House Keys

Ask a real estate pro: Mortgage settlement prompting banks to make deals

Fri, 25 May 2012 12:45:00 GMT

Board-certified real estate attorney Gary M. Singer writes about the housing market in this space each Friday. To ask him a question about short sales, mortgages, refinancing, homeowner's associations or any other residential real estate topic, click here.

Q: I know some of the major lenders signed a $25 billion mortgage settlement earlier this year. What happens to the rest of the homeowners whose lenders aren’t part of the agreement? Are we left out? – Motti

A: Yes and no. The agreement that you’re hearing about was signed in February by Bank of America, Chase, Wells Fargo, Citigroup and GMAC’s Ally Financial to settle claims of improper foreclosures during the housing crisis. If your loan is not with one of those banks, you will not be eligible for specific terms of the settlement, which include cash and mortgage balance forgiveness.

Take heart, though. The news is not all bad for borrowers of other banks. I have seen some of those lenders offering borrowers deals that are similar to those contained in the agreement. For instance, even though your lender isn’t part of the settlement, you may find that it is more willing now to offer you some type of a loan modification – maybe even a mortgage principal reduction. Essentially, the settlement has prompted many other banks to improve their dealings with struggling homeowners.

I have long said that you have to be persistent and stay in the game to get the results you want. I’m really seeing this advice pay off. Some clients have told me how glad they are that they didn’t give up because they got great deals. If you have not yet received the relief you want, now is definitely the time to try again.

Q: My wife and I have been married for 16 years. Our house has been in her name for 20+ years. Her health is poor, and I'm wondering if there may be any legal issues I might face if things take a turn for the worse. – Sam

A: If your wife passes with the homestead property in just her name, Florida law will determine what happens to the property. If there is a will and no minor children, your wife can leave the house to you in the will. If there is a minor child and a will, or if there is no will and she has a child of any age, you will get the house as long as you live (that’s known as a life estate) and then the property will go to the kids. Whatever the situation, you can avoid all of this and any expenses by having her deed the property to both of you, as husband and wife. This type of ownership is known as tenants by the entireties. Upon her death, the property will instantly transfer to you. The only downside to this type of transfer is that it will be subject to transfer taxes, unless the property is owned outright without a mortgage.

Q: My home has gone into foreclosure. How will I know if the lender wants to get money from me after it sells it? How can I protect myself? – Henry

A: If the value of your home at the foreclosure auction is not enough to pay off your mortgage loan, you will have a deficiency liability. Your lender can have another hearing with the court to determine the exact amount of this liability and have the court issue a judgment that it can use to try to collect this money from you. One of the best ways to avoid this scenario is to try to negotiate with your lender during the foreclosure process to waive the deficiency -- through a short sale, a deed in lieu of foreclosure or a consent judgment. Also, certain types of assets are exempt from collection, like most retirement accounts, head of household wages and your homestead property.

The information and materials on this blog are provided for general informational purposes only and are not intended to be legal advice. No attorney-client relationship is formed, nor should any such relationship be implied. Nothing on this blog is intended to substitute for the advice of an attorney, especially an attorney licensed in your jurisdiction.

To follow Gary Singer on Twitter, click here.

Zillow: Underwater mortgages still plague Broward, PB counties

Thu, 24 May 2012 11:00:00 GMT

Despite the recent rise in home prices, nearly half of Broward County mortgage holders owe more than the properties are worth, real estate website Zillow.com says.

The figure, 46 percent, is down slightly from a year ago. In Palm Beach County, four in 10 Palm Beach County mortgages are “underwater.”

Almost a third of the underwater homes in the two counties are worth only half of what’s owed, Zillow said.

For more specific information on your neighborhood, click here.

Most of the affected homeowners in Broward and across the country are making their mortgage payments on time, the website said.

For now, an underwater mortgage “is only a paper loss,” Stan Humphries, chief economist for Zillow, said in a statement. Values will continue to rise in the months and years ahead, he said.

But it could be a decade or more before prices increase enough to allow some of these homeowners to break even in a sale. Until then, they’re stuck in their homes, at risk for foreclosure and weighing down the housing recovery, Humphries and other analysts say.

Underwater borrowers bought at or near the peak of the housing boom, between 2004 and 2006, before prices plunged. Others may have bought earlier or later but pulled equity out of their homes by refinancing.

To follow Paul Owers on Twitter, click here.

Protest planned at FPL parent's annual meeting Friday

Wed, 23 May 2012 16:24:47 GMT

A group of community activists, including shareholders, say they plan to stage a protest at NextEra Energy's annual meeting on Friday morning in Juno Beach.

