Archive for the ‘Blog’ Category
VA backs 19 million home loans
Wednesday, November 3rd, 2010Veterans and military personnel continue to use the Department of Veterans Affairs (VA) home loan program in record numbers to purchase a home or refinance their existing loans.
The VA Home Loan program began in 1944 as part of the Montgomery GI Bill, and it has guaranteed more than 19 million home loans – valued at more than $1 trillion – since its inception. During the past four years, the number of veterans helped by the VA has risen 63 percent.
VA’s foreclosure rate for the last nine quarters and serious delinquency rate for the last six quarters have been the lowest in the housing industry, even when compared to prime loans, according to the Mortgage Bankers Association’s National Delinquency Survey.
In a time where other no-downpayment programs are virtually non-existent and mortgage credit can be difficult to obtain, veterans and service members can get financing and take advantage of historically low interest rates through the VA home loan program.
Most veterans, service members, reservists and National Guard members, as well as some surviving spouses, are eligible for the program, which provides no-downpayment home loans, as well as regular and interest-rate-reduction refinance home loans.
Banks and mortgage lenders make VA-guaranteed home loans, and VA ensures payment of a portion of the loan if the borrower fails to repay the balance.
A unique aspect of VA’s program is a commitment to help borrowers keep their homes if they encounter financial difficulties. During the past decade, VA loan specialists have helped more than 150,000 families hold onto their homes when threatened by foreclosure. VA loan specialists can intervene on a veteran’s behalf with the loan servicer to explore home-retention options, including repayment plans, loan modifications and forbearance. When home retention is not an option, VA can help arrange a compromise sale or a deed-in-lieu of foreclosure, both of which are less detrimental to borrowers than foreclosure.
Source: Florida Realtor
Florida’s hurricane insurance premiums largely determined overseas
Wednesday, October 27th, 2010A recent investigation by the Sarasota Herald-Tribune finds that Florida property owners pay higher premiums for fewer benefits – and that nearly 67 percent of premiums paid go to unregulated offshore reinsurers. These unregulated reinsurers help determine how much premiums will cost property owners, and critics worry that the trend makes it difficult for the state to withstand catastrophic losses.
Homeowners’ insurance firms paid out $15 billion for private reinsurance, and no storms have triggered claims on those policies, enabling the reinsurance sector to pocket the premiums as profit. Lost capital in Florida will reach $19 billion by June 2011, according to the investigation.
Critics say the additional capital could have increased the size of the state-run catastrophe fund and lowered premiums by 20 percent; but instead, it exacerbated the trend of policy cancellations, weakened insurers’ finances and drained the surplus to cover future catastrophe losses.
As more and more primary insurers pulled away from the hurricane insurance market, policyholders and states along the eastern seaboard had to rely more heavily on reinsurance coverage following the 2005 hurricane season.
The Herald-Tribune reports that Florida primary insurers’ reinsurance costs rose to more than $4 billion from $1.4 billion between 2004 and 2006, increasing the portion of homeowners’ premiums spent on reinsurance to 64 percent from 37 percent. The national average for primary premiums spent on reinsurance is 19 percent.
As a result, Florida homeowners’ insurance costs have continued to rise, costing property owners 72 percent more in premiums than in 2003.
Reinsurers, according to the investigation, charge five times more than the actuarial risk of loss. And as more primary insurers deplete their own surpluses to buy reinsurance coverage, the more vulnerable they become to insolvency should a hurricane or another catastrophe hit.
Source: Lakeland Ledger
‘Vote No on 4’ Ad Campaign Debuts”
Friday, October 1st, 2010Citizens for Lower Taxes and a Stronger Economy, a coalition of government agencies, concerned private citizens and business and economic groups – including Florida Realtors® – is rolling out the first of four “Vote No on 4” ad campaigns leading up to the Nov. 2 elections.
