Beth Brown's Real Estate Blog

McIntosh offers bleak news on Naples real estate market

2009-11-16T11:18:00.000-08:00

NAPLES — There was no sugarcoating it.
Naples broker Ross McIntosh had very little good to say in his annual snapshot of the local housing market Wednesday night.
His speech — given at the Quail West Golf & Country Club off Bonita Grande Drive in North Naples — drew a crowd of more than 150. Those hoping for some good news didn’t hear much of it as McIntosh focused on the facts, including statistics about building permits that he described as shocking.
It was his 21st annual presentation. His title, “Whodathunkit,” fit the tone of his straight-talking speech as he touched on foreclosures, falling home and land prices, shrinking new home permits and cancelled projects.
He described the situation for home builders as “dismal,” mentioning only a few bright spots in the market where new homes continue to be built.
After doing the research for his snapshot, McIntosh, founder of REO Accelerated Disposition Associates in Naples, said he was surprised to learn just how many builders have been idle this year.
In 2008, 83 builders pulled at least one single-family or multi-family permit in Collier County. So far this year, 44 builders have been active, McIntosh said.
In Lee County, 175 builders pulled residential permits in 2008. That compares with 68 so far this year, McIntosh said.
Through September, 737 building permits had been pulled in Collier County. That compares with 934 in 2008.
In Lee County, 696 building permits were issued through the first nine months of this year. In 2008, there were 1,547.
In Collier, Marbella Lakes by G.L. Homes, located off Livingston Road between Pine Ridge Road and Golden Gate Parkway, has been the “single-family hot spot,” McIntosh said. The builder has pulled 119 permits so far this year, he said.
Two other communities — Lely Resort by Stock Development and VeronaWalk by Pulte Homes — each had 44 permits issued. They were the most active communities after Marbella Lakes.
Next in line was Heritage Bay by Lennar Homes with 39 permits pulled.
In Lee County, the top builder this year is Centex Homes, which has pulled 87 single-family permits — most of them at The Plantation. That compares with 131 in 2008.
Coming in behind Centex is D.R. Horton, which has pulled 69 single-family permits so far this year in Lee.
He described Lee as “ground zero for the foreclosure industry,” saying a bottom has finally been found in Lehigh Acres at about $50,000. The same home in the Naples area would go for twice that, McIntosh said.
He said multi-family projects are almost non-existent in Lee County this year
“There are two builders of multi-family,” McIntosh. “It’s a short subject.”
Centex Homes and Taylor Morrison are the two builders. They pulled permits for 42 units at four projects: The Plantation, Lucaya, Verandah and Tortuga.
He touched on the new town of Ave Maria in eastern Collier County, saying only 10 permits have been pulled this year. Other “new towns” have been postponed.
One investor, who hoped to build a new town in the city of North Port in Sarasota County, is now involved in foreclosure, McIntosh said. “Another new town dream dashed,” he said.
When builders do pull permits they are often dragging along a “ball and chain” from the boom, when they paid inflated prices for land and invested millions to start up new communities that have since been devalued by a housing slump.
Some builders invested millions in land they had hoped to put homes on that now has “no prospective use,” McIntosh said.
“Clearly this was a bubble market,” he said. “Southwest Florida is the poster child for a bubble market.”
He described the “living language” of today including such words as blanket receivership, capitulation, Chinese drywall, jobless recovery, strategic default and W-shape recession.
Two years ago, no one knew what Chinese drywall was and now it’s proving to be a costly problem for builders. Homeowners have complained the material — also known as sheetrock — has led to health problems and metal corrosion.
Here and around the county, many have filed lawsuits over Chinese drywall seeking damages. McIntosh expects many more suits will come.
McIntosh talked about several senior housing projects that have fallen through in Southwest Florida. Potential buyers are having trouble selling their other homes so demand has softened, he explained.
He was stunned a few months ago when Bonita Bay Group announced that it would not build the North River Village project in eastern Lee County after it fell behind on payments for the land.
For him, he said, it was a real “whodathunkit moment.”
He listed some of the local banks that have failed and said he expects there to be more locally and across Florida.
He didn’t offer any optimism in closing his speech. “This is it,” he said. Get used to it. Get to work.”
After his speech, one listener said she hoped for some sugar at the end. Others said they aren’t as pessimistic about the local market.
“There are definitely bright spots and I don’t think that he got that across,” said Patty Campbell, president of G.L. Homes’ Southwest Florida division.
She said he didn’t touch on all the homes that builders have sold this year that were in inventory, which is key to the market turnaround.
“The big dogs that built Naples, which are Centex and WCI, are in limbo right now,” Campbell said. “Eventually, they are going to get it back together again.”
Claudine Leger-Wetzel, director of marketing and sales for Stock Development, said her company is optimistic about 2010.
So far this year, there have been 131 new home sales in Lely Resort. Last week more than 70 registered visitors to the community’s sales center.
“Those are pretty strong numbers for the fall,” she said. “Prospects are coming into our center with optimism and interest in new home purchases.”

By By LAURA LAYDEN - Posted November 12, 2009 - NaplesNews.com

Beth Brown, P.A., GRI, ABR
Coldwell Banker
550 Fifth Ave S.
Naples, FL 34102
Cell 239-250-2408
Fax 1-866-814-2967
BethBrownRealtor@comcast.net
http://www.callnapleshome.com/
http://www.naplesforeclosurereo.com/

SALES UP 87 PERCENT - Report Shows Inventory Declines 13 Percent

2009-09-14T10:05:00.001-07:00

NAPLES, Fla.-September 11, 2009-Buyer conditions couldn’t be better in the Naples area as August culminated in strong sales, according to a report released by the Naples Area Board of REALTORS® (NABOR), which tracks home listings and sales within Collier County (excluding Marco Island).

Overall pending sales, which are a key indicator of buyer activity, increased 87 percent with 862 contracts in August 2009 compared to 461 contracts in August 2008.

“Consumer confidence continues as every geographic area experienced an increase in both pending sales and closed sales, for the 12 months ending August 2009,” said Phil Wood, President of John R. Wood REALTORS®.

“For the 12 months ending August 2009, the Naples area pending sales increased 47 percent compared to all of 2008. This signifies the market is improving,” stated Jo Carter, President of Jo Cater & Associates.

The report provides annual comparisons of single-family home and condo sales (via the SunshineMLS), price ranges, geographic segmentation and includes an overall market summary. The statistics are presented in chart format, along with the following analysis:

Overall closed sales saw a 38 percent increase with 545 sales in August 2009 compared to 395 sales in August 2008.

Single-family pending sales increased 86 percent with 483 contracts in August 2009 compared to 260 contracts in August 2008.

Single-family pending sales for properties less than $300,000 saw a 106 percent increase with 344 contracts in August 2009 compared to 167 contracts in August 2008.

The available inventory decreased 13 percent to 9,163 in August 2009 compared to 10,532 in August 2008.

According to Brenda Fioretti, Managing Broker of Prudential Florida Realty, “The average days a property was on the market decreased 21 percent to 160 in August 2009, down from its peak of 202 days on the market in May 2008. This decrease demonstrates that buyers are motivated.”

Condo pending sales increased 89 percent with 379 contracts in August 2009 compared to 201 contracts in August 2008.

“The condo market continues to improve as pending sales increased 90 percent in August 2009. This bodes well for some condo associations that are facing budgetary issues,” stated Bill Poteet, President of Poteet Properties.

By the Naples Area Board of Realtors - September 2009

Beth Brown, P.A., GRI, ABR
Coldwell Banker
550 Fifth Ave S.
Naples, FL 34102
Cell 239-250-2408
Fax 1-866-814-2967
BethBrownRealtor@comcast.net
http://www.callnapleshome.com/
http://www.naplesforeclosurereo.com/

Not all qualify for first-time home buyer tax credit

2009-09-04T14:42:00.000-07:00

Buyers expecting to get the first-time home buyer tax credit should check the fine print. They may not qualify.

After closing on his first home earlier this week, 83 year-old Alget Campbell got some disappointing news Thursday: He would not qualify for the first-time home buyer tax credit.

The fine print of the tax provision, which gives a credit of up to $8,000 to buyers who have not owned a home in the last three years, disqualifies individuals whose spouses have owned a home during that same period.

Michael Dobzinski, a spokesman for the Internal Revenue Service, said there are plenty of misconceptions about the so-called first-time home buyer tax credit so it always pays to be familiar with the details before buying.

In Campbell's case, his wife, Hermine, owns the home in Southwest Miami-Dade County the couple has occupied and plans to rent out to cover the mortgage on the townhome they bought for some $71,000 on Monday.

Joan Grant, Campbell's daughter who helped him through the home buying process, said she was disappointed that her father, a former Publix clerk, would not be getting the credit.

"We were hoping for that, but it's kind of late now to worry about it,'' Grant said. "I was hoping that he would get it since he is actually buying this on his own.''

Marcia Pennant, Campbell's real estate agent, said she had told the couple she was not sure they would qualify, but to consult their tax advisor.

Dobzinski, of the IRS, said to get the credit, an individual or spouse cannot have owned a home three years prior to the date of the new purchase.

Also, to keep the credit, homeowners must use the home as their primary residence for three years.

In addition, the purchase must occur on or after Jan. 1 of this year, but before Dec. 1.

The tax credit is equal to 10 percent of the purchase price of the home, up to $8,000. So, had Campbell qualified, he would have gotten a roughly $7,100 credit.

Dobzinski said people often think they will get the tax credit instantly when, in fact, it requires them to either amend their 2008 tax return or wait until they file for 2009. Because it is a tax credit, a buyer who owed no taxes would get a check of up to $8,000.

If taxes are owed, the credit could knock up to $8,000 off the bill.

The credit is phased out for single filers with a modified gross adjusted income of more than $75,000 a year and married couples filing jointing with incomes above $150,000.

