Click on title to see full article.
For the second month in a row, homes sales in Southwest Florida bucked a national decline, but the region saw pricing erode for the first time in months.
Sales were up 30 percent in the Sarasota-Bradenton market and 12 percent in Charlotte County-North Port compared with a year ago.
While January's median sales price in the Sarasota-Bradenton market was up 8 percent to $156,700 from $144,800 a year ago, the most recent price was down 6.4 percent from $167,400 in December, data released Friday by Florida Realtors showed.
There was a similar trend to the south.
The Charlotte County-North Port market saw January prices rise 3 percent to $102,100 from $99,500 a year ago, but decline 8.6 percent from $111,800 in December.
The main driver for the sales increases lies with the federal tax credit for both first-time and existing homebuyers looking to move up, experts said.
Sunday, February 28, 2010
Herald Tribune SPECIAL REPORT: Weak insurers put Floridians at risk
Click on title to see full article.
Millions of Floridians now bet their homes on property insurers that teeter on the edge of financial failure, a Herald-Tribune investigation has found.
These companies look nothing like the Allstates and State Farms that insure the rest of America -- legacy carriers that command bankrolls the size of small nations.
Instead, because State Farm and Allstate are fleeing Florida, a growing number of homeowners get their insurance from tiny, untested companies that have a few million dollars in the bank but insure billions worth of property they could never hope to rebuild on their own.
No one knows what will happen when the next big storm strikes Florida shores. But the signs are not promising.
Over the past year, without having to weather a single hurricane, Florida led the nation with a half-dozen property insurance failures. For the first time, state regulators openly warn that more failures will come, even if a storm does not.
Millions of Floridians now bet their homes on property insurers that teeter on the edge of financial failure, a Herald-Tribune investigation has found.
These companies look nothing like the Allstates and State Farms that insure the rest of America -- legacy carriers that command bankrolls the size of small nations.
Instead, because State Farm and Allstate are fleeing Florida, a growing number of homeowners get their insurance from tiny, untested companies that have a few million dollars in the bank but insure billions worth of property they could never hope to rebuild on their own.
No one knows what will happen when the next big storm strikes Florida shores. But the signs are not promising.
Over the past year, without having to weather a single hurricane, Florida led the nation with a half-dozen property insurance failures. For the first time, state regulators openly warn that more failures will come, even if a storm does not.
Friday, February 26, 2010
Lakewood Ranch firm buys lots ... $81 million worth
Click on title to see full article.
Starwood Land Ventures, a Lakewood Ranch firm formed three years ago to acquire distressed real estate, has scored one of the largest land purchases in Florida in the
"This is really the culmination of Starwood Land's efforts in regards to searching and bidding on residential assets," said Mike Moser, the local company's east regional president.
As part of the acquisition, Miami-based Lennar Corp. has committed to buy 1,400 of the Starwood lots, and has options to buy another 1,350.
Analysts said Starwood Land's deal could also send ripples throughout Florida's housing market, and spur activity because of its scope and size.
"Look at it this way: A typical residential subdivision is 150 to 200 lots," said Jack McCabe, chief executive of McCabe Research & Consulting, of Deerfield Beach. "A purchase of 5,500 lots, at one time, is massive."
The acquisition also signals that, for hedge funds and well-capitalized home builders, at least, Florida's four-year housing depression may be ebbing.
"When you see a national company making an $80 million commitment of capital, betting that the market is headed up, it's a positive sign," said Pat Neal, president of Neal Communities, a developer and home builder also based in Lakewood Ranch.
"This is a sign that for builders, the market has definitely hit bottom," Neal said. "Now, they're mostly out there looking for lots to build on."
Starwood Land Ventures, a Lakewood Ranch firm formed three years ago to acquire distressed real estate, has scored one of the largest land purchases in Florida in the
"This is really the culmination of Starwood Land's efforts in regards to searching and bidding on residential assets," said Mike Moser, the local company's east regional president.
As part of the acquisition, Miami-based Lennar Corp. has committed to buy 1,400 of the Starwood lots, and has options to buy another 1,350.
Analysts said Starwood Land's deal could also send ripples throughout Florida's housing market, and spur activity because of its scope and size.
"Look at it this way: A typical residential subdivision is 150 to 200 lots," said Jack McCabe, chief executive of McCabe Research & Consulting, of Deerfield Beach. "A purchase of 5,500 lots, at one time, is massive."
The acquisition also signals that, for hedge funds and well-capitalized home builders, at least, Florida's four-year housing depression may be ebbing.
"When you see a national company making an $80 million commitment of capital, betting that the market is headed up, it's a positive sign," said Pat Neal, president of Neal Communities, a developer and home builder also based in Lakewood Ranch.
"This is a sign that for builders, the market has definitely hit bottom," Neal said. "Now, they're mostly out there looking for lots to build on."
Florida existing home, condo sales rise in January 2010
ORLANDO, Fla. – Feb. 26, 2010 – Florida’s existing home sales rose in January, marking 17 months that sales activity has increased in the year-to-year comparison, according to the latest housing data released by Florida Realtors®.
Existing home sales increased 24 percent last month with a total of 10,465 homes sold statewide compared to 8,444 homes sold in January 2009, according to Florida Realtors. January’s statewide sales of existing condos rose 81 percent compared to the previous year’s sales figure.
Sixteen of Florida’s metropolitan statistical areas (MSAs) reported increased existing home sales in January; all MSAs had higher condo sales. A majority of the state’s MSAs have reported increased sales for 19 consecutive months.
“Now is the time for anyone thinking of buying a home in Florida to make that decision,” said 2010 Florida Realtors President Wendell Davis, a broker and regional vice president with Watson Realty Corp. in Jacksonville. “Markets across the state are seeing increased sales, yet conditions remain very favorable with still-low mortgage rates, a range of housing inventory and attractive prices. As an added incentive, buyers need to accelerate their plans because a purchase contract must be in place by the end of April to take advantage of the extended and expanded federal tax credit. To find out more, consult a Realtor about options, qualification criteria and opportunities in your local housing market.”
