Cape Coral Florida Real Estate

FHA Gives Home Buyers One-Month Window

September 1, 2010--The Federal Housing Administration (FHA) is giving homeowners and buyers until October 4 to lock in a low monthly insurance premium, according to Gibran Nicholas, chairman of the CMPS Institute, an organization that trains and certifies mortgage bankers and brokers. “After October 4, the monthly insurance premiums on FHA loans will increase by over 63%.”

What does this mean for home buyers?
A home buyer purchasing a $200,000 home using a $193,000 FHA mortgage before October 4 would pay an insurance premium of $88.46 per month. If the same home buyer waits until after October 4, the insurance premium would jump to $148.01.

“In this example, the home buyer would lose $59.55 per month, or $7,146 over a 10-year timeframe,” Nicholas said. “Although the upfront mortgage insurance premium is going down after October 4, the real impact to the home buyer is actually a net increase in their out of pocket costs because the monthly premium is going up by 63%. Remember, sellers can pay the upfront premium or it can be financed into the loan amount, so homebuyers rarely pay the upfront premium out of pocket. On the other hand, the increase in the monthly premiums will be paid right out of the home buyer’s pocket with their mortgage payment each month.”

Ironically, home buyers who plan to be in the mortgage for less than three years and decide to pay the upfront fee themselves (instead of having the seller pay it for them), may actually save money by waiting until after October 4 to apply for an FHA loan.

“Home buyers with a short term time horizon may actually benefit from this change because the upfront premium will be reduced to 1% from 2.25%,” Nicholas said. This change will impact over 30% of the home buyers in today’s market who use FHA-insured financing. Home buyers considering an FHA loan should find and contact a CMPS professional in their area to discuss their options and what this means for their situation.

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

 Call me for any of your needs. Joseph Beauvais

239-770-0686. 28 years of knowledge.

WEST PALM BEACH, Fla. – Aug. 17, 2010 – The number of homes and condominiums for sale across South Florida has steadily declined over the past two years, an encouraging sign for the region’s battered housing market.

Still, industry observers worry about a sizable “shadow inventory” of foreclosed homes that could complicate any real estate recovery.

Broward County had 19,869 properties on the market in July, down 35 percent from July 2008, according to a multiple listing service report compiled by the Keyes Co.

Palm Beach County’s inventory of homes and condos slid 31 percent to 23,947 during the same period.

The supply of new homes being built in the two counties also has decreased sharply in the past two years, said Brad Hunter of the Metrostudy research firm in Palm Beach Gardens.

In 2005, sellers rushed to list their homes, hoping to fetch record prices during the housing boom. But the frenzy led to a collapse and prices plummeted.

Thousands of foreclosures and short sales have clogged the market ever since, giving buyers plenty of choices and little reason to pay top dollar.

“You won’t get price appreciation until you get the inventory in balance,” said Mike Pappas, president of Keyes. “We’re making great strides.”

Declines in homes for sale already have helped stabilize prices recently.

The median price in Broward rose 7 percent during April, May and June to $209,800 from a year ago, the Florida Realtors said Wednesday. Palm Beach County’s median increased at the beginning of the year but dipped 2 percent in the second quarter to $235,500.

Pappas said his firm is handling fewer transactions involving foreclosed homes, and he thinks that’s an indication the foreclosure market has peaked.

But some analysts disagree, pointing to a recent surge in homes repossessed by lenders that is pushing inventory levels higher in recent months.

Banks are on pace to take back nearly 50,000 properties in Palm Beach, Broward and Miami-Dade counties this year, according to CondoVultures.com, a real estate consulting firm. Many lenders are careful to hold off listing those properties for sale all at once to prevent widespread price declines.

Sean Snaith, an economist at the University of Central Florida, expects more foreclosures to result from homeowners losing their jobs. And he said the sagging labor market likely will discourage potential homebuyers.

“You have to have a healthy labor market as a foundation for a healthy housing market,” Snaith said.

Another concern is the expiration of the federal homebuyer tax credits.

Buyers who signed contracts by April 30 and close by the end of September are eligible for the $8,000 and $6,500 tax rebates. But people who put homes under contract after April 30 don’t qualify.

Lee County is in a similar rise in prices. Saltwater homes especially due to low supply will increase the fastest.

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

 Call me for any of your needs. Joseph Beauvais

239-770-0686. 28 years of knowledge.

TORONTO – Aug. 6, 2010 – Mary and Ron Ethier long believed a getaway home in the Florida sun would remain a retirement dream, but when a recent real estate turnaround opened the border to a growing flock of snowbirds, the couple suddenly saw an opportunity too tempting to pass up.

“We just felt with the prices that were happening down there, that it was out of our reach financially,” said Mary Ethier from her home in Pembroke, Ont. “But when their real estate market basically took a big hit and the Canadian dollar came up, we thought if we’re ever going to do it, now’s the time to get off our butts and go and do it.”

The couple, too busy with their lawn-care franchise to enjoy Ontario summers, toured homes in the Fort Myers, Fla., area in the fall of 2007 and made a lowball offer, expecting to negotiate, but instead found their deal accepted.

By January, they owned a condo in a gated community, a property foreclosed upon when the U.S. housing bubble burst and home prices began to plummet and many American homeowners realized they could no longer pay their mortgages.

The loonie has since risen to hover around parity while U.S. home prices have stagnated, creating new financial incentives for Canadians to act fast and scoop up American real estate deals.

“It’s a once in a lifetime opportunity for Canadians,” says Mark Dziedzic, a Canadian Realtor with Cross Border Realty and a snowbird himself.

The Sun Belt states of Texas, Arizona, California and Florida are favorites, while there are also deals to be had in Nevada and Georgia. The average price of a home in Phoenix, Ariz., is US$144,600, compared to $432,253 in Toronto.

“People are buying $40,000 to $50,000 condos in Phoenix right now. Condos (in Toronto) are selling for $400,000 to $500,000,” Dziedzic said. Taxes, condo fees and closing costs are also generally less expensive in the U.S., he added.

Prices in most U.S. regions have steadied after falling for three years, but a high number of foreclosures persist, lowering prices, especially in Florida and Nevada, said Bank of Montreal mortgage specialist Laura Parsons.

