Florida Foreclosure Auctions Online

This should help to make things move faster and as the article points out, “aside from saving clerk staff time, eliminating the need for bidders to physically be present at a particular courthouse on a particular day has widened the bidding pool, McClendon says.”

The website for Broward Count is broward.realforeclose.com, Palm Beach is mypalmbeachclerk.clerkauction.com, and Miami-Dade is miamidade.realforeclose.com. 

http://www.floridatrend.com/industry_article.asp?cName=Housing/Construction&cID=9&aID=52505

Is It Better To Wait Until After The Tax Credit?

Some are arguing it is because there is a lot of competition out there.  I read yesterday from the website www.keepingcurrentmatters.com that sellers who sell after May 1^st will get less money.  It is something to think about but in the end no one knows.  What we do know is that it isn’t timing the market it is time in the market. 

I personally would rather have $8,000 of free money in my pocket to do with it what I want and finance a higher amount with a low interest rate.  We don’t know where rates will be after the tax credit expires either. 

Again, home affordability is at a high, interest rates are at a low, and you can get $8,000. If I am thinking of buying then now is the time.  

http://blogs.wsj.com/developments/2010/02/25/better-to-wait-until-homebuyer-tax-credit-expires/ 

Mortgage Forbearance For The Unemployed

The Mortgage Bankers Association proposed to give the unemployed up to 9 months forbearance on their mortgage payments.  I am confused by this because how are you reducing the payment to 31% of their income when they just lost their income?

“Under the proposal, loan servicers would reduce eligible borrowers’ monthly payments to no more than 31% of their household income for up to nine months. Unlike a modification, however, the arrears would be tacked onto the end of the mortgage.”

I think they are on the right track with helping the unemployed because that is who really deserves the help but they have to be able to come up with something better than this.

http://money.cnn.com/2010/02/24/real_estate/forbearance_for_unemployed/index.htm?section=money_realestate&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_realestate+%28Real+Estate%29

Why Rent?

That’s what Dan Oppenheim from Credit Suisse wants to know when prices are this cheap.  I have been saying this for awhile now IF it is the right time for you to buy due to low interest rates and housing affordability.  I say if because owning a home isn’t for everyone and if you don’t plan on staying in the home for at least 5 years then renting is the way to go. 

There is nothing wrong with renting and if you don’t have a history of saving money, having reserves after closing for expenses that occur with owning a home, and don’t have a reasonable debt to income ratio then don’t buy yet.  Get pre-approved in advanced so that you can prepare for what is needed when buying a home.  And when I say in advance I don’t mean a few hours or days prior to looking at a home.  I am talking about months.  Even those who have owned in the past don’t know what they are getting into right now. 

http://blogs.wsj.com/developments/2010/02/23/credit-suisse-asks-why-rent/ 

House Bargains Drying Up

Your local real estate agent would be able to tell you whether this is true or not better than I would be able to.  What I do know is that the supply is shrinking here in South Florida but going up against cash investors can be tough. 

But prospective home buyers say it is increasingly difficult to find foreclosed homes at attractive prices in desirable neighborhoods.  Supply is shrinking largely because of federal and state efforts to help millions of distressed homeowners avert foreclosure, which have delayed many likely foreclosures, keeping the homes off the market for now.

The bargain chase is even tougher for those buying with a loan. Investors with cash have an advantage in that their offers aren’t conditional on obtaining a loan so banks often prefer selling to them than taking the risk that another offer will fall through. They are also often quick to react when bargains appear.

http://online.wsj.com/article/SB20001424052748704269004575073260976528540.html#mod=todays_us_page_one

Good Time To Become A Landlord

Now it does depend where you are buying but this article makes a great point as to why it is a good time.  “Because real-estate prices have fallen much faster than rents, the math of buying a rental has actually improved substantially in most parts of the country. Money invested in an apartment complex today typically generates annual returns of 7% to 8% right off the bat, up from less than 6% at the peak of the housing bubble in 2006.”

“If your property appreciates in value or rents rise, you could end up with double-digit annualized returns when you sell it. But higher returns usually come with higher risks. If you overpay for a rental property or you buy in the wrong market at the wrong time, you can lose a lot of money.”

http://online.wsj.com/article/SB20001424052748703798904575069341576405172.html#mod=todays_us_section_b

$1.5 Billion For Struggling Homeowners

Will this work this time?  I guess we will find out.  I do like that it is targeting help for the unemployed.  It targets states where the average price for all homes have fallen more than 20% from their peak.  Of course Florida is one of them. 

CNBC reported that the initiatives may include:

• Measures for unemployed homeowners;
• Programs to assist borrowers owing more than their home is now worth;
• Programs that help address challenges arising from second mortgages; or
• Other programs encouraging sustainable and affordable homeownership.

http://www.cnbc.com//id/35480131    

Homeowner Realization In South Florida

The numbers aren’t pretty if you own a home but if you are trying to buy it looks great because it’s now affordable. 

“Now, for the reality check: In the South, year-over-year values actually fell 64 percent in the fourth quarter, according to the Seattle-based online real estate marketplace. Still, that’s down from the 73 percent of homes that lost their value in the third quarter.”

http://southflorida.bizjournals.com/southflorida/stories/2010/02/15/daily33.html 

Florida Is Ranked # 4 In Mortgage Fraud

And that is why it is more important than ever to use someone who has a great reputation and trusted.  Make sure to be careful. 

http://southflorida.bizjournals.com/southflorida/stories/2010/02/15/daily37.html 

Tenant Rights

If you are renting a home and it is foreclosed on the lender has to honor the lease.  Make sure you know your rights.  Lenders will take advantage of you. 

“Under the Protecting Tenants at Foreclosure Act, which Congress passed last May, tenants like Pearson are usually eligible to stay after the property has been foreclosed as long as they have a valid lease and are paying their rent regularly. Even renters on a month-to-month lease get 90 days to leave. ”

http://money.cnn.com/2010/02/18/real_estate/keep_kicking_out_tenants/index.htm?section=money_realestate&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_realestate+%28Real+Estate%29