Delray Beach Florida Real Estate News

Calling All Short Sale Sellers!

Thinking about selling your home as a short sale? Now is the time to do it! As of January 1, 2013, the federal government will make the amount that your lender forgives on a short sale or foreclosure on a primary residence taxable on your federal income taxes.  Most importantly, the bank must formally forgive the loan and sign off in writing by December 31, 2012.

It's so important to allow yourself the time to sell the property and go through the sometimes very long short sale process. Also, keep in mind that the buyer may walk away or other problems may arise.

If you list your short sale right now, you can still take advantage of the government's tax forgiveness!

New Listing-Large Townhome in Boynton Beach, Florida!

3 bedrooms, 2 1/2 bath townhome in gated community, tile downstairs, laminate wood upstairs. 1700+ sq. ft. under air. Close to 95, the beach, shopping and nightlife! Great family community. Offered at $140,000.

Fannie Mae, Freddie Mac Pledge Not to Foreclose During Holidays

For homeowners who may be struggling to stay in their homes, Fannie Mae, Freddie Mac, and several other mortgage lenders have pledged not to foreclose on delinquent borrowers during the holiday season.

The suspension will run from December 19 to January 2. During this time, proceedings for evictions may continue, but families will be allowed to stay in their homes. Terry Edwards, a Fannie Mae executive vice president said, “No family should have to give up their home during this holiday season.”

A number of other large banks such as Chase Mortgage, Bank of America, and Wells Fargo are also on board with the foreclosure halt. While this may not be a permanent solution, it may allow a few borrowers the opportunity to find the means to get current on their mortgage again and keep their home. If that’s not the case, it’s a “temporary reprieve, a symbolic gesture to help people out during the holidays" said Realty Trac spokesman Daren Blomquist.Come January 3, mortgage lenders will return to business as usual.

Housing Update: Obama Administration Releases November Scorecard

The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury recently released the November edition of the Obama Administration's Housing Scorecard—a comprehensive report on the nation’s housing market. Included in this month’s report are detailed assessments for the 10 largest mortgage servicers participating in the Making Home Affordable Program with results from the third quarter of 2011. In addition to providing greater transparency about servicer performance in the program, the servicer assessments—first introduced in June 2011 and published quarterly—are intended to set a new industry benchmark for disclosure around servicer efforts to assist struggling homeowners, while prompting them to correct identified deficiencies.

“The mortgage servicing industry lacked accountability and transparency when this crisis started,” says Treasury Assistant Secretary for Financial Stability Tim Massad. “Publishing these servicer assessments is key to our efforts to hold servicers publicly accountable for their performance and keep necessary pressure on them to improve. We've seen movement in the right direction, and we will keep this up so that the industry continues to change its ways.”

Since the inception of the Making Home Affordable Program, Treasury has required participating servicers to take specific actions to improve their servicing processes to more effectively assist struggling homeowners. The latest Servicer Assessments summarize performance on three categories of program implementation: identifying and contacting homeowners; homeowner evaluation and assistance; and program reporting, management and governance. For the third quarter of 2011, only JPMorgan Chase, NA was found to be in need of substantial improvement under the program. While JPMorgan Chase demonstrated some progress in areas reported for the third quarter, the servicer has a number of outstanding items from previous quarters that have not yet been addressed and play a critical part in their broader execution of the program. For these reasons, Treasury will withhold servicer incentives from JPMorgan Chase for the third consecutive quarter and will permanently reduce incentives owed to JPMorgan Chase unless the outstanding items are addressed before the next assessment.

Bank of America, NA was found to be in need of moderate improvement for the third quarter of 2011 but will continue to have its servicer incentives for previous quarters withheld. Although Bank of America has not yet remediated all of the areas previously identified as requiring substantial improvement from the previous quarter, it has made progress in addressing a number of items.

The assessments indicate that servicers have been focusing attention on areas identified through regular compliance and program reviews. For example, the error rate with respect to servicers’ calculations of homeowner income has declined from an average of 17.5 percent as of the first quarter of 2011 to 3.8 percent as of the third quarter (income calculation is used to determine eligibility and payment amount for the Home Affordable Modification Program (HAMP)).

