Thousands of first-time and move-up buyers who hoped to make a foreclosed property their new home now face uncertainty, anxiety and possibly remorse as they worry that closing on their desired property could be in jeopardy.
For many, the dream of homeownership could turn into agony if their home purchase is indefinitely delayed by a moratorium on foreclosures declared by some banks, the National Association of Realtors® said today. The moratoriums are needed, banks say, to review all of the foreclosures in their portfolios to make sure they’re in compliance with the law and that titles are clear.
NAR warned that a prolonged review process would have a damaging impact on many communities and hinder the nation’s economic recovery.
“As the leading advocate for homeownership issues, we understand that many lenders need a time-out to review their actions to ensure that homeowners are not improperly foreclosed on and that the lenders are following regulations and state laws. After that, the foreclosure process must resume quickly to return stability to families, the housing market and the economy,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates, Tucson, Ariz.
Over the past few months NAR has met with officials of top banks to discuss market issues. NAR urged banking leaders to seek resolution quickly through loan modifications and the short-sale process rather than through foreclosure. “We stand ready to help lenders develop better short-sale procedures,” Golder said.
“There are valid foreclosures that should move ahead quickly, and we shouldn’t lump them in with mortgages that are suspect. That would cause deep problems in an already fragile market and throw many families into uncertainty,” Golder said.
Golder said that she is receiving reports from Realtors® that the moratorium is already creating some anxiety among purchasers as transactions are being delayed and that some foreclosure listings are being removed from the market.
Compounding the problem is that the requirements for foreclosure vary by state, and practices to meet these requirements vary by firm. NAR is working with regulators, such as the Federal Housing Finance Agency; and encouraging them to identify and quickly address process problems.
In a letter today to the U.S Treasury Department, the U.S Department of Housing and Urban Development, and the Federal Housing Finance Agency, NAR stated the hope that banks would complete their foreclosure review expeditiously to assure that the rights of borrowers are protected and remove doubt that buyers will receive clear title to their purchase.
“NAR has long urged the lending industry to take every feasible action to keep families in their homes with a loan modification and, if that is not possible, to give them a ‘graceful exit’ through a short sale. These options are far better than a foreclosure, and nothing has driven this point home more clearly than the questions being raised about foreclosures. Lenders should place additional resources into processing loan modifications and short sales,” NAR wrote.
A year ago, NAR instituted a special short sale training program for its Realtor® members to work more closely with banks in expediting mortgages at risk by resolving them through short sales and loan modifications. More than 51,000 Realtors® have been certified in the program.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
http://www.realtor.org/wps/wcm/connect/RO-Content/ro/home/index
Tuesday, October 26, 2010
Sunday, October 17, 2010
Foreclosures Halted!
Foreclosures halted!
Its over! For now. The big name banks have halted foreclosures coming on to the market for investigation. What to do now? Are all the steals gone for the time being? That was the first thought. Taking a second look, there are alternatives. Short sales!
Short sales used to be a nightmare. Everyones burden. Getting an offer. Getting rejected by the bank for that offer. Having to get another offer and all the while waiting and waiting for the banks long drawn out responses. Short sales were taking months and months to close, sometimes up to half a year. Agents were frustrated. Short sale approved. Customer moved on to something else. Thats the way it went.
Now is the new era of short sales...
These monsters have now been tamed. We can do these deals in as little as 30-45 days. Its not easy but we now have the ammunition to pull it off. For those of you who are not familiar with what a short sale exactly is, heres a little short sale 101..
Selling a home short, is the sale of your house in which the proceeds fall short of what you still owe on the mortgage. Many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when an owner cannot make the mortgage payments. By accepting a short sale, the lender can avoid a lengthy and costly foreclosure, and the owner is able to pay off the loan for less than what he owes.
If you feel like you are in over your head and need a solution, a short sale might be the answer. An agent can help you through the hassle and anxiety. Get you back on track, and let your life be right again. Worry free.
Its over! For now. The big name banks have halted foreclosures coming on to the market for investigation. What to do now? Are all the steals gone for the time being? That was the first thought. Taking a second look, there are alternatives. Short sales!
