Germany, Venezuela, Brazil and France.

Marketing properties to international clients is important, as well as working directly with international buyers. Investors from outside the US have focused on the South Florida real estate market. I am working with some and continue to focus on this important customer segment.

If you are seeking to buy, sell, rent or lease your home, please contact me.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

A Delray Beach Rental Listing; Real Estate Search Engine

http://bit.ly/9gpQ67 <--please copy and paste into your Web browser

http://www.viewmylisting.com/property-for-sale/fl/delray-beach/3122-palm-dr/2670399/

Above is a link that will bring you to a listing in Delray Beach, Florida.

Two bedroom, two bathroom single family home offered to be rented on an annual basis-- click link above for pictures and more details.


If the home is not what you are looking for, but you are in the market to buy, sell, rent or lease a home:

The link below will bring you to a Webpage where you can search for listings.

http://bit.ly/aSVDo3 <--please copy and paste into Web browser

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217

Please contact me for futher information

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

Housing Market- A Look At Income And Valuations

There has been so much written and talked about concerning when the housing market will reach the bottom. One way of valuing real estate is to compare it with income.

Ned Davis research and CNBC published a chart recently that looked at valuation ratios of home prices to median income from 11/30/1976 to 3/31/2010. The chart showed a high of about 5.2 times in 2005 and a low of about 3.5 times on during the 1983 recession.

The mean valuation multiple was 4.1 times during the period described above. As of March 2010, the ratio stood at 4.3 times. The recent stabilization can be attributed to the recent federal government intervention.

Does this mean we are near the bottom as we approach the mean valuation multiple?

Well, a few factors should be discussed. One is the federal government has let some of its incentive programs expire, such as the first time homebuyer credit.

Another factor is psychology of the consumer. With unemployement holding steady in the mid-9% range and continued increases in distressed properties could damage consumer sentiment. The most recent US Consumer Sentiment Index hit 66.6 in September from 68.9 in August; this was the lowest level in a year.

With the housing bubble continuing to deflate, unemployment being at sustained high historic levels and tougher lending requirements, it's not unlikely that we will see the valuation multiple dip below the average in the near-term.

Nonetheless, if you are a first time homebuyer and plan to live in the home for a sustained period of time, now might be a good time to purchase a home. If interested, please see our post on the advantages of homeownership versus renting. Mortgage rates are near historical lows and it is still a buyer's market.

Please feel free to contact me about South Florida real estate. I represent buyers, sellers, renters and landlords. I also work with distressed homeowners and investors.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

A Few Words On Real Estate Investments

With some signs the South Florida real estate market may be "bottoming out", we take a look at real estate investing. Having experience with investments and learning from the past, we look at a few ideas to keep in mind going forward.

As with most business ventures, one must think about an exit strategy. Seek out properties that will have some sort of utility regardless of market conditions. This will give you options in the future and mitigate downside risk. For instance, does the property have good re-sale features. Could the property be leased quickly or are there lease restrictions.

Do not count on price appreciation as a reason to purchase. Investors should pay close attention to cash flows and not so much on price speculation. Those who build new homes build "on spec" prior to the downturn can attest.

Try to aim for an adequate return on investment. Some have quoted a "rule of thumb" to pay no more than 1.5% to 3.0% of the annual rent. One must also be aware of other factors as discussed in earlier pieces.

Try to limit your use of leverage (i.e., borrowing). The property's purchase price should not exceed 70% of the value of the home in an adequate state of repair. Many investors purchased homes during the past several years and then put in even more money to fix and remodel. The additional costs beyond the purchase price exacerbated a bad situation in what has become a declining market.

I work with owners looking to sell, those buying a first or second home, investors, landlords and those seeking rentals. Please feel free to contact me.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

8/2 Post: Factors To Follow: An Update

In our 8/2 Housing Factors to Follow article, we mentioned housing demand as a metric to track. With more people entering a particular area, there should be more demand for housing.

According to US Census Bureau figures, South Florida's population rose between 2000 and 2009. More recent data is encouraging. A report by the University of Florida found 56,000 people left Florida during 2008 and 2009. However, during the past year, Florida's population grew by 21,000. The largest gains were seen in Miami-Dade and Broward counties.