“This is the time to buy if you’re going to,” she said.

There is a fine balance between rushing to buy and waiting for lower prices. Economists predict the U.S. housing market will remain soft, but it’s futile to make decisions based on where a currency or a housing market is going.

“I don’t think you need to rush down and get a place, but the good stuff in the lower price range ... those are moving. The good ones come up and they’re sold,” in Cape Coral.

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

 Call me for any of your needs. Joseph Beauvais

239-770-0686. 28 years of knowledge.

WASHINGTON – Aug. 6, 2010 – Mortgage rates dropped to the lowest level in decades for the sixth time in seven weeks, offering the most attractive opportunity for those who qualify to refinance or purchase a home.

Government-controlled mortgage buyer Freddie Mac said Thursday that the average rate for 30-year fixed loans this week was 4.49 percent, down from 4.54 percent last week. That’s the lowest since Freddie Mac began tracking rates in 1971.

The average rate on the 15-year fixed loan dropped to 3.95 percent, down from 4 percent last week and the lowest on record.

Rates have fallen since spring as investors seek the safety of U.S. Treasury bonds. That has lowered the yield on Treasurys. Mortgage rates tend to track those yields.

The last time home loan rates were lower was during the 1950s, when most mortgages lasted just 20 or 25 years.

Low rates have sparked some activity in the weak housing market, but not a massive boom in refinancing.

Applications to refinance loans increased 1.3 percent and those to purchase homes increased 1.5 percent, according to the Mortgage Bankers Association.

Nevertheless, high unemployment, slow job growth and tight credit have made it difficult for many to purchase homes. The housing industry received a boost this spring when the government offered homebuying tax credits, but housing activity has plummeted since they expired in April.

The number of buyers who signed contracts to purchase homes plunged in June to the lowest level on records dating back to 2001, according to the National Association of Realtors.

To calculate the national average, Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.

Rates on five-year adjustable-rate mortgages averaged 3.63 percent, down from 3.76 percent a week earlier. Rates on one-year adjustable-rate mortgages fell to an average of 3.55 percent from 3.64 percent.

The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount. The nationwide fee for loans in Freddie Mac’s survey averaged 0.7 a point for all loans.

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

 Call me for any of your needs. Joseph Beauvais

239-770-0686. 28 years of knowledge.

MIAMI – July 14, 2010 – Florida homeowners face mounting flood-insurance challenges this year as they wade deeper into hurricane season.

At a time when U.S. emergency-preparedness managers are pushing Floridians to sign up for flood coverage, the National Flood Insurance Program has been in flux.

Already this year the program has lapsed three times, making it difficult for property owners to get coverage and for lenders to approve mortgages for houses in flood-prone areas. Federal lawmakers just temporarily reauthorized the program again, but only until Sept. 30.

“The hurricane season runs two months beyond the new Sept. 30 expiration date,” noted Jimi Grande, vice president of political affairs for the National Association of Mutual Insurance Companies. “Congress must not let the program lapse again, but that’s just the minimum.”

Insurers would like to see a long-term commitment to the federal program.

In addition to lapses in the program, hundreds of thousands of Florida homeowners have dropped their flood-insurance policies – probably because of continuing economic hard times in a state with record foreclosures.

Also complicating matters: The federal government has redrawn its flood-plain maps, as it does about once a decade. So Florida homeowners who did not need flood insurance in the past have been getting phone calls from their mortgage companies in recent months, demanding that they get coverage or show proof they don’t need it.

North America’s hurricane-prone pinky finger has been drawing the attention recently of the Federal Emergency Management Agency, which has been encouraging Floridians to check http://www.floodsmart.gov to determine whether changes in the flood-plain maps affect them. Officials cite contrasting statistics such as this: The average flood-insurance claim in Florida during the past five years totaled more than $48,000, while the average cost of a policy is currently about $560 a year.

“This extension [of the program] is good news for families and business owners across Florida, especially with hurricane season now under way,” said Rachel Racusen, FEMA’s press secretary.

She noted that Congress not only extended the program but also made it retroactive. So Floridians who applied for new or renewal policies during the May 31-July 1 lapse still got coverage when they applied. Existing policies were never affected, Racusen noted.

This high-level push for homeowners to purchase flood insurance comes at a time when many Floridians are unable to afford the extra expense. Mortgage companies usually alert their customers that they need insurance if they live in areas mapped for flooding – but with more than 20,000 Florida homes in some stage of foreclosure, flood insurance is not always a priority.

The number of dropped policies constitutes less than 2 percent of all the flood-insurance policyholders across the state, according to FEMA, but that still means more than 1.5 million property owners have let their policies lapse during the past two years.

“We’re hearing a lot of buzz about people not wanting to buy the insurance,” said Ed Pasterick, a senior policy adviser for FEMA’s risk-insurance areas. “The reason they’re complaining is that they’re getting notices from their lenders that they need coverage.”

If homeowners don’t obtain their own coverage or hire an engineer to determine whether they need it, lenders will initiate a “forced-place policy.” Pasterick said such policies can be 10 times more expensive than the policies secured directly by homeowners.

Thousands of homeowners in Orange County alone have probably gotten flood-insurance notices from lenders in recent months, because FEMA last year redrew its flood-zone maps for the first time since 2000.

In Orange County, for instance, about 8,000 to 10,000 houses that had been in flood-prone areas were dropped from flood-plain designations. But about 2,000 properties were added to those zones, county officials said. The county said it notified homeowners whose addresses were added to flood zones in the newly drawn federal maps.

Another note of caution for Floridians contemplating getting flood coverage six weeks into the six-month hurricane season: Those policies may not take effect for at least a month. 

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

 Call me for any of your needs. Joseph Beauvais

239-770-0686. 28 years of knowledge.

You can read the original article here http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=243247

Or read below. I have been warning about out of state lenders and suggested you use a guy I know. Here is one reason why;

Some banks lower appraisals, killing sales

WASHINGTON – July 13, 2010 – It’s a common Realtor complaint: A property going to contract appraises for less than expected. The buyer cannot put more down; the seller will not lower the price; the sale falls apart.