Florida’s median sales price for existing homes last month was $130,900; a year ago, it was $139,400 for a 6 percent decrease. Analysts with the National Association of Realtors (NAR) note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is the midpoint; half the homes sold for more, half for less.
The national median sales price for existing single-family homes in December 2009 was $177,500, up 1.4 percent from a year earlier, according to NAR. In California, the statewide median resales price was $306,820 in December; in Massachusetts, it was $305,000; in Maryland, it was $244,820; and in New York, it was $222,000.
According to NAR’s latest outlook, homebuyers are taking advantage of the federal tax credit. “With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring with more areas showing higher prices,” said NAR Chief Economist Lawrence Yun.
In Florida’s year-to-year comparison for condos, 4,631 units sold statewide last month compared to 2,554 units in January 2009 for an increase of 81 percent. The statewide existing condo median sales price last month was $97,300; in January 2009 it was $113,300 for a 14 percent decrease. The national median existing condo price was $183,700 in December 2009, according to NAR.
Interest rates for a 30-year fixed-rate mortgage averaged 5.03 percent last month, slightly lower than the average rate of 5.05 percent in January 2009, according to Freddie Mac. Florida Realtors’ sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.
Existing home sales increased 24 percent last month with a total of 10,465 homes sold statewide compared to 8,444 homes sold in January 2009, according to Florida Realtors. January’s statewide sales of existing condos rose 81 percent compared to the previous year’s sales figure.
Sixteen of Florida’s metropolitan statistical areas (MSAs) reported increased existing home sales in January; all MSAs had higher condo sales. A majority of the state’s MSAs have reported increased sales for 19 consecutive months.
“Now is the time for anyone thinking of buying a home in Florida to make that decision,” said 2010 Florida Realtors President Wendell Davis, a broker and regional vice president with Watson Realty Corp. in Jacksonville. “Markets across the state are seeing increased sales, yet conditions remain very favorable with still-low mortgage rates, a range of housing inventory and attractive prices. As an added incentive, buyers need to accelerate their plans because a purchase contract must be in place by the end of April to take advantage of the extended and expanded federal tax credit. To find out more, consult a Realtor about options, qualification criteria and opportunities in your local housing market.”
Florida’s median sales price for existing homes last month was $130,900; a year ago, it was $139,400 for a 6 percent decrease. Analysts with the National Association of Realtors (NAR) note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is the midpoint; half the homes sold for more, half for less.
The national median sales price for existing single-family homes in December 2009 was $177,500, up 1.4 percent from a year earlier, according to NAR. In California, the statewide median resales price was $306,820 in December; in Massachusetts, it was $305,000; in Maryland, it was $244,820; and in New York, it was $222,000.
According to NAR’s latest outlook, homebuyers are taking advantage of the federal tax credit. “With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring with more areas showing higher prices,” said NAR Chief Economist Lawrence Yun.
In Florida’s year-to-year comparison for condos, 4,631 units sold statewide last month compared to 2,554 units in January 2009 for an increase of 81 percent. The statewide existing condo median sales price last month was $97,300; in January 2009 it was $113,300 for a 14 percent decrease. The national median existing condo price was $183,700 in December 2009, according to NAR.
Interest rates for a 30-year fixed-rate mortgage averaged 5.03 percent last month, slightly lower than the average rate of 5.05 percent in January 2009, according to Freddie Mac. Florida Realtors’ sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.
Thursday, February 25, 2010
A Deluge of Homeowners Underwater
Click on the title to see the full article which has some great charts and statistics.
First American Core logic just released its report on the number of homeowners who are underwater on their mortgages. The storm waters continue to rise.
In all, more than 11.3 million, or 24 percent, of all residential properties with mortgages, were underwater at the end of the fourth quarter of 2009, up from 10.7 million or 23 percent at the end of the third quarter of 2009.
An additional 2.3 million mortgages were approaching negative equity at the end of last year, meaning they had less than five percent equity. Thus even though the Case Schiller indexes have been showing a slight rise in housing prices during the fourth quarter, an additional 600,000 homeowners slipped below the waves during the quarter.
Here are the highlights of the report:
Negative equity continues to be concentrated in five states: Nevada , which had the highest percentage negative equity with 70 percent of all of its mortgaged properties underwater, followed by Arizona (51 percent), Florida (48 percent), Michigan (39 percent) and California (35 percent).
Among the top five states, the average negative equity share was 42 percent, compared to 15 percent for the remaining 45 states. In numerical terms, California (2.4 million) and Florida (2.2 million) had the largest number of negative equity mortgages accounting for 4.6 million, or 41 percent, of all negative equity loans.
First American Core logic just released its report on the number of homeowners who are underwater on their mortgages. The storm waters continue to rise.
In all, more than 11.3 million, or 24 percent, of all residential properties with mortgages, were underwater at the end of the fourth quarter of 2009, up from 10.7 million or 23 percent at the end of the third quarter of 2009.
An additional 2.3 million mortgages were approaching negative equity at the end of last year, meaning they had less than five percent equity. Thus even though the Case Schiller indexes have been showing a slight rise in housing prices during the fourth quarter, an additional 600,000 homeowners slipped below the waves during the quarter.
Here are the highlights of the report:
Negative equity continues to be concentrated in five states: Nevada , which had the highest percentage negative equity with 70 percent of all of its mortgaged properties underwater, followed by Arizona (51 percent), Florida (48 percent), Michigan (39 percent) and California (35 percent).
Among the top five states, the average negative equity share was 42 percent, compared to 15 percent for the remaining 45 states. In numerical terms, California (2.4 million) and Florida (2.2 million) had the largest number of negative equity mortgages accounting for 4.6 million, or 41 percent, of all negative equity loans.
Wednesday, February 24, 2010
What you should know about home foreclosure
WEST PALM BEACH, Fla. – Feb. 24, 2010 – After more than six months of wrangling with her bank to get a reduced mortgage payment through a federal loan modification program, Debra Jacobs has had enough.
The West Palm Beach resident is walking away from her home of 14 years.
