Wednesday, April 13, 2011
Tuesday, April 12, 2011
Home loan modification scam warning
TALLAHASSEE, Fla. – April 12, 2011 – Florida Attorney General Pam Bondi filed a complaint yesterday against a home loan modification company for allegedly requiring consumers to pay an upfront fee for services.
According to an investigation by the Attorney General’s Office, U.S. Mitigators, LLC, allegedly required consumers to pay an upfront fee of $2,100 before it would render services. Many consumers reported paying the $2,100 fee and an additional $399 application fee for services they never received. The Attorney General’s complaint against the company seeks more than $48,000 in restitution for consumers.
“Charging upfront fees for loan modification services is illegal,” says Bondi. “If consumers have been asked to pay upfront fees for these types of services, I encourage them to file a complaint with my office.”
Under Florida law, loan modification companies may not solicit, charge, receive or attempt to collect or secure payment, directly or indirectly, for foreclosure-related services before completing or performing all services contained in the agreement.
To file a complaint, consumers can call the Attorney General’s fraud hotline at 1-866-966-7226 or file online at http://www.myfloridalegal.com.
The Federal Trade Commission (FTC) has also issued rules concerning mortgage assistance relief services (MARS). For more information, visit the Legal Center on the Florida Realtors’ website.
© 2011 Florida Realtors®
Sunday, April 10, 2011
4 mistakes to avoid when buying a foreclosure
ORLANDO, Fla. – April 8, 2011 – Foreclosures continue to flood real estate markets across the country, and buyers are looking to cash in on what they view as some of the best real estate deals. But experts say that while some foreclosures are a great purchase, buyers need to be cautious before jumping in. They must make sure they’re really getting a bargain.
Dan Steward, president of Pillar to Post Professional Home Inspections, advises buyers considering a foreclosure to avoid the following top mistakes:
1. Don’t judge a house by looks alone. A $2 million mansion may look fabulous but have mold hiding beneath the walls or need numerous, costly repairs. A fixer upper, on the other hand, may look rundown but have excellent bones and be repaired at a reasonable cost. A home inspection prior to purchasing a property can help buyers determine if they might be getting in over their head, Steward says. He cautions buyers to not just rely on previous inspections, however, since vacant homes can deteriorate rapidly.
2. Don’t focus on price alone. Buyers may focus on the ultra-low price so much that they forget to factor in other qualities, such as the home’s school district, view, location and local crime rate. Steward cautions buyers not to assume that a previous owner’s financial problems cause all foreclosures.
3. Don’t be tempted to “flip.” Purchasing a home at bargain price, updating it and trying to sell it for a lot more may seem tempting, but Steward warns buyers to be cautious. Unless the buyers are pros at house flipping, they’ll likely run into several novice mistakes in trying to make fast money on flipping a foreclosure. Steward recommends buyers consult a real estate professional, home inspector and contractors before considering a flip.
4. Don’t go over budget. Foreclosures often require some fixes so buyers need to make sure they have the money to afford needed repairs. Steward recommends that buyers have at least half of the money in cash for needed repairs. He says that buyers will want to avoid taking more loans than needed, particularly private loans, because the interest on them will slowly chip away at their initial foreclosure bargain.
Source: “What to Watch Out for When Buying a Foreclosure: Help Your Clients Know Which to Buy ... and Which to Walk By,” RISMedia (April 7, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
Wednesday, March 23, 2011
Fort Lauderdale leads nation in housing inventory uptick
March 23, 2011 03:45PM
The inventory of unsold homes on multiple-listing services is on the rise nationwide. Last month, inventory rose by 0.6 percent from the month prior and by 13 percent year-over-year, the Wall Street Journal reported. Based on data from Move Inc., 107 markets saw an increase in listings, while only 39 saw inventory either decrease or remain flat when compared to January. (February typically sees a listings uptick as home sellers prepare for the spring buying season). On a year-over-year basis, only seven markets have seen home listings decline: Jersey City, N.J. and Orlando, Fla. are among them. Meanwhile, Fort Lauderdale, Fla. was the city with the largest inventory decline month-over-month, with listings down by 12.5 percent. San Francisco, Calif. had the biggest increase in competition amongst sellers, as its inventory rose 6.3 percent from January levels. [WSJ]Friday, January 14, 2011
Wednesday, December 29, 2010
Downtown Miami condo sales jump 62%
Downtown Miami condo sales jump 62%
By Yudislaidy Fernandez
Condo sales in Miami's urban core soared 62% in the first nine months of this year compared to the same period in 2009, a realty analyst says.