In some cases, however, the appraiser is not the cause. Banks – fearful of Fannie Mae and Freddie Mac policies that mete out punishment if a house is over-valued – err on the side of caution by shaving value off the appraisal. If guilty of price inflation, they could be forced by Fannie Mae to buy back the mortgage at a substantial cost. By dropping the appraisal value, they hope to avoid any suggestion that they inflated the numbers.

Frank K. Gregoire of St. Petersburg, vice chairman of the National Association of Realtors’ Appraisal Committee, calls the problem widespread. Many sales are “sabotaged by lenders and underwriters arbitrarily reducing the (appraiser’s) value estimate.”

According to Gregoire, many lenders try to double-check an appraiser’s work by ordering a low-cost electronic valuation. The electronic version uses only readily available public records and no on-site inspection, making it less reliable than a true appraisal. However, banks many times get scared if the electronic version is lower than the physical version, and they downgrade the true appraisal value to protect themselves. At other times, they ask the appraiser to explain the price difference, which can also delay closing.

The rules are about to change

Recognizing a problem, Fannie Mae instituted a new rule that becomes effective on Sept. 1. After that date, banks selling their loans to Fannie Mae can no longer simply drop the appraisal value. In guidance issued June 30, Fannie Mae told its participating lenders that they must contact the appraiser to “resolve” disagreements. If that fails, banks must order a second appraisal. In either case, lenders cannot simply drop the original value that supports a sales contract.

A number of appraisers hailed the change as great news.

Pat Turner, an appraiser in Richmond, Va., said that electronic appraisals don’t consider property condition and “are often inaccurate.” According to Turner, he once did a physical appraisal of a property that a California-based firm also did electronically. Afterward, the lender’s review company asked Turner why he did not use one of the comps the electronic firm used. Turner investigated and said he found out that one “comp” was actually a vacant lot, and worth far less than the property being sold.

Fannie Mae’s rule change also attempts to deal with other appraiser complaints, such as the use of inexperienced appraisers who travel to unfamiliar territory by clarifying “appraiser selection” standards.

Fannie Mae and Freddie Mac back about half of all U.S. mortgages, and Freddie Mac officials, when asked about Fannie Mae’s announced rules, said they’re “looking at it.”

Source: Kenneth R. Harney

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

 Call me for any of your needs. Joseph Beauvais

239-770-0686. 28 years of knowledge.

After a close brush with the deadline, Congress has passed an extension of the Homebuyer Tax Credit closing deadline, the Homebuyer Assistance and Improvement Act (H.R. 5623). The extension applies only to transactions that have ratified contracts in place as of April 30, 2010 that have not yet closed. The legislation is designed to create a seamless extension the new closing deadline for eligible transactions is now September 30, 2010. There is will be no gap between June 30 and the date the President signs the bill into law.

Additionally, the United States Senate has passed the National Flood Insurance Program Extension Act of 2010 (H.R. 5569) an extension of the National Flood Insurance Program until September 30, 2010. This will allow transactions to move forward. The bill is retroactive and covers the lapse period from June 1, 2010 to the date of enactment of the extension.

 Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

 Call me for any of your needs. Joseph Beauvais

239-770-0686. 28 years of knowledge.

McLEAN, Va. – June 17, 2010 – Thousands of pending home sales may be in jeopardy unless Congress extends the June 30 deadline for buyers to close on their deals and claim a tax credit.

The Senate on Wednesday approved a three-month extension, giving buyers until Sept. 30 to close, but it's attached to another bill that still has to be passed by the House.

The extension would apply only to buyers that met the April 30 deadline to have signed purchase contracts in hand.

The tax credit is worth up to $6,500 for repeat buyers and up to $8,000 for first-time buyers.

Many pending deals are in danger of not closing by June 30 because of delays that aren't the buyers' fault. Some appraisals are taking longer to complete, and some lenders have been overwhelmed by a crush of mortgage applications that landed before the tax credit expired April 30.

Up to 180,000 buyers who were hoping to close by June 30 and get the tax credit are likely to miss the deadline, according to the National Association of Realtors (NAR).

"We are hopeful," says Paul Bishop, vice president of research with NAR. "We've heard a lot of concern from Realtors out there. There seems to be a sense of fairness. The tax credit was essentially promised" to those buyers.

But some Realtors say even if a three-month extension is granted, that still won't be enough time for buyers pursuing houses through short sales, which can take many months to close.

"How are you going to close a short sale in two months?" says Edward Goldfarb, a Realtor with Keller Williams in Fort Lauderdale. "Hundreds of people are not going to close and are going to lose their tax credit. September is not any better. A short sale can take a year and a half."

Another concern is that buyers who face losing the tax credit could pull out of pending deals altogether. Any extension must be passed this week, or buyers will start canceling deals next week, before the deadline hits, says Richard Smith, president and CEO of Realogy, parent company of Century 21, ERA, Coldwell Banker and Sotheby's International Realty.

"We're concerned, as many people are, that this will force people to cancel their contracts," Smith says.

Brian Bonime, 33, has a contract on a home in Margate, Fla., but is worried the short sale won't close in time to get the $8,000 tax credit he was counting on.

"It'll put a dent in things financially," says Bonime, who works in management at a supermarket. The sellers "had brand new appliances they're taking with them, and we were going to get the money now so we can get appliances."

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

 Call me for any of your needs. Joseph Beauvais

239-770-0686. 28 years of knowledge.

I am providing this RSS feed for all my past and present clients to keep track of the oil spill. This link provides a hugh amount of information on the Gulf Oil Spill.

If you play with it, you can find nearly every answer you could want except a solution.

I am quite optimistic that the current will take the oil around Cape Coral and Fort Myers Beach. I love the beach. My way of relaxing.

To view just click or copy and paste the link below; If you get a pop up message like I do, just click ok and it will load. Look to the right for options.
One useful one is the spill trajectory. It shows it will bypass Cape Coral and Fort Myers beach.

http://gomex.erma.noaa.gov/erma.html#x=-90.42000&y=28.03000&z=6&layers=3023+3898+3894+497 

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

 Call me for any of your needs. Joseph Beauvais

239-770-0686. 28 years of knowledge.