“I’m just going to wait here until they put a padlock on the door,” said Jacobs, 58. “I’m so over it, I have to let it go. It’s too painful.”
As homeowners grow increasingly frustrated by the nation’s struggling foreclosure prevention programs, more may consider walking away as a viable alternative.
But there’s more to it than just stopping your mortgage payments and handing over the keys.
Boca Raton real estate attorney Marlyn Wiener says there’s no “right way” to walk away from a home.
Knowing the consequences, however, will at least help the borrower make an informed decision, she said.
“There is an analysis that each homeowner should do to find the best way for them to proceed,” Wiener said. “There isn’t a speed lane.”
The biggest gamble in walking away is whether a lender will try to seize a borrower’s assets to pay for its losses, Wiener said. Lenders have up to 20 years in Florida to collect a deficiency judgment.
But banks are more likely to go after borrowers who strategically default – a term meaning the homeowner can afford the mortgage but decides to stop paying because the home is no longer a good investment.
Moral dilemmas aside, Wiener said it can make financial sense in some situations to “pull the plug and regroup” if the mortgage is underwater.
Scott Haft, who oversees the mortgage modification and foreclosure defense division at the law firm LaBovick & LaBovick, said some lenders are willing to forgive a mortgage debt if a borrower voluntarily turns over the home without going through a lengthy court foreclosure.
“We say, ‘We’ll give you the keys on Monday, but you have to waive your right to pursue my client in the future for deficiencies,’ “ said Haft, whose company has offices in West Palm Beach, Boynton Beach and Palm Beach Gardens. “Many times, the lender is only interested in regaining the property.”
Another concern is whether the homeowner will have to claim forgiveness of debt on tax returns for the amount of money owed the lender.
The Mortgage Debt Relief Act of 2007 temporarily exempts people who lose their primary residence from having to claim the canceled debt, but the act is scheduled to sunset Dec. 31, 2012, and can’t be applied to investment properties.
“Everybody’s relationship with their properties and their loans is different,” Wiener said. “People need to take a look at where they are in life before they decide to walk away.”
One thing Wiener asks clients is whether they will need good credit in the near future to secure a car or student loan. A foreclosure can knock up to 300 points off a credit score – damage that can take years to repair and will stay on your report for seven years.
Lenders have recently stepped up efforts to ease the foreclosure process and avoid the complications when a homeowner walks away.
Citigroup launched a program this month that allows some borrowers to stay in their homes for six months without paying. In return, the homeowner turns in the keys at the end of the time period and keeps the home in good shape.
The federal Home Affordable Foreclosure Alternatives Program, announced in November, gives lenders incentives for offering deed-in-lieu of foreclosure and for approving short sales.
But for Jacobs, the alternatives are “too little too late.”
“Not only do I not know the options, I don’t care anymore,” she said. “It’s really sad it’s come to this.”
The West Palm Beach resident is walking away from her home of 14 years.
“I’m just going to wait here until they put a padlock on the door,” said Jacobs, 58. “I’m so over it, I have to let it go. It’s too painful.”
As homeowners grow increasingly frustrated by the nation’s struggling foreclosure prevention programs, more may consider walking away as a viable alternative.
But there’s more to it than just stopping your mortgage payments and handing over the keys.
Boca Raton real estate attorney Marlyn Wiener says there’s no “right way” to walk away from a home.
Knowing the consequences, however, will at least help the borrower make an informed decision, she said.
“There is an analysis that each homeowner should do to find the best way for them to proceed,” Wiener said. “There isn’t a speed lane.”
The biggest gamble in walking away is whether a lender will try to seize a borrower’s assets to pay for its losses, Wiener said. Lenders have up to 20 years in Florida to collect a deficiency judgment.
But banks are more likely to go after borrowers who strategically default – a term meaning the homeowner can afford the mortgage but decides to stop paying because the home is no longer a good investment.
Moral dilemmas aside, Wiener said it can make financial sense in some situations to “pull the plug and regroup” if the mortgage is underwater.
Scott Haft, who oversees the mortgage modification and foreclosure defense division at the law firm LaBovick & LaBovick, said some lenders are willing to forgive a mortgage debt if a borrower voluntarily turns over the home without going through a lengthy court foreclosure.
“We say, ‘We’ll give you the keys on Monday, but you have to waive your right to pursue my client in the future for deficiencies,’ “ said Haft, whose company has offices in West Palm Beach, Boynton Beach and Palm Beach Gardens. “Many times, the lender is only interested in regaining the property.”
Another concern is whether the homeowner will have to claim forgiveness of debt on tax returns for the amount of money owed the lender.
The Mortgage Debt Relief Act of 2007 temporarily exempts people who lose their primary residence from having to claim the canceled debt, but the act is scheduled to sunset Dec. 31, 2012, and can’t be applied to investment properties.
“Everybody’s relationship with their properties and their loans is different,” Wiener said. “People need to take a look at where they are in life before they decide to walk away.”
One thing Wiener asks clients is whether they will need good credit in the near future to secure a car or student loan. A foreclosure can knock up to 300 points off a credit score – damage that can take years to repair and will stay on your report for seven years.
Lenders have recently stepped up efforts to ease the foreclosure process and avoid the complications when a homeowner walks away.
Citigroup launched a program this month that allows some borrowers to stay in their homes for six months without paying. In return, the homeowner turns in the keys at the end of the time period and keeps the home in good shape.
The federal Home Affordable Foreclosure Alternatives Program, announced in November, gives lenders incentives for offering deed-in-lieu of foreclosure and for approving short sales.
But for Jacobs, the alternatives are “too little too late.”
“Not only do I not know the options, I don’t care anymore,” she said. “It’s really sad it’s come to this.”
Tuesday, February 23, 2010
Read the fine print in a Florida short sale
TAMPA, Fla. – Feb. 23, 2010 – With so many distressed homeowners owing more than their homes are worth, short sales have become lifelines.
These types of sales make up more than half of the homes on the market in the Tampa Bay area. Generally, this means the mortgage lender has agreed to allow the home to sell for market value. The lender writes off the rest of the debt, and the homeowner walks away.
