New Short Sale Guidelines and Requirements from Fannie Mae, FHA and Freddie Mac

GREAT NEWS!  -  Call or email me if you need help doing a short sale on your home!  It's free and I have the buyer pay for your attorney's fees.  We have an attorney represent you through the entire process.

Freddie Mac - New Eligibility Guidelines as of 2/1/14:

The borrower MUST  HAVE one of the eligible hardships (no exceptions): Borrowers who are 31 days or more delinquent. Borrowers who are current or less than 31 days delinquent, provided the borrower is experiencing one of the following eligible hardships: Divorce or separation Death of a borrower or primary wage earner Borrower or dependent family member has a long-term or permanent disability Distant employment transfer or relocation (MUST be more than 50 miles), including Permanent Change of Station orders for service members The sale is an arm's length transaction The borrower has listed the mortgaged premises for sale with a licensed real estate broker, who, in turn, must have listed the mortgaged premises on the Multiple Listing Service (MLS) covering the market in which the mortgaged premises is located for at least five consecutive days. The listing period must include at least one weekend (i.e., Saturday and Sunday). The listing must be in an "active" status for at least the five days immediately preceding the day on which the purchase offer is accepted by the borrower and submitted to the Servicer for approval. The borrower did not enter into a program or arrangement where a third party takes the title to the mortgaged premises and arranges a short sale in exchange for a fee. If borrowers are current or less than 31 days delinquent, they also must: Occupy the mortgage premises as a primary residence. Have a monthly debt-to-income ratio greater than 55 percent (service members with Permanent Change of Station orders are exempt from this requirement).

Fannie Mae - New Eligibility Guidelines as of 2/1/14:

You are ineligible to refinance or modify your mortgage   You are facing a long-term hardship   You are behind on your mortgage payments or facing imminent default   You owe more on your home than is worth   You have not been able to sell your home at a price that covers what you still owe on your mortgage   You can no longer afford your home and are ready or need to leave The borrower has listed the mortgaged premises for sale with a licensed real estate broker, who, in turn, must have listed the mortgaged premises on the Multiple Listing Service (MLS) covering the market in which the mortgaged premises is located for at least five consecutive days. The listing period must include at least one weekend (i.e.,Saturday and Sunday). The listing must be in an "active" status for at least the five days immediately preceding the day on which the purchase offer is accepted by the borrower and submitted to the Servicer for approval. Both Freddie Mac and Fannie Mae have implemented new guidelines to allow for faster response times.  Both also have tightened eligibility guidelines.  There are many new directives that Servicers are now required to follow.  If you would like more information on short sales involving Freddie Mac or Fannie Mae, please contact Barry Miller's Law Office Short Sale Department at 407-398-6900. Barry Miller's Law Office offers a free consultation to determine if a seller qualifies for a short sale and to explore all options.  Remember on primary residences, the Taxpayer Relief Act was not renewed and Sellers may be responsible for the forgiven debt.

Biggest Mistakes Made By Home Sellers

As the market cools off a bit, thanks to higher interest rates and rising prices, I thought it might help to visit some issues I have with houses I've shown and houses I've personally listed.  And what better and faster way to do that, than an infographic?!  These mistakes will kill a potential sale faster than having Justin Bieber as your neighbor.  Okay, that's a stretch, but you get the idea.  This is also the reason I encourage so many of my clients to go with new construction.  None of these problems exist with new construction. PLUS I rebate 1% back to you, the buyer.  

Early Warning Signs of an Unlicensed Contractor

So in this series, I want to continue with what to look out for when hiring a person to do work on your home. In this segment, let's go over the warning signs. 

Unlicensed Contracting – Early Warning Signs

• “Licensed & insured” doesn’t mean a thing by itself. It is a requirement per Florida Statute / St. Johns County Ordinance that an individual / company has their license number displayed on all advertisements, contracts, and business cards.
• You are asked to obtain the permit. A licensed contractor will always obtain their own permits.
• Verbal contract only, no detailed terms in writing. This is usually a sign of an unlicensed individual.
• Contractor does not have proof of insurance. All contractors must have general liability and workers’ compensation coverage or workers’ compensation exemption current at all times and be able to prove it. Call their agent to verify or contact the County Licensing Department.
• You are informed the job does not require a permit or inspections. All projects, except very minor repairs, generally require a permit and inspections.
• The contractor prefers to work on weekends or after hours. This is often a sign an individual is not licensed and may be afraid to work when building inspectors are on duty.
• When someone other than the person contracting with you obtains the permit. Additional questions may be necessary.
• Contractor displays only a local business tax receipt, (formerly Occupational License). In order to lawfully engage in contracting the individual must hold a State Certification, State Registration or Specialty Trade License in the field they are contracting. Each will have a current wallet card bearing his name and scope of trade.
• You are asked to make check payable in the individual contractor’s name or asked to make payment in cash, or to make the check payable to “cash.”
• Licensed contractors usually have separate business accounts, so when paying by check the check should reflect the same name as on the contract.
• Advertisements and contracts should reflect company name, phone number and contractor’s license number. Contractors will have an address, phone number, and license number which you should verify with you local Contractor Licensing Department.

