FHA Extends Flipping Waiver Through 2014

Typically, purchasing a Federal Housing Authority (FHA) property involves  a clause that prohibits the buyer to resell the property within the first 90 days of purchase. This preventative measure common among FHA insured mortgaged properties, but is sometimes included on cash contracts as well.

The FHA has waived that rule on some contracts and allowed flipping since January 2010. They hope this allowance will encourage investors to purchase and renovate blighted homes and offer turn-key home options for first time home buyers and others. Ultimately, this strategy will boost sales . Apparently, this strategy seems to be working. Since the FHA first extended the rule, it has been extended three additional times.

Does condo seller have recourse if board rejects buyer?

 

FORT LAUDERDALE, Fla. – Nov. 29, 2012 – Question: I am trying to sell my condominium, and I just found out the association didn’t approve the buyer. Is there anything I can do? – Sara

Answer: Yes. But in most of these instances, the buyer and seller just move on, aggravated.
In your condo, the “Declaration” and other key documents contain the rules under which you and your neighbors must live by. These documents must address whether the board has the power to approve prospective buyers and tenants.

You may find that although the board has been approving buyers for years, it doesn’t actually have the power and is only doing it “because this is the way we have always done things.” If that’s the case, consider having a lawyer write a sternly worded letter to the board. That may be all it takes.

Even if your association has the power to approve the buyer, its decisions must be applied consistently and for good reason. The board can’t deny a buyer for such things as race, religion and ethnicity. If it does, that certainly is grounds for a lawsuit.
Absent something egregious, most sellers decide it’s not worth the time and expense to file suit. It’s just easier to find another buyer. And not many buyers will want to fight the denial because they don’t feel comfortable living in a community that doesn’t want them.
The board may not be required to reveal the reason for denial. But try to find out why – and that will help you in your search for a new buyer.

About the writer: Gary M. Singer is a Florida attorney and board-certified as an expert in real estate law by the Florida Bar. He is the chairperson of the Real Estate Section of the Broward County Bar Association and is an adjunct professor for the Nova Southeastern University Paralegal Studies program.

The information and materials in this column are provided for general informational purposes only and are not intended to be legal advice. No attorney-client relationship is formed. Nothing in this column is intended to substitute for the advice of an attorney, especially an attorney licensed in your jurisdiction.

Copyright © 2012 Sun Sentinel (Fort Lauderdale, Fla.), Gary M. Singer. Distributed by McClatchy-Tribune News Service.

Affordable Rental, Conveniently Located

FOR RENT!!! A Must See! This one won’t last!! This refreshed home is ready for its new tenants. This home features a fully equipped kitchen, washer and dryer, large rooms, ceiling fans, tile and laminate flooring throughout, central heating and cooling, lots of storage space, and spacious rooms. 1306 E Annie Street, Tampa, Florida
Monthly Rent: $600 Security Deposit: $300  

Bank of America Does It Again!

With short sales in abundance, it is very difficult to evade them. More and more of my real estate sales are short sales, with bank owned or reo properties taking a close second. There are a number of parties involved in a short sale: the lender, the negotiator, the investor, among others and each person’s role is vital to the success of the short sale.

Considering all of the short sale lenders I have worked with, Bank of America is by far, the best. From my experience, they always close within three months, unlike some of the other lenders. However, I had a recent case that threw me for a loop. In January, my client signed a contract for a two bedroom, two bath villa (short sale by Bank of America). I was confident that this would close within three months. However, three months and two negotiators later, I was drafting an extension, hoping that it will close soon. I was asked to resend a newly signed contract twice and five months into the waiting period, the contract was denied.

Stunned and confused I sent a direct twitter message to @BofA_Help, searching for an explanation. Why is this contract being denied? This doesn’t make any sense? The BofA representative responded the same day asking for further information. She researched the matter and advised me to resubmit all documents all over again and everything should be taken care of. Disheartened and a bit skeptical, I followed the instructions. This was in May. Three months later, we received an approval. My client was elated and so was I. After waiting eight months, my client now has a home.

Real estate agents have very little control on the outcome of a short sale. We always hope for the best, so all parties involved are content, especially our clients. I was happy that my client didn’t have to start the home search process all over again. Her heart was set on this property and mentally, she had already moved in. I am truly happy for the efforts that BofA made to make this sale a reality. There was a mishap in the beginning, however, we finished strong. Thank you Bank of America, you have done it again!