But is it really this simple?
Lenders are increasingly adding language to the approval package, reserving the right to pursue the deficiency later – that is, the difference between what you owed on the house and what it sold for.
Some homeowners, so anxious to get out of a pending foreclosure, skip right over that part of the letter. Some understand but opt to take their chances, betting they won’t hear from the lender again.
For some lucky buyers, this has been the case – so far. They’ve sold their home as a short sale, moved on, and haven’t had any problems. But other lenders require the seller to agree upfront to pay back a set amount.
‘It seems fair’
Realtor Paul De La Torre, of Keller Williams, said lenders almost always ask his clients to agree to pay at least some of the debt back. Lenders’ requests, he said, range from 15 percent of the balance to agreeing to a payment plan – such as $80 a month for 15 years.
“It’s seems fair,” De La Torre said. “Some of these people are walking away from a huge amount. More folks need to consider it could be much worse if the lender comes back for the full deficiency later.”
Lenders don’t always go after short sale homeowners. But in Florida, lenders can wait up to five years to file for a court judgment to make the borrower pay. After the judgment is granted, the lender has 20 years to collect the cash.
This is particularly frightening because lenders could wait until the debtor is back on their feet to act. The homeowner could recover financially only to discover years later that they owe the bank tens of thousands of dollars.
Insurance companies
De La Torre said homeowners are even more likely to be required to pay a deficiency if they have mortgage insurance. (Borrowers who have less than 20 percent equity in their homes typically are required by their lenders to cover this insurance in case they default.)
Mortgage insurance companies “are getting pretty strict about short sales,” he said. “They have to sign off on the short sale, too, and many are not only asking for promissory notes but are ordering their own appraisals.”
Deficiency judgments aren’t only a problem in short sale cases. They can happen following a foreclosure, too.
A lender can take back the home, sell it and then come back after the borrower for the difference between that amount and the balance on the old mortgage. This is allowed in Florida and most other states.
So what can a homeowner do?
Not much, in the case of a foreclosure. But when negotiating a short sale, the homeowner must sign off on the paperwork, too, said Jim Davis, a real estate agent with Century 21 A&M Realty.
Borrowers can ask to be released from the debt, and sometimes that works. In the past three to six months, though, Davis said he’s seen many lenders require some form of payment.
That’s where negotiation can kick in.
Some lenders detail how much money they might come after later. Others don’t specify, and that may mean the full amount. Davis recommends anyone signing a short sale agreement insist the lenders be specific about deficiency plans. Read the fine print, he said, and ask lots of questions.
If they don’t, it may haunt them later.
These types of sales make up more than half of the homes on the market in the Tampa Bay area. Generally, this means the mortgage lender has agreed to allow the home to sell for market value. The lender writes off the rest of the debt, and the homeowner walks away.
But is it really this simple?
Lenders are increasingly adding language to the approval package, reserving the right to pursue the deficiency later – that is, the difference between what you owed on the house and what it sold for.
Some homeowners, so anxious to get out of a pending foreclosure, skip right over that part of the letter. Some understand but opt to take their chances, betting they won’t hear from the lender again.
For some lucky buyers, this has been the case – so far. They’ve sold their home as a short sale, moved on, and haven’t had any problems. But other lenders require the seller to agree upfront to pay back a set amount.
‘It seems fair’
Realtor Paul De La Torre, of Keller Williams, said lenders almost always ask his clients to agree to pay at least some of the debt back. Lenders’ requests, he said, range from 15 percent of the balance to agreeing to a payment plan – such as $80 a month for 15 years.
“It’s seems fair,” De La Torre said. “Some of these people are walking away from a huge amount. More folks need to consider it could be much worse if the lender comes back for the full deficiency later.”
Lenders don’t always go after short sale homeowners. But in Florida, lenders can wait up to five years to file for a court judgment to make the borrower pay. After the judgment is granted, the lender has 20 years to collect the cash.
This is particularly frightening because lenders could wait until the debtor is back on their feet to act. The homeowner could recover financially only to discover years later that they owe the bank tens of thousands of dollars.
Insurance companies
De La Torre said homeowners are even more likely to be required to pay a deficiency if they have mortgage insurance. (Borrowers who have less than 20 percent equity in their homes typically are required by their lenders to cover this insurance in case they default.)
Mortgage insurance companies “are getting pretty strict about short sales,” he said. “They have to sign off on the short sale, too, and many are not only asking for promissory notes but are ordering their own appraisals.”
Deficiency judgments aren’t only a problem in short sale cases. They can happen following a foreclosure, too.
A lender can take back the home, sell it and then come back after the borrower for the difference between that amount and the balance on the old mortgage. This is allowed in Florida and most other states.
So what can a homeowner do?
Not much, in the case of a foreclosure. But when negotiating a short sale, the homeowner must sign off on the paperwork, too, said Jim Davis, a real estate agent with Century 21 A&M Realty.
Borrowers can ask to be released from the debt, and sometimes that works. In the past three to six months, though, Davis said he’s seen many lenders require some form of payment.
That’s where negotiation can kick in.
Some lenders detail how much money they might come after later. Others don’t specify, and that may mean the full amount. Davis recommends anyone signing a short sale agreement insist the lenders be specific about deficiency plans. Read the fine print, he said, and ask lots of questions.
If they don’t, it may haunt them later.
Friday, February 19, 2010
Warning For Novices: Please Avoid Foreclosure Auctions
Click on title to see full article.
Lured by greed and overconfidence, bargain hunters who have no idea what they are doing are making extremely costly mistakes at foreclosure auctions.
Don't Compete With Pros
The pros research thousands of properties and bid on only a few of them. Outbid one of the pros and you may do no better than break even. Worse yet is to bid on properties where the pros have no interest. That's a sure recipe for disaster.
In a courtroom auction you might be able to spot the pros after an appropriate amount of time. In an online auction, it's not so easy.
If you do not know exactly what you are doing, what liens exist on the properties you are bidding on, and what the properties are really worth, then you going to lose your ass. Moreover, even if you have researched the properties well, you will be competing against the likes of professionals who know even more than you do.