Why Hire a Contractor?

I often get questions from home buyers for referrals to companies for home improvements- from little things like putting up a fan to large updates- like remodeling a kitchen.  Here is a GREAT resource page for all of you central Floridians that need a good, reliable and quality contractor:  The Florida Home Builders Association.  Below is a link to the page that has all of the contractors available that are licensed through the Home Builders Association.  http://floridahomebuildersmarketplace.com/

Below are the reason I would strongly encourage you to use one of these contractors:  

1. They are licensed in their field- in order to be licensed, a state agency must legally recognize your business as an entity.  They are just some fly-by-night entity or a handyman that just does this as a side job.
2. They are bonded- Bonding is another form of protection for the homeowner. Essentially, bonding gives homeowners the opportunity to be reimbursed for poor workmanship or non-performance by a licensed contractor. 
3. They are insured- Joe, your neighbor's friend who installed their dishwasher, wants to put your new screen patio on for you- CHEAP.  Sounds like an easy enough job, and not too fraught with danger.  But Joe cuts himself BAD while cutting the new screening.  He needs stitches.  He was on YOUR property doing work for YOU.  Guess who gets to pick up that tab?  You do.  God forbid anything were to happen to the worker(s), you OR your home- the licensed contractors have it covered.
4. There are minimum requirements to do a 'job'. So Joe, your next door neighbors friend who installed their dishwasher 'thinks' he might be able to install your new sprinkler system, because he watched a Youtube video?  Yeah, no. Hire a sprinkler system company.  It's required.
5. And most importantly:  They show up for the job- No, REALLY.  I know you don't think this will happen to YOU, but it has happened to my clients more times that they will admit.  Here's the scenario- you go with the handyman guy your next door neighbor gave you.  Joe, the guy who installed their dishwasher.  You want him to put your new fence up.    At first things may seem fine- he comes out and measures your yard, takes a copy of your survey and a  VERY large down payment to purchase the fencing, pay for the permit and rent the truck. He tells you he'll be back in a few days after the materials come in and he has the permit. A week goes by and no Joe.  That's about when the excuses begin. After a week has passed, with no work being done, you call your unlicensed contractor. All you get is a recorded message, so you leave a message, politely requesting a return phone call. Several more days passed, with no response, so you call and leave another message, not as polite as the first. When the contractor does call, he is very apologetic and tells you about some catastrophe involving either his truck, his family, his help or another job he just had to complete. He promises to get right on your job the next day. A week later he still hasn't shown up, or he does show up and says he needs more money.  Trust me, this happens.  Don't do it- EVEN THOUGH Joe is SO much cheaper than the other guys.  Should you experience the above problems with licensed contractor, you as a residential property owner have significant protections not available to persons utilizing an unlicensed contractor. Among them is the ability to file a complaint against the contractor's license, in most cases, for a period of two years from the date of occupancy or date the last work was performed. This is your guarantee should the workmanship be below standard or in violation of existing codes.  In addition you can also recover a portion, if not ALL of your money.  Florida has a recovery fund to help with this. 
6. Oh- and it's the Law:

• According to Florida Statute 455.228 if you hire an unlicensed person, the Department of Business and Professional Regulation (DBPR) may issue a cease and desist order and take you to Circuit Court which has the authority to impose a civil penalty up to $5,000 for aiding and abetting unlicensed activity.
• If you hire an unlicensed person, you may actually pay more for the job than if you had hired a licensed contractor. Especially if the work is done incorrectly or never finished. You may have to pay much more to correct or finish the job.
• If you pull a permit for an unlicensed contractor, you are held responsible for the work, not the unlicensed person.
• If the unlicensed person fails to pay the sub-contractor or suppliers, you will be required to pay them, even though you have already paid the unlicensed person.
• Plumbing, electrical, heating and air conditioning work must be done only by licensed contractors in each specific trade.
• Home improvement contractors must be Certified by the State of Florida or have County Certification.
• Roofing contractors also are required to be Certified by the State or have County Certification.
• There is no such thing as a “jack-of-all trades” or “handyman” that does not require licensure.
• A Local Business Tax Receipt (formerly Occupational License) is not a Contractor’s License. It is a tax for the privilege of engaging in the managing of a business or profession. FS 205.032
• You can be held liable for injury of individuals working on your property if the unlicensed person has no insurance including the unlicensed person’s injuries.

