Sunday, November 13, 2011

How Much Mortgage Can We Afford?: Homes For Sale: Homes For Rent

In my work as a Realtor, when I deal with buyers seeking a home, a main issue is the mortgage. Especially in the current market, where a mortgage is not as easy to obtain as they once were, being approved for a mortgage is important.

I have contacts in the mortgage world and can put you in touch with some, should you require a mortgage and/or have specific questions. However, I will address some of the basics.

Most prospective homeowners can assume they will be approved for a mortgage that costs between 2 times and 2 and half times their gross income. Meaning, a person earning $100,000 per year can afford to mortgage about $200,000 to $250,000; this is a rule of thumb.

A downpayment of at least 20% of the purchase price is generally required. Many first time prospective homeowners are having this requirement as one of the major obstacles.

Be aware of the percentage of your yearly gross income that will go towards your mortgage each month. The total of the mortgage principal and interest payment, home taxes and housing insurance should NOT exceed 28% of your gross monthly income.

Your debt situation will also be scrutinized. Your gross income to cover your debts should not be more than 36%. The debts include your mortgage, credit cards, child support and other loan payments. If you earn $100,000 per year, the most you should have in debt-related expenses should be $3,000. To calculate this, multiply your gross income by 0.36 and divide by 12.

For more specific questions, you can contact me. If you are thinking of selling or buying a home, or require more information, please text me or call me at 561-247-3550. Please text or call to give me your name, telephone number and e-mail address for the ability to access home searches.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550

www.langrealty.com/agents/michael-friedman

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

Tuesday, November 1, 2011

Banks To Offer Own Refinancing Plan?: Homes For Sale: Homes For Rent

The Wall Street Journal recently reported the large US banks are working on a plan that would make mortgage refinancing available to "underwater" homeowners. Those borrowers with houses that are worth less than their loans would be eligible so long as they are current on mortgage payments.

The plan is reportedly to be for mortgages owned by the banks. The WSJ said officials in the US federal government are trying to work with the five largest mortgage servicers: Ally Financial; Bank of America; Citigroup; JP Morgan Chase; and Wells Fargo.

The federal government has some leverage in trying to negotiate a legal settlement over alleged foreclosure abuses. Beyond reaching an equitable settlement, the federal government is attempting to stabilize the US housing market. The reasoning being that a reduction in distressed properties will help provide a floor to housing prices.

If you are thinking of selling or buying a home, or require more information, please text me or call me at 561-247-3550. Please text or call to give me your name, telephone number and e-mail address for the ability to access home searches.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550

www.langrealty.com/agents/michael-friedman

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

Thursday, October 20, 2011

Low-Ball Offers: Homes For Sale: Homes For Rent

In order to increase your chances of having a low-ball offer accepted, buyers need to keep several things in mind.

My suggestion is to find a property that has been on the market for a while; 12 months or more is a good start.

The purchaser needs to have a good idea of the current market. Understanding the local market and recent industry trends is a must. Finding a Realtor who is versed in the subject is important, in my view. You can utilize this Blog as a source to get an idea and I encourage you to follow up with me for more detailed information.

Having the right representative negotiate the deal is also important. Being versed in the industry and having the necessary negotiating skills to consummate the deal is also key.

All of this leads to being able to deliver the message with facts to back up the offer. Someone with analytical skills to dissect the situation and deliver the offer with factual information will help to get a low-ball deal done.

The offer needs to be direct and concise without leaving much ambiguity. Making a clean and strong offer helps to "grease the wheels" to get this type of deal to the finish line.

The buyer also needs to have a final number in mind and know when to get to the final and best offer you are willing to make. This allows the agent to be able to negotiate in a fluid manner and not seem uncertain. As mentioned earlier, the offer needs to be clean and negotiations need to get directly to the bottom line.

The buyer must be pre-qualified and or have proof of cash funds. The buyer should not believe cash will ultimately win. Sellers are looking for the most they can get. If it means going with a pre-qualified buyer rather than a cash deal, then so be it. The point is, cash buyers should not be too overconfident.

If you are thinking of selling or buying a home, or require more information, please text me or call me at 561-247-3550. Please text or call to give me your name, telephone number and e-mail address for the ability to access home searches.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550

www.langrealty.com/agents/michael-friedman

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

Saturday, October 8, 2011

Deficiency Judgments, Foreclosures and Short Sales: Why You Should Consider A Short Sale: Homes For Sale: Homes For Rent

A lawyer who defends against foreclosure is recently quoted as saying there was "a false sense of calm" amoung homeowners that went through foreclosure. He added, "that's changing."

Lenders typically have five years following a foreclosure sale to sue for the remaining mortgage debt. Most states allow 20 years to try and collect the debts. Depending on the state, the debt owed grows at about an 8% interest rate.