Competitive prices in recently-built condo towers and high interest from foreign buyers have been a win-win combination for a market considered ground zero of South Florida's condo boom.
Craig Werley, president of Focus Real Estate Advisors, said 2,754 condo sales closed from this January through September compared to 1,714 in the first nine months of 2009.
Since the first quarter, Mr. Werley said, "the total inventory for sale of new buildings is continuing to be reduced."
Jeff Morr, chief executive officer of realty firm Majestic Properties, said he's seen a boost in sales volume in the urban core, which includes Omni, the Central Business District and Brickell.
"It's been a very brisk year for sales. Everything that is priced right has been selling," he said. "…The majority of these are cash sales, except when developers are able to offer some financing."
Mr. Werley, along with firm Goodkin Consulting, is in the process of conducting a study for the Downtown Development Authority to tally residential closings and occupancy levels in the urban core.
The authority orders these studies periodically to keep a pulse on condo sales and population growth. Its last update on closings and occupancy was released in March.
That study estimated 74% of available units were occupied.
"I'm in the process of a formal update, but from the work I've been doing in the downtown area [occupancy] is definitely up," Mr. Werley said. "Most of the buildings you'll find are at or near [full] occupancy."
By Yudislaidy Fernandez
Condo sales in Miami's urban core soared 62% in the first nine months of this year compared to the same period in 2009, a realty analyst says.
Competitive prices in recently-built condo towers and high interest from foreign buyers have been a win-win combination for a market considered ground zero of South Florida's condo boom.
Craig Werley, president of Focus Real Estate Advisors, said 2,754 condo sales closed from this January through September compared to 1,714 in the first nine months of 2009.
Since the first quarter, Mr. Werley said, "the total inventory for sale of new buildings is continuing to be reduced."
Jeff Morr, chief executive officer of realty firm Majestic Properties, said he's seen a boost in sales volume in the urban core, which includes Omni, the Central Business District and Brickell.
"It's been a very brisk year for sales. Everything that is priced right has been selling," he said. "…The majority of these are cash sales, except when developers are able to offer some financing."
Mr. Werley, along with firm Goodkin Consulting, is in the process of conducting a study for the Downtown Development Authority to tally residential closings and occupancy levels in the urban core.
The authority orders these studies periodically to keep a pulse on condo sales and population growth. Its last update on closings and occupancy was released in March.
That study estimated 74% of available units were occupied.
"I'm in the process of a formal update, but from the work I've been doing in the downtown area [occupancy] is definitely up," Mr. Werley said. "Most of the buildings you'll find are at or near [full] occupancy."
Saturday, December 4, 2010
Rebuild Credit After Foreclosure
Time, effort can rebuild credit after foreclosure
DALLAS – Nov. 30, 2010 – If you’ve been through a foreclosure, you may wonder if there is hope for you to become a homeowner again.
Yes, but it will take awhile.
“It doesn’t mean you’ll never be a homeowner again,” said Linda Davis-Demas, director of housing at Consumer Credit Counseling Service of Greater Dallas.
But you’ll need to examine what caused you to fall behind on your mortgage and take steps to fix the problem.
“You have to look at what were the reasons you didn’t make the payment,” said Davis-Demas. “Was it budgeting? You can modify that type of behavior.”
A foreclosure is a major hit to your credit history and stays on your credit report for seven years.
“Foreclosure is one of the FICO seven deadlies,” said credit expert John Ulzheimer, referring to the dominant FICO credit score. “It’s considered a major derogatory item, regardless of the back story” – whether it’s a job loss, rate reset, underemployment or other reasons.
Your credit score will also suffer “the minute the foreclosure process begins,” said Ulzheimer, founder of 2StepCredit.com, a credit education website.
“It doesn’t have to be completed for it to be very damaging,” he said. “The damage will vary based on your scores, but it can damage the score as much as 200 points, especially if your scores are very strong to begin with.”
So, after a foreclosure, your priority has to be rebuilding your credit. You’ll have some time to do so, because mortgage giants Fannie Mae and Freddie Mac impose strict rules on how long it will take before you’re eligible for another mortgage.
For example, borrowers with a prior foreclosure and extenuating circumstances – such as a job loss, divorce or medical issues – must wait three years before they can qualify for a Fannie Mae-backed loan, said spokeswoman Amy Bonitatibus. For all other borrowers the waiting period is seven years.
