www.24hrTeam.com "We Don't Sleep, Till It's SOLD!™"

City Funding

noreply@blogger.com (George Wolfgang) — Mon, 23 Oct 2017 18:56:00 +0000

ATTENTION HOMEOWNERS

The City of Miramar, Pembroke Pines, Plantation, and Cooper City have Funding Available to residence for Home Rehabilitation and Purchase!
Additional assistance in:

- Housing Rehabilitation funds

- SHIP Funding

- Community Development Block Grant (CDBG) funding.

- Down Payment Program to assist in purchasing a new home.

- Minor Home Repairs to keep your home safe to live in.

For Miramar:

- Minor Home Repair and Purchase Applications will be available for PICK UP or ONLINE beginning Monday, November 13, 2017.

For other cities go to their website: www.crafla.com and choose your city from the main menu on the right hand side.

Don't sleep on this opportunity! Pass this on to someone you know, who lives in one of these great cities.

Feel free to contact us with any questions!

noreply@blogger.com (George Wolfgang) — Wed, 26 Jul 2017 16:57:00 +0000

Mortgages are getting easier to qualify for in 2017

On top of the recent improvement to accuracy that credit reporting agencies are making this year, FANNIE MAE and FREDDIE MAC have increase their back end pre-tax debt ratio from 45% to 50% this month. That means buyers will be able to afford more house and possibly avoid having to go FHA which can save them money.

While FHA is a great option for borrowers with lower credit scores (as low as 520), it comes with some expensive tradeoffs such as an upfront premium that gets added into your loan as well as a monthly insurance premium that cannot be canceled even when your loan goes below 80% of the value of your home!

With conventional loans from FANNIE and FREDDIE, you can still get low down payment options without the upfront fee and the mortgage insurance can be cancelled once you get below 79% LTV.

FHA Loan Advantages

Low down payment (3.5 percent minimum)
Can go as low as 520 credit score
FHA loans are assumable (with qualifying)
FHA loans are eligible for ”streamline” refinances which require no appraisal or income
Shorter timeframe following major credit problems (3 years vs. 7 years for foreclosure and 2 years vs. 4 years for bankruptcy)
FHA loans typically have a lower base interest rate than a comparable conventional loan
Non-occupant co-borrower (relative) may be used for qualifying by blending ratios

Conventional Loan Advantages

Low down payment options available as low as 3%
Mortgage insurance required for loans exceeding 80% loan-to-value but can be removed at 78 percent loan-to-value
Conventional mortgage insurance is credit sensitive (For FHA, one premium fits all)
Conventional loans can cover much higher loan amounts (FHA has limits based on county location)
Even though conventional loans may have higher interest rates, their monthly payments may still be lower
Over the life of the loan the cost of the mortgage insurance can offset any savings from the slightly lower interest rates of an FHA loan

There are advantages to both loans but it’s important to remember that (especially while rates are still low), conventional will almost always be the better option when it comes to saving you money in the long term. Now if FHA is your only option due to credit or job history issues, then by all means go that route. At the end of the day, it’s still a great option for home ownership and much better than wasting money on rent.

Details like this are why it’s important to work with a Realtor experienced in mortgage finance. Here at the 24hr Team at Coral Shores Realty we make sure our buyer get the financing that is right for them. Feel free to contact us any time.

noreply@blogger.com (George Wolfgang) — Tue, 11 Jul 2017 20:35:00 +0000

Apartment rents continue to increase as demand remains strong

Did you know that the average rent for an apartment in Broward and Miami-Dade counties have been rising dramatically in the recent years?

Miami-Dade's average rent of $1,751, was up three percent from a year ago and 9 percent from May 2015.

Broward's average rent was $1,676, which is five percent higher than a year ago and a whopping fourteen percent from 2015!

In general, each year, rent increases at about one-to-three percent; high demand and lack of supply are bending the market in the landlord's favor.

Developers this year are expected to deliver more than 15,000 units, boosting the supply and giving renters some possible relief on costs, according to a report from the RealPage research firm in Richardson Texas.

However, another report shows that South Florida remains one of the worst areas of the country when it comes to building apartments due to local regulations and the lack of available land.

If you are tired of paying rent, recent changes to credit reports as well as loosening guidelines by lender, may make it easier to qualify for a mortgage.

Also, while rates have gone up slightly, they are still at 50 year lows, making it a smart time to buy.

Contact a local Realtor, like myself, to see if home ownership makes sense for you.