Okay, so that's enough of my preaching.  Hire a contractor.  

http://floridahomebuildersmarketplace.com/

Wells Fargo Rolls Out a NEW Loan Program : Community Development Mortgage Program (CDMP)

The only loan type out there with NO down payment is a USDA loan.  The problem with those loans is:  you can't get a USDA loan in an urban or suburban area.  The next loan up from there requires a 3.5% down payment with a HUGE PMI (mortgage insurance) premium tacked on to it for the life of the loan, often adding $100+ to your monthly bill.  BUT now there is a new loan program out there being rolled out by Wells Fargo.  This is the email I just received from one of my preferred lenders and it reads:

Help more homebuyers achieve their home financing goals 
With our Community Development Mortgage Program 


The Wells Fargo Community Development Mortgage Program(CDMP) is designed to make homeownership more attainable for low-to-moderate income buyers. 

Homebuyers can benefit from: 

Down payment as little as 2% 
Lower out-of-pocket costs 
Allowable down payment and closing cost assistance 
Fixed-rate payment stabilty 
NO PMI 

Homebuyers may qualify at 80% or below Area Median Income limits with a single 42% debt-to-income ratio. 

Owner occupied only. 


Call or email me if you need any further information and I will put you in contact with the right people.  This is GREAT news for homebuyers with little or no $$$$- hurry before the home prices and interest rates go up again!

Flood Insurance Rates in Florida Set To Skyrocket

Thinking of buying a home in Florida?  Beware:  As of October 1st Flood insurance rates are going to be going up. WAY up. Be cautious before purchasing a home in a flood zone. Ask your Realtor if the home is in a flood plain. You (or THEY) can find out simply by looking at the tax records. 


The full article can be found here.
http://www.orlandosentinel.com/business/fl-flood-insurance-rate-hike-20130924,0,6751438.story

There's Help on the Way from HUD for All You Renters that USED to Own

Ready to buy a new home, but can't because you suffered through a foreclosure or a short sale?  Well~ The guidelines for buying a home after a foreclosure or shortsale are finally easing with these new rules from HUD:
FULL STORY HERE

NEED TO PROFIT FROM BUYING A HOME? CHOOSE FLORIDA

TUESDAY, JULY 23, 2013

Housing Boom is Back with Buyers Flipping for Profits

So, as I was doing a new construction walk-thru at Windermere Terrace with my client yesterday, and it occurred to us that the price of the home my client is purchasing has gone up by $30,000 since he originally went to contract in February- So in a matter of 6 months he will have profited almost 10%.  That $30,000 is pure profit to him.  And mind you, he's not closing for another 6 weeks, which in that time frame the house price is slated to have another price increase (per the City Homes Salesperson).  As we spoke to the new construction sales person, Tracy, he told us stories of other buyers who were simply going to 'flip' the homes they were building and keep the profit- Yup.  The buyers did absolutely NOTHING, but go to contract on new construction at the right time and now they are going to earn a huge profit for doing so. Then today, I see this story in my news feed (see below)- 
Housing Wire News- Home Buyers Flipping Homes Story
If you want to be a new construction flipper- call me.  There are certain areas that are experiencing larger gains than others- and I can help you navigate the good vs. the better.  PLUS you get a rebate from ME, which equals even more profit.  On the "flip" side of this, my client is NOT going to flip the home he's building, even though he is buying it for retirement.  NOPE, he's going to put a pool in with the new construction winnings- something he wasn't going to do be able to do for another year.  He's super happy! 

Orlando Florida's Housing Market Crunch Continues

The market pulse for June doesn't look any better for buyers.  Multiple offers and ALL CASH buyers dominate the market, which fuel the housing prices.  If you are a first time home buyer or even a move up buyer, you are being pushed out of today's housing market.  This is why new construction is such a better medium for home buyers- no multiple offer bidding wars and you get a rebate from ME!