Short sales used to be a nightmare. Everyones burden. Getting an offer. Getting rejected by the bank for that offer. Having to get another offer and all the while waiting and waiting for the banks long drawn out responses. Short sales were taking months and months to close, sometimes up to half a year. Agents were frustrated. Short sale approved. Customer moved on to something else. Thats the way it went.
Now is the new era of short sales...
These monsters have now been tamed. We can do these deals in as little as 30-45 days. Its not easy but we now have the ammunition to pull it off. For those of you who are not familiar with what a short sale exactly is, heres a little short sale 101..
Selling a home short, is the sale of your house in which the proceeds fall short of what you still owe on the mortgage. Many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when an owner cannot make the mortgage payments. By accepting a short sale, the lender can avoid a lengthy and costly foreclosure, and the owner is able to pay off the loan for less than what he owes.
If you feel like you are in over your head and need a solution, a short sale might be the answer. An agent can help you through the hassle and anxiety. Get you back on track, and let your life be right again. Worry free.
Tuesday, October 12, 2010
Bank Owned Property
I know all of you have been hearing in the news about Reo properties and the stoppage of foreclosures. At first the halt was going to be for a few weeks, then a few months. Now indefinite. So all you owners out there that want to sell, here is your chance to get an agent, market your home, sell it for the market price and thank God for giving you a shot. Opportunity is knocking! Answer the door!
For those of you that are still wondering what an Reo is, here's some education.
REO stands for Real Estate Owned and is the term used to denote a property which is technically owned by a mortgage company usually after a failed foreclosure auction. REO properties are numerous since most foreclosure auctions do not get any bid. The reason behind this is that foreclosed properties are low in equity which is the reason why they are foreclosed in the first place. If a property has enough equity, then the owner would have had sold the property and just paid off the mortgaging company.
Foreclosure auctions are not so popular for a reason. A property being auctioned off starts with a minimum bid covering the loan balance, accrued interest and other costs that may arise from the auction process. This means that in some cases, you will be forced to buy a property for more than its worth. Another thing about foreclosure auctions is that if you won the bidding, you will get the property in an "as is" condition meaning anyone still living in the property is now your responsibility. This also covers any liens or claim on the property.
With most properties having less value than what is owed a mortgage company, they more often than not result in no-bid auctions. These properties then go back to the bank or any mortgage company as "real estate owned" properties.
REO Properties For Sale
After the property "reverts" to the lending company, they would have to get the most out of it by selling them off. To make it more attractive to buyers, banks take certain actions like evicting squatters if necessary, and even make some minor repairs if also needed. They could also settle any liens against the property. This means that a buyer purchasing an REO property would get a better deal than what they would have had if they won the same property in a foreclosure auction.
You should keep in mind that bank owned properties are not bargain properties. Therefore, it is always important that you cover all the bases and check all things in connection with the property. When doing the check you should also include what you would spend for renovation if necessary. Make sure that the money you will pay is commensurate to what you will be getting. Do not be misled by the old myth that foreclosed properties are great bargains.
How Banks Sell REO's
Obviously, banks or any lender for that matter would try to get the most money out of any property. After all, they are in the business to make money. Although they have different methods, the goal is to make the most out of any REO property. This means that they have no intention whatsoever of bargaining off any property if they can help it.
When you make an offer for an REO property, bear in mind that the bank will more often than not have a counter-offer. This is because they want to get the most out of the sale of the property. Thus, it is important that you be ready with your own counter-offer.
Any offer made will be scrutinized not only by a person in the mortgage company. Several individuals will look into it and that is the reason why lending institutions have a dedicated team working on REO inventory. Remember that even if your offer is accepted at once, most companies would subtly add terms pointing out that said acceptance is still subject to corporate approval.
Property Condition
Since banks want to make the most money out of a property, they would likely sell an REO in an "as is" condition. This means they would not be shelling out funds for repairs or to settle any liens against the property. If you include in your offer that they provide a Section 1 pest certification, most would give it to you. Banks would also allow you to inspect properties but at your own expense. Do not expect though that they would agree to shoulder some repairs before selling you the property.