The 2010 US census data is scheduled to be released next year. If we continue to see an influx of population to South Florida, along with an improving economy, we should start to see an improvement in the housing market.

For those thinking of buying, selling or renting a home in South Florida, feel free to contact me.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

Some Inexpensive Ideas For Labor Day Weekend 2010 In South Florida

Beyond South Florida's wonderful beaches is great food, museums, night life and recreational facilities.

Visitors and locals can enjoy the lifestyle of South Florida without blowing the budget.

Below are a few of links that have some inexpensive ideas for Labor Day weekend 2010 in South Florida.

http://bit.ly/cMUEzH

http://bit.ly/bGbh9k

http://bit.ly/972qOP

Safe and happy long weekend.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

Some Encouraging News on Real Estate (Finally)

The S&P Case-Schiller home-price index for June 2010 may show the real estate market is beginning to recover. Karl Case, the co-creator of the index, said he sees, "a lot of positive stuff" in the report on home prices in June 2010.

The Case-Schiller index indicated property values increased 4.2% in June 2010 over June 2009. Mr. Case said the trend has been positive for almost a year.

In a radio interview, Mr. Case said that depending on the economy, he expected the US housing market to stabilize or possibly weaken a little during the next year.

“It generally takes four or five years to stabilize the whole market,” Case said. “We’re into about four now.” If Mr. Case is correct, now might in fact be a good time to purchase a home.

The Index looks at the US market as a whole and there may be sub-pockets that may not move in tandem with the overall market. Nonetheless, the Florida real estate market has been hurt more than other areas of the country as a result of swift price increases during the housing boom years. As such, the long-term value proposition of the Florida real estate market seems promising at current price levels.

I work with buyers, sellers, renters, landlords, investors, etc. Please contact me for all of your South Florida real estate needs.

Michael Friedman

Realtor, Certified Distressed Property Expert (CDPE)

Lang Realty

561-989-2100

Florida's Existing Condo Sales Rise In July 2010

Housing sales in July 2010 plunged 25.5% from the year-ago level. The volume of single family home sales in the United States declined to the lowest level since 1995. No particular region of the U.S. was immune as the Northeast dropped 30%, the Midwest was down 33%, the West was off 23% and the South was down 20%.

Nonetheless there are some areas of activity. The data released by the Florida Realtors showed sales of existing condominiums in Florida rose by 11% in July 2010 over July 2009. The increase in sales did come at a reduced price. The median sales price of condominiums in July 2010 was 20% lower than the $108,500 in July 2009.

As the Florida condominium sales data indicates, there is still real estate sales activity throughout the state. The combination of mortgage rates being at the lowest levels in a very long time and steep price declines in many areas, makes real estate affordability in the state of Florida at the highest level in decades. Those buyers who can afford to purchase a home, now is a good time.

Please feel free to contact me for all of your real estate needs in South Florida.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

New Act Expected To Help Bulk Distressed Condominium Buyers in Florida

The large amounts of housing inventory needs to be reduced in order to prices for begin rising, in my opinion. The increased number of distressed properties has been a major reason for the enlarged inventory of properties. Investors with large amounts of pooled funds can help balance the housing inventory level back towards a normal equilibrium.


The Distressed Condominium Relief Act that took effect on July 1, 2010 should help increase the number of sold distressed condominiums throughout Florida. The new Act is primarily focused on condominium investors, as it pertains to bulk condominium buyers, which is defined as seven or more units within the same condominium project.


Below are some of the features of the new Act:



- Condominium purchasers as defined by the Act will no longer assume liabilities of the original developer. For those buyers who qualify, there is no need to set aside reserves for potential litigation.


- The new Act makes foreclosing lenders liable for 12 months of delinquent association fees when they take possession of the condominium; previously the lender was only responsible for six months.



- Condominium Associations will also be able to collect rent revenue from tenants where owners are not paying association fees. In addition, delinquent home owners could have their use of common area suspended subject to notice and a hearing.


