BREAKING NEWS: Advanced Credit For First-Time Homebuyer Tax Credit!!!

The Florida Association of Realtors rocks! Thanks for looking out for my clients' best interest!!!

2009 FLORIDA LEGISLATURE ADJOURNS

TALLAHASSEE, Fla. - May 8, 2009 - Having approved a $66.5 billion state budget, the 2009 Florida Legislature adjourned minutes ago. For the Florida real estate industry, the budget includes several gems. Perhaps the shiniest: $30.1 million for downpayment assistance programs.

Beginning July 1, those who qualify for the federal first-time homebuyers tax credit will be able to apply for downpayment assistance in advance of closing, and then repay the amount borrowed when they get their tax refund.

"What an incredible opportunity for thousands of families," says Cynthia Shelton, 2009 FAR president. "The beauty of this program is that the state will be paid back and, conceivably, more potential homebuyers could take advantage prior to the Dec. 1 expiration of the $8,000 federal first time homebuyer tax credit."

The program will operate through local county housing administrators, though details are still being worked out. Keep reading FAR's EarlyBird e-news and checking the home page of floridarealtors.org for updates.

The state spending plan passed today also includes the following for real estate-related programs:

• Up to $400,000 to prevent, combat and publicize the dangers of unlicensed real estate activity in Florida.
• $540,000 to continue and complete a study to make recommendations on passive strategies on nitrogen reduction that complement the use of onsite wastewater treatment systems.
• $3 million in the Real Estate Trust Fund for the Education and Research Foundation.
• A reduction in the eviction filing fees from $265 to $180 - the only fee reduction in the 2009-10 budget and one with a negative fiscal impact of up to $36 million. Even though the session was extended to today for the purpose of budget negotiations, all non-budget legislation was finalized last Friday. Here are the highlights reported previously:
• SJR 532, a constitutional amendment that will ask voters to limit increases in property tax assessments on all non-homestead properties to 5 percent annually. First-time homebuyers could benefit, too, with an additional homestead exemption up to $100,000.
• HB 521, a bill that puts the burden of proving that a property tax assessment is correct on the appraiser, not the property owner.
• In the area of property insurance, the Legislature capped rate increases at 10 percent per year for Citizens policyholders (HB 1495). The Legislature also repealed the requirement that, effective Jan. 1, 2010, sellers of property located in a wind-borne debris region, and which has an insured value on the structure of $500,000 or more, provide prospective buyers the structure's windstorm mitigation rating.
• The growth management bill (SB 360) FAR supported passed as a big package. It includes a provision to encourage urban infill by eliminating transportation concurrency, one that allows for expedited comprehensive plan reviews, and another that eliminates the development of regional impact process (DRIs) in urban areas. The bill also extends previously obtained permits and approvals by two years, creates a transition process for moving towards a mobility fee system, and streamlines and reduces inefficiency in the state's approach to growth management.

For additional updates, please visit FAR's legislative Web site: http://www.floridarealtorslegislative.org
© 2009 FLORIDA ASSOCIATION OF REALTORS

Freddie Mac To Offer Month-To-Month Leases?

Freddie Mac announced it has extended its moratorium on foreclosure-related evictions to April 1. At the same time, Freddie Mac launched a program yesterday, announced in January, that allows owners facing eviction to remain in their homes as renters. The company says it started contacting at-risk homeowners yesterday about the rental program to offer them a month-to-month lease. Rent will be based on prevailing local market rates, and homes must meet local property codes. It's unclear how many homeowners would qualify, however. Freddie Mac has 8,500 properties facing foreclosure but many are already vacant. Freddie Mac's HomeSteps ( http://www.homesteps.com) real estate unit will handle the details, and foreclosed owners who opt to stay and rent must allow potential buyers to view the property.

Source: Florida Association of Realtors

Can Obama Help You?

The Obama housing plan kicked off yesterday, but officials say borrowers must be patient: lenders will probably be flooded with phone calls. Critics say not all homeowners in need will be helped, and some observers worry that banks still won't willingly work with at-risk homeowners.

Read the full story:
http://www.floridarealtors.org/NewsAndEvents/n1-030509.cfm

Worth The Bankruptcy Risk?