Starting now, new rule changes will cause some credit scores to go up!

noreply@blogger.com (George Wolfgang) — Fri, 07 Jul 2017 15:39:00 +0000

New criteria will strip a majority of civil debts and tax lien information from credit reports. For those affected, scores could rise by up to 20 points and these changes already took effect July 1 so you may see improvement in as little as 30 days.

The new standards follow a report by the Consumer Financial Protection Bureau that found problems with credit reporting companies and recommended changes to help consumers.

If you’ve had issues with negative public record information, this may be a good time to talk with a mortgage professional and see if they can prequalify you. Take advantage of these low interest rate while they still last!

Four Things You should Know about a Reverse Mortgage

noreply@blogger.com (George Wolfgang) — Thu, 29 Jun 2017 23:13:00 +0000

It can be a challenge understanding how a

reverse mortgage actually works and how selling a home with a reverse mortgage differs from the standard procedure. In actually, it is very similar; the major difference is the way the lender manages the loan amount, if it exceeds the price of the home.

What is a Reverse Mortgage?

A reverse mortgage is a financial agreement in which a homeowner relinquishes equity in their home, in exchange for regular payments. Traditional mortgages decline, as you pay down the loan; a reverse mortgage rise over time, as interest on the loan accrues.

How is a Reverse Mortgage Paid Back?

A traditional mortgage has a set maturity date by which the loan has to be paid back; however, with a reverse mortgage, the standards are set in the loan and may define the due date as:

• The borrower dies

• The borrower sells the property

• The borrower moves out the home

• The borrower fails to provide the upkeep or pay property taxes

If the buyer sells their home, the lender takes precedence and has the right to recoup any outstanding balance on the reverse mortgage (unless there is a lien on the home for unpaid property taxes).

Are there Limits on Selling a Home With a Reverse Mortgage?

Typically, the maturity date of a reverse mortgage is when the borrower sells their home; thus, the sale of the home is the most common part of the reverse mortgage process.

With a traditional mortgage, the home value is expected to exceed the remaining balance of the mortgage, at resale. However, with a reverse mortgage, the borrower is typically being paid in installments, the mortgage principal increases—rather than decreases. This makes it possible, or likely, that the loan amount could exceed the resale value of the home.

Note: If you ever decide to get a reverse mortgage, be sure to renovate, when necessary, maintain the keep-up of your property conditions and stay current, with your taxes.

What if the Homes Has Lost Value?

If your property has lost value, you may want to consider a short sale. Fortunately, reverse mortgages are known as “nonrecourse loans,” which means the lender cannot go after the borrower or your heirs for the difference between the outstanding loan amount and the final sale of the home.

Note: Short sales require the lender to “buy-in” before you can list your home at a lower value. The lender may require an appraisal to confirm the value before agreeing to the listing.

Down Payment Assistance is available NOW

noreply@blogger.com (George Wolfgang) — Mon, 12 Sep 2016 19:20:00 +0000

Today Sept 12 2016 the city of Miramar has made available approximately $900,000 in housing rehabilitation funds for SHIP and CDBG and $280,000 in purchase assistance for SHIP. If you fit the income limits go to this website to download an application: CRAFLA Miramar homepage Note that this is for down payment assistance, home repair applications need to be picked up in person and is limited to the first 100 people.

Minimum Contribution from Borrower’s Own Funds: 1% (one percent)

First Mortgage Maximum LTV (Loan to Value): 99% (ninety-nine percent)

Maximum Combined LTV (Loan to Value): 105% (one hundred five percent)

Second Mortgage Purpose: Closing costs plus down payment

Maximum Amount of Assistance: Very Low: 50% AMI or Lower - Up to $50,000 Low Income: 51% AMI to 80% AMI – Up to $40,000 Moderate Income: 81% AMI to 120% AMI - Up to $30,000

Second Mortgage Interest Rate: 0%

Second Mortgage Repayment Terms: Ten-year, 0% interest, deferred payment loan secured by a mortgage and note. The loan is forgivable in its entirety at the end of ten (10) years from the date of the closing, provided the title remains under the ownership of the original purchaser. There will be no yearly write-down of the loan. Full repayment of the loan is due if the home is sold, title is transferred or conveyed, or the home ceases to be the primary residence of the applicant during the ten (10) year occupancy period of the property. Applicants will be allowed to refinance subject to the terms and conditions of the City’s Subordination Policy, which does not permit cash out to the homeowner. If an applicant receives assistance towards the purchase of his/her home from both the City of Miramar and Broward County, a percentage of the total amount of the property’s appreciation will be recaptured by Broward County as stipulated in the County’s LHAP.

