Archive for July, 2009
July 27th, 2009 · No Comments
When talking with my clients about the condo market in Miami, one of the questions that constantly comes up is "What is a Short Sale?". With the majority of attractively priced condo listings in Miami being short sales, it is important for a buyer to understand what a short sale is and the typical process involved in purchasing one.
In a short sale, the property owner is behind on their mortgage payment and wants to sell the property in an effort to avoid foreclosure, but can’t find a buyer willing to pay enough money for the property to cover the remaining principal on the mortgage. The property owner then asks their lender if it is willing to accept less than what is owed on the mortgage. Because the property owner needs the lender's approval before agreeing to the sales price, short sales can take months to complete as lenders try to figure out how big of a loss they are willing to take. In some cases, even after months of analysis, a lender may decide it doesn’t want to do one at all.
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Posted in Distressed Properties | No Comments »
July 22nd, 2009 · No Comments
When visiting Miami Beach what many tourists don't know as they enjoy the scenic drive over the Julia Tuttle Causeway from Miami to Miami Beach, is that a colony of 70-80 convicted sex offenders have been living underneath the bridge for the last three years. When I first heard the news, I found it shocking and appalling that there was nowhere else for these people to live. Apparently not, as Miami-Dade County has a more stringent ordinance than the State that restricts convicted sex offenders from living within 2,500 feet of where children congregate -- that includes schools, parks, and day care facilities. So the only place far away from these locations is the middle of Biscayne Bay.
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Posted in Miami News | No Comments »
July 17th, 2009 · No Comments
As a buyer, when deciding to work with a real estate brokerage on a transaction, you have three basic options concerning the role the firm will assume for you:
- The brokerage firm may work as a transaction broker.
- The brokerage firm may work as a single "buyers" agent (cannot represent both buyer and seller in the same transaction).
- The brokerage firm will not represent the buyer. This situation is referred to as no brokerage relationship. The brokerage firm simply facilitates the transaction.
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Posted in Uncategorized | No Comments »
July 16th, 2009 · No Comments
Nowadays, many buyers are interested in purchasing "distressed" properties hoping to get a great deal. My definition of a "distressed" property is a property where the owner has fallen behind on their payments to either their mortgage company or the homeowners association and a lien has been filed with the courts, initiating foreclosure proceedings.
Of the properties available on the market, short sales are those that are in the earliest stage of distress or "pre-foreclosure". In a short sale, the property owner is behind on their mortgage payment and wants to sell the property, but can't find a buyer willing to pay enough money for the property to cover the remaining principal on the mortgage. The property owner then asks their lender if it is willing to accept less than what is owed on the mortgage.Short sales can take months to complete as lenders try to figure out how big of a loss they are willing to take. In some cases, even after months of analysis, a lender may decide it doesn't want to do one at all.
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Posted in Distressed Properties, Stats and Trends | No Comments »
July 14th, 2009 · No Comments
On Friday, Freddie Mac released a bulletin to its lenders and servicers detailing revised practices for property appraisals. This was in response to new appraisal rules adopted by Fannie Mae and Freddie Mac entitled the Home Valuation Code of Conduct, that went into effect May 1 of this year. As a result of the HVCC, real estate agents started reporting that many property appraisals were coming in below the contract sales price. This was due to lenders relying more on appraisal management firms that employed appraisers with little experience in their local markets. Some appraisers didn't make the proper adjustments when using distressed properties as comparable sales for nondistressed properties.
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Posted in Property Values | No Comments »
July 13th, 2009 · No Comments
I happen to live in a nice area of Miami Beach commonly known as "South of Fifth or SoFi". It's full of some of the nicest condo towers you can find anywhere in Miami offering wonderful amenities and offering great views of Biscayne Bay, Government Cut, and the Atlantic Ocean. In SoFi, you'll find a high concentration of luxury condos, and when I say luxury, I mean those priced over 1 million dollars. The following exclusive SoFi properties are available and have been for a while:
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Posted in Financing, Stats and Trends | No Comments »
July 11th, 2009 · No Comments
A little known fact in Miami is that it is still possible to buy a condo or home without any money coming out of your pocket. Incredible, considering this is exactly what caused the current credit crisis. So, who do we have to thank for making this possible? Good ol' Uncle Sam.
The Federal Housing Administration (FHA) insures loans made to home buyers with as little as 3.5% down. The program was designed to make home ownership affordable for those who didn't have enough money for a traditional down payment. Through the FHA loan program, a local lender originates the loan, the FHA guarantees the payments, and the lender then sells your loan to an investor. In return for the guarantee and low down payment, FHA-insured loans have a higher interest rate than conventional mortgages. Currently, the rate for a 30yr FHA-insured loan is 1/2 percentage point higher than that for a conventional 30yr mortgage. Current mortgage rates can be found here.
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Posted in Financing | No Comments »
July 9th, 2009 · No Comments
With real estate prices in the Miami area retreating to levels last seen at the beginning of this decade, we have seen increased demand from clients interested in purchasing a second home or investment property. There are many great deals to be had, but the potential pool of attractively priced properties is much larger for the all-cash buyer as opposed to someone who wants to finance their purchase.
At the beginning of 2009, Fannie Mae changed its guidelines for mortgages backed by new and established condominium projects. A condo project is “established” if 90% of the units have been sold, is complete and the HOA has been turned over to the owners. A condo project is “new” if less than 90% have been sold, is not completed, is subject to phasing or if the HOA has not been turned over to unit owners.
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Posted in Financing | No Comments »