Dobzinski said home buyers should consult with their tax advisor to determine whether they qualify. They can also visit www.irs.gov or call the IRS at 800-829-1040.

BY MONICA HATCHER
THE MIAMI HERALD
SEPTEMBER 2009

Beth Brown, P.A., GRI, ABR
Coldwell Banker
550 Fifth Ave S.
Naples, FL 34102
Cell 239-250-2408
Fax 1-866-814-2967
BethBrownRealtor@comcast.net
www.CallNaplesHome.com
www.NaplesForeclosureREO.com

10 Reasons to Buy NOW!

2009-08-31T13:58:00.000-07:00

1) Section, variety, choices! It’s never been better; it’s like being a kid in a candy store.

2) Make an offer. Back up a couple of years, when you made the offer you had to compete with several others. Many times you had to pay higher than the listing price in hopes of being the best offer!

3) No bidding wars. There is no competitive bidding in this market.

4) Few, if any investors. Statistics say that 1/3 of all sales in 2005 were investors. This caused the market to inflate unrealistically and mortgage loans were given on a handshake.

5) Real loans are available to qualified buyers. Fixed rates are back, FHA financing, first time homeowner programs and special loans for teachers and police officers are back. Mortgage loan rates are at a historical all time low.

6) Plenty of time to browse. In the hot market, buyers were rushed; they had to find the house before somebody else did and hurry to make an offer. Now you can look a several homes and take a few hours to think about your decision.

7) Plenty of builder homes available. In the past when you wanted a brand new home you had to get on waiting lists, enter a lottery and attend a party to see if you won or sleep in your car in order to be at the front of a line when a new development was announced. No more waiting and builders are offering great incentives to new buyers.

8) Repair request are honored. Back in the day, when a buyer completed the home inspection, the decision was usually “do I take it as is or move on.” Backup offers were common and buyers didn’t want to upset the sellers who knew their home value was increasing daily.

9) Due diligence is protocol again. Buyers are back to basics getting their termite, mold, radon and home inspections as well as putting appraisal contingencies back into the contracts. Buyers have the advantage of feeling good about making sure they are getting what they paid for.

10) Pride of ownership and mortgage interest deductions. Pride of ownership is the number one reason that people want to own their own home. It means you can paint, modify and decorate to your own taste. You are also investing in your future and you can deduct the interest you pay on your mortgage from your taxable income.

So what are you waiting for? The time to buy is NOW!

Beth Brown P.A., GRI, ABR
Coldwell Banker
550 5th Ave S.
Naples, FL 34102
Cell 239-250-2408
Fax 866-814-2967
BethBrownRealtor@comcast.net
http://www.callnapleshome.com/
http://www.naplesforeclosurereo.com/

2008 Cost vs. Value Report: Still Many Happy Returns for Home Rehabs

2009-08-26T14:42:00.000-07:00

Remodeling magazine's annual report shows that maintenance-related projects and moderately priced upgrades are providing stable paybacks, even in a slower market.

Despite home price drops in many cities, remodeling projects are holding their own as a way for owners to add value.

Many people are wondering where their money will be safest during these uncertain economic times. When home owners turn to you for your expert advice, counsel them that some things never change: Investing in their home still pays off.

NATIONAL ASSOCIATION OF REALTORS® statistics show that home prices have fallen by an average of 7 percent nationally in the past year. But the value of home owners’ investment in remodeling projects has declined only 3.86 percent on average between 2007 and 2008, according to Remodeling’s 2008–2009 Cost vs. Value Report.

Remodeling produces the Cost vs. Value Report each year in cooperation with REALTOR® magazine. REALTORS® responding to a survey in midsummer said home owners could expect to recoup a national average of 67.3 percent of their investment in 30 different home improvement projects. At the height of the housing boom in 2005, home owners could expect to recoup a national average of 86.7 percent on projects.

Remodeling remains hot in 10 cities, where, on at least some projects, home owners can recover 100 percent of their costs. In Charlotte, N.C., for example, decks, midrange kitchen remodels, vinyl siding, and window-replacement projects all would net more than they cost, in respondents’ estimation. High rates of recovery were seen in both strong real estate markets and weak ones.

Many cities with the highest rates of recovery were smaller—Jackson, Miss., and Billings, Mont., for example—which may point to lower labor and materials costs that are easier to recoup.

Seattle also made the list of cities with a cost recovery of more than 100 percent on decks and minor kitchen remodels. In fact, Pacific Coast cities recorded the best payback on remodeling by a wide margin, as they did in 2007. Although construction costs on the Pacific Coast are nearly 17 percent higher than national averages, the value of renovations at resale more than makes up for those higher prices.

The result is an average cost-recouped percentage that’s 14.8 percent higher than in the rest of the country. The toughest place to get your money back: Midwestern cities such as Chicago, Cleveland, Indianapolis, and Milwaukee.

Top 10 Project Paybacks

Once again, exterior remodeling projects lead the way for recovery on dollars spent in this year’s Cost vs. Value survey. When you compare the national averages, replacement projects that boost curb appeal—siding, windows, and decks—give you the greatest chance of recouping your money. Inside, only kitchen remodels can compare, at least on a national level.

1. Upscale fiber cement siding (86.7%)
2. Midrange wood deck (81.8%)
3. Midrange vinyl siding (80.7%)
4. Upscale foam-backed vinyl (80.4%)
5. Midrange minor kitchen remodel (79.5%)
6. Upscale vinyl window replacement (79.2%)
7. Midrange wood window replacement (77.7%)
8. Midrange vinyl window replacement (77.2%)
9. Upscale wood window replacement (76.5%
10. Midrange major kitchen remodel (76.0%)

By G.M. Filisko December 2008

Beth Brown P.A., GRI, ABR
Coldwell Banker
550 5th Ave S.
Naples, FL 34102
Cell 239-250-2408
Fax 866-814-2967
BethBrownRealtor@comcast.net
http://www.callnapleshome.com/
http://www.naplesforeclosurereo.com/

Moving Done Right

2009-08-26T14:33:00.000-07:00

With more than 40 million Americans moving each year, the Department of Transportation (DOT), which oversees the moving industry, receives up to 4,000 complaints each year. Most of these complaints stem from damaged goods and overcharging. If you have clients planning a move, here are some important tips they should consider.

Qualify the mover. Ask to see the movers’ DOT registration. Most complaints involve “rogue movers,” which are companies that operate without the proper certifications. Check their reputability on Angie’s List (angieslist.com) and the Better Business Bureau (bbb.org). Avoid any mover that offers quotes over the phone or the Internet. Instead, get at least three written estimates from separate professional movers that require an in-home inspection before providing a quote. Be wary of any quote substantially lower than others you get. The tactic of low balling to get the job and then demanding additional charges to cover actual costs is all too common.

Know your estimate. Professional movers offer different kinds of estimates. They can include binding and, more often, non-binding estimates with a guaranteed not-to-exceed price. Discuss all options and identify in writing any exclusions to the guaranteed not-to-exceed price.

Get additional insurance. The default insurance that movers provide is called valuation coverage, which assumes liability for no more than 60 cents per pound per item. Meaning: The 32" Sony LCD HDTV that cost $497.99 will fetch $15 if found damaged upon delivery. Fortunately, movers offer additional insurance policies in which you can pay to cover depreciation value or even replacement cost. Regardless of the type of insurance, notify the mover in writing about any articles of high value.

Finally, do not sign a delivery receipt for your household goods if it contains any language about releasing the moving company from liability. By law, anyone moving has up to nine months to file a written claim. Strike out this kind of language or refuse delivery until a proper receipt is provided.

Copyright 2009 Prospect Mortgage

Beth Brown P.A., GRI, ABR
Coldwell Banker
550 5th Ave S.
Naples, FL 34102
Cell 239-250-2408
Fax 866-814-2967
BethBrownRealtor@comcast.net
www.CallNaplesHome.com
www.NaplesForeclosureREO.com

America's 10 Best Undervalued Places to Live

2009-08-18T17:06:00.000-07:00

America's 10 Best Undervalued Places to Live:
(Percent of undervaluation, according to IHS Global Insight.)
1. Las Vegas: 41 percent
2.Houston: 37 percent
3.Naples, Fla.: 33 percent
4.Oklahoma City: 29 percent
5. Sarasota, Fla. 28 percent

The real estate bust has created some attractive bargain opportunities in certain housing markets. While the national housing bust has devastated property values, it has also created some outstanding bargain opportunities for would-be home buyers—if you know where to look.

During the first half of the decade, easy credit and speculative fervor sent home prices in certain states—Florida, California, Nevada—scorching to phenomenal heights. But nearly three years into a real estate crash that's dragged home prices down 32 percent from their
2006 peaks, some of these once wildly overpriced markets present today's real estate shoppers with perhaps their best shot at long-term value. "What we have seen is that those markets that became significantly overvalued [during the housing boom] are right now very undervalued," says Jeannine Cataldi, senior economist and manager of IHS Global Insight's Regional Real Estate Service.

To pinpoint the nation's most undervalued housing markets, we turned to IHS Global Insight's first-quarter 2009 House Prices in America report, which uses household income, population density, and other data to compare a market's actual value with where it should be on a statistical basis. We then used employment, quality-of-life, and other research to determine America's best undervalued places to live.

Las Vegas. After a dizzying run-up in prices, Sin City has become a cautionary tale for real estate investors everywhere.

Since its 2006 peak, Las Vegas home values have plummeted by more than 50 percent. And today—at $77 a square foot— existing homes are actually priced below the cost of building materials, says Steve Bottfeld, the principal of Las Vegas-based People Who Read This Also Read The Top 10 Housing Markets for the Next 10 Years Top 5 Fastest- Growing States in the Union 10 Affordable Places to Retire The 10 Most Dollar- Discounted Housing Markets- 11 Best-Kept-Secret Careers

Marketing Solutions, which specializes in real estate economics. "That's truly undervalued," he says. Although the market may be depressed today, several factors will support strong housing demand in Las Vegas over the long haul, Bottfeld says. The opening of MGM Mirage's CityCenter, which is expected later this year, will bring new jobs. The city's enviable climate—hot summers and mild winters—and its exciting downtown district will continue to attract residents. And the best-in-class architectural design of area properties will appeal to would-be buyers. "We are on the bottom of prices at this point," Bottfeld says. "There is no question that the residential market in Las Vegas is undervalued." The median single family home price in Las Vegas was $140,000, in the first quarter, which IHS Global Insight considers 41 percent undervalued.