To cover your bases, you should submit an offer with a clause that would allow you to back out of the sale if upon inspection you find unexpected damages which the bank will not agree on paying for repairs.
If you agreed that you will buy the property as is, take time to allow banks to pay for repairs. There would be times when banks would eat up a small loss to save the transaction than putting the property back in the market again. This is usually in the cases of properties which have been in the market far too long that its value is getting lower and lower.
Most banks would not want to see numerous proprietary disclosures. And since they are exempted from the California Seller's Transfer Disclosure Statement, real estate agents working either for them or for you, said agents are required to give you disclosure statements.
If you are planning to ask a bank for financing on REO properties, do not get your hopes to high. They usually don’t provide such service. In some cases though, it could happen especially if you are purchasing a property with extensive damage they are not willing to pay to be repaired.
Making An Offer
Prior to making an offer for an REO property, you should cover your bases which includes the following:
For those of you that are still wondering what an Reo is, here's some education.
REO stands for Real Estate Owned and is the term used to denote a property which is technically owned by a mortgage company usually after a failed foreclosure auction. REO properties are numerous since most foreclosure auctions do not get any bid. The reason behind this is that foreclosed properties are low in equity which is the reason why they are foreclosed in the first place. If a property has enough equity, then the owner would have had sold the property and just paid off the mortgaging company.
Foreclosure auctions are not so popular for a reason. A property being auctioned off starts with a minimum bid covering the loan balance, accrued interest and other costs that may arise from the auction process. This means that in some cases, you will be forced to buy a property for more than its worth. Another thing about foreclosure auctions is that if you won the bidding, you will get the property in an "as is" condition meaning anyone still living in the property is now your responsibility. This also covers any liens or claim on the property.
With most properties having less value than what is owed a mortgage company, they more often than not result in no-bid auctions. These properties then go back to the bank or any mortgage company as "real estate owned" properties.
REO Properties For Sale
After the property "reverts" to the lending company, they would have to get the most out of it by selling them off. To make it more attractive to buyers, banks take certain actions like evicting squatters if necessary, and even make some minor repairs if also needed. They could also settle any liens against the property. This means that a buyer purchasing an REO property would get a better deal than what they would have had if they won the same property in a foreclosure auction.
You should keep in mind that bank owned properties are not bargain properties. Therefore, it is always important that you cover all the bases and check all things in connection with the property. When doing the check you should also include what you would spend for renovation if necessary. Make sure that the money you will pay is commensurate to what you will be getting. Do not be misled by the old myth that foreclosed properties are great bargains.
How Banks Sell REO's
Obviously, banks or any lender for that matter would try to get the most money out of any property. After all, they are in the business to make money. Although they have different methods, the goal is to make the most out of any REO property. This means that they have no intention whatsoever of bargaining off any property if they can help it.
When you make an offer for an REO property, bear in mind that the bank will more often than not have a counter-offer. This is because they want to get the most out of the sale of the property. Thus, it is important that you be ready with your own counter-offer.
Any offer made will be scrutinized not only by a person in the mortgage company. Several individuals will look into it and that is the reason why lending institutions have a dedicated team working on REO inventory. Remember that even if your offer is accepted at once, most companies would subtly add terms pointing out that said acceptance is still subject to corporate approval.
Property Condition
Since banks want to make the most money out of a property, they would likely sell an REO in an "as is" condition. This means they would not be shelling out funds for repairs or to settle any liens against the property. If you include in your offer that they provide a Section 1 pest certification, most would give it to you. Banks would also allow you to inspect properties but at your own expense. Do not expect though that they would agree to shoulder some repairs before selling you the property.
To cover your bases, you should submit an offer with a clause that would allow you to back out of the sale if upon inspection you find unexpected damages which the bank will not agree on paying for repairs.
If you agreed that you will buy the property as is, take time to allow banks to pay for repairs. There would be times when banks would eat up a small loss to save the transaction than putting the property back in the market again. This is usually in the cases of properties which have been in the market far too long that its value is getting lower and lower.