The oil that is currently gushing out may be a problem for years to come if it arrives in the Cape Coral and Fort Myers area.
Remember, oil is buoyant. Much of it is settling on the Gulf floor. Like sea shells that wash up during a storm, oil will as well.
Only if it arrives near us will it be serious.
We have locks and dams which will prevent some canals from any possible oil intrusion.
Fresh water canal homes will not be affected. Commercial fishing, shelling and the beaches may be the hardest hit if it arrives. Boating will be largely unaffected. Nature has ways to deal with this and will eventually disperse the oil.
You may sign up for blog updates.

I will keep posting the true status of the oil situation.

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

 Call me for any of your needs. Joseph Beauvais

239-770-0686. 28 years of knowledge.

Many homes have been remediated and not done  right. These homes are on the market today and being sold.
Gut Chinese Drywall Homes, Feds Say

April 4th, 2010 by admin

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

Is now a good time to buy a foreclosure?

This is a very common question from both real estate professionals and prospective buyers. Obviously, because local market conditions vary, the answer is different from market to market. But there are questions that buyers in any market should be asking before they make an offer on a property in foreclosure.

What’s the first step buyers need to take?

Require buyers you work with to be preapproved for a loan before you help them shop for a foreclosure. If they’re thinking of buying a foreclosure as an investment or second home, they need to understand that financing the home will be more difficult and more expensive than financing a primary residence. Lenders typically charge higher interest rates and require a larger down payment for investment or second homes.

How can you tell a bad foreclosure from a good one?

Certainly there are great deals in many markets for both investors and buyers looking for a primary residence. But making a sound deal can be tricky. Buyers need to be wary of unpaid liens, including mortgage debt, taxes, construction loans, home equity lines of credit, and possibly a second or third mortgage. Any or all of these financial obligations could become your clients’ responsibility when they purchase a property in foreclosure. Unless the property goes through a foreclosure auction and becomes a bank-owned REO, the outstanding foreclosure liens and fees could be simply transferred to the new owner—your clients. Don’t let them fall into the same financial trap as the previous owner.

If I’m a qualifying borrower, can I appeal to banks for better loan terms?

Lenders are drowning in defaults—particularly in hard-hit real estate markets such as Arizona, California, Florida, Michigan, Nevada, and Ohio—so they may be motivated to cut a deal. If your clients have a good credit score, many banks will offer them a below-market-rate loan on a bank-owned home. Unlike paying down with points, this doesn’t cost anything in fees, and it gives them the ability to spend more for the home.

What are the costs of buying a foreclosure?

It takes money to make money. The best opportunities are for buyers with cash. If your clients are planning to rent out the property or even resell it for a quick profit, make sure they consider the carrying costs, including sales commissions, marketing costs, vacancies, taxes, insurance, and maintenance costs. Once you’ve calculated all the expenses, add on another 10 percent to 15 percent. If they don’t build in a "surprise fund," your clients might be the next foreclosure statistic.

How does choice of neighborhood affect foreclosure investments?

Clients looking for a good investment should generally avoid neighborhoods overrun with foreclosures, particularly newer subdivisions in overbuilt exurban areas. Investors will be tempted to buy foreclosures in these areas because they offer the steepest discounts—but they also carry the most risk of further depreciation. Look in well established neighborhoods with good schools and transportation. If you’re in a market where prices are still falling, encourage your clients to factor falling prices into any offer they submit on a foreclosed property.

Source: James J. Saccacio is chief executive officer of RealtyTrac, a Web site that tracks properties in foreclosure.

Presented by Joseph Beauvais  Owner Sunny Spot Realty inc.

 Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

Is now a good time to buy a foreclosure?

This is a very common question from both real estate professionals and prospective buyers. Obviously, because local market conditions vary, the answer is different from market to market. But there are questions that buyers in any market should be asking before they make an offer on a property in foreclosure.

What’s the first step buyers need to take?

Require buyers you work with to be preapproved for a loan before you help them shop for a foreclosure. If they’re thinking of buying a foreclosure as an investment or second home, they need to understand that financing the home will be more difficult and more expensive than financing a primary residence. Lenders typically charge higher interest rates and require a larger down payment for investment or second homes.

How can you tell a bad foreclosure from a good one?

Certainly there are great deals in many markets for both investors and buyers looking for a primary residence. But making a sound deal can be tricky. Buyers need to be wary of unpaid liens, including mortgage debt, taxes, construction loans, home equity lines of credit, and possibly a second or third mortgage. Any or all of these financial obligations could become your clients’ responsibility when they purchase a property in foreclosure. Unless the property goes through a foreclosure auction and becomes a bank-owned REO, the outstanding foreclosure liens and fees could be simply transferred to the new owner—your clients. Don’t let them fall into the same financial trap as the previous owner.

If I’m a qualifying borrower, can I appeal to banks for better loan terms?

Lenders are drowning in defaults—particularly in hard-hit real estate markets such as Arizona, California, Florida, Michigan, Nevada, and Ohio—so they may be motivated to cut a deal. If your clients have a good credit score, many banks will offer them a below-market-rate loan on a bank-owned home. Unlike paying down with points, this doesn’t cost anything in fees, and it gives them the ability to spend more for the home.

What are the costs of buying a foreclosure?

It takes money to make money. The best opportunities are for buyers with cash. If your clients are planning to rent out the property or even resell it for a quick profit, make sure they consider the carrying costs, including sales commissions, marketing costs, vacancies, taxes, insurance, and maintenance costs. Once you’ve calculated all the expenses, add on another 10 percent to 15 percent. If they don’t build in a "surprise fund," your clients might be the next foreclosure statistic.

How does choice of neighborhood affect foreclosure investments?

Clients looking for a good investment should generally avoid neighborhoods overrun with foreclosures, particularly newer subdivisions in overbuilt exurban areas. Investors will be tempted to buy foreclosures in these areas because they offer the steepest discounts—but they also carry the most risk of further depreciation. Look in well established neighborhoods with good schools and transportation. If you’re in a market where prices are still falling, encourage your clients to factor falling prices into any offer they submit on a foreclosed property.

Source: James J. Saccacio is chief executive officer of RealtyTrac, a Web site that tracks properties in foreclosure.

Presented by Joseph Beauvais  Owner Sunny Spot Realty inc.

 Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

ORLANDO, Fla. – May 24, 2010 – Sales of existing homes in Florida rose 27 percent in April, which means that sales activity has increased in the year-to-year comparison for 20 months, according to the latest housing data released by Florida Realtors®. Another positive sign: Last month's statewide existing-home median price of $140,100 was 1 percent higher than the statewide median price in April 2009.

Existing home sales rose 27 percent last month with a total of 16,781 homes sold statewide compared to 13,244 homes sold in April 2009, according to Florida Realtors. Statewide existing home sales last month increased nearly 3 percent over statewide sales activity in March. Meanwhile, April's statewide existing-home median price was 2.3 percent higher than March's statewide existing-home median price of $137,000. It marks the second month in a row that the statewide existing-home median price has increased over the previous month's median.

"Buyers responding to the federal homebuyer tax credit before it expired helped to boost home sales across Florida," said 2010 Florida Realtors President Wendell Davis, a broker with Watson Realty Corp. in Jacksonville. "And buying conditions remain favorable, with a variety of housing options available in local markets at attractive and affordable prices. Plus, current mortgage interest rates are at historically low levels, which gives buyers more 'bang' for their buck."

Florida Realtors also reported a 55 percent increase in statewide sales of existing condos in April compared to the previous year's sales figure; statewide existing condo sales last month rose 2 percent over the total units sold in March. Though April's statewide existing-condo median price of $103,600 was down 3 percent compared to the year-ago figure, it was 6.9 percent higher than March's statewide existing-condo median price.

Seventeen of Florida's metropolitan statistical areas (MSAs) reported increased existing home sales in April while all but one MSA had higher condo sales. A majority of the state's MSAs have reported increased sales for 22 consecutive months.

Florida's median sales price for existing homes last month was $140,100; a year ago, it was $138,100 for a 1 percent gain. The median is the midpoint; half the homes sold for more, half for less.

Thenational median sales price for existing single-family homes in March 2010 was $170,700, up 0.6 percent from a year earlier, according to the National Association of Realtors® (NAR). In California, the statewide median resales price was $301,790in March; in Massachusetts, it was $280,000; in Maryland, it was $235,785; and in New York, it was $209,900.

According to NAR's latest outlook, two trends are influencing a broader stabilization of home prices in housing markets across the nation: months of increased sales activity and lower levels of inventory. "Foreclosures have been feeding into the inventory pipeline at a fairly steady pace and are being absorbed manageably," said NAR Chief Economist Lawrence Yun. "With home values stabilizing, a revival in homebuying confidence will likely help the housing market get back on its feet even as the tax credit impact disappears."

In Florida's year-to-year comparison for condos, 7,291 units sold statewide last month compared to 4,703 units in April 2009 for an increase of 55 percent. The statewide existing condo median sales price last month was $103,600; in April 2009 it was $107,200 for a 3 percent decrease. The national median existing condo price was $170,600 in March, according to NAR.

Interest rates for a 30-year fixed-rate mortgage averaged 5.10 percent in April, up from the average rate of 4.81 percent during the same month a year earlier, according to Freddie Mac. Florida Realtors' sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state's smaller markets, the Panama City MSA reported a total of 128 homes sold in April compared to 108 homes a year earlier for a 19 percent increase. The market's existing home median sales price last month was $160,000; a year earlier it was $156,800 for an increase of 2 percent. A total of 65 condos sold in the MSA in April compared to 53 units sold the same month a year earlier for an increase of 23 percent. The existing condo median price last month was $187,100; a year earlier, it was $172,900 for an 8 percent gain.

 Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

I have been shouting this for months now and finally a large organasation is substantiating it.

Between "geographical incompetence" and astronomical fees, appraisals are threatening your deals.  NAR found that 71% of you have seen appraisal management companies importing low-paid, inexperienced appraisers from faraway areas resulting in inaccurate appraisals.  (Click to read NAR's report.)  Yet the AMCs often mark up that fee so severely that your buyers spend far more than they would have for a knowledgeable local appraiser.  And the kicker?  Deals often suffer due to the outsider's lack of local market expertise.

That is why I have this web page, http://www.sunnyspotrealty.net/BuyingForeclosures/REOs It is for any purchase.

I have a lender I know and trust and his prices are near or at the lowest. Ask me!

Joseph Beauvais 239-770-0686

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

1. They don’t ask enough questions of their lender and end up missing out on the best deal.

2. They don’t act quickly enough to make a decision and someone else buys the house.

3. They don’t find the right agent who’s willing to help them through the homebuying process.

4. They don’t do enough to make their offer look appealing to a seller.

5. They don’t think about resale before they buy. The average first-time buyer only stays in a home for seven years.

A few reasons to ask Joseph Beauvais to help you. An exclusive Buyers agent.

www.sunnyspotrealty.net 239-770-0686 Call me!

 Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

GAINESVILLE, Fla. – April 28, 2010 – Shoppers rushing to take advantage of home and appliance rebates caused Florida's consumer confidence to spike in April by six points to 77 despite the state's record unemployment, according to a new University of Florida (UF) survey.

Consumer confidence has not been this high in Florida since October 2007 when it was 79, the same month the Dow Jones Industrial Average peaked at 14,168, says Chris McCarty, survey director of UF's Bureau of Economic and Business Research.

"Florida's consumers have been full of surprises the past several months," McCarty says. "Much like the reading for January, this rise in confidence was completely unexpected. Last month Florida broke its all-time record for unemployment at 12.3 percent. Yet Floridians are far more optimistic this month than last."

Much of the increase is fueled by a dramatic rise in perceptions of buying conditions. The biggest jump among the index components was whether it's a good time to buy big-ticket consumer items. That component rose 14 points to 87.

"We believe this is a combined effect from the appliance rebate, which pumped $17.5 million into the Florida economy in a matter of days, as well as the tax rebate for both first-time homebuyers and those who have been in a home for the past five years," McCarty says. "These rebates are set up to run out at the end of this month, and many consumers are rushing to buy homes to qualify for the rebate."

Sales tax revenues going into the state's General Fund were about 1.1 percent over estimates for February, with March sales likely to show a similar trend.

"The big question is: What happens when the rebates run out in May and the stimulus dollars are spent?" McCarty says.