Stand-Up Florida, which is organizing the protest, said it objects to NextEra's subsidiary Florida Power & Light requesting a base rate increase of $690 million while bringing in big profits and paying no federal taxes, according to spokeswoman Gayle Faath.

The group said it will demand that FPL pay its "fair share of taxes and withdraw the rate increase."

"NextEra Energy invests across the country and pays millions of dollars in taxes at the state and local levels," Nissan said.

NextEra Energy said it is the largest taxpayer in Palm Beach County, where the headquarters is based, and in Florida. And FPL paid around a billion dollars in taxes to the state and local governments in Florida in 2011, Nissan said.

NextEra holds its shareholder meeting at 10 a.m. Friday at its corporate headquarters in Juno Beach to vote on executive compensation and other issues.

April home prices increase in Broward, Palm Beach counties

Tue, 22 May 2012 16:23:00 GMT

South Florida home prices rose in April as the recovering market continues to strengthen.

Broward County's median price for existing homes was $205,000, up 15 percent from $178,000 a year ago, according to the Greater Fort Lauderdale Realtors. Sales of existing homes increased 6 percent, to 1,184 from 1,113.

In Palm Beach County, the median price was $210,100, 5 percent higher than a year ago, according to the Realtors Association of the Palm Beaches. Sales also rose 5 percent, to 1,237 from 1,175.

Buyers are faced with a dwindling supply of homes. That's boosting prices and giving sellers more of an advantage in negotiations.

The inventory of homes for sale is down in part because of a strong sales pace over the past year. Also, banks have been slow to market foreclosed properties, real estate agents say.

Many homeowners can't sell because they owe more than the property is worth. And others are keeping their homes off the market, thinking they'll fetch more money if they wait.

Real estate website Zillow.com and some industry observers say home prices here have hit bottom. Others aren't as optimistic, expecting a slew of foreclosures in the months ahead that could drag down prices.

Statewide, the median home price was $144,350, a 10 percent increase from a year ago, Florida Realtors said. Sales fell slightly from a year ago.

Florida Realtors President Summer Greene said in a statement that "we're seeing some strong numbers that show positive momentum for the state's housing recovery and our economy."

To follow Paul Owers on Twitter, click here.

Model homes bring in 18 more sales at The Bridges

Mon, 21 May 2012 15:20:04 GMT

GL Homes wrote 18 more sales contracts this past weekend at The Bridges after unveiling nine model homes in the high-end development near Delray Beach.

The average sales price was $800,000, so that’s more than $14 million in revenue if all 18 of the prospective buyers close. More than 5,000 people visited the development over the past two days.

GL now has contracts for 121 homes (worth almost $100 million) at The Bridges since the 600-home development opened in February. The first buyers will move in by late summer.

Amenities include impact glass, a poolside bistro, indoor sports complex, tennis complex with pro shop and a children's and teen activity center.

Home builders say the housing market is improving after a long downturn. A national index of builder confidence released this month rose to a five-year high.

“Interest is definitely coming back,” said Marcie DePlaza, division president for GL. “We feel really good about where the market is right now.”

Terrell Owens facing foreclosure on South Florida condo

Fri, 18 May 2012 19:19:44 GMT

Add a foreclosure lawsuit to former NFL star Terrell Owens’ list of recent troubles.

Deutsche Bank is going after the temperamental wide receiver, saying he isn't paying the $1.4 million mortgage on his Trump International Beach Resort condo in Sunny Isles Beach, reports Gossipextra.com. Owens bought the pad in August 2006 for $1.75 million, records show.

Owens has been a well-paid, productive pass catcher for the San Francisco 49ers, Dallas Cowboys and other teams, but he hurt his knee and missed all of last season. The Dolphins, who need a receiver, have shown zero interest.

A lousy attitude has dogged him throughout his career, and he recently appeared on the Dr. Phil show with women who say Owens is behind on child support payments.

Staff researcher Barbara Hijek contributed.

Ask a real estate pro: Bank of Mom and Dad should set lending rules

Fri, 18 May 2012 12:00:00 GMT

Q: We want to help our son buy a fixer-upper because he can’t seem to get a loan from a bank. What do you think? Is this a good idea? – Cathy

A: It can be very difficult to get a conventional loan, and more people are turning to family members for assistance. I think it’s important to help your family any way you can. But I have had many people come to my office telling me of horror stories regarding family lending -- everything from the borrower thinking the loan was a gift to an ex-wife ending up with the house that her former mother-in-law paid for.