As the Administration continues to push servicers to provide more effective assistance to struggling homeowners through its foreclosure prevention programs, the ongoing fragility of the housing market demonstrates the need for the Administration’s recovery efforts in hard hit communities. The November Housing Scorecard features key data on the health of the housing market and the impact of the Administration’s foreclosure prevention programs, including:

• The Administration’s recovery efforts continue to help millions of families deal with the worst economic crisis since the Great Depression. More than 5.4 million modification arrangements were started between April 2009 and the end of October 2011—including more than 1.7 million HAMP trial modification starts, more than 1.1 million FHA loss mitigation and early delinquency interventions, and more than 2.5 million proprietary modifications under HOPE Now. While some homeowners may have received help from more than one program, the total number of agreements offered continues to more than double the number of foreclosure completions for the same period (2.4 million). As of October, more than 880,000 permanent mortgage modifications have occurred through HAMP, with a median payment reduction for the homeowner of 37 percent.

• Eligible homeowners entering HAMP have a high likelihood of earning a permanent modification and realizing long-term success. Eighty-two percent of eligible homeowners entering a HAMP trial modification since June 1, 2010 received a permanent modification, with an average trial period of 3.5 months. Homeowners in HAMP permanent modifications have saved an estimated $9.4 billion to date.

Support "Small Business Saturday"

Our economy needs help in so many ways. Small business Saturday is a great way to boost sales for the struggling businesses out there.

As Realtors®, we are all small businesses. I think it's great that now small businesses are being acknowledged and sold to the public in a big way. It's hard to compete with the Wal-Marts of the world, so this Saturday November 26, go out and support your fellow small businesses.

Let's do our part! Happy Thanksgiving to you and your families!

Beware of Foreclosure Rescue Scams

The threat of losing your home can lead some homeowners to take desperate measures to find companies who claim to reduce your monthly mortgage payment or take other steps to save your home.

Unfortunately, there are many scam artists stealing millions of dollars from distressed homeowners by promising immediate relief from foreclosure. Keep this in mind: If the advice or information sounds too good to be true, it probably is. Don’t be taken advantage of.

Here are some tips to help you avoid these scams: 

• Help is free! There is never a fee to get information from us. HUD-approved housing counseling agencies can also help you at no cost to you. Beware of any person or organization that asks you to pay a fee in exchange for housing counseling services or modification of a delinquent loan.

• Beware of anyone who says they can “save” your home if you sign or transfer over the deed to your house. Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.

• Don't sign papers in exchange for a promise that someone else will pay off your mortgage. Always be sure to read and understand all paperwork before signing to ensure that you are not unknowingly giving someone else ownership of your home. 

• Never submit your mortgage payments to anyone other than your mortgage company without your mortgage company's approval. Scammers might ask you to make your payments to them; however, they usually pocket your payments instead of sending them to the lender.

• Beware of anyone who says that you don't need a real estate professional or title company when selling your home. You should always have a real estate professional, attorney, or a title company to help you with any transaction involving your home. 

The FTC warns the scam artists use simple but potentially deceptive messages, like:

• "Stop foreclosure now!"
• "Get a loan modification!"
• "Over 90% of our customers get results."
• "We have special relationships with banks that can speed up the approval process."
• "100% Money Back Guarantee."
• "Keep Your Home. We know your home is scheduled to be sold. No Problem!"

Once they have your attention, they use a variety of tactics to get your money.

If you're struggling to make mortgage payments or facing foreclosure, there are legitimate options available to help save your home. Contact your lender immediately. You may be able to negotiate a new repayment schedule.

If you believe you've been the victim of foreclosure fraud, contact the FTC, or your state Attorney General's office, or the Better Business Bureau.

The New and Improved HARP Program!

The new Home Affordable Refinance Program (HARP) that will allow many underwater homeowners to refinance their homes is being modified. HARP was first introduced in 2009; however, not many homeowners utilized its benefits. The new HARP program will allow more underwater homeowners to qualify and take advantage of the program.

What are the qualifications?

• Borrowers must be current on the mortgage at the time of the refinance, with no late payments in the past six months and no more than one late payment in the past 12 months;

• Fannie Mae or Freddie Mac must back your loan;

• You must be currently employed and have a steady income;

• The mortgage must have been transferred to Fannie Mae or Freddie Mac no later than May 31, 2009; and

• The mortgage must be on a one-to four unit dwelling that serves as your primary residence.

You are not eligible for HARP if your mortgage is FHA, USDA, or a jumbo mortgage.

It’s important to remember that HARP will not delay or stop foreclosure on your home. HARP is meant to give homeowners who are currently employed, current on their mortgages, and have lost home equity a chance to refinance at the current low mortgage rates.