More than one million distressed homeowners would benefit from filing for bankruptcy under proposed legislation allowing bankruptcy judges to modify mortgages on primary residences, according to the Congressional Budget Office. Of that million, the office estimates about 350,000 homeowners would take advantage of the proposed change over the next 10 years.

Read the full story:
http://www.floridarealtors.org/NewsAndEvents/n4-022509.cfm

Rent V. Buy Part 2

Just six months ago, with Florida home prices in a steady fall, the decision to buy or rent was clear for many prospective homebuyers - keep on renting. Today, however, homeownership is a cheaper option for some potential buyers, including many in South Florida.

Read the full story:
http://www.floridarealtors.org/NewsAndEvents/n3-021809.cfm

Discounted Insulation Upgrade From FPL?

See if you qualify for a free FPL Home Energy Survey and if FPL thinks you need more insultion, you'll get a discount of 11 cents per square foot!

Check it out: http://www.fpl.com/residential/savings/energy_advisor/building_envelope/guide_insulating.shtml?WT.ac=HMRB03?WT.mc_id=NSL2172009EM01&wt.mc_ev=EmailClick&acctnum=1618029266.

If your home was built before 1982, chances are you need to upgrade your ceiling insulation. FPL has an incentive program to help you pay for it. Check out our insulation guide for more information.

Latest Stimulus Package Update As It Pertains To Real Estate

American Recovery and Reinvestment Act of 2009

H.R. 1, the “American Recovery and Reinvestment Act of 2009,” passed the United States House and United States Senate on February 13, 2009. President Obama is expected to sign the bill TODAY. The bill is a $780 billion package, with roughly 35% of the package devoted to tax cuts (mostly for 2009) and the rest to spending intended to occur in 2009 and 2010.

The mix of provisions of interest to REALTORS® changed frequently throughout the legislative process, with changes continuing to be made just hours before the measure was released prior to the vote. In the end, the elements of NAR’s housing agenda were included. Congress and the President have announced that a finance and housing package (including tax provisions) will be the next “big” initiative, so Congress has by no means finished its work as it affects the housing industry and REALTORS®.

The bill includes the following provisions:

Homebuyer Tax Credit – The bill provides for an $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

FHA, Fannie Mae and Freddie Mac Loan Limits -The bill reinstates last year's 2008 loan limits for FHA, Freddie Mac, and Fannie Mae loans. These limits were equal to the greater of 125% of the 2008 local area median home price or $271,050 for FHA and $417,000 for Fannie and Freddie, with an overall maximum cap of $729,750. For the few areas where the 2009 limits were higher, the higher limits will apply. In addition, the bill includes language providing the HUD Secretary with the discretion, if warranted, to increase the loan limit for any “sub-area”, i.e. an area smaller than a county. The Secretary's discretion is again limited by the $729,750 cap. These 2009 limits will expire December 31, 2009.

The inclusion of these loan limit provisions in the final bill is a victory for homeowners, buyers and REALTORS®.

Neighborhood Stabilization – Division A, Title XII of the bill provides $2,000,000,000 in additional funding for the Neighborhood Stabilization Program (NSP). The NSP was created by the Housing and Economic Recovery Act of 2089 (Public Law 110–289) to provide grants through the Community Development Block Grant program (CDBG) to states and localities to address the problems that can be created when whole neighborhoods are decimated by foreclosures. The funds can be used to purchase, manage, repair and resell foreclosed and abandoned properties. In addition, the funds can also be used by states and localities to establish financing methods for the purchase and redevelopment of foreclosed properties. After purchase the homes must be used to assist individuals and families with incomes at or below 120% of area median income. Twenty-five percent of funds must be used for households with incomes at or below 50% of area median income. By leveraging their expertise in partnership with others from both the public and private sector, REALTORS® in many communities have been making important contributions to their local communities’ neighborhood stabilization programs.