If you are a seller- now is the time.  The forecast for the fall is that inventory is going to loosen up, so you will see prices stabilize.

Orlando Market Pulse - YouTube Video

The New App for the MLS in Florida is Here!

If you want the most comprehensive app out there for looking at homes online- these are the ones to use!
Did you know that Zillow, Trulia, Homefinder, RedFin, Realestate.com, Home.com and all the others are not   'real time' based.  Meaning that you may look on those sites, but the results are not up to date.  If you want up to the minute accurate results on your mobile device you should ONLY use the MLS app.  And if you are on the PC or laptop, you should be using Realtor.com.  That website is linked directly to the MLS and if a property goes into the 'Pending' status, it falls OFF the Realtor.com website.  Which means you won't be looking at a house online that is already gone. All of the other website (including my own) are designed to generate leads.  If it's run by an agent, then it's designed to generate leads that go directly to that agent.  If it's run by a large corporation, like Zillow or Trulia, then they harvest those leads and sell them back to real estate agents as a source of income.  Soooooo, if you just want information, and not a sales pitch, use the app below or Realtor.com ;-)  Enjoy!
OH- and if you want to earn 1% back on your purchase, just ask me how.  Click on my facebook page and see the details- no pressure and completely anonymous.

MLS App for Android Phones
MLS App for IPhones

Mortgage rates post largest weekly increase in 25-years!

It's beginning to happen- Interest rates are up 1% over this time last year.  And that equates to $100's on your mortgage payment, but will also affect how much of a house you can afford.  Federal Reserve is now tapering off their stimulus program and we will beginning to continue to see increases until interest rates are what they used to be (between 7-8%). Don't miss the boat!  If you are thinking of buying, do it sooner than later.  The average interest rate today hovers around 4.5%.  Read the rest of the article for more disturbing information regarding where interest rates are going and how fast:
Mortgage rates post largest weekly increase in 25-years!

The Banks Can Still Come After You Years After Foreclosure!

This is a pretty long article and worth the read, BUT if you don't have the time, it basically states that if you just walk away from your property, chances are the bank will come after you.  And depending on where you live they could pursue you for up to 36 years.  BUT if you do a strategic foreclosure OR a short sale and you have debt forgiveness clauses in your closing documents, then you will be fine.  Hire an attorney and real estate professional- trust me it could be worth hundreds of thousands of dollars to you and many nights sleep.  Call or inbox me if you need any guidance.

Washington Post Article on Foreclosure Debt

May 2013 Real Estate Statistics for Central Florida

The numbers were just released today and they are staggering!  Our home prices in Central Florida (including single family homes, townhomes and condos) are up 23% from last year, with a NEW median price of $148,000.  Unbelievable.  The numbers just keep climbing.  I also found it interesting that the average days on the market stat is down to 68 days.  That is the lowest it's been since 2006 in the height of our real estate boom.  That speaks volumes!  With all of this said, it's a GREAT time to buy resale home, but an even better time to purchase NEW construction.  You can get top dollar for your home AND get great deals on new construction.  Don't forget to check out my page on facebook and sign up for my NEW CONSTRUCTION REBATE program.   New Construction Rebate Program for Florida

And if you are too busy to read this, then just watch the video of the Market Recap May 2013:Video- Market Pulse May 2013

Market Conditions for Orlando Florida homes- April 2013

Curious about the market here in Orlando?  Below is a snapshot of the current market conditions for Orlando pertaining to single family home, townhomes and condos.  Basically the inventory is steady, comparatively - from the last few months. Which means- the market is still on FIRE!  If you are not in the mood to deal with the fierce competition, then new construction is always a GREAT way around that.  Check out my other blog:  Florida New Construction Rebate Program   In addition, I rebate 1% back to you on ANY new construction in the state of Florida.  Ask me how!

Money Magazine talks about how clueless buyers in today's market are. SCARY.

Did you know that you can get an FHA loan on new construction and pay as little as 3.5% down?  There are also new construction communities in 'rural' areas that qualify for USDA financing and 0% down!  Email me and I can send you a list.  ;-)  In addition, if you participate in my Rebate Program, you can get a large portion of your closing costs paid out of my commission. Don't wait to purchase, prices are going up everyday.

Read the full article here.

The best high schools in America...