The best course of action is to assume there is no easy money in foreclosure auctions. Whatever money there is to be had, the pros will get it, not you.
Lured by greed and overconfidence, bargain hunters who have no idea what they are doing are making extremely costly mistakes at foreclosure auctions.
Don't Compete With Pros
The pros research thousands of properties and bid on only a few of them. Outbid one of the pros and you may do no better than break even. Worse yet is to bid on properties where the pros have no interest. That's a sure recipe for disaster.
In a courtroom auction you might be able to spot the pros after an appropriate amount of time. In an online auction, it's not so easy.
If you do not know exactly what you are doing, what liens exist on the properties you are bidding on, and what the properties are really worth, then you going to lose your ass. Moreover, even if you have researched the properties well, you will be competing against the likes of professionals who know even more than you do.
The best course of action is to assume there is no easy money in foreclosure auctions. Whatever money there is to be had, the pros will get it, not you.
Wednesday, February 17, 2010
Sarasota January 2010 property sales 58 percent higher than January 2009
Property sales in the Sarasota market were 58 percent higher in January 2010 than in January 2009, and pending sales were also strong, topping the 800 mark for the first time since October 2009.
In sharp contrast to the first month of last year, January 2010 saw 506 overall sales, compared to only 319 sales in January 2009. In addition, pending sales surged by over 10 percent from December 2009 to a total of 815. The statistic is a strong indicator for the next two or three months of sales, as pending sales are an indicator of current buyer activity. Last January, pending sales stood at only 683.
Median sale prices in the Sarasota real estate market dipped in January 2010 for both single family homes and condos. The median sale price for a single family home was $156,250, down from last month's figure of $170,000, but up slightly over last January's figure of $149,950. For condos, the median price dropped to $165,000 from last month's figure of $199,000, and significantly lower than last January's figure of $220,000. For the last 12 months combined, the median sale price for single family homes was $160,000, while the median sale price for condos was $189,900.
The January median sale prices generally reflect the continuing high percentage of short sales and bank-owned foreclosure sales in the Sarasota market. The January percentage of distressed sales rose to 48 percent, from December 2009's figure of 42 percent. Two distinct markets remain in force in Sarasota.
Normal arm's length property sales continue to show median sale prices roughly 150 percent higher than distressed property sale prices. Bank-owned sales are bringing in a median price of roughly $80,000, while for short sales the price is roughly $120,000. For normal arm's length sales in January 2010, properties were sold for a median price of approximately $250,000 - more than double the prices for distressed properties.
"Our market is rebounding from the recession, particularly in the category of normal arm's length transactions," said 2010 SAR President Erick Shumway. "We are seeing a stark contrast between these two markets, and this probably reflects the fact that some buyers don't want to wait for additional months often involved in closing a purchase of a distressed property. Also, the condition of normal, non-distressed properties can be far superior to the short sales and foreclosures on the market. Once the number of distressed properties begins to drop substantially, we should see the median sale prices start to recover."
The first-time homebuyer tax credit, extended and expanded to include many other homebuyers on Nov. 6, should continue to help propel sales in the first quarter of 2010. The credit expires in April, and local Realtors® are working hard to ensure their qualified buyers can take advantage of the $8,000 and $6,500 credits.
The property inventory level rose in January 2010 to 6,342 from the December 2009 total of 6,020, an expected increase during the traditional winter months when many snowbirds return to the Sarasota area. But the inventory level remains at near the lowest level since late summer of 2005 and the years prior to the boom period from 2003 - 2005.
The months of inventory for single family homes was 11.5 months, compared to 25.3 months in January 2009. For condos, the months of inventory was 14.7 months in January 2010, compared to 38.4 months only a year ago - a remarkable improvement in the health of the real estate market.
Sarasota Association of REALTORS®
In sharp contrast to the first month of last year, January 2010 saw 506 overall sales, compared to only 319 sales in January 2009. In addition, pending sales surged by over 10 percent from December 2009 to a total of 815. The statistic is a strong indicator for the next two or three months of sales, as pending sales are an indicator of current buyer activity. Last January, pending sales stood at only 683.
Median sale prices in the Sarasota real estate market dipped in January 2010 for both single family homes and condos. The median sale price for a single family home was $156,250, down from last month's figure of $170,000, but up slightly over last January's figure of $149,950. For condos, the median price dropped to $165,000 from last month's figure of $199,000, and significantly lower than last January's figure of $220,000. For the last 12 months combined, the median sale price for single family homes was $160,000, while the median sale price for condos was $189,900.
The January median sale prices generally reflect the continuing high percentage of short sales and bank-owned foreclosure sales in the Sarasota market. The January percentage of distressed sales rose to 48 percent, from December 2009's figure of 42 percent. Two distinct markets remain in force in Sarasota.
Normal arm's length property sales continue to show median sale prices roughly 150 percent higher than distressed property sale prices. Bank-owned sales are bringing in a median price of roughly $80,000, while for short sales the price is roughly $120,000. For normal arm's length sales in January 2010, properties were sold for a median price of approximately $250,000 - more than double the prices for distressed properties.
"Our market is rebounding from the recession, particularly in the category of normal arm's length transactions," said 2010 SAR President Erick Shumway. "We are seeing a stark contrast between these two markets, and this probably reflects the fact that some buyers don't want to wait for additional months often involved in closing a purchase of a distressed property. Also, the condition of normal, non-distressed properties can be far superior to the short sales and foreclosures on the market. Once the number of distressed properties begins to drop substantially, we should see the median sale prices start to recover."
The first-time homebuyer tax credit, extended and expanded to include many other homebuyers on Nov. 6, should continue to help propel sales in the first quarter of 2010. The credit expires in April, and local Realtors® are working hard to ensure their qualified buyers can take advantage of the $8,000 and $6,500 credits.
The property inventory level rose in January 2010 to 6,342 from the December 2009 total of 6,020, an expected increase during the traditional winter months when many snowbirds return to the Sarasota area. But the inventory level remains at near the lowest level since late summer of 2005 and the years prior to the boom period from 2003 - 2005.