If you lend money to your son to buy a home, you should approach it like any other lender and “qualify” him. Ask him how he plans to pay you back and make sure he has the ability to do so. After you have confirmed his ability to repay the loan, you should prepare a promissory note and a mortgage for him to sign. You also will want to have the mortgage recorded in the public records of the county where the property is located. Jumping through these hoops now should help you to avoid an issue in the future and protect you if there is one. As an added bonus, it will protect your investment, and your son’s new home, from his other creditors. Your mortgage will serve as a first lien on the property, to the exclusion of other potential liens.

A NOTE ABOUT PAYING PROPERTY TAXES:

A client of mine was a little late paying her taxes. She went on Broward County’s Tax Collector website and printed a tax bill with a certain payoff good through April 30 and sent the money well before that date. Two days later, and before the expiration date of the payoff, the tax collector’s office returned the certified check and told her the payoff was short because additional charges had been added during April.

I did a little digging and found that this is a standard practice in Broward – and perhaps other areas. The amount the payoff increased was less than $10, but it’s still a hassle. When dealing with a government entity, confirm the payment amount on the same day that you pay -- even if your payoff statement hasn’t expired. It will save you time and grief.

The information and materials on this blog are provided for general informational purposes only and are not intended to be legal advice. No attorney-client relationship is formed, nor should any such relationship be implied. Nothing on this blog is intended to substitute for the advice of an attorney, especially an attorney licensed in your jurisdiction.

To follow Gary Singer on Twitter, click here.

Citizens to get input on plan for higher rates

Fri, 18 May 2012 00:00:25 GMT

A committee for the state-run insurer of last resort appeared hesitant Thursday to move forward with a proposal to uncap rates for new customers next year.

The panel said it will hold a workshop this summer to give lawmakers and others a chance to offer alternative solutions to help Citizens Property Insurance Corp. avoid a revenue shortfall if a major hurricane were to strike.

Carlos Lacasa, a committee member and chairman of the Citizens board, said the insurer will have problems if it doesn’t include legislators in discussions about lifting the cap.

Lawmakers approved a 10 percent cap for Citizens rate increases starting in 2010. The insurer interprets the law to mean only existing customers are subject to a cap.

John Rollins, also a member of the committee and Citizens board, blasted the media for reports of the proposal, which could significantly increase rates for new customers in Broward and Palm Beach counties and across the state.

Some homeowners in the two counties who sign up for windstorm insurance without the cap could pay more than 50 percent more than a neighbor with an existing policy. Some new wind-only condominium customers would pay roughly twice what existing policyholders pay now. The increases would give Citizens about $100 million more in annual revenue.

Still, Rollins spoke out against some of the estimated rate hikes that would occur if the plan were to take effect Jan. 1. “It’s just not going to happen,” he said of his support for ending the cap.

State Sen. Mike Fasano, R-New Port Richey, said many people wouldn’t be able to afford insurance, hurting the state’s still-fragile housing market.

The Citizens board, which backed off the proposal last month, could reconsider it this summer. One idea that was mentioned Thursday was uncapping rates for new customers only in certain areas of the state.

Citizens is Florida’s largest insurer, with more than 1.4 million customers, including about 347,000 in Broward and Palm Beach counties.

If it doesn’t have enough money to pay claims after a storm, it could levy assessements against all Floridians. Gov. Rick Scott has called that possibility a threat to the state’s economy.

Broward County foreclosures fall in April

Thu, 17 May 2012 12:00:00 GMT

Foreclosures in Broward County unexpectedly dropped in April from a year ago, according to the RealtyTrac listing firm.

New cases, scheduled auctions and bank repossessions totaled 1,851, down 31 percent from March and 11 percent from a year ago.

Prior to the April decline, Broward had four consecutive months of annual increases.

“The April decrease does stand out as a one-month thing,” said Daren Blomquist, a spokesman for RealtyTrac of Irvine, Calif. “It goes against the grain of what’s happening overall in Florida.”

Foreclosures statewide increased 26 percent in April from a year ago, giving Florida the nation’s third-highest foreclosure rate.

In Palm Beach County, total filings in April were 2,363, down 15 percent from March but up 36 percent from a year ago.

Real estate agents set to rally in Washington

Wed, 16 May 2012 14:54:57 GMT

Some 10,000 real estate agents are expected to rally Thursday in Washington, D.C., against changes that they say could limit or discourage homeownership.

The government’s role in furthering homeownership is being challenged, as are certain tax benefits, such as mortgage interest deduction. Not coincidentally, those issues affect the agents’ livelihood.