Borrowers will be able to take advantage of HARP even if they owe more than what their house is worth. The previous version of HARP only allowed borrowers to refinance up to 125 percent of the home's appraised value. Millions of borrowers couldn't benefit from HARP when it was first introduced because of that cap.

HARP has been extended through Dec. 31, 2013. Fannie Mae and Freddie Mac will send instructions to lenders by November 15, 2011. Some lenders may start offering refinances under the improved HARP by December 1, but the timing may vary, according to the FHFA.

If you're an underwater homeowner, this new version of HARP could finally allow you to refinance your mortgage at an all-time low interest rate you’ve heard about but couldn’t qualify for.

Homeowners associations, or HOAs, are formal entities created for certain communities to maintain common areas and enforce set rules, regulations, and bylaws. An HOA has the authority to enforce Covenants and Conditions & Deed Restrictions. HOAs are usually established to ensure that homeowners in a specified community adhere to specific regulations in order to maintain the quality and value of the properties in the HOA community.

When buying a new home, you need to carefully consider whether or not you want a home in a neighborhood maintained by an HOA.

Here are some pros and cons to homeowners associations.

Pros

• HOAs generally pay for and maintain common areas such as swimming pools, tennis courts, playgrounds, and clubhouses. Without an HOA, you may not have access to these amenities in your neighborhood.
• HOAs may often provide lawn care services and/or snow removal for each residence. You won’t have to do this yourself or hire someone to do it for you, which can free up your resources and your time.
• HOAs maintain or raise property values by regulating aspects of your community that help keep a neighborhood looking well kept. Some HOAs have restrictions on the percentage of homes in a neighborhood that can be rented. This can positively affect property values as well.
• HOAs often host neighborhood parties and BBQs, which can help build relationships among neighbors.
• If you disapprove with the condition or appearance of a neighbor’s home or yard or are concerned with how a neighbor’s home may be affecting your own property value, the HOA acts as a mediator to ensure all guidelines are followed by everyone in the community.

Cons

• Some homeowners feel that having an HOA doesn’t allow them the freedom they want. There are restrictions with an HOA that you won’t have without one such as pet restrictions, parking restrictions, yard maintenance regulations, and regulations regarding the outside appearance of your home.
• If you want to rent your property, you often have to approve the rental with the HOA. Some HOAs only allow a certain percentage of renters in the community to maintain property values.
• With every HOA, there are monthly or yearly dues. This is an expense you’ll need to consider when buying a home. Also, HOA fees can increase without warning, so you will need to budget in advance.
• HOAs have the right to file a lien on your home if you don’t pay your fees.
• Some HOAs are poorly managed. Many HOAs have volunteer board members that are usually a part of your community, but they don’t manage the HOA full-time. Often, a management company is hired to oversee the HOA, and some residents don’t like having an outside management company that isn’t part of the community overseeing their neighborhood.

If you are considering buying a home that’s part of an HOA, ask to get a copy of the rules, regulations, and bylaws before you make your offer so you can thoroughly review whether or not having an HOA is right for you. Be aware of what the HOA fees cover. Some HOA fees may even include cable T.V. or Internet service, which might even save you money. Also, look at the budget, financial records, and minutes from the previous board meetings. These will give you some indication as to how well the HOA is run.

Get a Comparative Market Analysis (CMA)

If you're thinking about selling your home or property, a comparative market analysis or CMA is a great way to help you determine the actual value of your home.

You could conduct your own comparative market analysis, but it's best to seek the assistance of a trained real estate professional. Real estate professionals have access to up-to-date geographic-related information about:

• Active, pending, sold, and expired listings.
• Comparable property information.
• Market trends including average days on market.

When you enlist a real estate agent to provide you with a CMA, you are likely to get more complete information faster. An agent will also help you to analyze the information in a comparative market analysis. A CMA is in no way a price guarantee. There are many factors that go into pricing a home and some of them are very personal including a seller's motivation. Some sellers are financially distressed, or are under pressure to relocate for employment purposes and are willing to drop the price of a home for a quick sale. Other sellers are willing to wait for the right buyer to purchase his or her home at a premium price.

The depth of comparative market analysis reports varies. Ask your real estate agent to explain what you can expect to learn from the CMA he or she provides. At the very least, a standard CMA will include:

Active listings or homes currently for sale. This will give you a snapshot of homes your potential buyers will be viewing and comparing to yours. A seller can list a home at any sales price, so be careful not to read too much into active listings. In the end, a home is worth what a buyer is willing to pay.