Florida is among the biggest deficiency-judgment states. Since the start of 2007, Florida has had more foreclosures than any other state that allows deficiency judments with more than 9% of the US total, according to Lender Processing Services, Inc.

Sharon Bock, clerk and comptroller of Palm Beach County, Florida expects "a massive wave of these cases as banks start selling the judgments to debt collectors."

Forty-one states and the District of Columbia permit lenders to sue borrowers for mortgage debt still left after the foreclosure sale. Some lenders say they are most likely to seek a deficiency judgment against those they believe are "strategic defaulters" who chose to stop paying because the property lost a lot of value.

The Wall Street Journal reported the average "deficiency amount" was $100,000 in the US. This is the amount by which foreclosure sales fell below the loan balance.

A short-sale, if negotiated properly, would have the lender agree to waive its right to try and recover the "deficiency". There are criteria that need to be met to qualify for a short sale and a requirement is to list the property with a broker. The lenders require the property be marketed to a wide audience and listing with a Realtor will help in this regard.

I can help with the short sale process and we can work together towards a successful short sale.

If you are thinking of selling or buying a home, or require more information, please text me or call me at 561-247-3550. Please text or call to give me your name, telephone number and e-mail address for the ability to access home searches.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550

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 Luxury Home Market Is Recovering, Unlike The Rest Of The US Market: Homes For Sale: Homes For Rent

If you follow retail sales trends, the luxury retailers are fairing better than the others. The housing market is behaving the same way in the US. The luxury sector of the market is showing increased unit sales and prices; the rest of the market is either flatlining or continuing on a slow downward trend.

Zillow reports the "luxury" housing market is occupied by 1.5% of the US population. According to Zillow, prices of homes in the $1 million and up range have risen 0.7% since February 2011, while prices of homes less than $1 million have decreased 1.5%.

Zillow's economic chief economist has said, "luxury is the best performing segment of the housing market right now."

One main factor is foreign buyers are interested in these properties. Many foreigners believe the US housing market is very attractively priced. These buyers are cash buyers and enjoying the value proposition of the weakening US Dollar.

Luckily, being in the South Florida and specializing in luxury homes, I have seen an increase in activity. In Florida, international buyers account for about 33% of purchases, which is up from 10% in 2007.

I work with clients around the country and the world through the Internet and e-mail. It is remarkable how much can be accomplished over the Internet. By eliminating many properites prior to coming to Florida, it makes the time we have more productive. My out of market clients are well versed in the local market, have selected several homes to view and understand pricing. In other words, they are fully prepared to make a purchase on arrival.

If you are thinking of selling or buying a home, or require more information, please text me or call me at 561-247-3550. Please text or call to give me your name, telephone number and e-mail address for the ability to access home searches.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550

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 Starts Continue To Fall: Is A Bottom Being Formed In US Housing Market?: Homes for Sale: Homes For Rent

The US Commerce Department reported builders are slowing down the number of new homes being built. Housing starts dropped 5% in August 2011 with a 571,000 annual rate of build, according to the US Commerce Department.

New home construction is being constrained by high unemployment rates, a glut of foreclosed and empty homes and declining home prices. Tighter lending standards by banks and a lack of consumer confidence is also hampering new home construction in the US.

The inactivity of new homes being build is a natural reaction to the glut of homes on the market currently. The inventory levels need to be thinned out before a price rebound can occur, in our view. As this process occurs, we expect consumer confidence to improve should the US economy begin to show signs of growth. Should economic activity pickup, we expect more lending and a rebound in the US housing market.

The question is when will all of this occur? It is very hard to predict any market and calling the "bottom" is not an easy task. However, when it comes to housing and you plan on living in the home for at least 10 years, now is a good time to purchase a home, in our view (please see earlier posts for reasoning).

The market is diffcult to predict-- if you are looking to buy, sell, rent or lease a home, now might be a good time to take action.

If you are thinking of selling or buying a home, or require more information, please text me or call me at 561-247-3550. Please text or call to give me your name, telephone number and e-mail address for the ability to access home searches.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550

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 Housing Trends: Some Positive Numbers For August 2011: Homes For Sale: Homes For Rent

Miami-Dade and Broward Counties showed some positive home sales trends in August 2011.

Existing conco sales in Miami-Dade were up 51% from last year and 18% on a sequential basis in August 2011. Single-family homes had a 49% year-over-year increase and a 9% sequential uptick.

In Broward County, annual sales increased 21% for existing condos and single family homes rose 19% in August 2011.

When looking at the pricing there were upward trends as well. Miami-Dade existing condos sold at a 13% increase in August 2011 over August 2010; single family homes dipped 1%.

Broward's median price for existing condos rose by 6% in August 2011 on a year-over-year basis and single family home prices increased 5%.

If you are thinking of selling or buying a home, or require more information, please text me or call me at 561-247-3550. Please text or call to give me your name, telephone number and e-mail address for the ability to access home searches.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550

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