Houston. Unlike other metropolitan areas, Houston has not been hammered by the national housing bust. In fact, real home prices increased nearly 5 percent from the first quarter of 2008 to the first quarter of 2009, according to a Brookings Institution report.
But even without a sharp decline in real estate values, projected job and population growth should drive future home price appreciation and create value, says James Gaines, a research economist at the Real Estate Center at Texas A&M University. "The medium- and long-term prospects for Houston are extremely good," he says. The area's low-tax, probusiness climate will lure new employers to Houston and help bolster an already sound local economy anchored by the energy and healthcare sectors, Gaines says. More jobs, of course, mean more residents and greater demand for housing. "[Houston has] good demographic growth, job growth, and a reasonably balanced housing market," he says. The median home price in Houston was $120,000, in the first quarter, which IHS Global Insight considers 37 percent undervalued.

Naples, Fla. More than two years of price declines have turned some of Florida's most overpriced communities into buying opportunities, says Jack McCabe of Florida-based McCabe Research & Consulting. "There are definitely opportunities in the marketplace now that make sense," he says. The upscale retirement community of Naples is one such market, McCabe says. With plenty of golf, beaches, and fishing, Naples is an enchanting, sun-drenched spot along Florida's southwest coastline. And after home prices plummeted by nearly 50 percent from the first quarter of 2006 to the first quarter of 2009, the housing America's 10 Best Undervalued Places to Live . Naples market is looking increasingly tempting. IHS Global Insight considers the median home price in Naples—$200,000—to be 33 percent undervalued.

Oklahoma City. Like Houston, Oklahoma City was able to dodge the housing crash. Real home prices in Oklahoma City increased nearly 3 percent from the first quarter of 2008 to the first quarter of 2009. Housing demand was fueled by a strong local economy, which had the nation's ninth-lowest unemployment rate—5.6 percent—as of March of 2009, according to the Brookings Institution. The state's pro-business philosophy plays a key role in its economic strength, says Dawn Kennedy, the CEO of the Oklahoma City Metropolitan Association of Realtors. "Businesses come in because the tax situation is favorable," she says. "They bring in jobs, which brings in workers, which brings in homeowners." At the same time, the pleasant weather, friendly residents, and an affordable real estate market make Oklahoma City a great place to live, Kennedy says. "It is like the biggest small town on Earth." IHS Global Insight considers the median home price in Oklahoma City— $105,000—to be 29 percent undervalued.

Sarasota, Fla. Another alluring option for those looking to buy into the depressed Florida housing market is Sarasota, McCabe says. Like Naples, Sarasota is a relatively upscale community along the state's west coast. "Sarasota has got a lot of culture to it—a lot of art, a lot of art festivals," McCabe says. "It's a nice boating community, and they have got a lot of beautiful homes there." And after home prices plunged 44 percent from the first quarter of 2006 to the first quarter of 2009, the market presents would-be buyers with some attractive opportunities. IHS Global Insight considers the median home price in Sarasota— $141,000—to be 28 percent undervalued.

1. Las Vegas: 41 percent
2.Houston: 37 percent
3.Naples, Fla.: 33 percent
4.Oklahoma City: 29 percent
5. Sarasota, Fla. 28 percent
6. San Francisco: 25 percent
7. Atlanta: 24 percent
8.Omaha: 23 percent
9. College Station-Bryan, Texas: 21 percent
10.San Diego: 21 percent

By Luke Mullins Posted July 16, 2009
USNews.com

Beth Brown P.A., GRI, ABR
Coldwell Banker
550 5th Ave S.
Naples, FL 34102
Cell 239-250-2408
Fax 866-814-2967
BethBrownRealtor@comcast.net
http://www.callnapleshome.com/
http://www.naplesforeclosurereo.com/

The ins and outs of short sales

2009-08-06T16:09:00.000-07:00

Many of us have now become familiar with the term “short sale” in the context of the current real estate market. For those less familiar, this is a transaction where the seller agrees to sell the property for less than the balance owed on the seller’s mortgage. This is subject to the approval of all lien holders on the property, to the short payoff and release of the lien encumbering the property to enable the seller to deliver clear title to the buyer.

A short sale typically presents an opportunity for a buyer to purchase a property at a discount. The opportunity cost of the short sale for the buyers, however, is time. Buyers often endure many months of waiting before the seller’s lender approves the short sale. But what happens to the short sale contract if the seller files for bankruptcy protection before the short sale closing occurs?

At the time the seller files for bankruptcy protection a “snap shot” of all the seller’s assets and liabilities is taken. All of the seller’s property, except that protected by law, becomes part of the bankruptcy estate and is subject to being sold by the assigned bankruptcy trustee in the case to pay creditors. All uncompleted contracts also are listed in the bankruptcy filing, and this would include both the contract between buyer and seller as well as the contract between seller and broker. The seller lists the real estate in question in the bankruptcy petition, indicates intentions regarding that real estate, which, in the case of a property in a short sale contract under Chapter 7 bankruptcy, would typically be to abandon the property, and it is up to the assigned bankruptcy trustee then to make a determination as to whether to attempt to sell the property for the benefit of creditors or to abandon it again.

Because short sale real estate typically offers no equity for the seller, in other words, they owe more on any mortgages than the current fair market value, there is generally nothing for the bankruptcy trustee to administer or liquidate for the benefit of unsecured creditors. Because the bankruptcy trustee represents the interests of the seller/debtor’s unsecured creditors, he or she would also be likely to abandon the property after a review of its value and the liens encumbering it. The reason is that those liens must be satisfied, to the degree they can be, from sale proceeds, leaving nothing for unsecured creditors.

In a case where there is no short sale or where the trustee abandons the property, the lender will, with the bankruptcy court’s permission or upon completion of the bankruptcy case, proceed in state court with its foreclosure remedy. The lender may even pre-empt the trustee and request that the court permit the lender to proceed in state court prior to the trustee’s determination that the property will yield nothing for the bankruptcy estate.

After the state court foreclosure action, the bank will take title to the real estate, sell it and apply the proceeds to the mortgage balance. The bankruptcy discharge prohibits the lender from making any attempt to try to force the seller/debtor to make up any shortfall between the sale price of the property and what was owed on any liens against it.

However, seller’s/debtor’s attorney may also request that the bankruptcy court permit the debtor permission to go forward with the short sale transaction while the bankruptcy case is pending. The seller’s bankruptcy attorney will bring a motion in the bankruptcy court to sell the real estate. Once the court has heard the motion, an order to sell the real estate may be granted so long as the trustee has not determined that there is value in the property for the unsecured creditors and no creditor objects. Any lien holders on the property are made aware of the bankruptcy filing, as creditors in the seller’s bankruptcy, may object. However, many lenders may not object, and may continue on to approve the short payoff and the closing can still occur. This may benefit the lender because the longer the property lies empty, the lower the value the lender will receive once it finally finishes its foreclosure and then liquidates the property. It is better, then, to have a willing buyer at an acceptable price to present to the lender for short sale approval.

Although the seller cannot be held liable for the liens on the property post-discharge, there is still a possibility that he or she could incur liabilities for personal injuries on the property or code violations. Accordingly the short sale, which quickly removes title to the property from the seller’s name to that of buyer, protects the seller from such post-bankruptcy filing liabilities.

The Bradenton Herald
Published July 13, 2009

Mortgage Certificate Tax Credits-Doubling Your Borrowers’ Tax Benefits

2009-07-22T12:24:00.000-07:00

It seems like as much as things have changed, the more they stay the same. It never ceases to amaze me how the programs we used to use, are making a come back in today’s lending environment.

Mortgage Credit Certificates (MCC’s) are such a program. Best of all, it can be used in combination with the $8000 tax credit. Of course, they have to qualify for each program, but if they do, it’s a DOUBLE TAX BENEFIT!

An MCC is a dollar for dollar tax credit on a borrower’s federal tax return. This credit is used to offset a tax liability. That means in order to get the full benefit of the credit your client must have a tax liability at the end of the year.

In a nutshell, this liability is “washed” away by the tax credit.

Most borrowers create a tax liability by changing their withholdings out of their paycheck. That means more money in every paycheck. Because the amount of tax withheld from the borrowers check is decreased, this should lead to a tax liability at the end of the year. The tax liability can
be washed away dollar for dollar by the MCC credit.

Read the examples, how it works. Download copies of the IRS forms, IRS Publication 530. And always, always, refer clients to a tax advisor.

MCC’s are generally issued by State/Local Housing Finance Agencies (HFA’s) but are not offered in all states. MCC’s are generally limited to First Time Homebuyers, while some HFA’s may allow buyers in targeted geographic areas to be non-first time buyers. Generally, MCC’s are limited to
low to moderate income borrowers. Income limits vary according to the geographic location of the property and are determined by the HFA that is issuing the MCC.

An MCC credit is equal to a minimum of 10% of the interest paid by a borrower during the year and can be as high as 50% of the interest paid for some borrowers. In most cases, the MCC credit is 10 to 25% of the interest paid on a mortgage during the calendar year. The percentage of the credit is set by the HFA that issues it.

If a borrower pays $5,000 a year in interest and has a 20% MCC credit, that credit amounts to an extra $1,000 for the borrower over the year. That equals an extra $83.33 per month in the borrowers pocket and can mean as much as an extra $5k to $10k in buying power for a client. In addition for borrowers with higher debt ratios the MCC credit may help them qualify.