The first ad series, entitled “Warning Label,” focuses on Amendment 4’s financial impact statement, which says, “The amendment’s impact on local government expenditures cannot be estimated precisely.” While a specific dollar amount may not be possible, the coalition will highlight the industries that would be impacted and the resulting financial impact on Florida.
The Vote No on 4 campaign will explain these hidden costs through a series of 30-second television and 60-second radio ads, which begin airing today in major news markets across the state. Each ad will highlight a hidden impact, such as jobs that will be lost as the construction industry contracts; smaller tax revenue for local governments as businesses decline and the resulting cut in services, such as road maintenance, sewer services and more. And since Florida has just begun to scratch its way out of the worst recession in memory, Amendment 4’s timing could not be worse.
“Fewer jobs, fewer services, and a longer recession? Amendment 4 doesn’t make financial sense in many, many ways,” says Florida Realtors Vice President of Public Policy John Sebree. “Voters who understand Amendment 4 recognize the danger; unfortunately, not everyone understands the consequences yet. The amendment says it’s impossible to estimate costs, but that’s because the trickle-down effect will impact restaurants, schools and more – potentially every business and family in the state.”
The Vote No on 4 campaign hosts a website at: http://www.florida2010.org
“We need Realtors to help spread the word,” says Sebree. “Put out yard signs, tell your social network, stand up at civic organizations and explain what could happen. If we hope to defeat this proposal, the Vote No on 4 campaign needs everyone’s help.”
A number of leading newspapers and other media outlets across Florida have published editorials that support the “Vote No on 4” stance and urge voters to defeat Amendment 4 at the polls.
Source: Florida Realtors
Teachers to benefit from new government programs!
Thursday, May 13th, 2010Orlando teachers and administrators are positioned to benefit from new FHA, Fannie Mae and Freddie Mac guidlines as long as they are in the school system as active employees. Any school employee that works in a school is qualified. These programs are offered through EduPrograms and can be of great benefit to school employees. Some of the situations where employees can take advantage of these new programs are:
Purchasing a home, Refinancing your current mortgage, Building a new home or trying to refinance an existing mortgage in order to get cash back. You may participate in these if you are a full or part time employee of the Orange County School System and looking for Orlando real estate or any other jurisdiction.
For additional information, go to http://isdnews.org/edu.
US Treasury announces new Short Sale Rules
Wednesday, May 5th, 2010The Treasury Dept. announced new rules for Short Sales effective April, 2010. Some of the highlights are that it sets limits on the time it takes lenders to approve or reject Short Sales requests. It provides incentives to lenders and borrowers for completing them, it streamilines and standardizes the documentation necessarry and it limits the ability of second lien-holders to obstruct the process. Under this plan, borrowers who successfully complete aShort Sale are released from their primary mortgage debt. They will also receive $3000.oo for moving expenses.
Now lenders have only 10 days to approve or reject a Short Sale. Borrowers are allowed at least 90 days to market and sell their homes, with the possibility of additional time if necessary. As long as the borrower is acting in good faith and actively trying to market the property, the foreclosure can not take place during the marketing period. For more information, go to http://www.makinghomesaffordable.gov/
Short Sale vs Foreclosure
Tuesday, May 4th, 2010Short Sale as an Alternative to Foreclosure
The benefits of a short sale and where to get help
What is a Short Sale?
A short sale, sometimes known as a pre-foreclosure sale, is the process in which a homeowner sells their house for less than the amount owed on their mortgage(s). This must be negotiated with the bank in advance, as the short sale price is less than the amount owed on the mortgage.
Short Sale vs. Foreclosure – how does it help me?
If you are facing foreclosure and are seriously delinquent on your mortgage payments, some lenders will agree to accept the proceeds of a short sale and forgive the rest of what you owe them on the mortgage. By accepting a short sale, the lender can avoid a lengthy, and costly, foreclosure while you are able to pay off the loan for less than what you owe.
Effects of a short sale on your credit
Lenders report to credit bureaus differently, with some not reporting a short sale at all. However, with a foreclosure a FICO score can drop considerably: about 200-400 points.
