Should You Buy or Rent?

That is a good question and I think the article below can help someone determine that.  I know in South Florida it is a great time to buy because prices have come down so far, rates are low, and the first-time homebuyer tax credit.  I think the most important part of the article was this:

 

How long do you plan to stay in your home? “There are high transaction costs associated with buying and selling” a house, says Dean Baker, co-director at the Center for Economic and Policy Research, so home buyers should plan to stay put for at least four to five years.

The reasoning? The costs for buying and then selling a home — which can include a real-estate agent’s fee, a transfer fee, closing costs, and inspector and surveyor fees — could add up to about 10% of the sale price, or roughly 1½ years worth of rent. “If you average that over 10 years, it is not that big a deal,” says Mr. Baker. “But if you average it over, say two years, you’re paying an awful lot of money to own a house for a short period of time.”

http://online.wsj.com/article/SB125158404267969691.html?mod=rss_PJ_Main 

Mortgage Fraud

Although this article talks about the fraud with reverse mortgages this can and does happen with normal refinance.

“Last month, the owner of the Orlando, Fla., title company that handled his loan admitted to stealing more than $1 million from several reverse-mortgage holders, including Mr. Ford. Bank of America Home Loans, a unit of Bank of America Corp., says the title agent never sent it the money required to pay off Mr. Ford’s mortgage. As a result, Mr. Ford says, the bank recently threatened to foreclose on his seven-acre ranch in Archer, Fla.”

http://online.wsj.com/article/SB10001424052970204044204574362641338197748.html#mod=todays_us_personal_journal 

Refinancing Advice

This is a great article about refinancing to pay off your debts.  It is not that it’s a bad idea to pay off credit cards if your interest rates are high.  The problem is that once they are paid off the credit cards are still open and the temptation  to use them is still there.

“Why do you have this debt? “If you’re spending more than you can afford, consolidating your debt will not improve your spending habits and will likely be harmful in the long run,” says Huettner.

http://www.msnbc.msn.com/id/32569276/ns/business-personal_finance/ 

Best City For Housing Recovery…..

Miami-Fort Lauderdale is #1.  Need I say more……

http://finance.yahoo.com/real-estate/article/107554/best-cities-for-a-housing-recovery.html?mod=realestate-buy

Home Affordability At Highest Level Ever

Need I say more…..

http://money.cnn.com/2009/08/19/real_estate/most_affordable_housing_markets/index.htm?section=money_realestate 

Life After Foreclosure

Many feel it is the end of the world but you can recover and this article tells the story of a family who has. 

http://money.cnn.com/galleries/2009/real_estate/0908/gallery.Life_after_foreclosure/index.html?section=money_realestate 

Tax Bills Causing Problems For Homeowners

We all saw this coming.  “Hard times are causing more homeowners to fall behind on their property taxes. But in thousands of cases, they are not responsible to their local governments, but to private companies that charge double-digit interest and thousands of dollars in service fees.”

http://www.cnbc.com/id/32461330 

Appraisals Still Under Fire

This is something new that I haven’t seen.  “Squeezed by a drop in fees, some appraisers are compensating by driving long distances to handle more assignments. Their wanderings are raising questions about whether they know enough about the neighborhoods to accurately assess the value of homes—which has implications for both home buyers and owners.”

http://online.wsj.com/article/SB10001424052970203496804574348712795471006.html?mod=rss_Weekend_Journal

Q&A On FHA’s Home Affordable Modification Program

There is a lot of good information on this communication from FHA. 

http://www.hud.gov/offices/hsg/sfh/nsc/ml0923qa.pdf 

Bargain Hunters Are Out In Miami-Fort Lauderdale

If you click on the link below and look at the chart you will see that Miami-Fort Lauderdale has the 2^nd highest supply of homes as of July 2009 but also notice that 45.6% of them have been reduced as of July 31, 2009.  Also, notice that the supply is down from a month earlier.

Bottom line, it’s a good time to buy in South Florida.

http://online.wsj.com/public/resources/documents/info-HOUSING08.html