Borrowers using an MCC credit are qualified differently depending on the type of loan they are doing. Conventional mortgage borrowers can have the amount of the credit added back into their monthly income to help them qualify.

Borrowers using an FHA loan can choose to either have the MCC added to monthly income or used as a direct offset against the monthly payment (greatest impact on debt ratios). In most cases, you will need a copy of the commitment to issue the MCC from the Housing Finance Agency prior to closing as well as a copy of a revised W-4 showing the borrower has modified their withholding’s accordingly to create the necessary tax liability to take full advantage of the
credit.

Let’s take a look at an example:

Prior to buying a home, borrower gets a tax refund of approximately $1,500 every year. The Buyer has an estimated $5,000 per year in mortgage interest and will have an MCC for 20%. The value of the MCC is $1,000 for the year ($5,000 x 20%). In order to get the full benefit of the tax credit, the borrower must have a tax liability of $1,000. If they are currently getting aproximately $1,500 per year in refund they must modify their withholdings to reflect $2,500 ($1,500 anticipated tax refund + $1,000 MCC credit).

Past Tax Return Estimate: $1500
MCC Tax Credit $1000
Total Tax Credit $2500
Divided by 12 months = $208.33

By getting the extra $2,500 over the year the borrower will have an extra $208.33 per month in their check to use toward their house payment. At the end of the year when they file their tax return they would have a “tax liability” of $1,000. The value of the MCC would eliminate the tax liability and the borrower would get no refund but had the extra $208.33 per month to use toward their dream home.

By filing a new W-4 form with their employer; using the $208 estimate, the employer will include that extra money in the clients’ paycheck. If you’ve even seen a W-4 form, it’s a 2-page form, with lots of questions and figures. However, your client does not have to go thru the formulas— they can just write down a flat dollar amount on the page where they sign their name. As for couples, filing jointly, who are both employed, they can split that dollar amount any way they choose. —Again by filing a new W-4 form. One person may file for $150 and the other for $58.33.

Sure beats giving the government an interest free loan!

Keep in mind, the amount of interest that can be claimed on a borrowers Schedule A is reduced by the value of the MCC credit. In this example, the borrower paid $5,000 in interest over the year. However, the value of the MCC was $1,000. Schedule A mortgage interest deduction is limited to $4,000 ($5,000 interest paid - $1,000 MCC benefit).

So what happens is they don’t use the entire tax credit? If the borrower does not withhold correctly and they do not get the full benefit of the entire tax credit, they can carry the value of that credit forward for as long as three years and take advantage of it next year. If the MCC credit rate is higher than 20%, the maximum credit is $2,000 per year. In addition, any amount over $2,000 cannot be carried forward to following years for borrowers whose credit exceeds 20%.

If a homeowner refinances, some HFA’s will reissue the MCC for the new loan but will likely limit the amount of the benefit to mirror at best the original loan terms. In no cases will the IRS allow the credit on a refinanced loan to exceed the original MCC credit. In addition, not all HFA’s will allow a borrower who refinances to maintain their MCC.

Like a mortgage bond program, if the home is sold within the first nine years the borrower may be subject to a recapture tax depending on if the home was sold for a profit and what their income is at the time of sale.

Most Housing Finance agencies have a fee for issuing a MCC. The fee can vary from agency to agency. Check with your local or state Housing Finance Agency to see if an MCC is available in your area.

By learning what the terms and guidelines are, you can use this as a tool to get more lead from first time buyers.

By Dan Moralez, Staff Writer, www.MortgageCurrentcy.com
Sr. VP First Place Bank

2009-03-24T05:53:00.000-07:00

MARCH 23, 2009
My Plan for Bad Bank Assets
The private sector will set prices. Taxpayers will share in any upside.

By TIMOTHY GEITHNER

The American economy and much of the world now face extraordinary challenges, and confronting these challenges will continue to require extraordinary actions.

No crisis like this has a simple or single cause, but as a nation we borrowed too much and let our financial system take on irresponsible levels of risk. Those decisions have caused enormous suffering, and much of the damage has fallen on ordinary Americans and small-business owners who were careful and responsible. This is fundamentally unfair, and Americans are justifiably angry and frustrated.

The depth of public anger and the gravity of this crisis require that every policy we take be held to the most serious test: whether it gets our financial system back to the business of providing credit to working families and viable businesses, and helps prevent future crises.

Over the past six weeks we have put in place a series of financial initiatives, alongside the Recovery and Reinvestment Program, to help lay the financial foundation for economic recovery. We launched a broad program to stabilize the housing market by encouraging lower mortgage rates and making it easier for millions to refinance and avoid foreclosure. We established a new capital program to provide banks with a safeguard against a deeper recession. By providing confidence that banks will have a sufficient level of capital even if the outlook is worse than expected, more credit will be available to the economy at lower interest rates today -- making it less likely that the more negative economy they fear will take place.

We started a major new lending program with the Federal Reserve targeted at the securitization markets critical for consumer and small business lending. Last week, we announced additional actions to support lending to small businesses by directly purchasing securities backed by Small Business Administration loans.

Together, actions over the last several months by the Federal Reserve and these initiatives by this administration are already starting to make a difference. They have helped to bring mortgage interest rates near historic lows. Just this month, we saw a 30% increase in refinancing of mortgages, which means millions of Americans are taking advantage of the lower rates. This is good for homeowners, and it's good for the economy. The new joint lending program with the Federal Reserve led to almost $9 billion of new securitizations last week, more than in the last four months combined.

However, the financial system as a whole is still working against recovery. Many banks, still burdened by bad lending decisions, are holding back on providing credit. Market prices for many assets held by financial institutions -- so-called legacy assets -- are either uncertain or depressed. With these pressures at work on bank balance sheets, credit remains a scarce commodity, and credit that is available carries a high cost for borrowers.

Today, we are announcing another critical piece of our plan to increase the flow of credit and expand liquidity. Our new Public-Private Investment Program will set up funds to provide a market for the legacy loans and securities that currently burden the financial system.
The Public-Private Investment Program will purchase real-estate related loans from banks and securities from the broader markets. Banks will have the ability to sell pools of loans to dedicated funds, and investors will compete to have the ability to participate in those funds and take advantage of the financing provided by the government.

The funds established under this program will have three essential design features. First, they will use government resources in the form of capital from the Treasury, and financing from the FDIC and Federal Reserve, to mobilize capital from private investors. Second, the Public-Private Investment Program will ensure that private-sector participants share the risks alongside the taxpayer, and that the taxpayer shares in the profits from these investments. These funds will be open to investors of all types, such as pension funds, so that a broad range of Americans can participate.

Third, private-sector purchasers will establish the value of the loans and securities purchased under the program, which will protect the government from overpaying for these assets.
The new Public-Private Investment Program will initially provide financing for $500 billion with the potential to expand up to $1 trillion over time, which is a substantial share of real-estate related assets originated before the recession that are now clogging our financial system. Over time, by providing a market for these assets that does not now exist, this program will help improve asset values, increase lending capacity by banks, and reduce uncertainty about the scale of losses on bank balance sheets. The ability to sell assets to this fund will make it easier for banks to raise private capital, which will accelerate their ability to replace the capital investments provided by the Treasury.

This program to address legacy loans and securities is part of an overall strategy to resolve the crisis as quickly and effectively as possible at least cost to the taxpayer. The Public-Private Investment Program is better for the taxpayer than having the government alone directly purchase the assets from banks that are still operating and assume a larger share of the losses. Our approach shares risk with the private sector, efficiently leverages taxpayer dollars, and deploys private-sector competition to determine market prices for currently illiquid assets. Simply hoping for banks to work these assets off over time risks prolonging the crisis in a repeat of the Japanese experience.

Moving forward, we as a nation must work together to strike the right balance between our need to promote the public trust and using taxpayer money prudently to strengthen the financial system, while also ensuring the trust of those market participants who we need to do their part to get credit flowing to working families and businesses -- large and small -- across this nation.
This requires those in the private sector to remember that government assistance is a privilege, not a right. When financial institutions come to us for direct financial assistance, our government has a responsibility to ensure these funds are deployed to expand the flow of credit to the economy, not to enrich executives or shareholders. These provisions need to be designed and applied in a way that does not deter the participation by the private sector in generally available programs to stabilize the housing markets, jump-start the credit markets, and rid banks of legacy assets.

We cannot solve this crisis without making it possible for investors to take risks. While this crisis was caused by banks taking too much risk, the danger now is that they will take too little. In working with Congress to put in place strong conditions to prevent misuse of taxpayer assistance, we need to be very careful not to discourage those investments the economy needs to recover from recession. The rule of law gives responsible entrepreneurs and investors the confidence to invest and create jobs in our nation. Our nation's commitment to pursue economic policies that promote confidence and stability dates back to the very first secretary of the Treasury, Alexander Hamilton, who first made it clear that when our government gives its word we mean it.

For all the challenges we face, we still have a diverse and resilient financial system. The process of repair will take time, and progress will be uneven, with periods of stress and fragility. But these policies will work. We have already seen that where our government has provided support and financing, credit is more available at lower costs.

But as we fight the current crisis, we must also start the process of ensuring a crisis like this never happens again. As President Obama has said, we can no longer sustain 21st century markets with 20th century regulations. Our nation deserves better choices than, on one hand, accepting the catastrophic damage caused by a failure like Lehman Brothers, or on the other hand being forced to pour billions of taxpayer dollars into an institution like AIG to protect the economy against that scale of damage. The lack of an appropriate and modern regulatory regime and resolution authority helped cause this crisis, and it will continue to constrain our capacity to address future crises until we put in place fundamental reforms.

Our goal must be a stronger system that can provide the credit necessary for recovery, and that also ensures that we never find ourselves in this type of financial crisis again. We are moving quickly to achieve those goals, and we will keep at it until we have done so.

Mr. Geithner is the U.S. Treasury secretary.