Pending listings. A pending listing is a home under contract. This means the sale has not yet closed. Like sold listings, pending listings can help you determine what buyers are willing to pay for property comparable to yours. Because pending sales are still in the legal negotiation process, this information is often kept private.

Sold listings. Appraisers are strongly influenced by the price at which comparable homes have sold in the same geographic area as your home. An estimated market value will be largely based on sold listings.

Withdrawn or canceled listings. Sellers sometimes withdraw their homes from the market and the reasons vary. A change in life circumstances, low offers, and repairs required for buyer financing are just a few. This information can, however, be very helpful in determining how high is too high.

Expired listings. An expired listing is one that has been on the market beyond the length of a Realtor contract. Sometimes these properties are overpriced. Sometimes they are not marketed aggressively. Occasionally a seller will change agents in the middle of the sales process.

It is very important to only compare properties that are similar to yours in a comparative market analysis. In some locations, this will be hard to do. Important comparables include:

• Square footage
• Location
• Type and age of construction
• Amenities and upgrades
• Condition

Of all of these factors, you have the most influence over condition and amenities and upgrades. A thorough comparative market analysis or CMA will help you accurately determine what a reasonable sale price may be to get your home sold for it's highest and best value. 

Relocation Information at your Fingertips!

Americans are on the move. Recent housing market fluctuations and economic conditions have prompted many Americans to relocate. Some relocate to find employment or meet job requirements. Others are (sadly) losing homes to foreclosure and looking for a new start. Some are finding affordable housing as a result of the slow housing market in new locations. Believe it or not, there are some who simply seek new and better surroundings.

Whether you're moving to a new community by chance or by choice, the transition can require a long period of stressful adjustment. There are ways to minimize the stress and prepare you and your family for life in a new neighborhood.

Tap Into Technology

If you have decided to move to a specific location (such as in the case of a job transfer), it's a good idea to become familiar with your new surroundings before you make any decisions about housing or local location.

The Internet is a wonderful, wonderful tool that can take you places without ever having to leave your home. Take full advantage of the tools the Internet offers. Start by contacting a real estate agent who can act as a "virtual guide" and, later, a location guide.

A real estate agent can be your best friend in this situation. Real estate agents are generally very well connected and can provide you with quality community information in an instant. Peruse your agent's website for local information and links that will help you evaluate:

• Communities and neighborhoods
• Recreational opportunities
• Climate and geography
• Commerce and local economy
• Education
• Social settings
• Housing markets
• Local demographics
• Utilities
• And more!

Your real estate agent can provide you with external local website links that will help you provide in-depth information.

Nearly every incorporated city and some unincorporated communities feature websites with helpful information. Simply access your favorite search engine and type in the name of the city. Local chambers of commerce are almost always willing to send relocation packets with selected information including visitor guides and local resources. Often their websites feature links that allow you to request a relocation packet online. Some charge a minimal fee.

If you are still deciding where you want to live, there are many public and private enterprise websites that compare communities and offer demographic information on multiple communities.

CNNMoney.com (Money Magazine) - money.cnn.com

Each year Money Magazine conducts a study of America's small towns and compares them to other small towns throughout the country. The information provided by this source is more subjective than hard statistics provided by the U.S. government, but its also more user-friendly and in some cases more in-depth. The information is somewhat limited depending on the towns studied in a given year. Money Magazine Places a high value on strong economy, education, low crime, affordable housing, etc.

Wikipedia - wikipedia.org

Wikipedia is a multilingual, Web-based, free-content encyclopedia. You will find information on many states, counties, cities and towns, and counties on Wikipedia. Remember Wikipedia is written collaboratively by volunteers from all over the world. Anyone with access to the internet can make changes to its articles. On this site you will find information about demographic (usually based on the most recent decennial census), history, geography, climate and more.

Sperling's Best Places - www.bestplaces.net/

Sperling's Best Places is another good private site that compares community features and gives readers an inside look at the best features of many communities. Here you'll find information about the cost of living, crime, education, the economy, population, climate and more.

Where to Retire -- wheretoretire.com

If you're ready to retire and are looking for a new location, Where to Retire can help you analyze different areas armed with information. Where to Retire strives to be America's foremost authority on retirement relocation.

Relocating to a new area is a monumental event! Choose the right location and know the location before you actually make your move