Commercial Real Estate - Commercial real estate is impacted primarily through those provisions of the bill focused on green building and energy efficiency as well as business tax incentives. H.R. 1 provides significant funds for state energy programs, which could be used to support commercial property owners' investment in energy efficiency upgrades while commercial property owners seeking to invest in alternative energy systems for onsite power generation would benefit from the Department of Energy Renewable Energy Loan Guarantees Program. Of particular benefit to small businesses would be certain provisions of the bill that provide tax relief in the area of bonus depreciation and capital expenditures, as well as the 5-Year carryback of net operating losses for small businesses.

Rural Housing Service – The bill provides an additional $500 million to existing USDA Rural Housing programs. The RHS provides both a guaranteed loan program and a direct housing loan program for those meeting the program’s eligibility criteria. The direct loan program will receive $270 million while $230 million will be allocated for unsubsidized guaranteed loans. It has been reported that this level of funding would provide for an additional 192,000 homeowners.

Low Income Housing Grants - Allow states to trade in a portion of their 2009 low-income housing tax credits for Treasury grants to finance the construction or acquisition and rehabilitation of low-income housing, including those with or without tax credit allocations.

Tax-Exempt Housing Bonds - Tax-exempt interest earned on specified state and local bonds issued during 2009 and 2010 will not be subject to the Alternative Minimum Tax (AMT). In addition, financial institutions will have greater capacity to purchase tax-exempt state and local bonds.

Energy Efficient Housing Tax Credits & Grants - The bill provides state and local governments with $6 billion in energy efficiency and conservation grants for energy audits, retrofits and financial incentives. Through 2010, homeowners will be able to claim a 30% tax credit (up from 10%) for purchases of new furnaces, windows and insulation. Another $5 billion will be available to modernize the nation’s electricity grid and install smart meters on homes that help to save consumers money. There is also $5 billion for weatherization assistance for low income households and $2 billion for federally assisted housing (section 8) efficiency efforts.

Transportation Investments - The bill provides $46.7 billion to states and localities for capital investment for surface transportation projects including highways, bridges, transit, and rail projects. NAR policy supports increased spending on the types of transportation infrastructure addressed in the bill with the exception of Amtrak and high-speed inter-city rail where NAR has no policy. These investments will tend to moderate traffic congestion and support a variety of transportation alternatives which will improve the quality of life of American communities and bolster the value of real estate.

Source: John M. Sebree, Vice President of Public Policy at the Florida Association of REALTORS®

Possible Septic Sorrows

A move by the Florida Department of Health to limit nitrogen seepage through septic systems could force some homeowners to install new and expensive septic systems. However, questions remain, and one component worries Realtors: It calls for a septic inspection at the time of a home sale and a likely septic tank replacement. The Department will hold a meeting on Feb. 19 in Orlando, and the public may attend and comment.

Read the full story:
http://www.floridarealtors.org/NewsAndEvents/n2-021609.cfm.

Loan Modification Advice

How should a homeowner renegotiate a loan? Be honest, realistic, and patient, says a spokesperson for Federal Loan Modification Law Center who created 10 steps consumers should follow.

Read the full story:
http://www.floridarealtors.org/NewsAndEvents/n4-021209.cfm

Rent Your Foreclosed Home?

Families who lose their home in a foreclosure could continue to live in the home as renters, at least temporarily, under a plan Freddie Mac plans to announce today. Freddie will offer the same deal to renters in investment properties, which is similar to a program Fannie Mae recently introduced.

Read the full story:
http://www.floridarealtors.org/NewsAndEvents/n2-013009.cfm.

Be A Winner!

"First-time buyers are likely in a better position to buy a house than ever in recent memory. Low prices combined with rock-bottom interest rates means they can effectively run the table." Quoted from the Sarasota Herald Tribune: http://www.heraldtribune.com/article/20090119/ARTICLE/901190302/2055/NEWS?Title=Housing_downturn_s_winners_and_losers.

Truth is... it is a great time to buy if you are a first time home buyer AND if you aren't upside down on your current home.

• There's plenty of safe and/or creative loans out there for first time homebuyers requiring very little money down. I have a long list of programs available if you're interested.
• Also, to qualify for a FHA loan, you only need 3.5% down and can purchase a home up to $292,ooo. You can buy a new or newer home for this price in a lot of communities including Lakewood Ranch and Palmer Ranch and many of the smaller communities in between. Just outside of Sarasota in Ellenton down through Venice, you'd be amazed at what's available.
• HUD homes can be snatched up for as little as $100 down!

