Get REAL Estate with Soledad

2010-07-02T11:56:00.001-07:00

2010-07-02T11:16:00.001-07:00

2010-07-02T11:09:00.001-07:00

2010-05-28T09:26:00.001-07:00

HAPPY FRIDAY!
How is the market in Central Florida? Here are some numbers for you to think about...

From May 28th, 2009-Present, there were nearly 30,000 homes sold in Central Florida . This number includes sales in Seminole, Orange , Osceola and Polk counties for single family homes under $500,000. 43% of the sales were bank-owned properties and 20% short sales.

Currently, we have 15,000 homes listed for sale in Central Florida. 42% of the active listings are bank owned and 30% are short sales. Of the 10,000 properties currently pending (under contract) 60% are short sale properties and 20% are bank-owned.

Short sales tend to stay pending for a while due to the length of time required to obtain third party approvals.

For more specific numbers or information, please contact the Reaves Team Orlando and will be happy to drill down these numbers.

The numbers are originated from Multiple Listing Service (MLS) for Central Florida.

WHAT IS A SHORT SALE?

2010-03-17T05:31:00.000-07:00

A Short Sale occurs when lenders agree to allow a homeowner to sell their home for less than the home owner owes on their home loan. This kind of a sale has to be approved by the lender any time the sale of a home will not be able to pay off the associated home loan from the sale. Someone has to take a loss, and it is usually the bank; in the form of the approved short sale. It is one of the options a borrower may have to avoid foreclosure of their home.

The seller is still the owner of the property in question; however, in order to transfer title to potential purchaser, the lender must release the lien on its collateral to the loan given to the borrower, which is the house.
Not all lenders will accept short sales or discounted payoffs, especially if they believe they will get more money from foreclosing and selling the home themselves.
Not all sellers or all properties qualify for short sales.

Why A Short Sale:

For Buyers:
Prices might be lower than with a bank owned property becuase the competition on short sale homes is less than with a bank owned;
While the home may need some deferred maintenance issues resolved, the repair issues in an occupied home many times are less severe as the repair issues with a bank owned home;
Seller will provide seller’s disclosures outlining the history of the home;
The buyer will be able to take possession of the home on the same date that they close;
The closing will be handled by a title company and the buyer will be able to get marketable title instead of insurable title.

Do Short sales work?
Yes, they do work but you must work with an agent that understands the intricacies of short sales transactions. There are many things that need to be taken into consideration when assessing if you as a buyer want to put an offer on a short sale home. For instance, your agent must find out how many lien holders there are, who the lien holders are, are there any offers in the works, is the property going to go be taken off of the market while the bank decides if the sellers accepts the offer? Etc.

For Sellers:
Short sales appear on your credit report as "pre-foreclosure in redemption", not as "debt discharged due to foreclosure"
A short sale can help homeowners avoided further collection activity or a foreclosure action;
Sellers can help maintain property values by ensuring that the listing agents are doing their homework with the listing price;
Sellers that remain in their home help decrease vacant homes in the neighborhood which attracts vandalism and subsequently decline in values;
There is a new law that comes into effect April 4th, 2010; where seller might qualify for 1500.00 relocation fees under the HAFA PROGRAM.

On the sale side, a good listing agent will list the property at a reasonable price; otherwise, the bank that has a lien against the property will not approve the sale price in the short sale. The property must be heavily marketed and once an offer is received the listing agent must submit a “short sale package” to the lien holder as soon as possible. This package is quite extensive, but is necessary if the lender is going to agree to take a substantial loss on a short sale. Sellers must consult with a CPA for possible tax ramifications.

President Obama Signs Into Law New Tax Credit for Current Home Owners and Extension of New Home Buyer Tax Credit

2009-11-07T14:00:00.000-08:00

President Obama just signed a bill TODAY to extend the tax credit for first-time homebuyers (FTHBs) through June 30, 2010 and includes a new tax credit for people who already own a home. Following is an overview of the law. If you or anyone you know has questions, please have them contact me.

TAX CREDIT OVERVIEW

Who Gets What?
First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What are the New Deadlines?
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

What are the Income Caps?
The amount of income someone can earn and qualify for the full amount of the credit has been increased. Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap and up to $145,000 can receive a partial credit. Single filers who earn $145,000 and above are ineligible Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap and up to $245,000 can receive a partial credit. Joint filers who earn $245,000 and above are ineligible.