Most banks would not want to see numerous proprietary disclosures. And since they are exempted from the California Seller's Transfer Disclosure Statement, real estate agents working either for them or for you, said agents are required to give you disclosure statements.
If you are planning to ask a bank for financing on REO properties, do not get your hopes to high. They usually don’t provide such service. In some cases though, it could happen especially if you are purchasing a property with extensive damage they are not willing to pay to be repaired.
Making An Offer
Prior to making an offer for an REO property, you should cover your bases which includes the following:
- Inspection reports, whether they the bank can provide them or not.
- Repairs that the bank will shoulder
- If the bank offers a special deal for "as is" properties
- The time it takes for the bank to reply to an offer
- The manner of which the offer is delivered to the mortgage company
Monday, October 11, 2010
Thursday, October 7, 2010
The E-Zone
E-Zone
The "E-Zone" is the working name of a revitalization project for the core tourist area around the Ocean Center, Peabody Auditorium, Boardwalk and Main Street. The process of creating a master plan, which will attract investment and guide redevelopment, is currently underway.
The intent is to retain the authenticity of Daytona Beach, while capitalizing on its world renowned name to help the area realize its full potential.
What is the E-Zone project?The E-Zone is envisioned as a world-class entertainment district that will complement the Ocean Center, further Daytona Beach’s image as a convention and family tourist destination, and reinforce the City’s international reputation as the “World’s Most Famous Beach.”
Why E-Zone? Why now?
As a city accustomed to the fluctuations of seasonal visitors destined for the “World’s Most Famous Beach” and large off-season big events with a regional draw, Daytona Beach is uniquely positioned to attract investment, revitalize its core and expand its economic base by both: 1) scaling and broadening its beach-oriented entertainment offering; and, 2) claiming greater status as an event city. We see substantial place-based “hidden assets” in Daytona Beach which can be leveraged to achieve the city’s goal to attract nostalgic visitors, first-time vacationers and convention meetings. The city has envisioned this location as a convention destination since the Main Street Community Redevelopment Area Plan of 1981, but has faced significant challenges in realizing that goal.
Hasn’t something similar been done before? How will this be different?
In determining the project approach, we found ourselves brainstorming about an entertainment (retail) zone in a challenged economic environment, both locally and nationally, with a proposed program that is anchored by convention hospitality. This program is highly competitive in any market - but in Daytona Beach even more so, since the biggest convention destination on the planet is just 45 minutes away. It is our position that a conventional process using conventional methods of programming and financing led by a conventional team will result in a plan that is not consumable by the development and hospitality industries, funding a process that succeeds only in reaching a new starting line rather than an implementable project. Our team is structured around a simple premise: that this project on this site at this time presents a complex set of problems that require a customized and innovative solution to achieve success.
We believe that process and outcome ultimately define one another. To achieve an unconventional outcome, this project requires an unconventional process. Our mission is to create a magnetic place for people, a place of high design quality which exudes that electric feeling of a memorable destination. This is easy to envision yet hard to do. We propose a task force approach led by AECOM’s Real Estate + Strategy team with Entertainment Retail Visioning led by Rockwell Group. Our process will be structured around strategic inputs by designers, economists and a panel of developers and operators who are active in Florida - the people who build and run the types of development that this site seeks to attract. These “twin towers” of vision and implementation will lead to a compelling definition of not only what to do, but how to do it. Our goal is not only to create a compelling vision for the E-Zone, but to ensure that the vision is implementable and realized by the development community in partnership with the City. These are challenging times requiring a “break from convention” and the AECOM + Rockwell Group Team have the vision and real estate acumen to deliver.
The "E-Zone" is the working name of a revitalization project for the core tourist area around the Ocean Center, Peabody Auditorium, Boardwalk and Main Street. The process of creating a master plan, which will attract investment and guide redevelopment, is currently underway.
The intent is to retain the authenticity of Daytona Beach, while capitalizing on its world renowned name to help the area realize its full potential.