The months of inventory for single family homes was 11.5 months, compared to 25.3 months in January 2009. For condos, the months of inventory was 14.7 months in January 2010, compared to 38.4 months only a year ago - a remarkable improvement in the health of the real estate market.
Sarasota Association of REALTORS®
Monday, February 15, 2010
Justices adopt Florida foreclosure mediation rules
TALLAHASSEE, Fla. – Feb. 15, 2010 – Lenders will be required to pick up the tab for investigating and verifying ownership and then try mediation before foreclosing Florida home mortgages under new rules approved Thursday by the Florida Supreme Court.
The rules are designed to help Florida’s judicial system better cope with a flood of foreclosures. They follow a December administrative order by Chief Justice Peggy A. Quince telling local judges to adopt a uniform mediation program.
Florida has the nation’s fourth-highest foreclosure rate. Almost 400,000 cases were filed in Florida’s courts last year.
The rules and corresponding legal forms were proposed by a pair of Florida Bar panels.
“They found that many cases were being filed by plaintiffs that didn’t’ own the mortgages any more,” said Miami lawyer Mark Romance, who chairs the Civil Procedures Rules Committee.
Romance said other cases were being filed against people who no longer owned the homes.
“I don’t think there was any ill will or intent to harm someone,” Romance said.
The investigate-and-verify rule should help prevent those kinds of errors and give judges greater authority to sanction lenders who do make false allegations, the justices wrote.
“It’s just going to be another hoop to jump through,” said Anthony DiMarco, executive vice president for public affairs for the Florida Bankers Association, which opposed that provision. “It’s making us find a document we’re already supposed to find.”
The decision was unanimous except for a rule that will require prior approval of a judge before a foreclosure sale can be canceled. Justices Charles Canady and Ricky Polston dissented.
Last-minute cancelations have needlessly delayed other sales, again clogging the system, Romance said.
The Bankers Association did not object to that provision, but DiMarco said borrowers and lenders often cannot reach a settlement until just before the sale date.
“It’s the last chance and people get more serious at the last chance,” he said.
The rules are designed to help Florida’s judicial system better cope with a flood of foreclosures. They follow a December administrative order by Chief Justice Peggy A. Quince telling local judges to adopt a uniform mediation program.
Florida has the nation’s fourth-highest foreclosure rate. Almost 400,000 cases were filed in Florida’s courts last year.
The rules and corresponding legal forms were proposed by a pair of Florida Bar panels.
“They found that many cases were being filed by plaintiffs that didn’t’ own the mortgages any more,” said Miami lawyer Mark Romance, who chairs the Civil Procedures Rules Committee.
Romance said other cases were being filed against people who no longer owned the homes.
“I don’t think there was any ill will or intent to harm someone,” Romance said.
The investigate-and-verify rule should help prevent those kinds of errors and give judges greater authority to sanction lenders who do make false allegations, the justices wrote.
“It’s just going to be another hoop to jump through,” said Anthony DiMarco, executive vice president for public affairs for the Florida Bankers Association, which opposed that provision. “It’s making us find a document we’re already supposed to find.”
The decision was unanimous except for a rule that will require prior approval of a judge before a foreclosure sale can be canceled. Justices Charles Canady and Ricky Polston dissented.
Last-minute cancelations have needlessly delayed other sales, again clogging the system, Romance said.
The Bankers Association did not object to that provision, but DiMarco said borrowers and lenders often cannot reach a settlement until just before the sale date.
“It’s the last chance and people get more serious at the last chance,” he said.
Port Charlotte gets buzz as retiree haven
Click on title to see full article.
PORT CHARLOTTE - Retirees looking for housing deals are finding them in Port Charlotte, whose reputation as a retirement bargain is once again growing on a national scale.
Where to Retire magazine is profiling Port Charlotte as a "low-cost haven" in its March/April issue.
"This is Florida coastal living at a bargain, with homes at considerably lower prices today than a couple of years ago," editor Mary Lu Abbott said in a news release.
Where to Retire is a national magazine based in Houston.
Aside from housing, the magazine pointed to other qualities of Port Charlotte that are important to retirees: 165 miles of man-made waterways, Charlotte Harbor and nature preserves, recreational activities, volunteering opportunities and a variety of shopping centers and cultural entertainment.
"You name it, we've got it. It's a neat place to retire," Gray said.
Magazine articles can create positive buzz. Last summer, Money magazine ranked Port Charlotte as the best place in the country to retire.
PORT CHARLOTTE - Retirees looking for housing deals are finding them in Port Charlotte, whose reputation as a retirement bargain is once again growing on a national scale.
Where to Retire magazine is profiling Port Charlotte as a "low-cost haven" in its March/April issue.
"This is Florida coastal living at a bargain, with homes at considerably lower prices today than a couple of years ago," editor Mary Lu Abbott said in a news release.
Where to Retire is a national magazine based in Houston.
Aside from housing, the magazine pointed to other qualities of Port Charlotte that are important to retirees: 165 miles of man-made waterways, Charlotte Harbor and nature preserves, recreational activities, volunteering opportunities and a variety of shopping centers and cultural entertainment.
"You name it, we've got it. It's a neat place to retire," Gray said.
Magazine articles can create positive buzz. Last summer, Money magazine ranked Port Charlotte as the best place in the country to retire.
Thursday, February 11, 2010
University of South Florida Picks New Site in North Port
Click on title to see full article.
NORTH PORT - Businesses looking to lease 6,420 square feet of office space are exceedingly rare in North Port, and the long-empty Pan American Professional Center has been a sore reminder to that fact since its foreclosure more than a year ago.
But the University of South Florida is breathing new life into the project at U.S. 41 and Pan American Boulevard, with its access to public funding and need for space for hundreds of college students.
USF announced this week that it has signed a lease with Iberia Bank for 6,420 feet in a 21,500-square-foot building that will be named for USF. The space will include four classrooms, six offices and conference rooms and an option to expand in the future.