Going once, twice: Auctineers bid for role

2008-09-26T05:35:00.000-07:00

By Greg Burns
Chicago Tribune correspondent
September 25, 2008

Hard times can be good times for auctioneers, and if the government follows through with its $700 billion bailout plan, the folks bringing down the gavels expect to get quite a workout.That's what happened during the last financial meltdown a generation ago, when the shopping centers and apartment buildings of failed savings and loans went on the block after the government seized them. Although not everyone remembers that period fondly, it turned into a bonanza for those who played the auction game wisely, snapping up great deals at fire-sale prices. Even more real estate could be up for grabs today.This time, however, the government is planning to take over a vast amount of property indirectly, through complex investments called mortgage-backed securities, which bundle together hundreds, or even thousands, of loans.One of the great mysteries of the proposed bailout is how the government would manage the millions of homes underlying its investments.The nation's auctioneers have an inkling about how it will work out and, no surprise, the endgame as they see it does indeed involve some fast talking. If the government takes on a giant portfolio of residential real estate, some of it, and maybe a lot, inevitably will be sold at auction, they say."Ultimately, the government is going to end up being the parking lot of foreclosed housing," said Steven Good, chief executive of Chicago auctioneer Sheldon Good & Co. "We're equipped to service their business. That's where auctions would be effective."As Chicago auctioneer Rick Levin put it, "This should be a boom for the auction industry."Like other auctioneers, Levin already is in the business of unloading government-owned property seized through official action, including real estate for sale to the highest bidder. He has the official seal of the U.S. Treasury prominently displayed on the Web site of his Rick Levin & Associates.Through its takeover of mortgage giants Fannie Mae and Freddie Mac, the government owns thousands of vacant properties. Snapping up mortgage-backed securities would multiply the federal exposure to distressed homes.That would give government officials enormous market power. And their most important decision could prove to be when to exit their real estate investments.Federal Reserve Chairman Ben Bernanke stressed to Congress that the plan for helping out banks works only if the government pays more than the current market price, on the theory that the value of the distressed securities it buys will grow over time.Yet residential properties can't just be ignored while federal officials wait to realize their "hold to maturity" price. Maintenance needs to be performed, taxes and association fees paid, heat and lights kept on. At some point, homeowners who can't pay will have to clear out, and the vacant properties brought to market.As owner of the securities, the government could influence how the mortgages are serviced, deciding under what circumstances foreclosures would occur, for instance, or when to sell."I'm sure the government can impact these things," said Robert Korajczyk, professor at Northwestern University's Kellogg School of Management. "That's definitely going to happen."Enter the auctioneer.Residential real estate has become the fastest-growing sector of the live-auction industry, with sales volume rising 46.6 percent between 2003 and 2007, according to the National Auctioneers Association. Last week, the trade group sent a letter to Treasury Secretary Henry Paulson offering its services "during these trying times."Even in this environment, real estate will move, said Alan Kravets, president at Sheldon Good and a veteran of the savings-and-loan workout.Savvy investors who remember the fortunes made in those auctions will be hoping for a repeat, he predicted. "It will be easy to attract buyers," he said. "Somebody's going to be getting a great value."Government officials should consider moving quickly, Kravets added, to keep their properties from deteriorating and get the overall real-estate market moving again."This is all about recovery and mitigating losses. Time is the enemy."gburns@tribune.com
Copyright © 2008, Chicago Tribune

Auctions are becoming quiet popular call or email me if you would like to participate in the next local auction. BethBrownRealtor@comcast.net 239-250-2408

Vasari - Premier bundled golf community!

2008-09-23T19:44:00.000-07:00

Beautiful 3 bedroom, 2 bath coach home located in prestigious Vasari Golf & Country Club. You won't be disappointed with this tastefully decorated hidden jewel located off the main road on a cul-de-sac with plenty of privacy overlooking the preserve. All the right upgrades here including granite counters, stainless steel appliances, crown molding, tile on the diagonal and more. Play the 18 hole Gordon Lewis golf course, workout in the state of the art fitness center, play on the Har-Tru tennis courts, dine at the club or swim in one of the many pools throughout the community. You can have the carefree lifestyle in this bundled golf community, come and see this one it's your best buy! Great seasonal rental potential, currently rented for Jan through March 2009 ask me for details. Offered furnished at $393,750

You can email me at BethBrownRealtor@comcast.net or call at 239-250-2408

Best Buy in Delasol - NEW

2008-09-23T19:40:00.000-07:00

Brand new never lived in over 3,000 sq ft under air with 2 car extended garage. Located on a cul-de-sac with a premium lake front lot and coveted western exposure. This Mediterranean style 4 bedroom plus den, 3 bath, great room design home has an impressive kitchen that includes washed maple cabinets, island with prep sink, built in desk, over bar recessed lighting, upgraded appliances, and kitchen nook with mitered glass overlooking the lake. Additional features include tile on the diagonal throughout living areas, dramatic ceiling detail, crown molding, tray ceilings, upgraded fixtures, and much more. Delasol community consists of 286 single family homes with a state-of-the-art fitness center, tennis, clubhouse with pool and spa, sidewalks, desirable schools, and a location that make this one of Naples' most preferred neighborhoods. Asking $699,000

You can email me at BethBrownRealtor@comcast.net or call at 239-250-2408 for more information on this home.

Naples ray of sunshine in housing market, analyst says

2008-09-23T19:36:00.000-07:00

Naples ray of sunshine in housing market, analyst says

By LAURA LAYDEN
Thursday, September 18, 2008

NAPLES — In one economist’s eyes, the Naples real estate market is now seen as “slightly undervalued.”In an interview with CNBC Wednesday night, Richard Dekaser, a senior vice president and chief economist at National City Corp., singled out Naples in talking about the “first rays of sunshine on a possible end to the housing crisis.”“Three years ago, the poster child for excess valuation in America was Naples, Florida,” he said.Not anymore. Through the second quarter of this year, prices have dropped 33 percent, he said, leading him to judge the market as “slightly undervalued.” That means home prices are actually lower than where they should be.“Now it could become even more undervalued and I suspect it will,” he said in the interview. “But I think we have to appreciate the adjustment that has already occurred.”He said prices could hit bottom within six months as foreclosure rates begin to fall.“I don’t want to overstate the case,” he said. “The housing bust is not over. But we are in a later stage of stabilization,” he said.Dekaser is the same analyst who labeled Naples the most overpriced market in the U.S. a few years ago.At the end of the first quarter of 2006, National City judged that with a median home price of $383,000, prices were more than double what they should be in Naples.Prices continue to fall.In August, the median home price — the price at which half of the homes sell for more and half for less — dropped to $238,000 in the Naples area. That was down from $375,000 a year ago, according to a monthly report by the Naples Area Board of Realtors.For seven straight months, sales have picked up.It was nice to see Naples shown in a positive light in the media, especially with so much bad news going on in the banking and financial markets, said Brett Brown, president-elect for the Naples Area Board of Realtors.He said if you took out the under-$300,000 market, where most of the foreclosures and short sales are happening, the median price would have been up 5 percent in August. Short sales are sales made for less than the bank is owed to avoid foreclosure.Naples was the only market mentioned in the interview with CNBC.“It shows we haven’t fallen off a cliff,” Brown said. “We are here. Properties are selling.”To see the interview, go to www.cnbc.com/id/15840232?video=859022956

More good stuff from BethBrownRealtor@comcast.net

Important information about our market today!

2008-09-23T19:22:00.000-07:00

I know many of you are concerned about the troubled financial markets and are wondering how the federal government’s actions will help resolve the crisis. Here is the latest information on what is happening in the housing market and our position on the government’s plans to rescue Wall Street. First, take a few minutes to watch today’s President’s Podcast, featuring my latest interview with NAR Chief Economist Lawrence Yun. Although the video was shot before the government takeover of Fannie Mae and Freddie Mac, Lawrence provides valuable perspective on where the housing market is heading in 2009. http://www.realtor.org/about_nar/presidents_report/_podcast_archive/presidents_podcast_marketoutlook_20080923 Second, please read Lawrence’s September 22nd commentary, which explains the reality behind the government’s proposed “investment” in the financial markets and what’s at stake for homeowners and taxpayers.
http://www.realtor.org/research/commentary_700_billion Third, review the letter I sent to Congress earlier today, outlining our position on the Treasury’s comprehensive approach to addressing problems in the financial system.
http://www.realtor.org/gapublic.nsf/pages/gses_conservatorship?OpenDocument As the most trusted source of information in the real estate transaction, REALTORS® are in the best position to counsel consumers in this confusing market. I urge you to check Realtor.org for additional information and updates in the days and weeks ahead, and share them with your colleagues. Working “All Together,” we can overcome these challenges and ensure that homeownership continues to be the most valuable investment Americans can make.

This note was posted by Richard Gaylord...NAR president......There is a ight at the end of the tunnel.

HOME BUYERS BUY NOW MESSAGE RINGS TRUE!

2008-08-26T06:22:00.000-07:00

For people scalped by the real estate market the past couple of years, few promotional campaigns grate more than the Never Been a Better Time to Buy mantra.
(Never better? For a few frenzied months in 2004 and 2005, you could have bought a house for zero money down and flipped it painlessly for a profit of $50,000. That's assuredly better.)
Leaving that aside, it's harder to scoff at the latest pitch by the Tampa Bay Builders Association. Yes, builders are once again reassuring us it's a good time to mortgage our future on a pile of concrete, shingles and 2 by 4s.
But I think they've got most of the facts on their side this time. They were shared at Thursday's roundtable at the Tampa headquarters of the Tampa Bay Builders Association. About a half dozen builders were there, ranging from Arthur Rutenberg Homes president Bobby Lyons and Taylor Morrison division president Michael Storey to Pulte Homes' Reed Williams and Standard Pacific Homes regional president David Pelletz.
Builders face obvious pressure to sell. As a group, the industry has lost billions of dollars. Sales are less than half of what they were during the 2005 peak. But at the same time, they can drop prices only so low.
Rising material costs, from the concrete in the slab to the diesel in the dump truck, are partly absorbed by customers. Local governments charge more than $10,000 in impact fees per home to pay for roads, schools and sewer lines.
Executives from the likes of Pulte, Standard Pacific and Taylor Morrison admit prices could dip further this year from an average of about $200,000. But not by much. And while procrastinators may save $15,000 waiting six months, they could lose that amount to interest rates that a chorus of economists insist must rise to stem inflation.
Is the message getting out to the roughly 20 percent of Florida buyers who prefer a new home? Pulte and Standard Pacific report sales about 25 percent higher than they were last year. Sales of smaller homes have led the way.
Builders insist home buying is becoming less the cold economic speculation of a commodities hustler.