The new Act should help both buyers and sellers. Despite the expectation of slightly increased prices due to the elimination of potential litigation reserves, buyers still have the opportunity to purchase condos at historically low prices. Current owners should get help with the burdens of association fees through the added collection of fees. This should allow for better up keep and improve pricing.


I am and working with and have worked with investors in the past. My Certified Distressed Property Expert (CDPE) designation should help in the buying and selling process. Those seeking to buy or sell bulk distressed condominiums please feel free to contact me.


Michael Friedman

Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty

561-989-2100

Short Sales and Foreclosures Affecting All Housing Segments

The troubled housing loan crisis seemed to begin with the weaker financial borrowers (i.e., sub prime loans). As the sluggish housing market continues, the distressed homeowner seems to fall in every financial category.

To illustrate, in the months after the crash of Lehman Brothers, most of the short sale listings in New York City were outside of the borough of Manhattan. The first step of the foreclosure process is to file a lis pendens. In 2008 there were 334 filings, 724 in 2009 and there have been 382 filed by the end of June 2010.

I am seeing similar trends in the South Florida market as well. The majority of the foreclosure actions are not in what I describe as the "prime" areas. However, there seem to be more short sale listings in the more desirable locations throughout South Florida.

For those seeking to sell their homes in a short sale process, it is best to list the home not too far below the fair market value, provide solid comparables and local market data as support and not submit lowball offers that will most likely waste the lender's time.

As a real estate professional with a Certified Distressed Property Expert and Realtor designation, I can list the home and provide the required back up information. Lenders require listing with a real estate agent for short sales and the homeowner generally does not pay any broker fees (these are most likely being picked up by the lender).

Buyers of short sales should be aware the process may take many months. Therefore, it is adviseable to put a clause in the contact that allows them to nullify the deal after a set amount of time in case the lender drag its heels on a decision.

The short sale process has requirements that need to be met in order for the homeowner to qualify. I have represented both buyers and sellers in regards to distressed properties. Please feel free to contact me for a free consultation.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

Important Housing Market Factors To Follow

Some of the major issues affecting the housing market are similar around the country. However, real estate is "local." To be most effective, consumers should be working with real estate professionals that are following the local trends.

Among the macro-economic issues for most housing markets are the "bigger picture" items such as the global economic turmoil and the directional swings of the stock market. These factors affect consumer thinking and give indications of the overall economy.

People that are looking to buy, sell, lease, rent or invest in real estate will give great consideration to the following:

1) local labor market
2) demand for property in the area
3) the current inventory of real estate
4) amount of distressed property in the target zone
5) whether or not sellers are realistic

The desirability of the neighborhood and ability of the consumer to afford the home will help determine demand for the subject property. Government statistics can give us some idea of the labor side and information such as days property has been on the market can help determine demand for real estate in a given region.

Inventory level trends can help in figuring out the direction of the overall local market. Rising inventory could mean it's more of a "buyer's market" and low levels of inventory might mean it's a "seller's market" in that area.

The potential influx of distressed properties should mean more potential inventory in the future. Prices in these areas might show deterioration for reasons beyond increasing number of properties for sale.

Homeowners that are "under water" on their mortgage may not list their homes at "realistic" prices in hopes of not "losing money." Some homeowners just can't afford the extra money they would need to fund any potential short fall and/or transactional costs. Other sellers are "unrealistic" in their thinking, whether postive or negative and could affect inventory levels. If sellers believe the market will rebound and "price it into the list price" then it could affect the sales figures in a particular market.

Working with a real estate professional can help in understanding important factors in a local real estate market. An informed consumer can make the best determination for their individual needs.

Please feel free to contact me in regards to real estate in the South Florida market.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

A Few Words on Potential Deflation and Real Estate

Deflation is a situation where wide spread decreases in price leads to lower production, which leads to cost cutting, which leads to less disposable income, which leads to less demand, which leads to lower costs in an attempt to spur demand... you get the point.

The scenario described above is not good for the economy-- just look at Japan during 1991 and beyond. Ben Bernanke of the Federal Reserve ("the Fed") recently provided commentary about the state of the US economy and touched on the potential for deflation. Although the Fed believes deflation for the US economy is possible, it does not think it's likely.