Borrower Income Limitations: Up to 120% of the area median income (AMI) based on family size.
Funding availability for income categories is subject to program requirements.

Property Eligibility: Single-family detached, condominium and townhouse units, and villas, including units in Planned Unit Developments, located in the City of Miramar.

NOTE: Pre-Construction single-family detached, condominium, and town house units, including units in Planned Unit Developments, are not covered as part of the First Time Homebuyer Purchase Assistance Program. Purchase Price for homes may not exceed $325,301 (or current 90% cap of the median area purchase price in the MSA, as established by the U.S. Treasury Department).

Filing for Homestead Exemption in Florida

noreply@blogger.com (George Wolfgang) — Mon, 25 Nov 2013 05:21:00 +0000

If you are under contract right now, make an effort to close before the end of the year so you can take advantage of this exemption that can save you an average of $800 next year. Every person who owns and resides on real property in Florida on January 1st and makes the property his or her permanent residence is eligible to receive a homestead exemption up to $50,000. If you miss the deadline unfortunately you will have to wait till next year to get the discount.

1. The first $25,000 applies to all property taxes, including school district taxes.
2. The additional exemption up to $25,000, applies to the assessed value between $50,000 and $75,000 and only to non-school taxes.

The application for homestead exemption (Form DR-501) and other property tax forms are posted on the State of FL form page and on most property appraiser's websites. Click here for FL county property appraiser contact and website info.

- Broward County: http://www.bcpa.net/homestead.asp
- Miami-Dade County: http://www.miamidade.gov/pa/exemptions.asp
- West Palm Beach County: http://www.pbcgov.com/papa/ExemptionServices.htm
- Hillsborough County: http://www.hcpafl.org/
- Pinellas County: http://www.pcpao.org/
- Pasco County: http://www.appraiser.pascogov.com/
- Hernando County: http://www.hernandopafl.

Some county sites have quick and easy online applications.
If filing for the first time, be prepared to answer these questions:
- Whose name or names were recorded on the title on January 1?
- What is the street address of the property?
- Were you living in the dwelling on January 1?
- Do you claim homestead in another county or state?

Remember: Deadline to own a property: January 1st (note: national holiday so actually it’s Dec. 31st)

With the recent increase in interest rates; is this a good time to buy or sell?

noreply@blogger.com (George Wolfgang) — Fri, 12 Jul 2013 16:04:00 +0000

With the recent interest rate increases over the last few months, buyers and sellers may be wondering how this will affect the housing market now and in the future. Is this the right time to buy? Is this the right time to sell? Here is my opinion on this matter in hopes of shedding some light on the subject.

Over the last few years we have been enjoying "artificially" low interest rates thanks to the Federal Reserve (Fed). Their involvement has kept rates at record lows in hopes of stimulating and nurturing the housing recovery. In June they announced that they would begin slowly pulling out of the bond buying market starting in 2014, which will cause rates to rise even further. Predictions are in the 6-7% range by next year. While this is a dramatic increase from the 3% we have become accustomed to, it's important to remember that it would still be historically lower compared to the last 40 year average. As I said, these current rates have been "artificially" low and were not meant to last. In a large part they have done their job as the housing market has begun to recover, although, we still have a long way to go.

NOTE: I encourage seller's to read this too since buyer mentality affects your ability to sell and afterwards you may become a buyer yourself.

Is this a good time to buy?

The original housing bubble was caused by loosening lending guidelines that allowed almost anyone to qualify for a home regardless of income or credit. This caused a feeding frenzy that shot home prices out of control. When the bubble burst, all lending stopped! Almost over night the entire housing landscape changed as buyers were denied loans and sellers were stuck in their homes. With buyers having no ability to buy homes anymore unless they had cash, home prices plunged. The Fed realized that the only way to get buyer's buying again would be to help get the lenders back on their feet (a controversial subject that I have no intention of touching here) and get rates low enough so that buyers could actually qualify for a mortgage in the new economy.

By making the rates so ridiculously low, it re-injected much needed interest as well as increasing buying power to qualified borrowers. The theory behind the Fed control of interest rates is that as the economy improves, jobs open up, and people start making more money; they can afford more home. This means (in theory) that they can raise rates slowly without hurting the housing recovery. All of this assumes of course that the job reports continue to show signs of improvement.

As a potential buyer in this market you should be asking yourself two questions:

1) Will rate go back down?

2) Will home prices continue to rise?