Call me (941) 350-4411 or email me at Christina@YourHometownConsultant.com if you want to learn more about your options.... If you still doubt me about the fabulous deals available, then let me offer you proof!

Info On The Oaks Club

Considering a home in The Oaks Club of Sarasota? Have questions you've not been able to answer?

Well, not only can I email you all the homes for sale and take you on a tour, but I also have on hand all the information you need to educate yourself and/or get an associate membership (non-residents).

• Detailed maps?
• Membership info for potential buyers and property owners?
• Site access at the gates?
• Contacts for additional info?
• What's for sale?
• What's sold recently?

Let me know what you need.

Rent & Then Buy!?!

Falling house prices and a slow market are forcing more homeowners to consider renting their current properties when it's time to buy a new home.

Read the full story:
http://www.floridarealtors.org/NewsAndEvents/n1-011309.cfm

Help With Old & New Mortgages

BANKRUPTCY CAN GET YOU A BETTER LOAN?

It is increasingly likely that judges will get the power to rewrite mortgages for homeowners facing bankruptcy, some analysts say. The banking industry has fought these mortgage "cram-downs," but voluntary foreclosure-prevention programs aren't working so far, and judges may be given the power to step in.

Read the full story:
http://www.floridarealtors.org/NewsAndEvents/n5-010609.cfm


3.5% DOWN PAYMENTS STILL AVAILABLE!

Don't believe everything you read, says NAR. As part of a housing story, a number of media outlets say buyers now need a 20 percent downpayment to get into a home, which is not true. FHA mortgages, for example, require only a 3.5 percent downpayment.

Read the full story:
http://www.floridarealtors.org/NewsAndEvents/n3-010609.cfm

"Sarasota County Considers Helping Homeowners Avoid Foreclosure"

Tough times call for creative measures, right? The potentially local good news is that Sarasota leaders are at least trying to do something proactive to help the rising rates of foreclosures AKA folks losing their homes, their jobs and their futures.

County administrator Jim Ley proposed a foreclosure prevention program this week that would divert funds from affordable housing programs, typically providing first-time homebuyers with downpayment assistance, to help homeowners keep their homes from going into foreclosure.

For more details, check out Zac Anderson's article in the Sarasota Herald Tribune: http://www.heraldtribune.com/article/20081023/ARTICLE/810230383/0/SPORTS.

Mow Your Grass Or Go To Jail

A cash-strapped former Long Island resident was jailed for not taking care of the dying grass in the front yard of his Florida home. The Tampa-area resident is fighting foreclosure and ignored association warnings and a judge's orders.

Read the full story: http://www.floridarealtors.org/NewsAndEvents/n5-101508.cfm

VOTE!

My kids and I will be on the corner of 41 and Bee Ridge today to support Bill Furst for Sarasota County Property Appraiser! To learn more about Bill, visit: http://www.furstforfairness.com/.


Remember to get out and VOTE! It's your right as a US citizen. Don't take it for granted.

Me? Couldn't Be. Then Who?

The following three articles are all from the Sarasota Herald Tribune although much the same can be found nationwide as such arguments of who's to blame for our "housing crisis" occur everywhere from the beach's snack shop to the Senate. I found the presence of these three highlighted on the SHT's website noteworthy, especially considering I've yet to read an article from the SHT about the great deals now available for first-time homebuyers and wage-earning workers. I know, I know (you don't need to remind me) that scary stories sell better than warm-fuzzy ones even when true. Last on the list is a letter from the President of the Florida Bankers Association offers a solution to the mortgage problem written in response to this article: http://www.miamiherald.com/multimedia/news/mortgage/probe.html.