Consumers also were more optimistic this month about short- and long-term economic conditions in the United States.

"This reflects a stock market that remains at relatively high levels despite some difficult news, including charges by the SEC against Goldman Sachs and the possibility that Greece will not get the help it needs to solve its debt problems," McCarty says.

In all, four of the five components rose and one stayed the same. In addition to the 14-point increase in perceptions about buying big-ticket items, expectations of U.S. economic conditions over the next year rose 10 points to 80, while expectations of U.S. economic conditions over the next five years rose six points to 79.

Perceptions of personal finances now compared with a year ago remained unchanged at 55, while expectations of personal finances a year from now rose two points to 84.

National unemployment has remained at 9.7 percent since January, compared with Florida's rate of 12.3 percent, which topped the previous record of 12.2 percent last month and in May 1975, McCarty says. Florida began tracking unemployment in the 1970s.

Retail sales nationwide have been unusually robust since the beginning of the year, with particularly strong showings from clothing, electronics and this month from car sales. The overall savings rate was down to 3.1 percent in February, less than half of the 6.4 percent reached in May of last year.

"Consumers are clearly optimistic that the United States is in recovery and that the economy will at least not get any worse," McCarty says. "Therefore, some of the spending may be pent-up demand from households that were cautious about spending when the recession was at its height and when job losses were on the rise."

Now as far as micro exceptions, Cape Coral Florida Real Estate as well as Fort Myers has been doing very well for a year now and some prices have risen and will continue to rise as foreclosures have be reduced by 50%

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

WASHINGTON – April 8, 2010 – The era of record-low mortgage rates is over.

The average rate on a 30-year loan has jumped from about 5 percent to more than 5.3 percent in just the past week. As mortgages get more expensive, more would-be homeowners are priced out of the market – a threat to the fragile recovery in the housing market.

And if you wanted to refinance at a super-low rate, you may have missed your chance. Mortgages under 4 percent are still available, but only for loans that reset in five or seven years, probably to higher rates.

Rates are going up because of the improving economy and the end of a government push to make mortgages cheaper.

For people putting their homes on the market this spring, rising rates may actually be a good thing. Buyers are racing to complete their purchases and lock in something decent before rates go even higher.

“We are seeing some panic among potential buyers who have not found houses yet,” said Craig Strent, co-founder of Apex Home Loans in Bethesda, Md. “They’re saying: Man, I should have found a house three weeks ago or last month when rates were lower.”

It’s all about affordability. For every 1-percentage point rise in rates, 300,000 to 400,000 would-be buyers are priced out of the market in a given year, according to the National Association of Realtors.

The rule of thumb is that every 1-percentage point increase in mortgage rates reduces a buyer’s purchasing power by about 10 percent.

For example, taking out a 30-year mortgage for $300,000 at a rate of 5 percent will cost you about $1,600 a month, not including taxes and insurance. But the same monthly payment at a rate of 6 percent will only get you a loan of $270,000.

Good economic news is the first reason rates are rising: U.S. government debt, a safe haven during the recession, is losing its appeal as investors turn to stocks and riskier corporate bonds.

Lower demand for debt means the government has to offer a better interest rate to sell its bonds. The yield on the 10-year Treasury note, which is closely tracked by mortgage rates, hovered above 4 percent this week, the highest since June, before falling back slightly.

The second reason is the Federal Reserve. Last week, the Fed ended its program to push mortgage rates down by buying up mortgage-backed securities. When demand from the central bank was high, rates plummeted to about 4.7 percent for much of last year. And business boomed for mortgage lenders as homeowners raced to refinance out of adjustable-rate mortgages and into fixed loans.

As of Wednesday, the Mortgage Bankers Association put the national average for a 30-year fixed-rate mortgage at 5.31 percent. One week ago, it was 5.04 percent.

Many analysts forecast rates will rise as high as 6 percent by early next year. If they go much higher, the already shaky housing recovery could stall. And that could slow the broader economic rebound.

In a normal market, with home prices steadily rising, a jump in rates doesn’t cause a big dip in demand. That’s because people know their homes will eventually rise in value, and are willing to accept a higher mortgage payment.

But now home prices are flat nationally and still falling in some places. Potential buyers are nervous about jumping in.

“In this environment, any rise in mortgage rates does significant damage because people don’t think they’re going to get their money back” if prices fall, said Mark Zandi, chief economist at Moody’s Analytics.

For people who bought their first home in the 1980s, when rates stayed over 10 percent for several years, paying 6 percent for a home loan may seem like a steal. But it’s coming as a shock to many first-time homebuyers this spring.

In Overland Park, Kan., Sirena Barlow checks mortgage rates online once a day. She’s been shopping for a something around $130,000 and wants to sign a contract this month, to take advantage of a tax credit for first-time homebuyers.

Barlow, a legal assistant, has already told her landlord she’s moving, so her stress level is high. Her real estate agent, Joseph Beauvais, has been doing his best to calm Barlow and other clients, but rising rates are making them anxious.

“It’s like giving hyperactive kids ice cream,” he said. “It has really taken the ones who are focused on buying and amped them up a little bit.”

 Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

NEW ORLEANS – April 5, 2010 – Thousands of U.S. homes tainted by Chinese drywall should be gutted, according to new guidelines released Friday by the Consumer Product Safety Commission.

The guidelines say electrical wiring, outlets, circuit breakers, fire alarm systems, carbon monoxide alarms, fire sprinklers, gas pipes and drywall need to be removed.

“We want families to tear it all out and rebuild the interior of their homes, and they need to start this to get their lives started all over again,” said Inez Tenenbaum, chairwoman of the commission, the federal agency charged with making sure consumer products are safe.

About 3,000 homeowners, mostly in Florida, Virginia, Mississippi, Alabama and Louisiana, have reported problems with the Chinese-made drywall, which was imported in large quantities during the housing boom and after a string of Gulf Coast hurricanes.

On Friday, Knauf Plasterboard agreed that high hydrogen sulfide levels appeared to be the main concern, but it noted the commission’s studies were preliminary and may not reflect conditions inside a home. The company said its studies have shown that drywall should be removed, but that plumbing and wiring do not need to go.