What is the E-Zone project?The E-Zone is envisioned as a world-class entertainment district that will complement the Ocean Center, further Daytona Beach’s image as a convention and family tourist destination, and reinforce the City’s international reputation as the “World’s Most Famous Beach.”
Why E-Zone? Why now?
As a city accustomed to the fluctuations of seasonal visitors destined for the “World’s Most Famous Beach” and large off-season big events with a regional draw, Daytona Beach is uniquely positioned to attract investment, revitalize its core and expand its economic base by both: 1) scaling and broadening its beach-oriented entertainment offering; and, 2) claiming greater status as an event city. We see substantial place-based “hidden assets” in Daytona Beach which can be leveraged to achieve the city’s goal to attract nostalgic visitors, first-time vacationers and convention meetings. The city has envisioned this location as a convention destination since the Main Street Community Redevelopment Area Plan of 1981, but has faced significant challenges in realizing that goal.
Hasn’t something similar been done before? How will this be different?
In determining the project approach, we found ourselves brainstorming about an entertainment (retail) zone in a challenged economic environment, both locally and nationally, with a proposed program that is anchored by convention hospitality. This program is highly competitive in any market - but in Daytona Beach even more so, since the biggest convention destination on the planet is just 45 minutes away. It is our position that a conventional process using conventional methods of programming and financing led by a conventional team will result in a plan that is not consumable by the development and hospitality industries, funding a process that succeeds only in reaching a new starting line rather than an implementable project. Our team is structured around a simple premise: that this project on this site at this time presents a complex set of problems that require a customized and innovative solution to achieve success.
We believe that process and outcome ultimately define one another. To achieve an unconventional outcome, this project requires an unconventional process. Our mission is to create a magnetic place for people, a place of high design quality which exudes that electric feeling of a memorable destination. This is easy to envision yet hard to do. We propose a task force approach led by AECOM’s Real Estate + Strategy team with Entertainment Retail Visioning led by Rockwell Group. Our process will be structured around strategic inputs by designers, economists and a panel of developers and operators who are active in Florida - the people who build and run the types of development that this site seeks to attract. These “twin towers” of vision and implementation will lead to a compelling definition of not only what to do, but how to do it. Our goal is not only to create a compelling vision for the E-Zone, but to ensure that the vision is implementable and realized by the development community in partnership with the City. These are challenging times requiring a “break from convention” and the AECOM + Rockwell Group Team have the vision and real estate acumen to deliver.
Our approach is centered on the goals of value creation and focused on the end game that no plan can maximize value unless it is executed. Value creation occurs as both a tangible financial measure and as an intangible outcome of place making such as creating authentic character that is memorable and rooted in place, or achieving the translation of a place into a brand. Starting with the end game that something is going to be developed is essential because of the difficult economic and programmatic challenges at hand. The gap between planning and development, which in good times may present only minor hurdles, brings stark realities and failures when margins are slim, financing is scarce, and risks are high. To successfully realize plans for the E-Zone, this gap must be closed. It is our task to create a framework that will successfully catalyze reinvestment and create a place that inspires pride in the City of Daytona Beach.
APPROACH
With value creation and the end game as the two guiding principles informing our approach, the team asserts that it is necessary to disrupt the standard flow of tasks that typically characterize a design and masterplanning process - typically beginning with an analysis of existing conditions and ending with an illustrative plan and written guidelines. We propose instead to approach the problem like a development team, starting with an inventory of assets and rights, and ending with a project and program ready to move into design and construction.
In the end, our approach will result in the same basic deliverables as the traditional process, but with fundamental differences in how we get there. We are co-led by design visionary David Rockwell and development professional Chris Corr, who has decades of experience in large project realization as a leading Florida development industry executive. We are furthermore informed by a panel of developers, some with a strong local presence and others with hospitality or convention expertise.
The team will insert real estate strategy into the planning process at every stage, fundamentally changing how deliverables are envisioned, vetted, and produced. We will simultaneously engage in an active public process to ensure that the ultimate residents and users of the E-Zone have a strong voice in its realization. Our premise is that to achieve true value creation, a project must go beyond the proforma and venture into the realm of human experience.