The answer to the first question is probably not. The era of artificially low rates is over. It is costing our government a tremendous amount of money to keep these rates low and our budget simply can't sustain it forever. Like it or not (pending some sort of disaster) the Fed is pulling out and the market will decide what the rates should be.

The answer to the second question is maybe. As of this writing, it is a "Sellers Market". What this means is there are more buyers then there are inventory of good homes for them to buy. This drives home prices up as demand for housing increases. Should that slow down due to higher rates then those increases could stagnate. Unfortunately,it's too early to tell what will happen to home values. But (AND IT'S A BIG BUT), it may not even matter(see the example below).

Example:
Using a home price of $150,000; let us see how these scenarios affect you:

Price Rate P&I

A) $150,000 4.5% $760.03

(Average Rates Today 07/2013)

B) $150,000 6.5% $948.10

(Possible rates next year)

C) $140,000 6.5% $884.90 ***

(Possible rates next year with price drop)

***What is interesting here is that if you wait till next year in hopes that home prices drop, after less than 5 years the home would actually cost you more to own than if you bought it now at a higher price!***

Here is why:

Yearly interest on a mortgage of 4.5% breaks down like this:

Yr1: $6,700.50 / Yr2: $6,589.33 / Yr3: $6,473.05 / Yr4: $6,351.44 / Yr5: $6,224.24

Total interest paid for the first 5 Years: $32,388.56

Yearly Interest on a mortgage of 6.5% breaks down like this:

Yr1: $9,053.93 / Yr2: $8,949.13 / Yr3: $8,837.31 / Yr4: $8,718.01 / Yr5: $8,590.71

Total interest paid for the first 5 Years: $44,149.09:

***So after only 5 years of ownership you will have paid $1,760.53 more for the property that you paid $10K less for! What's worse is that number continues to grow every month eventually costing you a whopping $54,952.21 over the 30yr term of your mortgage!***

So if you are waiting for rates to go down, don't, because they are only going up from here and if you are waiting for home prices to fall, don't, because of what I just explained above.

The time to buy is now!

Is this a good time to sell?

There are many reasons people need to sell that have nothing to do with the market such as Divorce, Probate, Foreclosure, ect. For those sellers the decision is not always up to them and they make due with the market they are in. But what if you're not in distress and simply want to sell to upsize, downsize, or relocate? You want to maximize your home's value so you can net the highest amount of money. For you the only question is will home prices rise or fall in the near future.

No one can predict with complete certainty what will happen to home values, however, by understanding what affects home prices, we can make an educated guess. To put it simply, a home is worth what a buyer is will to pay for it. An easy enough concept to understand as long as that buyer is paying all cash for the property. However, once you add financing to the equation, it becomes a bit more complicated.

Over the last 7 years one of the biggest issues we have had in the real estate market were low appraisals. Let's say a buyer wants to buy a home on sale for $200K. He or she has been prequalified for an FHA loan for $200K and has just enough for the 3% down payment and closing costs. The buyer and seller sign the purchase agreement and inspections and financing begin. In about two weeks the lender completes their appraisal of the home and find that it only appraised for $190K. Since the lender will only lend on the lesser of the purchase price or the appraised value, the buyer would need to come up what an addition $10K that he or she may not have. So even though the buyer was willing to pay $200K for the property, the lender was not and the deal has to be re-negotiated or cancelled.

Thanks to plenty of cash buyers and investors both foreign and domestic, we have seen a steady uptick of appraisable property values again. This coupled with the artificially low rates have created a "Seller's Market" of low inventory and higher prices. What this means for you is that smartly priced homes today will sell faster and for more money.

What might cause home values to go down again?

The new issue we will face with the rise of interest rates will be the decrease in a borrower’s “buying power”. Communities typically are divided by invisible lines that determine their value based on location, construction, and design. Each area attracts buyers of a particular economic range that can afford homes in those areas. Because the rates have been so low, buyers have been able to pay more for homes (as long as they appraise) without increasing their mortgage payments to the point where they can no longer qualify for their loan. When rates rise, that buying power goes down because at the end of the day, the buyer is still making the same amount of money. The buyer has no choice but to offer less for a home in order to not exceed his/her debt-to-income ratio or pull out of the market. If sellers don’t budge on price because they are unaware of this and buyer’s withdraw from the market or look elsewhere for homes, the inventory of unsold homes may rise. When that happens, we may switch back to a buyer’s market due to the oversupply and eventually you may see a dip in home values again. I don’t believe this would be a severe or permanent dip but rather a “market correction” resulting from the artificially low rates that will balance out over time.

So do you sell now or wait?