Dionna Hall, senior vice president of the Realtors Association of the Palm Beaches, said in a statement that many potential buyers in Palm Beach County with good jobs and strong credit can’t get mortgages. “Realtors believe that everyone should have the opportunity to pursue the dream of homeownership, and we will fight against obstacles that make it more difficult for people to buy, own and invest real estate.”

Bank of America paying up to $30,000 for short sales

Tue, 15 May 2012 22:34:58 GMT

Bank of America said Tuesday it’s launching a nationwide program that pays homeowners as much as $30,000 to complete short sales.

The lending giant tested a similar program in Florida last year from Sept. 26 through Nov. 30, and nearly 11,000 Florida borrowers verbally agreed to complete their short sales by August of this year. So far, 847 of the deals have closed.

The average payment as part of the Florida pilot is $12,000, the bank said.

To qualify for the national program, a seller must work with Bank of America to obtain a preapproved price prior to submitting an offer from a prospective buyer. The short sale must be started by the end of 2012 and close by Sept. 26, 2013. Also, Bank of America must own and service the mortgage.

Homeowners who now are in the process of a short sale with Bank of America may be eligible for the program.

The amount of money homeowners receive “will be determined on a case-by-case basis using a calculation that includes the value of the home, amount owed and other considerations,” Bank of America said in a statement.

For more information about the program, call (877) 459-2852.

In a short sale, a lender allows a borrower with a financial hardship to unload the property for less than the mortgage amount. The transactions are faster than foreclosures, helping banks get troubled loans off their books.

In recent years, some banks have given a few thousand dollars to borrowers who leave their foreclosed homes in good condition. Last year, lenders started giving cash to homeowners who complete short sales as an incentive to cooperate.

Bank of America says it expects the national program to get the greatest response from homeowners in Florida, California, Nevada, Arizona and other states hammered by the housing crash.

To follow Paul Owers on Twitter, click here.

More apartments planned for South Florida

Tue, 15 May 2012 15:28:59 GMT

A Boca Raton-based developer is the latest firm to announce plans for apartment communities in South Florida.

The Altman Cos. says it will build rentals in Boynton Beach, Coconut Creek and Pembroke Pines. A fourth complex will be in Kendall in Miami-Dade County, adding 1,110 units to the market.

In the past year, developers have started construction on or announced 42 rental projects in Palm Beach, Broward and Miami-Dade counties, according to Deerfield Beach housing analyst Jack McCabe.

Demand for rentals in South Florida has increased following the housing collapse. Lenders remain leery of financing condominiums because of rampant overbuilding during the boom, but developers say getting loans to build apartments is much easier.

Altman Chairman Joel Altman said in a statement that rents are stable and occupancies are high in many areas across the country. Construction on the South Florida units is expected to begin later this year.

“Our strategy is to have three to four new multi-family communities lined up per year with a focus entirely on rentals,” he said.

The Coconut Creek, Pembroke Pines and Kendall complexes will feature three floors, private entryways, clubhouses and resort-style amenities.

Altman says it is acquiring the Boynton community from builder K. Hovnanian and will plan a second phase based on the original architectural plans, which include two, six-story buildings with a clubhouse and pool.

Altman didn’t disclose expected rental rates for any of the units.

Earlier this month, a Phoenix developer announced plans to build nearly 400 luxury apartments in Coconut Creek. The first units at Broadstone Cypress Hammocks at 5201 W. Hillsboro Boulevard will be ready early next year, and construction is expected to be complete by spring 2014.

Other projects are planned for Boca Raton, Delray Beach and Fort Lauderdale, among other cities.

The region isn’t yet in danger of being overrun with rentals because so little apartment construction has happened since 2007, McCabe said.

Expected population increases in Florida from retiring baby boomers should support the increased demand for rentals, though another 40-plus apartment complexes in the next year would be a problem, McCabe said.

In 2006, as the housing market started to collapse, the ratio of homeowners to renters nationwide and in South Florida was about 70-30, but it’s now 64-36, he said. Many former homeowners either can’t buy or choose not to bother with owning.

“A lot of people have decided the American Dream may not be such a dream anymore,” McCabe said. “There are a lot of liabilities and responsibilities (to owning) that they didn’t understand before, and they do now.”

To follow Paul Owers on Twitter, click here.

NRC to increase oversight on St. Lucie nuclear plant

Mon, 14 May 2012 19:13:00 GMT

The U. S. Nuclear Regulatory Commission said Monday it is increasing its oversight of Unit 1 at the St. Lucie nuclear power plant as a result of the number and type of unplanned shutdowns the plant has experienced.