How long will it take to develop a master plan?
The development of a master plan is a 6-month process, which has been condensed in response to the high level of excitement and support in the community and a desire to see implementation actions occur. The team has held a kickoff meeting with the Community Redevelopment Agency and has been conducting Stakeholder interviews since the project kicked off in early May.
http://www.codb.us/ezone
APPROACH
With value creation and the end game as the two guiding principles informing our approach, the team asserts that it is necessary to disrupt the standard flow of tasks that typically characterize a design and masterplanning process - typically beginning with an analysis of existing conditions and ending with an illustrative plan and written guidelines. We propose instead to approach the problem like a development team, starting with an inventory of assets and rights, and ending with a project and program ready to move into design and construction.
In the end, our approach will result in the same basic deliverables as the traditional process, but with fundamental differences in how we get there. We are co-led by design visionary David Rockwell and development professional Chris Corr, who has decades of experience in large project realization as a leading Florida development industry executive. We are furthermore informed by a panel of developers, some with a strong local presence and others with hospitality or convention expertise.
The team will insert real estate strategy into the planning process at every stage, fundamentally changing how deliverables are envisioned, vetted, and produced. We will simultaneously engage in an active public process to ensure that the ultimate residents and users of the E-Zone have a strong voice in its realization. Our premise is that to achieve true value creation, a project must go beyond the proforma and venture into the realm of human experience.
How long will it take to develop a master plan?
The development of a master plan is a 6-month process, which has been condensed in response to the high level of excitement and support in the community and a desire to see implementation actions occur. The team has held a kickoff meeting with the Community Redevelopment Agency and has been conducting Stakeholder interviews since the project kicked off in early May.
http://www.codb.us/ezone
Monday, October 4, 2010
The Real Estate-ment: Foreigners buying Real Estate in Florida
The Real Estate-ment: Foreigners buying Real Estate in Florida: "Foreigners buying Real Estate in Florida More and more foreign buyers are coming to Florida for home ownership. More than a quarter of Rea..."
Foreigners buying Real Estate in Florida
Foreigners buying Real Estate in Florida
More and more foreign buyers are coming to Florida for home ownership.
More than a quarter of Realtors, 28 percent, reported working with at least one international client in the past year.
Eighteen percent of all Realtors were estimated to have completed at least one international sale.Twelve percent last year.
$41 billion invested. $66 billion including recent immigrants and visa holders.
Low mortgage rates have fueled the increase in overseas sales in 39 states. Half the sales have come from four states in particular; Arizona, California, Florida and Texas. The majority of foreign buyers bought in the south; great for Florida's come back. The biggest percentage of purchases came from our northern neighbors and the second in line were south of the border. 66 percent bought a single-family home, compared to 23 percent buying a condo, 8 percent a townhouse and only 3 percent commercial property. 55 percent of the foreign purchases closed with cash money. Cash is king. It is very hard to receive financing on certain properties such as condos due to foreclosures that kill a home owners association.
With credit being an issue, Florida and the rest of the country will thrive with these cash heavy out of towners.
More than a quarter of Realtors, 28 percent, reported working with at least one international client in the past year.
Eighteen percent of all Realtors were estimated to have completed at least one international sale.Twelve percent last year.
$41 billion invested. $66 billion including recent immigrants and visa holders.
Low mortgage rates have fueled the increase in overseas sales in 39 states. Half the sales have come from four states in particular; Arizona, California, Florida and Texas. The majority of foreign buyers bought in the south; great for Florida's come back. The biggest percentage of purchases came from our northern neighbors and the second in line were south of the border. 66 percent bought a single-family home, compared to 23 percent buying a condo, 8 percent a townhouse and only 3 percent commercial property. 55 percent of the foreign purchases closed with cash money. Cash is king. It is very hard to receive financing on certain properties such as condos due to foreclosures that kill a home owners association.
With credit being an issue, Florida and the rest of the country will thrive with these cash heavy out of towners.
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