At Freddie Mac, those who can prove extenuating circumstances must wait three years before applying for a new mortgage; everyone else must wait five years. But that will change in February, when the waiting period for those whose foreclosure was caused by their own financial mismanagement will increase to seven years.
Fannie Mae and Freddie Mac also have strict rules on the credit score and the size of the downpayment required of borrowers with a prior foreclosure.
Here’s what you need to do to rebuild your credit to qualify again for a mortgage:
Pay your bills on time: The FICO score, the dominant credit score used by lenders, gives the greatest weight to payment history, so make sure you consistently pay your bills on time.
“Stability is the key,” said Craig Jarrell, president of the Dallas region of IberiaBank Mortgage Co. “Have you demonstrated that you are now capable of owning a home and paying the bills, and have recovered from whatever circumstance caused the original foreclosure?”
Review credit report: You’re entitled to a free credit report once every 12 months from each of the three national credit bureaus – Experian, TransUnion and Equifax. You should get a copy and check it for any inaccuracies.
To get your free credit report, go to http://www.annualcreditreport.com. Go to only this website, not ones with similar-sounding names.
“Make sure it is about you and only you,” said Gail Cunningham, spokeswoman for the National Foundation for Credit Counseling. “If you find errors, dispute them. If you discover old debts, it will weigh in your favor to satisfy them. Paid late looks better than not paid at all. Make sure that debts older than seven years have rotated off your report, as these could be dragging your score down unnecessarily.”
Check your mortgage: You want to be sure that you don’t still owe anything on your old mortgage. Sometimes proceeds from a foreclosure sale aren’t enough to cover what’s owed on the mortgage, which would leave you owing the difference.
“Make sure there is a zero balance reflected, and if you are responsible for a shortfall, make arrangements to repay the remaining balance,” Cunningham said.
Many lenders are willing to settle that “deficiency judgment” for less than what’s owed because “it’s better than getting no money at all,” Jarrell said.
Apply for credit: In particular, apply for different varieties of credit.
“Credit scoring models value having different types of credit,” Cunningham said. “Having some revolving accounts, typically credit cards, and some installment fixed-payment loans, such as a car payment, can improve your score.”
But don’t apply for too much credit at once.
“This can appear as though you’re desperate for credit and perhaps make lenders less inclined to extend credit to you,” Cunningham said. “Further, too many credit inquiries can have a negative impact on your credit score.”
Don’t fall prey: Watch out for credit repair companies that promise to clean up your credit report so you can get a car loan, a home mortgage, insurance, or even a job – after paying a fee for the service.
“The truth is, that no one can remove accurate negative information from your credit report,” according to the Federal Trade Commission. “It’s illegal.”
Only the passage of time can assure that negative, but accurate, information on your credit report will be removed.
When it comes to repairing your credit, there are no quick fixes, the experts say. What lenders want to see is responsible financial behavior over time.
“Know that time is your friend, as the farther you move away from the financial distress, the less negative impact it has,” Cunningham said. “Follow with responsible behavior with your new credit, and you’ll soon have a solid credit file.”
How to help your mortgage chances: If you’ve been through a foreclosure, there’s still hope for you to become a homeowner again. Here are tips to make lenders want to take a chance on you:
• Save for a downpayment.
• Clean up your credit. Pay off or pay down your debts and establish a record of consistent on-time bill payments.
• Get your credit score as high as possible.
• Show stability in your job.
• Monitor your credit report to ensure that your old loan shows up as closed and that you still don’t owe anything else on it.
© Dallas Morning News research
DALLAS – Nov. 30, 2010 – If you’ve been through a foreclosure, you may wonder if there is hope for you to become a homeowner again.
Yes, but it will take awhile.
“It doesn’t mean you’ll never be a homeowner again,” said Linda Davis-Demas, director of housing at Consumer Credit Counseling Service of Greater Dallas.
But you’ll need to examine what caused you to fall behind on your mortgage and take steps to fix the problem.
“You have to look at what were the reasons you didn’t make the payment,” said Davis-Demas. “Was it budgeting? You can modify that type of behavior.”
A foreclosure is a major hit to your credit history and stays on your credit report for seven years.
“Foreclosure is one of the FICO seven deadlies,” said credit expert John Ulzheimer, referring to the dominant FICO credit score. “It’s considered a major derogatory item, regardless of the back story” – whether it’s a job loss, rate reset, underemployment or other reasons.