Chinese drywall problem has been exaggerated. I call the new guidelines “overkill".
Nobody has come up with a house yet that has caught on fire from the Chinese drywall, no one has come up yet with a house that leaks water or gas because of Chinese drywall.

It’s a black soot on top of the copper, brass and silver,” he said. “You wipe the stuff off and it looks as good as new.

A company had been gassing the home and ends the issues of Chinese drywall but that is not an option any longer (that is, as of today).

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

WASHINGTON – March 29, 2010 – The Obama administration’s revamped mortgage program may help more borrowers keep their homes, but economists say it could also delay foreclosures that can’t be prevented.

The program requires lenders to reduce mortgage payments for three to six months for unemployed homeowners. It also encourages mortgage servicers to consider reducing principal for borrowers who stay current on their loans.

In addition, some homeowners who owe more than their homes are worth may be able to refinance into loans backed by the Federal Housing Administration. The changes are designed to offer help to more borrowers than are getting aid under the existing program. But unemployed homeowners, for example, could still find themselves facing foreclosure if they remain unemployed when their forbearance period runs out.

This most likely will result in fewer foreclosures and a stabilizing or increase in home prices in Cape Coral or Fort Myers

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

I have posted a long time ago about buying Condominiums in Florida, but I need to refresh the information.

 Primary residence and second home condo purchases are treated quite differently. The reasons for this are many and entirely too convoluted to go into. Suffice it to say, it just is the way it is, end of story.

1) There is no Private Mortgage Insurance (PMI) currently available in Florida and the local lenders have all but stopped doing second mortgages for any properties, let alone condos. That means you'll need 20% down for a primary residence condo purchase. And, if you are buying the unit as a second home, you might as well accept the fact you're going to need a 30% down payment.

• The only way around the above down payment requirements is to go with an FHA loan. Just be aware that they are only applicable to primary residence purchases. FHA does not provide financing for second home purchases.

2) Fannie Mae and Freddie Mac have completely overhauled their criteria for approving a condo complex for financing. Your only hope is that the complex can qualify for a limited review status. Anything else and you are basically SOL. This is especially true here in Florida, as the new guidelines now require condo complexes to have reserves for their catastrophic insurance deductibles. Very few, if any, condo complexes currently have such reserves in place.

• Existing condo complexes cannot have 15% or more of their total units currently in default on their assessments (30 days or more late).
• The condo complex is limited to no more than 49% of its units being second homes or investor owned (rentals).
• The complex can have no pending litigation.
• No weekly rentals, check in desks or daily maid services are allowed. These types of units are strictly viewed as condo hotels and are not eligible for financing.
• Hazard insurance is required of all units in the condominium and the coverage must include contents (walls-in) insurance for each individual unit.
• Complexes are ineligible for financing where a single entity (the same individual, investor group, partnership, or corporation) owns more than 10 percent of the total units in the project.
• Appraisers must supply the pertinent condo information letter data on the appraisal form under the Project Information section and it must be complete. Many complexes, on the advice of counsel, are still refusing to give out any such data, especially the relevant rental information. If you can't get it, you're SOL again. Therefore, we strongly recommend you attempt to get the condo information letter filled out by the management company first, even if you have to pay a fee. Knowing what you're getting into beforehand can save you a lot of problems and embarrassment as the approval process moves forward.

While this was not meant to be an exhaustive list of things you can run into when trying to obtain condo financing, it does cover what we see as being some of the major issues. The best advice we can give you is to do your homework upfront, otherwise, you may be in for some major hair pulling before things are said and done.

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

Cape Coral March 18, 2010 – As the spring real estate season kicks in and the tax-credit deadline for sale agreements approaches, the government is ending a program that has kept interest rates low and housing-affordability levels high for months.

On March 31, the Federal Reserve will stop buying mortgage-backed securities from Fannie Mae and Freddie Mac, returning control of interest rates to private investors. For months, industry observers have predicted that once government supports are removed, interest rates will rise quickly, pushing many of the first-time buyers critical to housing’s recovery out of the market.

In late summer and fall 2009, lured by fixed 30-year mortgage rates under 5 percent and the first $8,000 tax credit, which expired Nov. 30, first-timers pushed sales of previously owned homes to the highest levels in at least three years, reducing record inventories and braking price declines. That tax credit was renewed Nov. 5 and expanded to buyers who had not purchased a property in five years, although the credit for repeat buyers is $6,500.

The second credit expires April 30, is unlikely to be renewed, and remains the engine moving buyers.

“Not a single (buyer) has expressed concern about interest rates,” said Joseph Beauvais owner of Sunny Spot Realty inc. in Cape Coral Florida, acknowledging that “there is, I suppose, a false sense of security regarding rates remaining low.”

As the date for the Fed pullout approaches, analysts now generally agree that an immediate rate spike is no longer the likely result.

“We think there will be a significant increase in private demand (for mortgage-backed securities) to take the place of the Fed,” said David Berson, chief economist at PMI Group in Walnut Creek, Calif. Not enough to offset the Fed’s departure, he said, with rates possibly increasing a quarter of a percentage point, “but a significant one.”

Bankrate.com columnist Holden Lewis said rates are so low now – averaging 4.87 percent for a 30-year fixed this week – that an increase “is inevitable. But maybe they’ll rise gradually instead of jumping” April 1. The Fed says it will stop buying “by” March 31 instead of “at” the end of the month, meaning that it likely has reduced its purchases and rates haven’t risen, Lewis said.

Moody’s Economy.com chief economist Mark Zandi said rates will “drift” higher in summer and fall, with the half a percentage point the Fed’s action cut working its way back in – mainly because investors believe the government would return if they got too high.

For that reason, Philadelphia mortgage broker Fred Glick said rates wouldn’t change. “If the old buyers don’t come back, the Fed will intercede again to ensure rates during a continued slowly recovering economy will not go so high as to stymie a positive direction,” Glick said. Buyers of these securities “now see that the lenders have instituted rigorous standards to ensure that the Fannie Mae and Freddie Mac paper they are buying are very good loans,” he said.

On the other hand, said Holland, Pa.-based economist Joel L. Naroff, low rates are not sustainable, and “the only way to get the market to stand on its own is to get people to become realistic again about prices and rates.” Rates will likely rise, but “the level will still be historically low,” Naroff said.