There is no question that if you want or need to sell, now is the perfect time to do so. If you’re concerned that after you sell you don't want to have to buy in a "Seller's Market" yourself; keep in mind that in the long run, you will benefit more from the lower interest rates now rather than the higher ones later (see buyer’s section up top).

In conclusion, it's important for us to educate ourselves in the current real estate environment because I truly believe that we are on the tail end of one of the greatest times to buy or sell that we have seen since the initial bubble burst over seven years ago! No one can predict the future, but regardless of what happens, I'm confident that the real estate market and our economy as a whole will continue to improve. We will have our ups and downs but what's important is that we learn from our mistakes and emerge from them better than we were before.

The time to take action is now!

2013 Changes to FHA's Annual MIP

noreply@blogger.com (George Wolfgang) — Fri, 19 Apr 2013 19:22:00 +0000

To combat the dwindling reserve, FHA has made some important changes to FHA that you need to be aware of.

MIP Increase

Increased annual MIP rates are effective for case numbers assigned on or after April 1, 2013. The increases in the annual MIP apply to all mortgages insured under FHA's Single Family Mortgage Insurance Programs except:

Streamline refinance transactions of existing FHA loans that were endorsed on or before May 31, 2009
Title I
Home Equity Conversion Mortgages (HECM)
Section 247 (Hawaiian Homelands)
Section 248 (Indian Reservations)

MIP Cancellation

For loans with FHA case numbers assigned on or after June 3, 2013, FHA will collect the annual MIP for the maximum duration permitted under statute. The changes to the duration of the annual MIP are effective for all Single Family FHA programs for which FHA charges an annual MIP except:

Title I
Home Equity Conversion Mortgages (HECM)

This means that the previous rule of being able to cancel your MIP after 5 years if your Loan to Value drops below 78% no longer applies. While this is unfortunate, FHA still remains the best option for most borrower looking for a flexible loan with minimal down payment.

You can find the HUD letter on the policy changes here: http://portal.hud.gov/hudportal/documents/huddoc?id=13-04ml.pdf

What to do with the 1099-C From Your Mortgage Lender

noreply@blogger.com (George Wolfgang) — Sun, 24 Feb 2013 17:58:00 +0000

For those who have completed short sales in the last year are now receiving a

1099-C form. This is because the Lender decided it cannot recover what they owe on their mortgage loan and is therefore canceling or forgiving a portion of that debt.

The part of the mortgage debt that is canceled is generally the difference between what was owed on the mortgage loan and the payoff to the bank. Prior to 2007, many financially strapped taxpayers with forgiven mortgage debt were required to pay federal taxes on it, because the IRS treated it as taxable income. Thanks to the Mortgage Forgiveness Debt Relief Act of 2007, most borrowers whose mortgage debt on their primary residence that is cancelled between Jan. 1, 2007 and the end of 2013 will not have to pay federal taxes on it.

Note that not all states follow the new federal law. Therefore, some people could still owe state taxes on canceled debt. Lucky for us, Florida has no state income tax so federal law applies :-)

Here are the requirements:

The debt must be on your primary residence, not a vacation home or rental property.
The debt forgiven can be up to $2 million. But for married persons filing separate returns, the limit is $1 million.
Not all canceled mortgage debt qualifies. The mortgage must have been used to acquire or construct your home, or to improve it. It can also be a mortgage that was refinanced, but only up to the amount of the old mortgage principal, just before the refinancing. If you "cashed out" some of your home equity for purposes other than home improvements, such as buying a car, that portion of your forgiven debt is taxable.
The debt forgiveness occurred on or after Jan. 1, 2007.

*As always, seek the advice of a qualified tax professional when filing taxes.

Mortgage debt relief law extended through 2013!

noreply@blogger.com (George Wolfgang) — Wed, 02 Jan 2013 19:23:00 +0000

It took them long enough, but Lawmakers finally extended the Mortgage Forgiveness Debt Relief Act for 2013!

This means homeowners can continue to be excused from paying taxes on forgiven mortgage debt through 2013. The law, established in 2007, was set to expire Dec. 31 2012. Without that extension, if you completed a short sale or mortgage modification you may have faced hefty tax bills!

I think we can all agree it's better late than never! If you have been on the fence about what to do with your home and are struggling here is South Florida, contact me for a free consult to discuss your options. Don't put it off as time flies and there is no telling what lawmakers will do next year.