Buying again after a short sale
Depending on if you were late on payments before your short sale, you may buy another home immediately. In other cases you may have to wait 2-3 years for FHA or Fannie-Mae backed loans.
In the case of a foreclosure, it takes 5-7 years to become eligible to buy another home.
Banks generally lose a substantial amount of money through foreclosing and auctioning off a house. With a short sale the lender may save some money while recovering some of their loss. It could be a win – win situation for both you and the bank.
Important Short Sale Information
- In many cases both the lender and borrower receive financial incentives to perform a short sale.
- Be sure and check with a certified professional tax adviser about the tax implications on a short sale.
- Sometimes lenders will require you to attempt a short sale before they will consider other foreclosure alternatives such as a loan modification or a deed in lieu of foreclosure.
HAFA Short Sale Program
The Home Affordable Foreclosure Alternatives (HAFA) program is for homeowners who are eligible for the government Home Affordable Modification Program (HAMP), but are not able to secure a permanent loan modification or cannot avoid foreclosure. HAFA provides protection and money to eligible homeowners who decide to do a Short Sale.
Short Sale Help
If you are considering doing a short sale on your home then it will help to get some free advice before contacting your lender. Talk to a HUD-approved, nonprofit housing consultant and find out the details of how a short sale may benefit you based on your individual mortgage and financial situation.
Free Student Housing at UCF
Monday, March 22nd, 2010Housing on or around the UCF campus averages $700 per month, or approximately $3,000 per semester. Over the course of your students college career housing costs could creep up to $25,000-$30,000.
How can your student live rent free?
If you purchase a home for an incoming freshman who has 2 or 3 roommates each paying $500-$600 per month you will cover your mortgage and your student will be living in the home for free. Your student will be your eyes and ears, keeping watch over the property, and you will have peace of mind knowing that your student is living in a safe environment.
Property values in Central Florida are at a 5 year low and with today’s mortgage rates a $150,000 home near UCF could be bought for as little as $1,200 per month. But, let’s not forget the most important part of this equation- this is an investment property and you have many options after your student graduates:
- Your student continues to live in the home after graduation a with or without roommates
- Your student moves out and you continue to rent the property to other UCF students or a family
- You sell the home and any equity is pure profit (maybe that will help pay for some student loans)
There haven’t been many times in recent history where this type of investment is possible. All the pieces of the puzzle have to line up just right- and lucky for you, your student is going to college at a time when home ownership makes complete sense.
We would love to discuss this opportunity with you and your student- please give us a call to learn about the types of properties that are available and what type of qualifications need to be met to make all this possible.
Off-Campus Spotlight: Avalon Park
Monday, March 22nd, 2010Avalon Park is an 1,860-acre neighborhood located in southeast Orange County, nestled beside the serene, natural surroundings of the Econlockhatchee River. Avalon Park has 240 acres of wetlands, 400 acres of upland preserve, 250 acres of man-made lakes, walking/biking trails and a pool with cabana located in the center of each neighborhood village.
Development principles are based on New Urbanism planning concepts, which emphasizes human-scale communities in which traditional-style neighborhoods are within easy walking distance of the town center to foster an improved quality of life for residents of all ages. Bringing this principle to life includes a mix of housing types, civic uses, office/commercial buildings and Downtown Avalon Park. Planning includes approximately 3,400 single-family units, 1,431 multi-family units and more than half a million square feet of commercial space.
UCF’s History
Monday, March 22nd, 2010Florida Technological University officially began on June 10, 1963, when the State Legislature passed Bill No. 125 and Governor Farris Bryant signed it into law: ’An ACT authorizing the state board of education to establish a state university or a branch of an existing state university in the east central part of Florida; defining the area; authorizing the board of control and the state board of education to determine the exact location; providing an effective date.’
The act, which took effect July 1, 1963, defined east central Florida as including the counties of Flagler, Orange, Seminole, Lake, Brevard, Volusia, Osceola, Indian River and St. Lucie.