If you are thinking of moving to Florida, check this list out.  EVEN IF you don't have kids.  Schools can and do totally affect resale value.  And remember- if you are moving to Florida, I offer a rebate program on all new construction - NO MATTER WHAT CITY.   Email me for details.  The Daily Beast- Best Schools in America

The Finished Product- KB Homes Vineyards at Windermere

Okay, so I love to look at new construction.  It's a weakness of mine.  And I think the most favorite thing about new construction for me is the trending decorative touches.  Professional decorators come in and stage each home with the latest and greatest ideas, colors, furnishings and finishes, with no concern for budgets.  So I thought it would be a neat idea to document it in photos and bring it to YOU.  I will also tell you my observations, along with what I like and what I don't like.  Of course, it's just my opinion, but I see hundreds of homes in a year, so I'm thinking my opinion might be good for something.    ;-)  Enjoy!  OH- and don't forget to look at my page on facebook:  New Construction in Orlando.  Thanks!

 The main entrance at the Vineyards.  It's not gated, but is very attractive.

One of three model homes.  The brick paver drive is standard.  This is a 53'  lot.

This is the master bedroom.  I love this color scheme: Gray, yellows, silvers and blacks.

 This is the loft area and hallway up stairs.  The loft is large and spacious.  Notice the 'stripes' painted on the wall.  This is a new trend I've been seeing.

This particular builder enjoys adding 'niches' around windows.  It fits well in this room, but in some areas it's distracting.  

 This is another secondary room.  Furniture placement in this room is difficult with the odd shaped corner area.  

This is a rear loading garage model.  OH- and I love that you have a mail box at each house in this community.

 This is the rear elevation.

 This model has a formal living and dining room decorated in grays and blues.  I love the different shapes and elements that the decorator used. 

 Round tables are in for dinettes. And dark wood with dark granite are still the norm.

 Okay, new doors and new handles.  Still brushed nickel tones, but the round handle and 3 panel design are different.  

 This is the formal dining room.  Notice the mirror on the wall- it creates an optical illusion by make the room look bigger- almost like it's a doorway. 

 Master bathroom.  All glass enclosures are the new hot thing.  And the oblong glass tile around the tub and shower are new, too.

 Love Love Love this tile in the bathroom, but some of my friends think that it has a commercial look to it. 

Foreclosure settlements from the largest home lenders in the US coming to borrows this summer!

If you were in foreclosure in 2009 or 2010 you could be getting a settlement check from your lender! The agreement, reached earlier this year, provides $3.6 billion in cash payments to borrowers whose homes were in any stage of foreclosure in 2009 or 2010, and whose mortgages were serviced by: Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank and Wells Fargo. Check the article for details. This won't heal all of your hurt, but ths is VERY exciting news for homeowners who were burned in the process. http://ow.ly/jU7rq

KB's Vineyards- the most affordable new construction in Windermere

The newest development in Windermere by KB Homes has so many nice surprises, starting with the starting price point.  You can get a NEW single family home with a Windermere address for under $250,000, PLUS they are allowing you to customize your interior, which is unusual in this price bracket.  KB Homes has pulled models from their Mabel and Summerport communities to try and appeal to the masses.  There are homes with front loading and rear loading garages, plus did I mention this community comes with lawn care maintenance included in the monthly maintenance fee?!  Some of the other little features I really like are the unusual niches inside the home and the double pane windows.  Below you will find the preliminary pricing sheets.  It's my understanding that these prices will be increasing very soon after opening.  I've also attached the models available and their elevations.  I will be posting photos of the finished product in my next blog. And don't forget if you are interested in any of these homes or any other new construction communities, I would love to help you! And like always- I will rebate 1% of the purchase price of the home back to you at closing!    See the details of the rebate here:
https://www.facebook.com/NewConstructionInOrlando

The entrance to the subdivision.

Looking for affordable new construction in Orlando?

So today I spent the better part of today looking at all of the new construction on the west side of Orlando. Dr. Phillips and Windermere were on the menu today. There are lots of new construction home sites coming on line; the latest is from KB Homes called Vineyards. The line up of models you can choose from come from their selections at the Mabel, as well as the Summerport Communities. KB decided to offer both front and rear loading garages in this community. Prices are starting in the high 200's and square footage as much as 4,300 square feet (that's a big house). I will have pictures uploaded from the model a little later tomorrow. The other community I reviewed was Ryland's Oasis. This gated townhome community has a resort feel to it, with a luxurious clubhouse and pool area. Each home comes with a 2-car garage and nice back patio, giving the homes a 'single family' feel that is not offered in many townhome communities. Even better is the price range, starting in the high 100's with a Dr. Phillips address! The largest model has 2 master suites and tops out at around $230,000. Pictures to follow soon!