MUST KNOW HAFA 14 DAY RULE

noreply@blogger.com (George Wolfgang) — Thu, 06 Sep 2012 05:24:00 +0000

A critical detail a lot of sellers miss when I speak with them regarding the Home Affordable Foreclosure Alternatives program (HAFA) is if the lender has sent a letter inviting them to do a HAFA short sale, they have 14 days to respond to them or they do not have to allow the seller to do a HAFA short sale! I don't feel that lenders want to be restricted by these HAFA regulations so more often than not they use this as an excuse not to do it. Most sellers I speak to weren't even aware they got this "invitation" from their lender.

Another consideration for those lenders still willing to do it is if they are about to start a foreclosure, some lender’s guidelines to their servicers prohibit considering the property for a HAFA short sale if the foreclosure process has started. Also, if the foreclosure is less than seven business days away, some servicers will not stop the foreclosure, relying on the wording in the Making Home Affordable Manual concerning Escalation Cases where they do not have to stop the foreclosure if it is less than 7 business days away. As a side note, if you have a Fannie Mae loan, you need permission from Fannie Mae (not just the servicer) to start a HAFA short sale if the foreclosure sale date is 60 days or less in the future.

New updates for short sales

noreply@blogger.com (George Wolfgang) — Sun, 24 Jun 2012 19:33:00 +0000

The HAFA Program has been extended until December 31, 2013, but must have a closing date on or before September 30, 2014.

Vacant properties are not eligible for the HAFA relocation assistance.

HAFA relocation assistance of $3000 will only be paid to an owner or tenant that is currently occupying the property (not vacant).

The second lien maximum has been increased from $6,000 to $8,500.

Homestead Exemption Deadline Approaching!

noreply@blogger.com (George Wolfgang) — Wed, 15 Feb 2012 02:40:00 +0000

The deadline for filing is March 1, 2012.

Each county has its own requirement, so please contact your local property appraiser office for details.

Here are the links for Broward, Palm Beach and Miami-Dade County:

Broward County Property Appraiser

Miami-Dade Property Appraiser

Palm Beach Property Appraiser

Get $2000 from the City of Sunrise

noreply@blogger.com (George Wolfgang) — Mon, 23 Jan 2012 19:54:00 +0000

The City of Sunrise is now reimbursing homebuyers up to $2,000 for select improvements to a newly-purchased single-family foreclosure or short sale home. Under this New "Homebuyer Incentive Program", the City seeks to attract new residents to Sunrise - and benefit existing residents by helping to improve the appearance and property values in their neighborhoods.

The New Homebuyer Incentive Program is administered by the Redevelopment & Grants Division of the City of Sunrise Community Development Department. In order to claim a rebate, homebuyers should:

•Get pre-qualified for a conventional, fixed-rate mortgage or FHA mortgage

•Work with their Realtor® to find a single-family foreclosure or short sale in Sunrise

•Get pre-qualified for the City’s New "Homebuyer Incentive Program" grant

•Purchase the foreclosure or short sale for use as their primary residence

•Make one or more eligible improvements (including landscaping improvements, exterior house painting, roof replacement, or installation of energy-efficient appliances)

•Submit their supporting documentation to the City of Sunrise

Website Details Here: http://www.sunrisefl.gov/index.aspx?page=558

FHA flip waiver extended through 2012

noreply@blogger.com (George Wolfgang) — Mon, 02 Jan 2012 14:42:00 +0000

Happy New Year everyone!

We start off the year with some good news, for the second year in a row, the Federal Housing Administration is extending a temporary waiver of its "anti-flipping" rule, meaning home buyers can use FHA-insured financing to buy homes that have changed hands in the last 90 days such as those sold by investors.

This waiver is important for our recovery as it allows investors seeking to rehab and flip the huge influx of distressed homes expands the pool of eligible borrowers to include those relying on FHA-backed loans popular with first-time home buyers

In extending the waiver through 2012, FHA still requires the transaction to be arms-length. In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will apply only if the seller can document the justification for the increase in value which is also typical.

Broward and Dade home price declines a thing of the past?

noreply@blogger.com (George Wolfgang) — Thu, 15 Dec 2011 05:42:00 +0000

Finally some good news courtesy of Clear Capital, a California-based real estate research company.

Broward and Miami-Dade counties rank among the nation’s highest-performing major markets when it comes to home prices over the past quarter and year. The two counties saw a 2.1 percent increase in prices quarter over quarter and a 5.4 percent jump year over year.

Broward and Miami-Dade ranked 11th on a list of the top 15 markets!

