RE/MAX 360

RE/MAX 360


Some must-read stats...

According to a report today, nationally, 1 in 4 mortgages is currently “under water”. That comes to almost 11 Million homes where the owner owes more than the home is worth.

The majority of underwater mortgages are heavily concentrated in five states that have particularly suffered from the housing bust: Nevada, at 65%; Arizona, at 48%; Florida, at 45%; Michigan, at 37%; and California, at 35%.

For us in Florida, that is a very scary number…45% of all homeowners owe more than their homes current market value! Add to that continued job losses and the potential number of defaults/foreclosures is tremendous.

Hopefully, the expanded and extended homebuyer tax credit will keep a finger in the dyke long enough to give sellers who are not yet under water who want/need to sell to a chance to get out. But looking forward, as the tax credit expires, and if the Fed follows through on its plans to scale back its purchases of mortgage-backed securities (MBS), which will signal the end of these historically low interest rates, I sincerely believe that we will see a resumption of the decline in home values here in South Florida.

Sellers and those thinking of selling take heed…your window of opportunity is the next 6 months…


Foreclosure goes under contract

The Aspen 5 model on Blue Bay that was taken back by the bank and placed on the market September 26th has just gone under contract...The owner that lost the home to the bank purchased it in December of 2006 for $450,000, and the Palm Beach County Courthouse records indicate that it was a 100% (80/20) loan....The big loser here looks like the bank.


Aspen price reduction

An expanded Aspen that was originally priced at $335k back in August has just reduced their asking price to $290k. This home is NOT being marketed as a short sale.


President Obama signs the 1st time homebuyer tax credit extension into law AND expands it to include NOT only 1st time buyers

More home buyers get tax credit

President Obama signed into law a $24 billion economic stimulus bill providing tax incentives to prospective home buyers.

The tax credits center on extending the  $8,000 credit for first-time homebuyers that was included in the stimulus package. The credit, which was to expire at the end of this month, will be available through next June as long as the buyer signs a binding contract by the end of April, 2010.

The program is expanded to include a $6,500 credit for existing homeowners who buy a new place after living in their current residence for at least five years.

The above is only the basic outline of the program…If you would like the full details just give me a quick call at 561-432-5202 or email


Expanded 1st time buyer $8000 tax credit headed to President Obamas desk for signature

And it's not just for 1st time buyers anymore!

Call me for the details.


New Govt. plan to delay, not cure, the foreclosure problem...

Fannie Mae to rent out homes instead of foreclosing

WASHINGTON (AP) — Thousands of borrowers on the verge of foreclosure will soon have the option of renting their homes from Fannie Mae, under a policy announced Thursday.

The government-controlled company, through its "Deed for Lease" program, will allow borrowers to transfer ownership to Fannie Mae and sign a one-year lease, with month-to-month extensions after that.

The program will "eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities," Jay Ryan, a Fannie Mae vice president, said in a statement.

However, the effort is likely to affect a relatively small number of homeowners. In the first half of the year, Fannie Mae took back about 1,200 properties through this process, known as a deed-in-lieu of foreclosure. That pales in comparison to the 57,000 foreclosed properties the company repossessed in the period.

While neither option is particularly attractive for the homeowner, a deed-in-lieu does less harm to the borrower's credit record.

The rental program is designed to help homeowners who don't qualify for a loan modification under the Obama administration's plan, but still want to remain in their homes. Fannie Mae is not planning to market the homes for sale during the one-year rental period.

Fannie Mae has hired an outside company, which officials declined to identify, to manage the properties.(where's the transparency...Fannie is owned by the taxpayers for all intents and purposes)

To qualify, homeowners have to live in the home as their primary residence and prove that they can afford the market rent, which would be determined by the management company. The rent can't be more than 31% of their pretax income.


Short sale negotiation insider info...

I thought my readers may find it interesting to hear a little bit about some of the "behind-the-scenes" information regarding negotiating a short sale...Every day we are dealing with lenders and are involved with negotiations on short sales. A recent hurdle has been the negotiations with 2nd lien holders (2nd mortgages/home equity liens). We thought that the following may be of interest to a lot of folks currently contemplating how or even IF they should do a short sale....

These days many 2nd mortgage companies are now asking for 10% of their principal balance in order to release their lien. Prior to these recent changes, ALL 1st mortgage holders allowed a maximum of $1,000 to 2nd mortgages, period. Once 2nd mortgage holders started demanding 10%, it made obtaining approvals from both mortgages quite challenging. After all, 10% is quite a large number! And most 1st mortgages will only allow a maximum of $1,000 right?

Well luckily for our sellers, SOME 1st mortgage holders have paid attention to the changing trends and have started to change their policies to match. Now, more and more 1st mortgage holders are allowing a payoff of up to 10% to 2nd mortgages to avoid any complications. And for us short sale specialists, this is helpful to successfully navigating a short sale for our sellers! One of the lenders that have started to be more open to this policy change is ASC.

Keep in mind, not all 1st mortgage holders are doing this, and it is on a case-by-case basis, but, they are at least open to it and some will approve 10% to be paid to 2nd mortgage holders.


Senate Clears Homebuyer Tax Credit Extension to Pass This Week

After two weeks of delay, the Senate, last night, cleared the way to pass a seven month extension and expansion of the tax credit for homebuyers... making it virtually certain that the legislation will reach President Obama for his signature this week.

The homebuyer tax credit, due to expire in 28 days, would be extended through April 30 of next year. First-time buyers who are in process of making a purchased would not need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline.

For the first time, the legislation cleared last night makes move-up buyers as well as first-time buyers would be eligible for a credit. The $8,000 maximum first-timer credit will continue and will now available to couples with income up to $225,000, a nearly $55,000 increase above the level in existing law.

A new $6,500 maximum credit would also be available to move-up homeowners who have lived in their current residence for five of the prior eight years... it is virtually certain that the President will sign the legislative package, which contains an expansion of unemployment benefits as well as the tax changes.

Lakeview Estates, Lake Worth Florida...foreclosure tracker

Lakeview Estates, Lake Worth Florida...foreclosure tracker
As of 4/1/10 there are 7 Lakeview Estates homes in some stage of foreclosure.
Real Time Web Analytics