By James Thorner, Times Staff Writer In print: Friday, August 22, 2008

Good article, so true it is................ Beth Brown Bethbrownrealtor@comcast.net

Foreclosures a hot commodity!

2008-08-23T20:56:00.000-07:00

Everybody is looking for a good deal these days and foreclosures are abundant! Many investors are back on the prowl looking for their best deals in the land of foreclosure! Everybody wants to know if we've hit bottom yet, well the answer is nobody knows. We have been in a declining market for some time and wow, I can't even believe some of the prices out there. We are like Wal Mart and have rolled back to 2003 or 2004 pricing.

I am buying now and I'd say conditions are favorable for future value. Interest rates are great and pricing is good. If you can put enough money down to have a positive cash flow on a property than it's a no brainier, just do it!

I've talked to Realtors in other parts of the United States that I do referrals with and there are very few places that have as much inventory as we do. Yes they are slow and pricing has come down across the board but what we are experiencing here in paradise is simple economics people. Supply and demand, once we reduce our inventory to a normal level the feast will be over. Our problem developed from over building and speculative buying. Everybody wanted to get rich quick and some did but just like the pyramid game, many got caught holding the goods and they didn't pay out. The game is over and we still have many properties that have some price adjustments coming down but that will all shake out in time.

Don't kid yourself playing the "wait and see" if the interest rate creeps up you've lost that savings you were looking for. This is paradise, I've live here for 30 years and Naples is the cream of the crop. We've hit bumps in the road before in real estate but we always come back and right now we are selling a lot of properties.

Let's talk about short sales, I'm sick of them.. Yes I've sold a few but it's exhausting and the banks are taking too much time to answer offers and they don't seem to care if they get through this process. I was in banking for 16 years here in Naples and sold foreclosures on that side too. Many of the people sitting in the seats at banks being negotiators right now are costing their banks thousand of dollars! In a declining market they are throwing off deals that have offers close to market value and in the end it's costing them a fortune! These homes take months to drag through foreclosure and they sit unattended with no electricity on. By the time we get some of them after the final judement has been filed they have serious mold issues, pools are green and in rural areas all outside water equipment has been stolen as well as the a/c units.

Many of the short sales have two loans on them, a primary and an equity loan. We Realtors first have to negotiate the primary loan and then the equity line (which would get bumped off in foreclosure and get nothing) and the secondary loans are giving us so much grief. They know that they have the ability to blow the deal and they can refuse to sign off or demand more money. I'm so tired of the work out on these short sales that there are very few that I'll take. I'm only going to list your short sale if it has one loan on it.

Anyway it's an exciting word in foreclosures right now and I get new ones every week. I also have several affiliates that work foreclosures so if that' s the arena your looking in....call me
There is a plethora to look through!

If you would like a current list of the foreclosures in the area, eamil me. I'll be happy to provide one Bethbrownrealtor@comcast.net or 239 250-2408

Not soon enoough for 1.5 million homeowners!

2008-07-24T06:55:00.000-07:00

So why don't they take some of this money and purchase homes for Habitat for Hummanity and let them go through the necessary steps as usual to help low income families buy thier first homes?

Huge Housing Bill Set to Become Law
Bush Drops Veto Threat On Measure

By Lori MontgomeryWashington Post Staff WriterThursday, July 24, 2008

The House yesterday easily approved legislation that seeks to slow the steepest slide in house prices in a generation, rescue hundreds of thousands of homeowners at risk of foreclosure and reassure global markets that mortgage-finance giants Fannie Mae and Freddie Mac will not be allowed to fail.
The Senate plans to vote on the bill within days and send it to President Bush. The White House announced that Bush would sign the measure, Washington's most ambitious response to a housing crisis that has pushed more than 1.5 million families into foreclosure and shattered investors' confidence in some of the nation's largest financial institutions.
Although Bush continues to oppose a provision that offers $3.9 billion to communities devastated by foreclosures, he rescinded a veto threat after Treasury Secretary Henry M. Paulson Jr. persuaded him that the overall measure was urgently needed to stabilize the housing and credit markets, said White House press secretary Dana Perino.
"This is not the time for a prolonged veto fight, although we're confident that the president would prevail in one," Perino told reporters. "But with Congress scheduled to leave soon for yet another recess, the risk of not having a bill until the middle of September is not a risk worth taking in the current environment."
House leaders predicted that lenders would offer to forgive a portion of struggling homeowners' debt and help them trade high-cost mortgages for more affordable government-backed loans within weeks.
"I would be very disappointed if, having helped us formulate this, they don't take advantage of it," House Financial Services Committee Chairman Barney Frank (D-Mass.), said of the banks.
In addition to mortgage bankers, interest groups as varied as home builders, real estate agents and civil rights groups back the legislation. The final package was assembled during intense bipartisan negotiations between House and Senate leaders and Paulson, who approached lawmakers two weeks ago seeking emergency authority to prop up Fannie Mae and Freddie Mac after a precipitous drop in the firms' share prices.
The mortgage-finance firms, which are government-sponsored but investor-owned, together own or guarantee about half of the nation's outstanding mortgages. Concern about their financial health has destabilized the markets and is driving interest rates for home loans toward their highest level in five years.
The need to calm investors added urgency to legislation that has been wending its way through Congress since April. The measure would grant Paulson immediate but temporary authority to extend an unlimited line of credit to Fannie Mae and Freddie Mac or to buy their stock if their financial condition deteriorates sharply before December 2009.
Democrats abandoned efforts to mandate specific protections for taxpayers, such as a requirement that the companies suspend dividend payments to shareholders as a precondition of receiving federal aid. Instead, the measure instructs Paulson to set the terms of any bailout.
"We said, 'You have to protect the taxpayer, but how you do it is up to you,' " said Frank, a key sponsor of the bill. "Going to the market is a tricky business. And I think tying his hands . . . is a mistake."
The Federal Reserve Board would have "consultative" authority over Fannie Mae and Freddie Mac until the legislation expires in December 2009. The legislation also would create a strong new regulator for the firms, with explicit authority over compensation for their chief executives, who take home millions of dollars a year.
Lawmakers rejected Paulson's request to prevent any public aid to the firms from being counted as part of the federal deficit. Instead, the measure would raise the legal debt limit to $10.6 trillion -- an increase of $800 billion -- giving Paulson a large cushion should aid to the firms become necessary. As of yesterday, the national debt stood at $9.5 trillion.
Paulson has said he is unlikely to need the new authority because the firms are financially sound, and congressional budget analysts agree that it is unlikely to be implemented, saying the cost to taxpayers should be less than $25 billion. In a statement, Paulson praised lawmakers for acting quickly on a measure that would "give confidence to markets and will create a strong, independent regulator better able to address the risks these enterprises pose."
Despite the administration's call for speed, only 45 Republicans joined a largely united Democratic caucus to approve the measure in the House, 272 to 152. House Minority Leader John A. Boehner (R-Ohio) said he was "disappointed that the White House has indicated that they'll sign the bill" and urged lawmakers to vote against it, saying the plan would permit private shareholders to reap profits but stick taxpayers with losses.
"That is not responsible," said Rep. Paul D. Ryan (R-Wis.) "We should reform these institutions now. Either privatize them or publicize them."
Sen. Jim DeMint (R-S.C.) vowed to delay passage in the Senate until at least Saturday, saying he wanted to add an amendment that would bar Fannie Mae and Freddie Mac from lobbying Congress if the firms become indebted to the federal government.
In addition to the rescue plan for the mortgage-finance firms, the package includes a plan to rescue more than 400,000 homeowners at risk of foreclosure by helping them trade high-cost loans with rapidly rising monthly payments for more-affordable mortgages backed by the Federal Housing Administration. As home prices fall, many of those borrowers now owe their banks more than their homes are worth and find it impossible either to make their mortgage payments or to sell or refinance their homes.
For those borrowers, the FHA would offer to guarantee new mortgages if lenders agree to forgive a portion of the debt and permit a new loan to be issued for no more than 87 percent of the new, lower value of their properties.
The FHA, as well as Fannie Mae and Freddie Mac, would be given permanent authority to assist borrowers with much larger home loans, as the bill would increase the cap on the size of those loans to $625,000.
First-time home buyers who purchased a house from April 9, 2008, and July 1, 2009, would be eligible for a tax credit worth up to $7,500, though the credit would eventually have to be repaid to the Treasury. Homeowners who do not currently itemize would be able to claim a new property tax deduction of $500 for individuals and $1,000 for families, a provision that would primarily help older homeowners who have paid off their mortgages.
Democrats say the aid to communities to purchase vacant and foreclosed properties would help stabilize urban neighborhoods hit hard by the mortgage crisis; the administration says it would primarily benefit lenders who foreclosed on the properties.

Bank Owned ----Foreclosure

2008-07-23T18:52:00.000-07:00

Bank Owned. Needs finsih work, not FHA financiable. Being sold "as is" with right to inspect. If you like seclusion this is nice, sets well back off the road preserve view from front and back of house. Seller will pay up to $4,000 of buyers closing costs. Asking $135,000 Make an offer! Call Beth Brown at 250-2408......