It seems like the US economy is and has been in a state of deflation during the period known as the "great recession." Let's take a look at the South Florida housing market as an example.

We have seen price reductions on homes in the South Florida market during the past several years. The over building that took place led to less production of new homes when the economy began to show signs of weakness. In turn, construction workers were laid off and those that were working took a cut in wages; this is a function of supply and demand. Less workers and lower wages led to less disposable income. Lenders responded to lower income and further home price reductions by tightening their lending requirements. Those who can afford homes are waiting on the sidelines for the "bottom"-- this lowers demand. The influx of distressed properties are increasing supply, demand has not increased and lower prices are ensuing.

Will the spiral ever end and what does this all mean to South Florida home buyers, sellers, renters, landlords and investors in real estate?

The distressed property situation needs to be "cleaned up" before we see a price rebound. Foreclosures and short sales have become more prevalent during the past several years. Even if the household members remain employed, wage cuts are causing problems. When you make less money and the mortgage remains the same, it means a larger percentage of household income is related to staying in your home. Loan modification may alleviate some of these problems; but we haven't seen success yet.

Consumer demand has to improve in order for home prices to appreciate. The depletion of goods and necessity for more services has to become apparent. When that happens, and people can no longer wait on the sidelines, we will see the economy pick up. More goods will be needed to be produced and more services provided-- this means hiring more workers. When a new person enters the workforce, they have more money to spend and current workers see potential for job stability. All will begin to spend more, increase demand and push up prices.

Confidence needs to be restored-- the system has to be deemed trustworthy and people have to feel like they know what the rules are and will be. Real estate professionals are essential to getting things back on track. With rules in place and a clear definition of the path going forward, the investment community should return. Investors will help deplete the housing inventory and home buyers will see "professionals" buying with confidence again. That should bring some of the homebuyers "off the fence" and spur more demand.

The Fed and government needs to help increase the transparency of the situation. The fear here is the Fed has shoft-term rates close to zero with no where to go. When people are so fearful about what might happen that they would rather take "0%" interest on their money instead of investing and seeing the assets lose value, more needs to be done to assuage those fears. If people believe the government entities understand the problem and offers potential solutions should the deflationary problem persist, more people might enter the real estate market now that are waiting to see if the "other shoe" will drop.

More deflation seems likely in the near-term. However, just as most people were caught by surprise about how quickly and severely the economy seemed to crash, it's very possible to wake up and find ourselves in an inflationary period. Locking in an historically low mortgage interest rate and buying a home now might turn out to be a very good idea.

Please feel free to contact me with any and all South Florida real estate needs/questions. I work well with buyers, sellers, renters, landlords and investors from all over the country and the world.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

Some South Florida Real Estate Markets Showing Signs Of Price Appreciation

The recent real estate price reductions and favorable mortgage rates have helped bring buyers back into the market; this has driven prices up in some South Florida markets.

I think an overall real estate recovery will begin in the more desirable markets. Buyers with the ability to make a deal will get the most for the money in these neighborhoods. The trends will help spur those on the sidelines to make purchases; this will help end deflation in the real estate market, stabilize it and begin price movement upward.

A positive sign in regards to a real estate price rebound is the average price per square foot in one of the more desirable South Florida markets- Boca Raton, Florida. Despite Boca Raton's great lifestyle that includes beaches, museums, top-notch restaurants and world class shopping, housing was not immune to the "housing bubble." However, the average price per square foot of homes in Boca Raton increased 10.7% from May 2009 to May 2010. The number of homes sold increased by 3.2% and the median home sales price increased 5.0%.


Some home statistics in the Boca Raton, Florida market during March-May 2010 on a year-over-year basis are as follows:

The average price of all homes increased 2.8% to $205,000; this compares with $305,000 five years ago.

The average price of a four bedroom home rose 22.3% to $379,000; was $485,000 five years ago.

The average three bedroom home declined 5.7% to $226,000; five years ago was $333,700.

The average two bedroom home decreased 2.6% to $110,000; versus $210,000 five years ago.

The average one bedroom home increased 29.9% to 51,000; was $105,000 five years ago.