The Real Estate Market Is Alive & Well

There are fewer homeowners that are behind on their mortgage payments. According to CoreLogic, the number fell from 12.1M in 2011 to 11.4M in the first quarter of 2012. The decrease in-turn shows a slow increase in the price of single-family homes, according to a recent housing index. Has the market bottomed out? Some experts believe that the market “bottomed” in January 2012.

What is evident is that there is a change in the culture of the real estate market. The buyer’s confidence has increased. More and more individuals are looking to purchase homes to capitalize on the low interest rates. Investors are also flooding the market to secure a cheap investment property. Some investors look to flip, while others reap the rental benefits until they can sell in a more seller favorable market. Despite the skeptics, the real estate market is alive and well. Regardless of home values, the individuals who understand the benefits of this market are certainly taking advantage. If you are looking for a diligent Realtor, to assist you with your real estate goals, I encourage you to give me a call or send me an email. I look forward to working with you in attaining your real estate dreams.

Cheaper to Buy Than Rent

 

 

Zillow recently released an article stating that “the average national homebuyer will save money over renting if he or she stays in a home for only three years. And in at least four Florida cities, a homeowner only needs to stay two years to make ownership the preferred option.”

Zillow examined the “breakeven horizon” for over 200 cities throughout the United States. Typical costs associated with buying or renting were considered in this analysis. These factors included down mortgage and monthly rental, closing costs, property taxes, utilities, maintenance, tax deductions, as annual inflation and changes in home values and rental prices.

I meet many renters that are on the fence, thinking of hanging up the renting towel or trading it in for home ownership. Home ownership is the largest purchase you may make in your life and it’s also the most rewarding one. I hope this bit of information will help you off the fence and into the field of home ownership.

Short Sales, Shorter Process

 

 

The short-sale process is expected to get shorter starting June 15. New guidelines issued under the Federal Housing Finance Agency will require Fannie Mae and Freddie Mac to give homebuyers of short sales notice of their final decision within 60 days. The new guidelines also will require the mortgage giants to respond to initial short-sale requests within 30 days of receiving an offer.

The speedier process is expected to be a boost to the housing market, Michael McHugh, president of the Empire State Mortgage Bankers Association, told the New York Times. Homebuyers and sellers often have to wait months before they receive a short sale decision from a lender. Some deals fall apart just from the wait alone.

Short sales have been increasing in recent months as many lenders find them more appealing than foreclosures, which can cost more and take longer to remove from their books.

Short sales now outpace foreclosure sales in many parts of the country. Short sales represent more than 14 percent of existing-home sales, according to CoreLogic housing data from March, the most recent month available.

McHugh says that a faster short-sale process may be particularly helpful in speeding the recovery in judicial states, where foreclosures must go through the courts before they are approved. Now short sales may be viewed by defaulting homeowners as more of an option if they want to avoid foreclosure.

“There should be a significant improvement in the turnaround,” McHugh said regarding housing markets with judicial foreclosure processes.

Source: “Speeding Up Short Sales,” The New York Times (May 24, 2012)

Moving Out of My Comfort Zone

“I'm coming out of my comfort zone
Some of the places in my life that's comfortable
God is challenging me, trust and believe
For to go where I've not gone, I must do what I've not done”

~Marvin Sapp~

This song motivated me through the latter half of 2011 and is now my seed of inspiration for 2012. Yes, I moved out of my comfort zone. I called all my past client in my database to reconnect and let them know, I am still in the Real Estate business. As nervous I was, I knew it would give my business the boost it needed. My database is now tapered to a working network of individuals that can attest to my trustworthiness, diligence and success-driven work ethic.

In 2011, I was also able to launch my very own website. I am no longer promoting listingbook, my broker or some other third party company. It’s all about Gloria Walters, the brand, the Realtor. I even have my own logo.

The number of training courses I attended in 2011 was also the highest in all of my real estate years combined. “I am coming out of my comfort zone” and rightfully so, I should. The landscape of the market has changed. There is so much a Real Estate professional needs to be knowledge of.

It’s now 2012 and I have established a new set of goals, where I must force myself to leave the comforting womb of complacency and redundancy. Overcoming these challenges, will certainly lead to well deserved rewards. Greater success is in my future and I look forward to every bit of it. I would like to share the inspiring song, which has elevated my thinking, confidence and perseverance to the next level. We all want to be better at something in life. Whatever it is, you need to challenge yourself and come out of your comfort zone!