610 31st St SW; NAPLES FL

2008-07-19T08:15:00.000-07:00

FORECLOSURE If you looked at this before, come and look again. ponds and pool are beautiful, yard manicured....Two story Estate pool home on 2.73 acres with 2 bedroom guest house, 3 car attached garage, 2 car detached garage, 2 horse paddocks, training arena, cages and fenced area for other animals. Bring your horses and move right in! Being sold as is with right to inspect. Needs TLC but a great value at $635,000 So close to town, you'll love the location. Bank offering up to $10,000 toward buyers closing costs! For seller financing incentives, agents and their buyers are requested to contact our designated Chase Loan Oficer Terry Griggs at 239-398-9930

SALES UP INVENTORY DOWN!!!

2008-07-19T07:59:00.000-07:00

FOR IMMEDIATE RELEASE SALES UP, INVENTORY DOWN FOR FIFTH CONSECUTIVE MONTH

June 2008 Pending Sales 63 Percent Higher Than June 2007 NAPLES, Fla. – July 15, 2008 – Now is a great time to buy, and more people are agreeing according to a report released by the Naples Area Board of Realtors® (NABOR), which tracks home listings and sales within Collier County (excluding Marco Island). "For the fifth consecutive month, we are seeing the number of pending sales increasing and the available inventory decreasing. We are seeing this trend across the broad spectrum, not just in specific price points or geographic areas," said Arlene Carozza, NABOR president and Realtor. "Overall, pending sales activity is up 63 percent over last year, with some areas well over 150 percent." In the June report, compiled by NABOR, overall sales have increased nine percent and inventory has decreased by seven percent. "I’ve seen a marked increase in the number of showings and increased interest in homes," said Mike Hughes of Downing-Frye Realty. "Choice properties that are priced right are quickly disappearing." 2
The report, which provides annual comparisons of single-family home and condo sales (via the Sunshine Multiple Listing Service), price ranges and geographic segmentation, also includes an overall market summary. The statistics are presented in chart format, along with the following analysis:

 Overall pending home sales in the greater Naples Area, which includes Naples Beach, North Naples, Central Naples, South Naples, East Naples, Immokalee and Ave Maria, increased 60 percent, with 484 in June 2008 compared to 301 in June 2007.

 Overall market sales for June 2008 in the $0-$300K category are up 58 percent with median sold price down 15 percent, compared to June 2007. Overall inventory is down seven percent.

 For single-family homes priced up to $300,000, there are 172 pending sales, up 537 percent over June 2007, when there were 27 pending sales. In the same category, sales are up to 113, a 253 percent increase over the 32 sold in June 2007.

 Pricing for single-family homes from $1 - $2 million increased by nearly eight percent.

 Overall condominium pending sales for June 2008 increased 43 percent to 197, compared to 138 in June 2007. Comparing pending sales from June 2007 and June 2008, condominiums priced up to $300,000, there is a 59 percent increase, while condominiums priced from $500,000 to $1 million are up 38 percent. For condominiums priced from $1 - $2 million, pending sales are up 30 percent from June 2007. Overall condominium inventory is down 13 percent.

"There is a new bubble of buyers on the horizon," said Mike Hughes of Downing-Frye Realty. "They are on the fence, but now it’s a matter of when they’re going to make that buying decision."
The Naples Area Board of REALTORS® (NABOR) is an established organization (Chartered 1949) whose members have a positive and progressive impact on the Naples community.

Arlene Carozza, NABOR, President, 239/877-7411

Housing market recovery on track in Collier, slower in Lee

2008-05-05T09:55:00.000-07:00

By LAURA LAYDEN Naples Daily News

Thursday, April 24, 2008

Renowned Florida economist Hank Fishkind spoke the words Naples Realtors and brokers wanted to hear.
The housing markets hit bottom in Collier County and home prices aren’t going to drop anymore, he said Thursday in a talk organized by the Naples Area Board of Realtors. “The markets are not eroding further,” said Fishkind, principal of Orlando-based Fishkind & Associates.
Prices have flattened out and if they were going to fall any more that would have happened in the last six months, he said.
However, he said it will take another six to 12 months for sales volumes to really start improving in the Naples area.
In Lee and Charlotte counties, the recovery is going to take longer because there are higher inventories of unsold homes, Fishkind said. In those counties, there was more overbuilding because land prices were so much cheaper, he said.
While he described the condominium market in Florida as a “disaster” generally because there has been so much overbuilding, he said it’s not as bad in the Naples area because the scarcity of land and high land prices have limited new development.
He described the unsold inventory of new homes in Collier County as “fairly small.”
In February, a little more than 200 existing single-family homes sold at an average price of $540,000 in Collier County, according to deed records, Fishkind said. There were more than 100 new single-family homes that sold for an average price of $375,000.
About 50 new condominiums sold for an average price of $350,000, and about 175 existing ones sold for an average price of $425,000 in February, he said.
“Basically prices are the same as in 2006,” Fishkind said.
He predicts that it will be “years” before prices go up again.
Fishkind also touched on job losses and foreclosures in Collier County.
As of March 8, the county had lost about 7,400 jobs year-over-year. In Lee County, there were 11,000 jobs lost in the same 12 months. Fishkind called it “ugly,” but said he believes the worst is over.
Statewide, more than 77,000 jobs have been lost in the last year. Many were in construction. Builders have been forced to make cutbacks with the slowdown in residential and commercial construction, and some have gone bankrupt.
Collier has been hard hit because its economy isn’t diversified and its main drivers are construction and tourism, Fishkind said.
“Employment growth is going to be modest at best over the next few years,” he said. On the foreclosure front, there have been 1,600 single-family foreclosure filings in Collier since the beginning of the year. In all of 2007, there were 1,500, Fishkind said.
For condominiums, there have been 400 foreclosure filings so far this year, almost as many as for last year.
“I think ultimately we will start to see that peak and then level off. It’s a reflection of all the adjustable rate mortgages coming due,” said Russ Weyer, a senior associate with Fishkind & Associates, in an interview after the talk.
Lee County filings have already showed signs of stabilizing, he said.
The decline in housing starts will bottom out in 2008, but don’t expect them to skyrocket again like “Mount Everest,” Fishkind said.
The housing correction, high energy prices and federal cuts in interest rates all point to a national recession, he said.
He doesn’t expect a recovery in Florida’s economy this year. He predicts that the population won’t start growing again until next year. When people start spending more that will make the difference, he said. That could happen in a few months when millions of taxpayers receive economic stimulus checks from the federal government.
More than 200 people attended Fishkind’s presentation, held at NABOR’s office off Pine Ridge Road. It was a record showing for a NABOR quarterly luncheon.
John Zagar, president for Stock Realty in Naples, said Fishkind reaffirmed his own thoughts about the turning market.
At Lely Resort, one of Stock Construction’s communities off U.S. 41 East, there were 160 sales in the first three months of this year, compared to about 100 for all of 2007, he said.
Arlene Carozza, NABOR’s president, said after the board’s March report showed a sharp spike in pending sales the members started feeling the worst was behind them. Though the busy winter season traditionally ends at Easter, local Realtors continue to be busy with more open houses, showings and closings, she said.
“Usually by this time Naples is cleared out,” Carozza said. “People are staying — and buying.”
To see Hank Fishkind’s full report, visit www.fishkind.com.
© Naples News

Short sales the good, the bad and the ugly!

2008-03-21T18:28:00.000-07:00

Short Sale Process Needs Standardization and Transparency

by Bob Hunt

It actually wasn't all that long ago that the term short sale was unfamiliar to a lot of real estate practitioners and a good portion of the general public. How quickly things have changed. A Google search for real estate short sale yields more than 600,000 entries. Real estate agents are inundated with flyers, ads, and come-ons for seminars and classes on the subject; and probably just about every market area in the country contains at least a half-dozen agents who will claim to be specialists in the field.
In my own Orange County, California, market area a recent examination of MLS data showed that at least 20 percent of the residential listings were identified as being short sales. Significantly, though, the number of short sales that actually closed escrow was a decidedly lower proportion. Somewhere between 6 to 8 percent of all closed escrows were short sales. At the current rate we have a sixty month (5 years!) supply of short sale listings. Regrettably, many of those will go to foreclosure before they are ever sold.
One reason that short sales comprise such a small proportion of actual closings is that short sales are frequently difficult, frustrating, and time-consuming, with little prospect of a successful closing. There is no hard and comprehensive evidence for this; but there is plenty of the anecdotal kind. Stories abound about the short sales that ultimately went to foreclosure even though there had been legitimate offers made on them. More than once those offers were higher than the ultimate price received for the property after it had become an REO. The common thread through all these stories? Apparent lender indifference, convoluted processes, and interminable failures to make decisions.
As a result, many competent and experienced agents just don't want to become involved with the process of making an offer on a short sale.
Recently, our colleague David Silver-Westrick, one of the sharper tools in the Realtor® shed, formulated a proposal that major lenders and loan-servicing institutions sign on to a "Short Sale Bill of Rights." David listed 4 points:
A commitment by all lenders and their servicers to make it easy for sellers and agents to immediately locate online the correct department and the individual who will be responsible for processing the short sale applications.
A single industrywide short sale application and list of supporting documents that all lenders and servicers would agree to accept. The Uniform Loan Application is an industry standard. It should not be hard to agree on a Uniform Short Sale Application.
A commitment by all lenders and their servicers to responsively update the listing agent and seller on the status of the short sale application throughout the process.
A commitment by all lenders and their servicers to deliver a clear answer, in writing, yes or no, within a reasonable time frame. I suggest 30 days from receipt of the complete application is reasonable.
Of course, one might want to add to or modify some of these points; but the basic idea is a sound one. If implemented, it would no doubt bring more agents and their clients into the short sale arena; and it would certainly result in an increase in short sale closings.
It would be nice to think that organized real estate -- primarily, the National Association of Realtors® -- along with the appropriate governmental agencies and congressional committees might get together with the major lending institutions to agree on a uniform and sensible short sale process such as that outlined in Mr. Silver-Westrick's proposal. As he points out, "Short sales, done properly, act as a safety valve in a declining market, minimizing harm to lenders and sellers alike. The status quo is harming everybody and is a drag on the economy. Lenders are losing more money than they need to. Sellers feel like they have no control. Buyers are frustrated and tempted to wait to buy. Agents are spinning their wheels. We can certainly do better than this … ."
He is right.
Copyright © 2008 Realty Times. All Rights Reserved.