What is the Maximum Purchase Price?
Qualifying buyers may purchase a property with a maximum sale price of $800,000.

What is a Tax Credit?
A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual’s primary residence.

Who is Eligible fort FTHB Tax Credit?
Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

Are There Other Restrictions to Taking the FTHB Credit?
Yes. According to the IRS, if any of the following describe a homebuyer’s situation, a credit would not be due:

They buy the home from a close relative. This includes a spouse, parent, grandparent, child or grandchild. (Please see the question below for details regarding purchases from “step-relatives.”)
They do not use the home as a principal residence.
They sell their home before the end of the year.
They are a nonresident alien.
They are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
Their home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
They owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008.

If a Parent (Who Will Not Live In The Property) Cosigns for a Mortgage, Will Their Child Still be Eligible for the Credit?
Yes, provided that the child meets the other requirements for the tax credit.

Above Information obtained from The Mortgage Market Guide.

CREDITO PARA PRIMER COMPRADOR DE CASA

2009-04-01T07:14:00.000-07:00

No hay muchas personas que saben o entiende que el congreso enacto un credito para el primer comprador the vivienda...

Este credito es para primeros compradores de casa o personas que no han tenido una casa en los tres ultimos anos;
Este credito no deber ser repagado a el govierno;
El credito es el 10% de la compra de la casa sin exceder $8000;
Este credito is para las casas compradas de Enero 1st a Diciembre 31st 2009;

Para oir mas en espanol, visite la link the IRS Credito para el primer comprador the vivienda

The First Time Home Buyer Credit for 2009

2009-03-19T05:35:00.000-07:00

Not many people are aware or understand that Congress enacted a bigger and better Home Buyer Tax Credit.

A tax credit of up to $8,000 is now available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Unlike the tax credit enacted in 2008, the new credit does not have to be repaid.
The tax credit is for first-time home buyers only.
The tax credit does not have to be repaid.
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
For those homes purchased between January 1st and April, 2009, buyers may use the tax credit in their 2008 tax filing. If a buyer has already filed their tax they may amend the 2008 taxes if they want the benefit today.

For more details on this benefit, you may call Soledad or Eric Reaves.

Are Real Estate Auctions good for me?

2008-12-05T10:10:00.000-08:00

Are Real Estate Auctions good for me? That is a question that is often raised by our clients and our answer is they can be if you have the stomach for it. We can find SCREAMING deals through these auctions; however, there are a number of things that have to be considered:

Most auction companies have similar terms to the ones outlined below:

For instance, Hudson & Marshall will require the greater of 5% of the purchase price or $2,500.00 as Good-Faith-Deposit if you are the successful bidder. They also require that you bring a minimum of $2,500 in the form of Certified Funds or Cash, just to bid in the auction. Another auction company, REDC, will require the greater of 5% of the purchase price or $5,000.00 as Good-Faith-Deposit if you are the successful bidder on your first property and the greater of 15% of the purchase price or $10,000.00 as Good-Faith-Deposit if you are the successful bidder on any property after the first one.

The purchase of auctioned homes are treated as cash transactions which means that the purchase is not contingent on loan approval. If you are not be able to obtain financing after being the successful bidder, then you forfeit all of your good faith deposit.

Homes purchased at auction are purchased in an “As Is-Where Is” condition. This means two things: What you see is what you get AND Buyer Beware. This criteria is not because the seller is trying to hide anything, it’s only because these properties were acquired through a foreclosure action and the seller (usually the bank) does not have any knowledge of the condition of the property.

To protect itself and its agents, the bank will utilize its own contract where it outlines, over and over again, that the seller and its agents cannot make any warranties or representations about the condition, title, location, or anything else associated with the property.

Once you have bid, you waive the right to cancel the transaction based on any condition of the property. So if you desire to bid on a particular property, it is highly recommended that you do a personal inspection of the property prior to making bid on line or at the live the auction. Once you are the successful bidder, the good-faith-deposit is not refundable on the basis of the condition of the property.

The seller will choose the closing agent and will pay for the title policy.