Now might be a good time to buy in the premier locations in South Florida. I recently sold a home in Palm Beach, Florida overlooking the ocean and the intracoastal waterways. My office has many real estate listings for buyers to look at all around South Florida. Sellers might want to list their homes given the more favorable outlook. The marketing power of Lang Realty and my expertise will be helpful in attracting as many potential buyers as possible.

Please feel free to contact me if you are a seller, buyer, renter, landlord, investor, etc.

Michael Friedman
Realtor, Certified Distressed Property Expert
Lang Realty
561-989-2100

Foreclosed Home Pricing- A Big Discount?

The Certified Distressed Property Expert (CDPE) designation prepares real estate agents to deal with short sales in an attempt to avoid foreclosure. The short sale is an important tool to help distressed homeowners avoid some of the credit issues that might arise with a foreclosure on their credit reports.

In Palm Beach County, Florida there have been 208,552 foreclosures year-to-date as of April 2010 with 48,384 in the month of April 2010 alone. During the first three months of 2010, foreclosures accounted for almost 30% of total sales in the country.

During 2009, more than 1.2 million property sales involved foreclosures; that is 25% above 2008 and 2,500% higher than 2005. With so much distressed property activity, especially in "bubble" areas, such as Florida, lenders are attempting to manage the inventory as not to flood the market with foreclosed properties. The reason behind this is an attempt to stablize prices.


What is the discount to market?

With such a large number of home sales being foreclosures, clients that are looking to buy have been asking me-- what is the percent discount to the market? The total savings in Palm Beach County and the nation as a whole is about 25%-30% less when compared with non-distressed homes; this includes both short sales and after bank possession foreclosures (REO).

Nationwide, the REO homes have sold for 34% less than non-distressed homes and short sales or pre-foreclosures have come in about at only a 15% discount. Why such a big difference between REOs and short sales-- the main reason is condition of the home. Foreclosures have more instances where the previous owner could not or did not want to maintain the home any longer.

What does this all mean?

Buyers looking for a good deal or savvy investors seeking good returns, there are opportunties to be had in the south Florida market. If you are looking to buy in the south Florida area, please feel free to contact me.

Distressed homeowners might want to consider a short sale. There is a chance to have the bank foregive mortgage debt and you will not have to deal with going through the foreclosure process. Distressed south Florida homeowners, please feel free to contact me in regards to short sale information and listings.


Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

Should I Buy A Home Or Continue To Rent?

The current market conditions bode well for home ownership. The "buyer's market" continues even at a time when mortgage interest rates are at historically low levels. The south Florida residential real estate market seems to continue to let "air out of the housing bubble." These factors are helping to make it more affordable to buy a home in south Florida than to rent. Now is a great time to consider the purchase a home.

Why now?

"Buyer's market"- Taking advantage of a "buyer's market" along with low mortgage rates makes for a compelling case.

Favorable mortgage rates- Rates are currently less than 5%. Each 1% increase in rates can add as much as 19% to the cost of a home. If you qualify for a mortgage, now might be a very advantageous time to buy.

Steady cost- With a low mortgage rate, locked in for a 30-year period, you have a fixed cost related to the monthly mortgage payment-- rents can increase.

Tax deductions- Homeowners also enjoy a mortgage interest deduction, which allows them to deduct all the interest paid up to $1 million in mortgage debts. Tax credits are also available for owners who make certain improvements, such as energy efficiency.

Control- you can change the colors of the walls, landscaping, etc.

Also, your property could build equity and help hedge against inflation.

As a Realtor and Certified Distressed Property Expert (CDPE), I can help assist homebuyers and investors with due diligence, information on communities, determine buying power and negotiate on their behalf.

Please call me if you are thinking of purchasing a home in south Florida.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

Federal Government Help For South Florida Condominiums

The federal government run mortgage company Fannie Mae, the nation's largest backer of home loans, gave some Florida condos a special designation to make mortgage financing easier to obtain for individual buyers. People will now be able to qualify for loans that might not have been available without government intervention.

Fannie announced in January 2010 it will relax some financing requirements and review hundreds of condominiums across Florida for special designation. Developments that are deemed to be financially stable will receive Fannie Mae's designation that will enable lenders to sell mortgages in these places to Fannie Mae.