I loved this article and thought it was a good one to share with you. It's so true, I've learned a great deal about short sales by taking them on and it's no picnic! The lenders are overburdened with foreclosures and short sales and their response time is terrible. Buyers don't want to wait weeks for answers, they end up withdrawing their offers and moving on! A good real estate agent makes sure all parties are on the same page and that all information that the lender has requested is in process before agreeing to take on one. Negotiate your commission up front and don't be shy about it, why should you work twice as hard for less money! You are saving the lender money in the long run as taking a property through foreclosure can be costly and time consuming and also detrimental for the home setting vacant for months. If you don't feel comfortable, don't do it! It will require extra time and energy which is time well spent if you can accomplish the sale!

Beth Brown Realtor with Coldwell Banker 550 5th Ave. S; Naples, FL 34102 Bethbrownrealtor@comcast.net 239 250-2408

HOUSING RECOVERY PREDICTION

2008-02-27T08:47:00.000-08:00

Zell predicts housing recovery in spring
Dow Jones Newswires
8:42 AM CST, February 26, 2008

Real estate billionaire Sam Zell, chairman of Equity Group Investments, suggested the housing market will begin its recovery this spring."I think (housing) starts have already pretty much bottomed out," Zell told CNBC Tuesday. "I think sales will start to occur, and we'll start to clean up the inventory."

Referring to the textbook definition of recession, Zell said the economy hasn't experienced two consecutive quarters of negative growth."We have yet to have a first quarter of negative growth," he said. "The only solution is time and a lot less panic. It' not a cash crisis, it's a market crisis."So in effect, when Citi takes a $10 billion hit, it doesn't mean they have $10 billion less the next day, it means their portfolio has been marked down," he said.Markups usually follow, he added.

Zell, who is also chairman and CEO of Tribune Co., which publishes the Chicago Tribune, also endorsed Ben Bernanke's reappointment as chairman of the Federal Reserve."Bernanke's reduction in interest rates has been spot-on because basically we're going to fix the credit markets by creating a big enough spread between the risk-free costs of capital and what's available.

So greed overtakes fear and the game begins again."

Copyright © 2008, Chicago Tribune

Good stuff! I like this guy.....

Mortgage Rates

2008-02-17T19:43:00.000-08:00

Mortgage Rates Move Little in Freddie Mac's Weekly Survey

McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 5.72 percent with an average 0.4 point for the week ending February 14, 2008, up from last week when it averaged 5.67 percent. Last year at this time, the 30-year FRM averaged 6.30 percent.
The 15-year FRM this week averaged 5.25 percent with an average 0.4 point, up from last week when it averaged 5.15 percent. A year ago at this time, the 15-year FRM averaged 6.03 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.19 percent this week, with an average 0.4 point, down from last week when it averaged 5.21 percent. A year ago, the 5-year ARM averaged 6.01 percent.
One-year Treasury-indexed ARMs averaged 5.03 percent this week with an average 0.4 point, down from last week when it was 5.03 percent. At this time last year, the 1-year ARM averaged 5.52 percent
"This week was relatively light on the number of economic data releases, which painted a mixed picture regarding the current state of the economy," said Frank Nothaft, Freddie Mac vice president and chief economist. "On a positive note, labor productivity rose higher than market forecasts in the fourth quarter of 2007 while gains in labor costs slowed. However, pending existing home sales fell for the second month in December, indicating further weakness in home sales for January and February. As a result, mortgage rates were roughly unchanged this week."
"These historically low mortgage rates and declining house prices contributed to the highest housing affordability in December since March 2005, according to the National Association of Realtors®. However, with banks continuing to tighten lending standards, fewer families will likely have an opportunity to take advantage of these factors."

If you're a first time homebuyer this is a great opportunity to enjoy homeownership. If you need to refinance, the rates may be attractive for that as well. If you're an investor, holy cow how cheap can it get to use other peoples money (OPM)! Call me, Beth Brown of Coldwell Banker wants to sell you a home... 239 250-2408

Copyright © 2008 Realty Times.

Positive News for Real Estate In Naples Florida - Investors take note!

2008-02-12T05:33:00.001-08:00

Naples-Marco Island, Fla.Rank: 10

Projected total GMP growth, 2007-2012: 22.7%
Over the last decade, an influx of wealthy new residents has driven population levels and tax revenues to new heights in the Naples area. These new residents have helped stabilize the local economy by avoiding risky mortgages and heavy debt loads that threaten to decimate other areas in Florida. According to Global Insight, personal income for area residents is expected to grow by 7.2% on average until 2012--the top rate in the nation.

Source: Moody's Economy.com, Global Insight

Today's Featured Bank Owned Property

2008-02-06T19:59:00.000-08:00

Property Information:
Bank owned property! Not a Short Sale. 2 bedroom plus den, 2 bathroom 1st floor end unit condo with attached garage. Quiet golf community convenient to shopping and Naples beaches. This unit just steps from the community pool. Comes with golf or social membership. Asking $264,900...

Call Beth Brown at 239 250-2408 or email me at BethBrownRealtor@comcast.net if you would like more information about this property or others.

ONE DAY AT A TIME IN REAL ESTATE!

2008-02-06T18:57:00.000-08:00

Every day we hear news about the real estate industry, mostly depressing. You see the media mongrels’ feed on news that creates negative emotion because that sells! Not that we should put our heads in the sand, we do have a huge problem that will take time to resolve but lets face it, it’s not the first time that there have been problems with the housing industry. Just like with stocks, gold, commodities, and automobiles…it’s a cyclical thing and in time we’ll be on to the next thing and our housing problems will be history once again.

Right now our biggest challenge is the glut of inventory and the record number of foreclosures (with more coming down the pipeline). We have choices, either stay where you are for now, or accept that what your house was once worth is history! If you have a plan and you are selling to accomplish that, be realistic and price it to sell, everything has it’s selling price. When you decide to sell listen to the advice of a seasoned realtor and if you’re not comfortable with what they are telling you and the facts that they are presenting, then now is not the time for you to “test the market.”

Right now even homes that appear to be priced right are taking much longer to sell, it’s a buyers market and there is so much for them to look at that they can’t make a decision. Add to that the builders are slashing their prices, giving away what used to be upgrades for free, paying your closing costs and practically putting your first born through college! They have to in order to survive, if they don’t more job losses and more homes for sale or foreclosure. It’s a vicious circle here and people that are essentially “locked in their homes.” So fasten your seat belts and stay in your seats, the ride isn’t over yet. But it will get better…

Here is an article published today on Realty Times website. Scary but true…

A Super Bowl Year For Foreclosures by Peter G. Miller

"The final 2007 figures from RealtyTrac.com show that foreclosure actions increased 79 percent when compared with 2006. Roughly 2.2 million households received default notices, auction sale notices and notices of bank repossessions. Not all of these homes were lost -- about 1.3 million were sold at the courthouse steps but the rest are hardly safe: They belong to distressed homeowners, people likely to sell fairly soon if they can whether prices are up, down or sideways.

These forced sales, when they appear in official records, will become part of the "comps" used to value your home if you sell or refinance. And if the comps are down you can guess how the world will price your house.

Look for more of the same in 2008 and perhaps worse. Just in the toxic loan category, the Federal Deposit Insurance Corporation now estimates that "almost 1.3 million hybrid loans are scheduled to undergo their first reset during 2008. An additional 422,000 subprime hybrid loans are scheduled to reset in 2009, which means these problems will not end anytime soon."
What can you do? Don't panic. Once the current inventory of exploding ARMs is refinanced or terminated there will be less downward pressure on home prices. Until then, buy and refinance with fixed-rate loans at today's low rates and pay down consumer debt. Most importantly, ask nearby brokers about sale trends in your community because national numbers may not reflect local real estate patterns."

You can visit my website at www.CallNaplesHome.com or email me at BethBrownRealtor@comcast.net

Beth Brown and Real Estate Today!

2008-02-05T11:05:00.000-08:00

Hello and thank you for visiting my real estate blog!!!

In this blog I will try to provide fresh content about what's going on in Real Estate world and answer any questions that you may have.

For those of us in real estate in Florida, we've taken a real beating this year and understandably so. We had it so good for the past few years that many agents don't know how to survive in this turn around market. Prices went up so fast for so long that you could virtually have a listing and never get it to paper before it would be sold. Well now that's all changed, we now have more listings than we can manage and many buyers who want to make offers for considerably less than the asking price. Add to that angry homeowners who are not adjusting well to the new market prices and you have lots of stress!

Hang on consumers; this too shall pass (as my mother used to say.) No better time than now to buy, great interest rates and great prices, tax portability... If you think you want to buy, than you better get with the program or you'll be kicking yourself sometime down the road. You probably want to ask, "How far down the road Beth?" Well if I had that answer I wouldn't need to be selling real estate because I'd be a billionaire.

No matter, I love what I do and each day is a new chapter in my book. I also like to sell bank owned property or formerly referred to as REO's. If you're looking to buy a property that is a foreclosure I have several and you can usually get a pretty good deal on them.

My feature property today is a two story home that needs a cash offer. Needs work but what a beautiful piece of property right across from a new elementary school that is being built. Follow the link below to view this property. All is well in paradise; call me if you would like to make an offer on this property or any others... You can also visit my website to view all of my listings.

Click on the link below to view the web page:
Review Listing: Click Here

Beth Brown
http://www.callnapleshome.com/