NORTH PORT - Businesses looking to lease 6,420 square feet of office space are exceedingly rare in North Port, and the long-empty Pan American Professional Center has been a sore reminder to that fact since its foreclosure more than a year ago.
But the University of South Florida is breathing new life into the project at U.S. 41 and Pan American Boulevard, with its access to public funding and need for space for hundreds of college students.
USF announced this week that it has signed a lease with Iberia Bank for 6,420 feet in a 21,500-square-foot building that will be named for USF. The space will include four classrooms, six offices and conference rooms and an option to expand in the future.
Foreclosure Actions Up in Sarasota and Charlotte Counties
Click on title to see full article.
In Sarasota County, foreclosures were down 33 percent from December but up 20 percent from January 2009. Charlotte County's foreclosure actions were down 10 percent from December but up 44 percent from a year ago, according data released Wednesday by California-based RealtyTrac Inc.
The three counties began 2010 among the worst communities in the state for new filings, with the per-capita rate of foreclosure ranking Charlotte fifth, Manatee eighth and Sarasota County 14th among Florida's 67 counties.
"Unfortunately, it's not a surprise," said Sean Snaith, a University of Central Florida economist who has been warning of an impending foreclosure deluge for months.
"When all of this started, it was driven by mortgages and how they were structured," Snaith said. "Now we're seeing traditional causes for foreclosure like unemployment come strongly into play."
Lewis M. Goodkin, president of Miami-based Goodkin Consulting, agreed that things will get worse before they get better so long as Southwest Florida's unemployment rate remains in double digits.
In Sarasota County, foreclosures were down 33 percent from December but up 20 percent from January 2009. Charlotte County's foreclosure actions were down 10 percent from December but up 44 percent from a year ago, according data released Wednesday by California-based RealtyTrac Inc.
The three counties began 2010 among the worst communities in the state for new filings, with the per-capita rate of foreclosure ranking Charlotte fifth, Manatee eighth and Sarasota County 14th among Florida's 67 counties.
"Unfortunately, it's not a surprise," said Sean Snaith, a University of Central Florida economist who has been warning of an impending foreclosure deluge for months.
"When all of this started, it was driven by mortgages and how they were structured," Snaith said. "Now we're seeing traditional causes for foreclosure like unemployment come strongly into play."
Lewis M. Goodkin, president of Miami-based Goodkin Consulting, agreed that things will get worse before they get better so long as Southwest Florida's unemployment rate remains in double digits.
Wednesday, February 10, 2010
Fla. Legislature: Foreclosure fight develops
Click on title to see full article.
TALLAHASSEE, Fla. – Feb. 10, 2010 – The Main Street versus Wall Street fight that has consumed national politics for much of the last year has made its way to Florida with two lawmakers pushing a proposed “Foreclosure Bill of Rights” while bankers are shopping a bill to do away with legal proceedings in foreclosures altogether.
The battle is playing out on the watch of Senate President Jeff Atwater, a banker by trade, who suggested that any pro-bank legislation that puts people out of homes more quickly would likely be a long shot.
Sen. Dave Aronberg, D-Greenacres, and Rep. Darren Soto, D-Orlando, announced Tuesday their “homeowners’ defense legislation” (SB 1778), which they say would pre-empt the possible eviction of tens of thousands of Floridians from their homes by requiring mediation, and for home loans to be renegotiated at current values. They said they filed the measure in response to an initiative, backed by the Florida Bankers Association, which would create a non-judicial foreclosure system that speeds up foreclosures to 90 days.
“It is fundamental to our economic recovery that we resolve the foreclosure crisis in the state of Florida and there are two vastly different visions out there,” Soto said during a news conference at the Capitol. “While the banks seek to avoid judicial process altogether, allow 90 days and show our Floridians the door with no incentive to settle, we’re here to say, ‘no.’ We will not allow a half million Floridians to be kicked out on the street. We will not allow bailout, spend-happy banks to dictate our agenda here in Tallahassee, and we will not allow the trampling of the rights of Floridians for mere convenience.”
TALLAHASSEE, Fla. – Feb. 10, 2010 – The Main Street versus Wall Street fight that has consumed national politics for much of the last year has made its way to Florida with two lawmakers pushing a proposed “Foreclosure Bill of Rights” while bankers are shopping a bill to do away with legal proceedings in foreclosures altogether.
The battle is playing out on the watch of Senate President Jeff Atwater, a banker by trade, who suggested that any pro-bank legislation that puts people out of homes more quickly would likely be a long shot.
Sen. Dave Aronberg, D-Greenacres, and Rep. Darren Soto, D-Orlando, announced Tuesday their “homeowners’ defense legislation” (SB 1778), which they say would pre-empt the possible eviction of tens of thousands of Floridians from their homes by requiring mediation, and for home loans to be renegotiated at current values. They said they filed the measure in response to an initiative, backed by the Florida Bankers Association, which would create a non-judicial foreclosure system that speeds up foreclosures to 90 days.
“It is fundamental to our economic recovery that we resolve the foreclosure crisis in the state of Florida and there are two vastly different visions out there,” Soto said during a news conference at the Capitol. “While the banks seek to avoid judicial process altogether, allow 90 days and show our Floridians the door with no incentive to settle, we’re here to say, ‘no.’ We will not allow a half million Floridians to be kicked out on the street. We will not allow bailout, spend-happy banks to dictate our agenda here in Tallahassee, and we will not allow the trampling of the rights of Floridians for mere convenience.”
Monday, February 8, 2010
Isles of Athena Project in North Port-Now it is Officially Dead
Click on title to see full article.
This huge project produced a lot of speculative buying on the east side of North Port. It was supposed to have an I-75 interchange that would have made the area more attractive.
"NORTH PORT - One of Sarasota County's largest and most controversial boom-time housing projects is officially dead after the developer stopped fighting a foreclosure action against the 5,800-acre property, putting the land up for grabs.
"West Palm Beach developer Brian Tuttle made a big splash in 2005 when he paid $61.5 million for the 5,800 acres east of Interstate 75. The land was annexed by North Port in 2000.