Your credit score will also suffer “the minute the foreclosure process begins,” said Ulzheimer, founder of 2StepCredit.com, a credit education website.
“It doesn’t have to be completed for it to be very damaging,” he said. “The damage will vary based on your scores, but it can damage the score as much as 200 points, especially if your scores are very strong to begin with.”
So, after a foreclosure, your priority has to be rebuilding your credit. You’ll have some time to do so, because mortgage giants Fannie Mae and Freddie Mac impose strict rules on how long it will take before you’re eligible for another mortgage.
For example, borrowers with a prior foreclosure and extenuating circumstances – such as a job loss, divorce or medical issues – must wait three years before they can qualify for a Fannie Mae-backed loan, said spokeswoman Amy Bonitatibus. For all other borrowers the waiting period is seven years.
At Freddie Mac, those who can prove extenuating circumstances must wait three years before applying for a new mortgage; everyone else must wait five years. But that will change in February, when the waiting period for those whose foreclosure was caused by their own financial mismanagement will increase to seven years.
Fannie Mae and Freddie Mac also have strict rules on the credit score and the size of the downpayment required of borrowers with a prior foreclosure.
Here’s what you need to do to rebuild your credit to qualify again for a mortgage:
Pay your bills on time: The FICO score, the dominant credit score used by lenders, gives the greatest weight to payment history, so make sure you consistently pay your bills on time.
“Stability is the key,” said Craig Jarrell, president of the Dallas region of IberiaBank Mortgage Co. “Have you demonstrated that you are now capable of owning a home and paying the bills, and have recovered from whatever circumstance caused the original foreclosure?”
Review credit report: You’re entitled to a free credit report once every 12 months from each of the three national credit bureaus – Experian, TransUnion and Equifax. You should get a copy and check it for any inaccuracies.
To get your free credit report, go to http://www.annualcreditreport.com. Go to only this website, not ones with similar-sounding names.
“Make sure it is about you and only you,” said Gail Cunningham, spokeswoman for the National Foundation for Credit Counseling. “If you find errors, dispute them. If you discover old debts, it will weigh in your favor to satisfy them. Paid late looks better than not paid at all. Make sure that debts older than seven years have rotated off your report, as these could be dragging your score down unnecessarily.”
Check your mortgage: You want to be sure that you don’t still owe anything on your old mortgage. Sometimes proceeds from a foreclosure sale aren’t enough to cover what’s owed on the mortgage, which would leave you owing the difference.
“Make sure there is a zero balance reflected, and if you are responsible for a shortfall, make arrangements to repay the remaining balance,” Cunningham said.
Many lenders are willing to settle that “deficiency judgment” for less than what’s owed because “it’s better than getting no money at all,” Jarrell said.
Apply for credit: In particular, apply for different varieties of credit.
“Credit scoring models value having different types of credit,” Cunningham said. “Having some revolving accounts, typically credit cards, and some installment fixed-payment loans, such as a car payment, can improve your score.”
But don’t apply for too much credit at once.
“This can appear as though you’re desperate for credit and perhaps make lenders less inclined to extend credit to you,” Cunningham said. “Further, too many credit inquiries can have a negative impact on your credit score.”
Don’t fall prey: Watch out for credit repair companies that promise to clean up your credit report so you can get a car loan, a home mortgage, insurance, or even a job – after paying a fee for the service.
“The truth is, that no one can remove accurate negative information from your credit report,” according to the Federal Trade Commission. “It’s illegal.”
Only the passage of time can assure that negative, but accurate, information on your credit report will be removed.
When it comes to repairing your credit, there are no quick fixes, the experts say. What lenders want to see is responsible financial behavior over time.
“Know that time is your friend, as the farther you move away from the financial distress, the less negative impact it has,” Cunningham said. “Follow with responsible behavior with your new credit, and you’ll soon have a solid credit file.”
How to help your mortgage chances: If you’ve been through a foreclosure, there’s still hope for you to become a homeowner again. Here are tips to make lenders want to take a chance on you:
• Save for a downpayment.
• Clean up your credit. Pay off or pay down your debts and establish a record of consistent on-time bill payments.
• Get your credit score as high as possible.
• Show stability in your job.
• Monitor your credit report to ensure that your old loan shows up as closed and that you still don’t owe anything else on it.
© Dallas Morning News research
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