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
Tuesday, June 29, 2010
Wednesday, June 23, 2010
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
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
Saturday, June 5, 2010
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
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
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