The St. Lucie plant is located in Jensen Beach, Fla., east of Port St. Lucie, and is operated by Florida Power & Light Co.

"Overall, the St. Lucie plant continues to operate safely," said NRC Region II Administrator Victor McCree. "However, these shutdowns point to performance issues and a trend that needs to be addressed."

The NRC said it plans to conduct a supplemental inspection to provide assurance that the causes of the shutdowns are understood, that the extent of condition is identified, and ensure FPL’s corrective actions are sufficient.

FPL spokesman Michael Waldron said St. Lucie has the plant has indicators that identify issues before they become problems, which may result in "a highly conservative decision by FPL to safely shut down the plant."

What's the White House worth in Miami?

Mon, 14 May 2012 12:00:00 GMT

The White House would sell for about $110 million, but move the presidential playpen to Miami and the value drops to a mere $39 million.

That’s according to real estate website Movoto.com, which worked with a Washington, D.C., firm to establish market values for 1600 Pennsylvania Ave. in seven large metro areas.

Values, which do not include the contents of the 55,000-square-foot White House, are based on the median price per square foot of homes in the communities.

White House would fetch the most in the Big Apple — a staggering $387 million.

To find out values in other cities, click here.

And to follow Paul Owers on Twitter, click here.

Big banks to hold foreclosure prevention event in Deerfield

Fri, 11 May 2012 16:15:00 GMT

Three major lenders involved in the $25 billion mortgage foreclosure settlement will participate in a free workshop for struggling homeowners next month in Deerfield Beach.

Bank of America, Chase and GMAC will attend the event June 9 from 11 a.m. to 3 p.m. at the Deerfield Beach Hilton. Homeowners should learn that day whether they will be eligible for loan modifications or other relief.

The seminar is sponsored by United Financial Counselors, a nonprofit consumer advocacy group based in North Miami Beach. To register, call (877) 509-3160.

Jason Walowitz, president of the agency, said he’s noticed a change among banks since the foreclosure settlement was announced in February.

“They’re being more proactive, I think, and doing more outreach and producing more tangible results,” he said.

In the past eight weeks, Bank of America, GMAC, Chase, Wells Fargo and Ocwen Loan Servicing have reduced more than $5 million in mortgage balances for South Florida borrowers, said Walowitz, citing federal data.

Bank of America, for instance, recently reduced the mortgage balances of three of his clients by $135,000, $140,000 and $192,000, Walowitz said.

In addition, Bank of America announced this week that it is sending out letters to potentially thousands of South Florida homeowners, telling them that they may be eligible for mortgage balance forgiveness. The lender also started a new program in April designed to streamline short sales and respond to offers from prospective buyers within 20 days.

Until recently, banks have been reluctant to reduce principal. Homeowners also complained that lenders were unresponsive to their requests for other types of aid in avoiding foreclosure.

Banks insist the settlement is not the reason they’re stepping up foreclosure prevention efforts. They say the housing crash was unprecedented in recent history, and it took time to learn how to meet borrowers’ needs.

Prior to 2009, there were no industrywide standard mortgage modification programs, said Jumana Bauwens, a spokeswoman for Bank of America. The lender now has 50,000 employees nationwide dedicated to handling mortgage defaults.

“We have more resources than ever,” she said.

Florida and 48 other states reached the landmark settlement with Bank of America, Chase, Wells Fargo, Citigroup and GMAC’s Ally Financial. Oklahoma reached its owns pact.

The national settlement requires banks to reduce mortgage balances and pay 750,000 people nationwide up to $2,000 if they endured mortgage servicing abuse while losing their homes to foreclosure from 2008 through 2011.

Florida borrowers will receive about $7.6 billion in benefits from loan modifications, including principal reduction on their mortgages, according to Attorney General Pam Bondi.

The “robo signing” scandal started in 2010, when bank employees, or robo signers, admitted under oath that they signed off on thousands of foreclosures without properly reviewing the cases.

Attorneys offering free legal advice also will be available at the Deerfield Beach, so even borrowers who don’t have Bank of America, Chase or GMAC as lenders can attend, Walowitz said.

Homeowners should plan to bring mortgage documents, bank statements, pay stubs and tax returns. They also should bring a hardship letter, which explains to the lender the circumstances that caused them to fall behind on mortgage payments.

To follow Paul Owers on Twitter, click here.