The Florida Short Sale Relocation Assistance Program has been extended!

noreply@blogger.com (George Wolfgang) — Thu, 01 Dec 2011 20:44:00 +0000

The Florida Enhanced Short Sale Relocation Assistance Program has been extended to Dec. 12, 2011.

This program offers Homeowners needing to sell via short sale relocation assistance between $5,000 and $20,000.

Eligibility:
-Homeowners with property in Florida
-Short sales initiated without an offer between Sept. 26 and Dec. 12, 2011
-The customer will have to be eligible for one of the without an offer programs, such as the Home Affordable Foreclosure Alternatives (HAFA) program or Bank of America's proprietary program (specific investor participation and eligibility criteria do apply to these programs)
Successful closing of the eligible short sale by Aug. 31, 2012

Exclusions:
-Ginnie Mae, FHA, VA and USDA loans are ineligible for participation
-Lot loans are ineligible for participation
-Properties outside Florida are not eligible for participation
-Short sales initiated with an offer are not currently eligible for the enhanced relocation assistance

Frequently Asked Questions:

Do I have to do anything different to initiate or complete the short sale?
No. If the homeowner's short sale is initiated between Sept. 26 and Dec. 12, 2011, and the property closes by Aug. 31, 2012, the homeowner will be eligible.

Will the relocation assistance funds be reported on the HUD-1?
Yes, they will be documented on the HUD-1, and a 1099-MISC will be issued.

Can the relocation assistance funds be used to pay off existing liens?
Yes, if the investor approves it.

Will this enhanced relocation assistance waive the homeowner's deficiency?
An additional benefit for these pre-offer programs, such as HAFA and Bank of America's proprietary program, is that deficiency may be waived for homeowners who qualify.

Is the relocation assistance added to any other incentives, such as HAFA or Bank of America proprietary program incentives?
No. A homeowner will receive the $5,000 to $20,000 in place of the typical incentive paid out by these programs. The relocation assistance is essentially an enhancement to the standard payout offered on these programs.

Is the enhanced relocation assistance available for other programs?
The enhanced relocation assistance is currently available only to short sale programs initiated without an offer. However, as we gauge the success, we may extend this incentive to other programs.

Questions?
Contact my office at 954-441-5366 or call BoA directly at 1.877.459.2852

Buy a Home with only $100 dollars down in Florida

noreply@blogger.com (George Wolfgang) — Mon, 31 Oct 2011 18:55:00 +0000

HUD has approved a program aimed at putting foreclosed homes back into the hands of owner-occupant buyers. In select states, from now until October of next year, buyers need a down payment of only $100 to purchase a HUD-owned REO home!

How it works:
1) Buyer must be an owner-occupant
2) Must utilizing financing insured by the Federal Housing Administration (FHA)
3) Standard FHA underwriting guidelines apply
4) Sale must be for the full amount of the current list price
5) HUD may contribute up to 3% to your closing costs in some cases!

What's even better is that HUD’s $100 down payment incentive program can also be applied to an FHA 203k loan, which can be used to fund repairs and renovations on your home. The 203k program allows buyers to finance both the mortgage and additional money for rehabilitation needs with a single government-insured loan!

What this means is you can find a property that needs some TLC, fix it up however they want to (up to $30K), and finance the whole thing for only $100!!!

Qualifying States Are:

Florida
Georgia
Kentucky
Illinois
Indiana
Mississippi
North Carolina
South Carolina
Tennessee
Caribbean
Alabama
Oklahoma
South Dakota
Texas
Wisconsin
Wyoming
Utah
Arkansas
Colorado
Iowa
Kansas
Louisiana
Missouri
Minnesota
Montana
Nebraska
New Mexico
North Dakota

New Short Sale Incentives to Homeowners

noreply@blogger.com (George Wolfgang) — Fri, 07 Oct 2011 22:51:00 +0000

Bank of America is offering Florida homeowners up to $20,000 to short sale their homes rather than letting them linger in foreclosure.

Only homeowners whose short sales are submitted for approval to Bank of America before Nov. 30 will qualify. The homes must have no offers on them already and the closing must occur before Aug. 31, 2012.

A short sale is when a bank agrees to accept a lower sales price on a home than what the borrower owes on the loan.

The Bank of America plan has a minimum payout amount of $5,000.

A spokesman for Bank of America said the program is being tested in Florida, and if successful, could be expanded to other states.

Wells Fargo and J.P. Morgan Chase have similar short sale programs, sometimes called “cash for keys.”

Similar to the federal Home Affordable Foreclosure Alternatives program, or HAFA, which offers $3,000 in relocation assistance, the Bank of America program may also waive a homeowner’s deficiency judgment at closing.