The program is important because of problems related to the sharp drop in the south Florida housing market. The onslaught of foreclosures and vacancies caused condo boards to struggle in maintaining the community due to the inability to collect maintenance fees.

The potential cycle of being unable to keep up the property could cause a problem in attracting new buyers, thus causing the community to be in further disrepair and prices would continue to fall. Those that might want to buy may not be able to get a mortgage without Fannie Mae's designation because lenders might be less likely to give a loan in buildings that posed a risk for widespread foreclosures.

The idea is for the Fannie Mae designation to help the south Florida housing market to recover. The thought is that if not for the designation, lenders would be more hesitant to loan in some of these condos. Now people will be able to qualify for loans and buy less expensively when the condo has the Fannie Mae designation. This in turn should attract owners who will pay fees and strengthen the financials of these buldings.

As of May 2010 Fannie May gave 108 Florida condos a special designation. In Palm Beach and Broward counties 10 condos have received the designation as of May 2010. Fannie Mae is reviewing projects and updating the list each week. The designation will help buyers in communities across Florida to obtain a mortgage when they were unable to obtain financing prior to the Fannie Mae program.


If you are looking to buy, sell or rent a home in south Florida, please contact me.

Michael Friedman
Lang Realty
561-989-2100

Those Who "Walk Away" in Foreclosure May Face Lawsuits Later On

As a Realtor in Florida with a Certified Distressed Property Expert (CDPE) designation, and given the current state of the real estate market, I get asked questions about foreclosure. A general theme centers around-- why not just walk away? One reason is the potential for unexpected lawsuits that may sneak up on you years after the process is complete.

When done in the proper manner and under certain circumstances, a "short sale" may indeed relieve the former homeowner from debt owed from a shortfall in the sale proceeds and the amount owed. However, there are instances when a foreclosure or a "short sale" may lead to lawsuits.

Experts believe lenders will file a tidal wave of lawsuits against homeowners in the coming years as a way to recoup losses when home sales and foreclosures do not result in enough proceeds to pay the mortgage in full.

In Florida, lenders have up to five years from the date of sale to file "deficiency judgments" and up to 20 years to collect monies owed from mortgage notes that have gone unsatisfied.

Distressed homeowners should consider a "short sale" even if they are in the process of a foreclosure. Real estate sales agents with the knowledge can handle the whole process for the distressed homeowner, from listing the home to negotiating with the bank to forgive mortgate debt.

Many lenders will not pursue deficiency judgements and provide full release of liability when homeowners pursue a "short sale" in good faith and default on their mortgage because of legitimate hardship, such as job loss or other unforeseen hardships.

In order to avoid the possiblity of having wages garnished or claims made against borrowers' assets, one should consult with a professional who can help.

When using a real estate professional, the sales agent's fees will most likely be paid for by the lender. Many times part of the "short sale" process is to have the property listed with a real estate sales agent. So finding the right real estate professional might make the uneasy task of a "short sale" more convenient and less costly than other alternatives.

Please feel free to contact me about potential "short sales" in the South Florida area.

Michael Friedman
Realtor, CDPE
Lang Realty
561-989-2100

The Beginning

This blog is intented to help educate on some of the main issues in the real estate market in general as well as to the south Florida real estate market. Information is essential in understanding the market and making good decisions.

We also wish to enlighten folks about the events that are taking place in local areas in the south Florida region. The blog is intented to be a resource of some of the things that make your local communities unique and enjoyable.

The idea is also to help out of towners learn more about the south Florida real estate market. Whether you are looking to seasonally rent, purchase a second home or make a permanent move, we hope to give you some insight into the south Florida market.

Those of you who are in the current market and looking to sell and/or rent, we should be able to give you a sense of the marketplace. A feel for what is going on in your market is essential for decision making.

Investors looking for homes and/or commerical real estate ventures should be able to get a sense of what is happening on a local level from this blog. The information required could be vastly different from the residential market and we hope to provide insight here as well.

We look forward to future updates and hearing from our readers as well.

Michael Friedman