Ask a real estate pro: Be leery of one-sided home sale contracts

Fri, 11 May 2012 12:00:00 GMT

Q: We are getting ready to buy a home from a large builder. The contract it’s having us sign is as thick as a book. We are worried what will happen if the market goes down. What should we do? – Tommy

A: Proceed with caution. The contracts that builders use can be one-sided and non-negotiable. It’s important that you read and understand the contract before you sign it, or get with someone who can explain it to you. Typically this type of contract calls for a large deposit that you’d lose if you don’t close for almost any reason. Usually the contract doesn’t contain a financing contingency, which means that you still have to close even if you can’t find a lender that will give you a loan. Further, the contract generally lacks an appraisal contingency, which means that you still need to close if market values drop while the home is being built. Also, be aware that there can be some variation in the completed home from what was promised to you. Unless the changes are significant, you will still be required to buy the home. I highly recommend a thorough inspection by an experienced home inspector prior to closing.

Q: Recently we bought a bank-owned condo. We did not have an inspection prior to the closing, and it turns out that there are some problems with the unit. Neither the bank’s real estate agent nor the condo association mentioned anything about the problem, but we think that they both must have known about it because it affects several units and other residents know about it. What can we do? – Rhonda

A: Probably not much. Most contracts to buy bank-owned property are what I refer to as “super as-is.” The lender never occupied the home, so it has no idea if anything is wrong with it. The lender’s real estate agent is not your representative and has no duty to you, but if the agent actually lied to you about the property, he or she may have some responsibility. Similarly, the condo association is under no obligation to fill you in, but it can’t lie to you, either. As I mentioned in my answer above, get a home inspection before you buy. Buying a foreclosed property from a lender is more risky than an ordinary sale from a private party, so it’s especially important to remember: Buyer Beware.

To follow Gary Singer on Twitter, click here.

PB County tax sales heading online

Thu, 10 May 2012 12:00:00 GMT

Tax deed sales in Palm Beach County will move to the Internet starting June 13.

The sales now are held at the courthouse, but Clerk & Comptroller Sharon Bock says the online auctions will save time and resources and not cost taxpayers any additional money.

Grant Street Group will handle the sales, which are the auction of properties because of delinquent real estate taxes. Grant Street also oversees the county’s online foreclosure sales, which moved to the Internet in 2010.

Broward County tax deed sales are not online, though officials say they're considering it.

Palm Beach County tax sales will be held at www.mypalmbeachclerk.clerkauction.com.

Three training sessions will be held May 17-18 at the courthouse, 205 N. Dixie Highway in West Palm Beach. To register, call 561-355-3312.

South Florida tops nation in distressed mortgages

Wed, 09 May 2012 05:05:00 GMT

South Florida leads the nation in distressed home mortgages, signaling a lengthy recovery even if the housing market has hit bottom, as many experts say.

Nearly a quarter of home mortgages in Palm Beach, Broward and Miami-Dade counties are at least 90 days overdue or in foreclosure, according to data released Wednesday. The percentage has declined over the past year.

The report comes from Foreclosure-Response.org, a joint project of national nonprofit groups Local Initiatives Support Corp., Urban Institute and the Center for Housing Policy.

As of December, 23.6 percent of loans in the three counties are in the foreclosure process or seriously delinquent. That’s down from 24.6 percent at year-end 2010.

South Florida has topped the nation in the share of distressed homes for the past seven quarters.

With so many foreclosures in the pipeline, some analysts worry that bank-owned homes could flood the market and drive down prices. But many other observers expect values to remain stable because eager buyers, attracted in part by low interest rates, are competing for a limited supply of properties.

The large number of troubled loans is the result of jammed courts in states like Florida, where judges must approve foreclosures, according to the Foreclosure-Response.org report.

It takes an average of 861 days for a lender to repossess a property in Florida, says RealtyTrac Inc., a California foreclosure listing firm.

Florida and other states need to balance approving foreclosures in a more timely manner with giving struggling homeowners their due process, said Rob Pitingolo, a research assistant at the Urban Institute.

“It’s tough because we do want to make sure there are protections for borrowers,” he said. “But we also need to clear out the foreclosure inventory if we want to stabilize neighborhoods.”

Florida dominates the list of distressed mortgages nationwide.

Vineland, N.J., Port St. Lucie, Orlando and Palm Coast round out the top five. Fifteen of the top 25 metros are in Florida. The report ranks all 366 metro areas in the United States.

For the rankings, click here.

Investor: Housing has bottomed, but watch for credit woes

Tue, 08 May 2012 12:00:00 GMT

Add prominent investor Lewis Ranieri to the list of housing watchers who say the market has hit bottom.