A deficiency judgment in a short sale is basically the difference between what the house sells for and what is still owed on the loan.

Guidelines for Bank of America's new Florida Enhanced Short Sale Relocation Assistance program state that a borrower may use the incentive to pay off existing liens or for relocation expenses. FHA, Ginnie Mae, VA and USDA loans are not eligible. Details are available by calling 1-866-880-1232.

•Wells Fargo offers incentives of $10,000 to $20,000 to certain homeowners who opt for a short sale or who transfer a home's title back to the bank. The program is aimed at properties in Florida and other states known for protracted, judicial foreclosures. The money is available only on first-lien loans that the company owns, which is about 20 percent of its portfolio. Details: 1-800-678-7986.

•JPMorgan Chase has not reported how much it offers for short-sale incentives, though real-estate agents have reported sellers getting $20,000. The lender also has declined to specify how it determines the amount of its incentives. Details: 407-248-3945.

•Citibank has reported it offers an average of $12,000 for borrowers when it owns the mortgage. The amount is determined upfront and varies depending on a borrower's financial circumstances and mortgage-payment history. The money is disbursed when the short sale closes. Details: 1-866-272-4749.

Reduction in FHA loan limits

noreply@blogger.com (George Wolfgang) — Tue, 04 Oct 2011 01:45:00 +0000

As of October 1, 2011 the Federal Housing Administration will be reducing the FHA Loan Limits.

The current limits in Dade, Broward, and Palm Beach counties is $417,000. The limits for these counties will be reduced to $345,000. This reduction will affect any loan that has not been approved by an FHA Direct Endorsed underwriter.

If you are looking for homes above this price range or even under contract and not yet approved and you are expecting to finance your home with an FHA insured loan, you will be affected by the drop in the FHA loan limit.

Please remember these are loan limits, not limits on the purchase price. Buyers can always make up the difference between the purchase price and the loan amount by increasing your down payment.

Best time to buy a home in more than 50 years!

noreply@blogger.com (George Wolfgang) — Sun, 04 Sep 2011 18:18:00 +0000

Record low interest rates and bargain home costs...

Interest rates for a 30-year fixed rate home loan fell from 5.06 percent in late March to 4.79 percent by the end of June, according to the Federal Housing Finance Agency's Monthly Interest Rate Survey. Since then, interest rates have continued to drop. The rate on a fixed-rate, 30-year loan dropped from an average of 4.32 percent in early August to 4.151 percent a week later, the lowest since 1971! Combine that with the rock bottom prices of current homes and you are left with the single best time to buy a home in more than 50 years!

New FHA loan limits

noreply@blogger.com (George Wolfgang) — Thu, 28 Jul 2011 18:33:00 +0000

On Oct. 1, we will see the maximum loan sizes for FHA loans reduced back to the original loan levels prior to the run-up in home prices. Buyers and sellers would be best advised to follow this change carefully and plan accordingly.

The lowering of the HUD (FHA) loan limits is but one of many changes headed our way.

To check current loan limits visit HUD's website https://entp.hud.gov/idapp/html/hicostlook.cfm

If you were planning to buy or sell in the higher price ranges, you may want to start now before the new reduced limits take effect!

2011 First-time Homebuyers Program

noreply@blogger.com (George Wolfgang) — Wed, 25 May 2011 17:41:00 +0000

· Up to $7,500 awarded for down payment and closing cost assistance

· Funds awarded on a 5:1 match – borrower must contribute a minimum
of $500

· Subject to the following maximum income limits based on number in
household:

· To be eligible to apply, you must not have owned a home during the
three years prior to the date you apply for the program.

· Primary residents only. No investor or vacation homes allowed

· Eligible for use with all FHA loans, including the purchase & repair loan

· Program participants must complete prescribed Home Buyer Counseling

· All borrowers must occupy the home for a minimum of five years or
award money goes back to the bank

· Program ends on December 31st, 2011, or when funds run out

Freddie Mac new Credit requirements

noreply@blogger.com (George Wolfgang) — Mon, 07 Feb 2011 15:56:00 +0000

Are you ready to face a tougher Freddie Mac? The new requirements in Freddie Mac’s Bulletin 2010-19 kicked in last week, and mortgage professionals need to bring their 'A' game:

Be ready to look into every borrower's credit report inquiries made in the previous 120 days — not just the 90 days previously required.
Was the borrower granted additional credit? You need to get verification of the debt and include that debt when you qualify the borrower.
This goes for all loans, not just manually underwritten loans.