The total price paid for a home at auction is the high bid amount PLUS a buyer’s premium fee of 5%. In other words, if your highest bid is $146,000, you must add 5% of $146,000 to the total purchase price making your total purchase price $153,300. That 5% is the fee collected by most auctioneers and it stays with them.

Any commissions for a purchase at auction are paid by the seller and it does not affect your bid. That just means that if a buyer does not have representation, the bank, will get more than it budgeted for.

Most auctioned properties are sold under a RESERVED AUCTION procedure. The bank provides an UNPUBLISHED minimum bid that it will accept for each property ahead of the auction. During the bidding, if the current bid meets the reserve price, the auctioneer will cry out: “this property is now an absolute sale”. This lets everyone know that if they bid from that point on, the final bidder has an automatically seller approved price. Unless the auctioneer declares that the reserve has been met in this fashion, ALL other winning bidders have to wait for the seller to give their approval for the sale at the top bid price. This approval can take 10 minutes if a bank representative is at the auction, or up to a week if the selling bank is not at the auction. Therefore, the officers of the bank must review the highest bid and determine if they want to accept it, reject it or offer a counter-offer to the highest bidder.

To gain access to the properties, it is much easier to work with a buyer’s agent who can easily arrange the viewing of the properties. If you do not feel comfortable having representation, then, you must wait for the open houses that will be held by the auctioneers...

DO YOU NEED A REAL ESTATE AGENT TO BUY PROPERTIES AT AUCTION?
Although is not required to retain the services of an real estate agent to buy properties at auction, it is highly recommended because of the additional risks in buying at auction. A good agent will help you consider all aspects of buying at auction, provide you with updated pricing information and give you pointers on auction behavior. Your buyer’s agent can also give you access to homes you want to bid on at your convenience, not only during specific open house hours.

After you succeed at being the high bidder, your agent will know how to navigate through the process to make the transaction as smooth as possible. But buying ANY bank-owned property takes patience! The sellers are large companies that are not emotionally involved in selling the homes.

Buying a home is stressful as it is, but if you take it on your own, the stress can be exponentially multiplied. With professional guidance, you will get a great deal, approach home auctions like a pro and buy a home that really fits what you want.

Should I buy an REO Property?

2008-08-06T12:59:00.000-07:00

Is it wise to buy a bank-owned property also known as REO (Real Estate Owned by the Bank)?

Before you set out to find the perfect bank owned property, there are some things one needs to understand.

First and foremost, there is a misconception that BANKS A MAKING A LOT OF MONEY when selling these homes, but that could not be furthest from the truth.

Banks do not want to own Real Estate because that is not how they make money. By the time the time the foreclosure action has been completed, the lender owes the delinquent taxes and all the penalties attached to the taxes, the servicer of the asset has placed hazard insurance on the property to protect the asset, association dues might be delinquent, city liens for city ordinances might have been also attached, etc and value of home is much less than the amount of the loan the bank gave to the previous owner. By the time all the cost is added up, banks and its investors are losing lots money. Therefore, banks are trying to mitigate their losses by selling the asset (REO property) as quick as it can be possibly sold and they do so by pricing the homes lower than any other homes in the neighborhood.

ARE REO PROPERTIES A GOOD DEAL?
Location and condition of the property are two very important factors when considering the purchase of a bank-owned property. Usually, the price set by the bank will reflect the condition of the property, but that is not always the case because banks depend of local agents to determine the fair market value of the property. Has a property been condemned? Although the bank will pay of title insurance, it also important to make sure that title work is closely reviewed. IF YOU WANT A GOOD DEAL then you will need to exercise a lot of patience because banks are slow in responding and that is not not because they are being sneaky but the delays are caused mostly by the number of homes that are being handled by the REO Departments and/or asset managers at the bank's end. Also, Bank-Owned properties do not work hand-in-hand with the counties down payment assistance programs, but some banks will pay closing costs.

DO YOU NEED A REAL ESTATE AGENT TO BUY REO PROPERTIES?
Although is not required to retain the services of an real estate agent to buy a bank-owned-property, it is highly recommended because of the nature of the purchase, which is always “AS IS." A good agent will know how to navigate through this transaction to get you what you are looking for. Again, patience is required when buy a bank-owned property.