Still, the Wall Street Journal reports that Ranieri says credit remains a problem for many potential buyers. That could prevent any quick recovery. Read the full Journal story here.

As for South Florida specifically, Zillow.com and local experts insist home prices across the region are as low as they’ll go. But some are holding off calling a bottom, citing a potential overhang of foreclosed homes hitting the market.

To follow Paul Owers on Twitter, click here.

Housing starts up in South Florida

Mon, 07 May 2012 15:25:00 GMT

Builders in South Florida started work on more homes in the first quarter than they did a year ago, according to the Metrostudy research firm.

Broward County had 257 housing starts from January through March, up 67 percent from a year ago. In Palm Beach County, there were 255 home starts in the quarter, a 22 percent increase from a year earlier.

“There are a handful of projects in a handful of submarkets that are doing well,” said Brad Hunter, South Florida director for Metrostudy in Palm Beach Gardens. “There needs to be about five times as many to get back to a healthy market.

“But I’m encouraged,” Hunter said. “Anybody who buys a house in today’s market, whether it’s new or used, is picking a good time to do it.”

The pace of construction fell from the fourth quarter, and starts remain far below what they were during the housing boom, when each of the counties had 2,000 to 3,000 starts a quarter.

The Metrostudy figures include homes and townhomes but not condominiums.

Housing prices started falling in 2006, and builders were hit hard by rising cancellations, the credit crunch and lost revenue. The housing bust devastated many builders, including Levitt & Sons, the Fort Lauderdale-based company known for the iconic Levittown project on Long Island in 1949.

After several years of scant construction across South Florida, home starts bottomed in 2009, according to Metrostudy. Some builders, including Minto Communities and WCI Communities Inc., have started to raise prices. That’s a clear indication that demand is increasing, Hunter said.

“We’ve been open 16 months, and it’s getting better every month,” said Jim McDade, an executive with Toll Brothers, which is building about 400 homes at Parkland Golf & Country Club.

The Monterra development in Cooper City accounts for most of the new homes being built in Broward. It’s on pace to be completed in 2013, about two years ahead of schedule.

The project features 850 single-family homes from $325,000 to $700,000. The builder, CC Devco, is raising prices by $5,000 this week.

The Centra development in Boca Raton is nearing completion, with 20 of 198 townhomes left to sell, said Harry Posin, a longtime builder working on Centra with Stiles Corp. as a joint venture.

The townhomes range from $245,000 to $360,000. The average price has increased 2 percent to 3 percent since the project was launched two years ago, Posin said.

“The buyer psychology is so far different than it was 18 months ago,” said Posin, president of Label & Co. Developments Inc. in Fort Lauderdale. “There was that uncertainty about whether prices would keep dropping. Now people are aware the market has turned.”

To follow Paul Owers on Twitter, click here.

Ask a real estate pro: Can Realtors charge flat fee to sell home?

Fri, 04 May 2012 12:00:00 GMT

Q: I am trying to sell my age-restricted condominium for $25,000. Every real estate agent I speak with wants to charge a flat fee that is higher than the 6 percent commission that I was expecting. Can they do this? – Pat

A: Yes. There seems to be a growing trend among real estate agents charging a flat fee on lower-end homes rather than a percentage-based commission. Your contract with a real estate agent to sell a house is just that: a contract, and as such it is subject to negotiation. The industry standard is for agents to charge a commission based on 6 percent of the sale price. But with homes or condos valued at $50,000 or less, agents may not feel they’re being compensated enough to justify their time and energy in getting the property sold -- especially if they have to split the commission with another agent involved in the deal. So some agents will instead ask for a flat fee. It may actually be to your advantage to pay it, even if it’s more than the 6 percent commission you anticipated. People naturally work harder when they feel that they’re being fairly compensated. Because the commission is negotiable, you will need to weigh the pros and cons of paying your agent more and come to a compromise. By the way, the “transaction fees” that many agents charge in addition to the commission also are negotiable.

Q: After reading the recent story about sellers staying in the house after they sell it, I would like your thoughts on this subject. – Bud

A:I think post-occupancy clauses should be avoided as much as possible because the process is fraught with potential traps. Problems can occur if the seller fails to move out when his time is up and needs to be evicted; if the seller damages the house; or if someone gets hurts while visiting the property, possibly subjecting the new owner to a lawsuit. Sometimes, though, there are circumstances that make post occupancy unavoidable. In these cases, I recommend making clear disclosure to any lenders involved, having your lawyer prepare a detailed post-occupancy agreement between the buyer and seller and holding some money in escrow to ensure the sellers move out on time and leave the property in good condition. If you can’t do any of this, it’s best to extend the sale date so that the seller can move out before closing.