"Now the Isles of Athena parcel once slated for 13,000 homes will go up for auction today, with the lender likely taking back control and Sarasota County leaders anxious to restart talks about preserving the land, despite a limited budget for conservation purchases.
"County Commissioner Jon Thaxton described the parcel Friday as the "most significant environmentally sensitive property in the county under unified ownership."
This huge project produced a lot of speculative buying on the east side of North Port. It was supposed to have an I-75 interchange that would have made the area more attractive.
"NORTH PORT - One of Sarasota County's largest and most controversial boom-time housing projects is officially dead after the developer stopped fighting a foreclosure action against the 5,800-acre property, putting the land up for grabs.
"West Palm Beach developer Brian Tuttle made a big splash in 2005 when he paid $61.5 million for the 5,800 acres east of Interstate 75. The land was annexed by North Port in 2000.
"Now the Isles of Athena parcel once slated for 13,000 homes will go up for auction today, with the lender likely taking back control and Sarasota County leaders anxious to restart talks about preserving the land, despite a limited budget for conservation purchases.
"County Commissioner Jon Thaxton described the parcel Friday as the "most significant environmentally sensitive property in the county under unified ownership."
Thursday, February 4, 2010
Del Webb Survey Reveals New Realities for Baby Boomers
Click on the title to see the full article from Builder Magazine.
It’s been 14 years since the first wave of Baby Boomers turned 50, and suffice it to say their world has changed. The retirement lifestyle many are anticipating now, on the eve of their 64th birthdays, is somewhat different from the one they envisioned back then.
For starters, the chronology of retirement has shifted, and many boomers say they now plan to keep working well into their 60s, if not 70s, according to a recent survey conducted by Harris Interactive for Pulte/Del Webb, the preliminary findings of which were previewed at the International Builders’ Show in Las Vegas in January.
The study, which polled Boomers in two specific age groups--those turning 50 this year, and those turning 64--found that the average anticipated retirement age has been extended by about four years. Whereas a majority of 50-year-olds polled in 1996 said they planned to retire at 63, those turning 50 today said they expect to retire around age 67.
But what is retirement? The research also suggests that today’s definition does not necessarily exclude professional pursuits. In the latest survey, 41% of 50-year-olds and 18% of 64-year-olds who are still working said they don’t anticipate ever retiring. Boredom, self-satisfaction, and enjoyment were among the reasons cited for staying employed, but the No. 1 factor was financial stability.
Sobering as it may be, more Boomers are economically unstable now compared to a decade and a half ago. In 1996, roughly 11% of 50-year-olds reported they had not even begun saving for retirement; today that number is double. The study also found that nearly 40% of older Boomers who have already technically “retired” are continuing to work on some level.
One thing that hasn’t changed is the mindset of the so-called “Me Generation,” which remains anything but sedentary. Most Boomers, regardless of age, wish to stay active, and a majority see working or volunteering as part of that equation. Some 70% of respondents in the Del Webb survey said they plan to volunteer, or already do.
And Boomers of all ages now consider 80 to be the tipping point at which “old age” sets in.
The Del Webb findings further indicate that the desire to stay active has made more Boomers amenable to the idea of moving. Roughly 42% of the 50-year-olds surveyed this time around said they planned to move during retirement, versus 36% in 1996. Of those planning to move, half said they would relocate to a different state, while a quarter indicated plans to move to a different city within the same state.
The Carolinas are “the new Florida,” researchers surmised, with Boomers in both age groups ranking the twin states as the top preferred spots for relocation. Florida still remains in the top 10, though, along with temperate spots such as Tennessee, Arizona, California, and Virginia. Respondents cited “cost of living” and health care as the most important considerations in selecting where to move.
It’s been 14 years since the first wave of Baby Boomers turned 50, and suffice it to say their world has changed. The retirement lifestyle many are anticipating now, on the eve of their 64th birthdays, is somewhat different from the one they envisioned back then.
For starters, the chronology of retirement has shifted, and many boomers say they now plan to keep working well into their 60s, if not 70s, according to a recent survey conducted by Harris Interactive for Pulte/Del Webb, the preliminary findings of which were previewed at the International Builders’ Show in Las Vegas in January.
The study, which polled Boomers in two specific age groups--those turning 50 this year, and those turning 64--found that the average anticipated retirement age has been extended by about four years. Whereas a majority of 50-year-olds polled in 1996 said they planned to retire at 63, those turning 50 today said they expect to retire around age 67.
But what is retirement? The research also suggests that today’s definition does not necessarily exclude professional pursuits. In the latest survey, 41% of 50-year-olds and 18% of 64-year-olds who are still working said they don’t anticipate ever retiring. Boredom, self-satisfaction, and enjoyment were among the reasons cited for staying employed, but the No. 1 factor was financial stability.
Sobering as it may be, more Boomers are economically unstable now compared to a decade and a half ago. In 1996, roughly 11% of 50-year-olds reported they had not even begun saving for retirement; today that number is double. The study also found that nearly 40% of older Boomers who have already technically “retired” are continuing to work on some level.
One thing that hasn’t changed is the mindset of the so-called “Me Generation,” which remains anything but sedentary. Most Boomers, regardless of age, wish to stay active, and a majority see working or volunteering as part of that equation. Some 70% of respondents in the Del Webb survey said they plan to volunteer, or already do.
And Boomers of all ages now consider 80 to be the tipping point at which “old age” sets in.
The Del Webb findings further indicate that the desire to stay active has made more Boomers amenable to the idea of moving. Roughly 42% of the 50-year-olds surveyed this time around said they planned to move during retirement, versus 36% in 1996. Of those planning to move, half said they would relocate to a different state, while a quarter indicated plans to move to a different city within the same state.
The Carolinas are “the new Florida,” researchers surmised, with Boomers in both age groups ranking the twin states as the top preferred spots for relocation. Florida still remains in the top 10, though, along with temperate spots such as Tennessee, Arizona, California, and Virginia. Respondents cited “cost of living” and health care as the most important considerations in selecting where to move.
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