"Appraisers Felt Lender Pressure" by Harold Bubil:
http://www.heraldtribune.com/article/20080809/COLUMNIST/808090312/2132/realestate&title=Appraisers_felt_lender_pressure


"Placing Blame For The Collapse" by Harold Bubil:
http://www.heraldtribune.com/article/20080726/COLUMNIST/807260309/2132/realestate&title=Placing_blame_for_the_collapse


"Bankers Blaming Mortgage 'Originators' For Market Mess" by Harold Bubil:
http://www.heraldtribune.com/article/20080722/BLOG12/596498198/2369/BLOG12&title=Bankers_blaming_mortgage__originators__for_market_mess

"We Must Protect Florida's Mortgage Industry" by Florida Bankers Association President and CEO Alex Sanchez

Upon reading recent news stories produced by an investigative team of the Miami Herald, I-like many others-was alarmed, disappointed and outraged. The stories revealed some startling statistics and heartbreaking stories related to mortgage fraud in our state. Some of what the newspaper found included:

• One in three brokers who committed fraud were allowed to continue working in the industry without any monitoring.
• More than 80 brokers who were caught stealing from clients by siphoning funds from escrow accounts and issuing excessive fees were allowed to continue working in the industry.
• Tools that could have been used to protect consumers, such as suspensions and revoking licenses, were used rarely, if ever.
• The number of licenses revoked by regulators declined each of the past eight years as Florida's mortgage fraud rate rose to the unenviable position of number one in the nation.

This news about these fly by night mortgage lenders is a stark contrast to the safety and soundness of the FDIC insured banking industry. Banks are highly regulated by the Federal Reserve Bank of the United States, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision and the State Banking Department.

An FDIC insured bank is highly scrutinized. Some of our banks are examined year-round and all others are examined every 12 to 18 months, which includes carefully screening and checking loan portfolios, bank procedures, bank practices and monitoring to ensure that our customers' money is safe and therefore sound. All of the banks operating in the state of Florida are highly regulated by state and federal agencies that monitor transactions, audit files and require numerous monthly, quarterly and annual reports.

In the 75 year history of the FDIC, no customer has ever lost one cent when their monies were in an FDIC insured bank savings account. The record speaks for itself. No one else can make that claim!

At times, bankers may have to tell customers things they don't want to hear such as "you can't afford this loan." But at the end of the day, I think people would rather hear that than "we're sorry, but your mortgage broker is in jail and all your money is gone."

Here-today-gone-tomorrow mortgage originators were in the practice of doing whatever needed to be done to close the loan. As we now see, some unscrupulous individuals working in the mortgage industry were willing to lie, cheat or steal just to seal the deal.

To the contrary, bankers want to build relationships with customers so that not just your mortgage is with the institution, but also perhaps savings and checking accounts, retirement accounts and more. When looking for a home or business loan, there is no better place to go than an FDIC insured bank.

Banks, which are well capitalized (meaning they have required rainy day funds) conduct a series of examinations to determine the credibility of a loan before its issuance, including verification of income, requiring a solid deposit and performing substantial credit checks. According to recent news articles, others peddled mortgages "that required no money down and minuscule payments for the first few years." Some even forged records like tax forms, account balances and income statements.

The Florida real estate market indeed has its challenges with flippers, fraud and foreclosures. We need to restrict the ability of criminals to work in Florida's mortgage industry from handling one of the most important-and often largest-financial purchases of a person's life: the purchase of a home. For this reason, there is just one group who should be entrusted with handling your vital financial transactions, an FDIC- insured bank.

Alex Sanchez is president and chief executive officer of the Florida Bankers Association (FBA). Established in 1888, the FBA is one of Florida's oldest trade associations and has a membership of nearly 400 financial institutions of various sizes; nearly 96 percent of banks operating in Florida are members.

New Housing Stimulus Bill Highlights

Here's a link summarizing the Housing Stimulus Bill passed by the House and Senate and signed into law by George Bush: http://www.realtor.org/gapublic.nsf/pages/hr_3221_key_provisions.

Here's a brochure with additional explanation of the bill's highlights: http://www.scribd.com/doc/4711482/2008-Housing-Bill-Summary.

Thanks Pam!

Free Inspections Still Available!

The My Safe Florida Home program apparently has about 10,000 free hurricane inspections left up for grabs.

For more details on this program, see my prior blog post: http://yourhometownconsultant.blogspot.com/2008/06/free-hurricane-home-inspection.html.