To follow Gary Singer on Twitter, click here.

Report: Tiger's ex Elin plans elaborate digs in North Palm

Thu, 03 May 2012 16:36:48 GMT

Tiger Woods’ ex is building herself quite a hideout.

Elin Nordegren’s 21,000-square-foot mansion in North Palm Beach will include a “Zen-like Koi pond built in the garden,” according to the Daily Mail.

“There will also be waterfalls, a spa and an Olympic sized swimming pool,” the paper reported. “There's no mention of any golfing facilities.”

Nordegren and Woods famously had a falling out over Thanksgiving weekend 2009 when she learned of his affairs. Nordegren divorced the golfing great the following year. She later bought a North Palm Beach pad for more than $12 million and demolished it, with plans to rebuild.

To read the full Daily Mail story, click here.

Robust sales lead to slight price increase at Heron Bay

Thu, 03 May 2012 15:02:33 GMT

WCI Communities has raised prices in its Somerset neighborhood at Heron Bay in Parkland.

It’s not the amount – just $5,000 – but rather the intent that’s noteworthy here.

Homebuilders have been beaten down for so long, retrenching and trying to survive. An actual price increase, no matter how small, is a sign that the market is improving, analysts say.

WCI says the price bump is the result of high demand and strong sales. The price range at Somerset is $352,900 to $472,900.

Since launching sales at Heron Bay a year ago, the Bonita Springs-based builder says it has sold 91 of 196 homes, including eight last weekend and six more in the first two days of May.

Luxury apartments coming to Coconut Creek

Wed, 02 May 2012 15:35:49 GMT

A Phoenix-based developer has started work on a 396-unit luxury apartment complex in Coconut Creek.

The first units at Broadstone Cypress Hammocks at 5201 W. Hillsboro Boulevard will be ready early next year, and construction is expected to be complete by spring 2014.

One-bedroom units will start at $1,100, two bedrooms will go for $1,450 and three-bedroom apartments will begin at $1,750, said Mike Ging, Alliance Residential Co.’s managing director for development in Florida.

It's the first new rental community built in a three-mile radius in about 10 years, Ging said.

Developers are buildings thousands of rental units across South Florida. Although home prices have plummeted from the record highs during the housing boom, many people still are leery of owning or can’t qualify for mortgages.

Amenities at Broadstone include a two-story clubhouse, a cyber café, fitness center, spa treatment room and a movie theater.

“It’s going to look and feel like a large upscale for-sale condominium community,” Ging said.

To follow Paul Owers on Twitter, click here.

Foreclosure aid program trying to qualify more homeowners

Fri, 27 Apr 2012 18:12:20 GMT

State housing officials on Friday announced changes to a $1 billion foreclosure prevention program that will loosen eligibility criteria and offer more money to homeowners.

Applicants to Florida’s Hardest Hit Fund no longer have to be at least 180 days delinquent on their mortgages to qualify. The state also is eliminating a requirement that the loans be originated on or before Jan. 1, 2009.

Homeowners who were deemed ineligible before may reapply. The changes still must be approved by the U.S. Treasury and likely won’t be effective for six to eight weeks.

Hardest Hit is part of a federal initiative to help states devastated by the housing crash.

As part of the new rules, unemployed homeowners can receive as much as $24,000 to pay their mortgages over 12 months. That’s up from $12,000.

Homeowners also may be eligible for as much as $18,000 to bring past-due mortgages current. The program also provides a one-time payment to qualifying homeowners of as much as $25,000, up from $6,000.

Since the program began in April 2011, homeowners have complained that the Hardest Hit requirements were too restrictive.

Sunrise homeowner Barbara Mullenix said she was disqualified because she was more than six months behind on her mortgage. She’s now trying for a short sale and isn’t inclined to reapply to Hardest Hit.

“I’m completly dismayed,” she said of the program. “I have no respect for ... how they handled it.”

Cecka Green, a spokeswoman for Florida Housing Finance Corp., which administers Hardest Hit, said it never was intended to meet everyone’s needs.

Hardest Hit has helped more than 5,540 homeowners statewide, according to the agency. Figures for Broward and Palm Beach counties were unavailable.

Last year, Florida Housing said it hoped to help 40,000 people.

The program offers money to cover mortgage payments for homeowners who are unemployed or in jobs with salaries below what they need for basic living expenses. Funds also are used to bring delinquent mortgages current for people who have returned to work or found higher-paying jobs.

To learn more about the program, click here.