When rates do rise, likely by year’s end, it won’t be because of the Fed’s action, but “natural macroeconomic forces” like a recovering economy and the high budget deficit, said Lawrence Yun, National Association of Realtors chief economist.

The possibility of renewed Fed intervention will likely prevent rate increases resulting from private investors demanding large risk spreads, said economist Brian Bethune of IHS Global Insight in Lexington, Mass. As a result, Bethune and IHS economist Patrick Newport believe, the rate will be at only 5.25 percent by the fourth quarter.

Many Fed officials have emphasized that “high unemployment and tame inflation warrant a continued promise to hold rates very low for a long time,” said Peter Buchsbaum, of Arlington Capital Mortgage in Horsham, Pa. Some analysts expect the expansion to ease, “and I am sure the Fed does not want to extinguish the fragile recovery,” Buchsbaum said.

Treasury bond yields “did not move much after the Fed completed its $300 billion in purchases in November,” said Jerome Scarpello, of Leo Mortgage in Spring House, Pa., “meaning they were able to exit and not disrupt that market.” Rates will rise, he said, but not as high as the one percentage point others predict.

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

Many first time buyers are among a growing number of buyers rushing to find a home in time to cash in on the federal government’s tax-credit program. The couple, who moved from Lakeland, is eligible for up to $6,500.
They plan to put the money toward a swimming pool.
“We were worried we wouldn’t be able to close on time,” said Bob Freeger. “Getting that tax credit was a huge motivation.”
Real estate agents say their phones are ringing a lot more in recent weeks as folks scurry to sell and or buy homes before next month’s tax credit deadline.
“It’s been absolutely nuts,” said Joseph Beauvais, a real estate Exclusive Buyers agent with Sunny Spot Realty inc in Cape Coral Fl. “I have showings galore and contracts are coming in left and right. I had 15 requests for showings this week.”
To qualify for the credit, buyers must have fully executed sales contracts in place by April 30 and the deal must close by June 30. Loans take 45 days so it is almost too late.
First-time homebuyers are eligible for up to $8,000. Buyers who have owned a home for five consecutive years within the past eight years can get a credit of up to $6,500.
Joseph Beauvais credits most of the increase in traffic to improvements in the economy, but says the tax credit is also helping business.
“We’re seeing more people retiring to Lee county,” Beauvais said. “I’ve had four or five retirees close in one week. In the past three years, I hadn’t seen that many. We had some retirement communities that went a full year without a sale.
“People are no longer afraid to do something. They were afraid for so long.”
Prices are indeed enticing buyers to pull the trigger, and more homeowners are putting their houses on the market in hopes of selling in time to buy another home. Some are trading up to bigger homes while others are downsizing.

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

The new short sale rules will take effect April 5, 2010, requiring the banks to expedite short sale claims. Will the new guidelines be effective?

Story after story of homeowners who lost their homes due to banks not processing their request in a timely manner will hopefully soon end. The government has issued new guidelines to mortgage companies to aid them in processing the claims.

Anyone who knows anything short sales will explain that it is a long and tedious process and many potential buyers walk away before the sale is ever approved.

According to The Sun News "New Rules to Speed Up Short Sales," there was an agent named Nancy Philbrick from Manchester, NH and she had a short sale with Bank of America for over six months with no answer. The loan package was sent to another party for a second review and in the meantime, the deal fell through. The buyers walked and gave up on the process.

Bank of America has hired over 3500 new processors to help implement this much needed program. Although this is not typical for all banks, depending on the area that short sale is initiated, it is cause for alarm for President Obama, so he has implemented new rules for short sales beginning in April 5 2010:

Read more at Suite101: Government to Implement New Short Sale Rules: Will the Obama 75 Billion Dollar Affordable Home Plan Help You? http://mortgage-negotiation.suite101.com/article.cfm/government_to_implement_new_short_sale_rules#ixzz0gk7UfJc8

These guidelines will instruct lenders that they are not able to make buyers wait many months to find out if they will get the home they put the offer on. While this is a great idea and would normally help greatly.

It may not help and here is why;

The lenders I have been working with have had a practice in place for months which circumvents the new guidelines. Why is the Government not aware of this? Had they talked to an Exclusive Buyers agent like Joseph Beauvais they would have found out that lenders with short sales are now accepting all offers on Short sales quickly, adding an addendum to the contract that they can continue marketing the property and accepting offers during the process, which can still take many months. Whew! What a mess. How many hundreds of thousands of our dollars could have be saved buy not creating more committees to investigate this and all they had to do is ask an Exclusive buyers agent.

All that the lenders are doing are tying up more buyers’, assets and time. The buyers will be notified that they are in a multiple offer situation and asked “is this their highest and best offer”, and then raise their offer. Then wait again.

You are welcome to read about short sales at Http://www.sunnyspotrealty.net/ShortSale

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

This is the link to read about it. http://www.sunnyspotrealty.net/ChineseDrywallCapeCoralFortMyersRealEstate

Now you can act today and buy these properties. Call the company first and ask questions. I am waiting for a return call.

I can find the homes for you in any price range.

Joseph Beauvais
Sunny Spot Realty inc.

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

I invite serious buyers only to read all of this.

Because my web site is so high in Google ranking, I am attracting buyers from around the world. The ones that are affected are mostly the buyers from other states than Florida.

This mistake can and has cost buyers thousands and heartaches.

As an Exclusive buyer’s agent, my job is to give advice to buyers to protect them during the process and find them the best deal at the best price.
What do you think the biggest cost is other than the home itself? Right the mortgage, ie loan.

What is happening?

Buyers are listening to me to the extent that they do get pre-qualified for a loan, which is mandated. However they normally choose a lender they are familiar with and trust. That would be ok if they were willing to do the work that the mortgage rules dictate. %95 are not doing what they should because they think, “why do 4-5 hrs of work pre-qualifying this person when they may not buy?”. They may pull credit only then write a letter for the buyers. ‘This is what can cost you dearly if we trust the lenders word.

Think of the time wasted and heartaches!

You spend days and hours looking, make an offer, put money down, get excited. Then the lender says, “I need more time and a lot more information”. Actually the lender is just starting the process to see if you can get a loan. Now you have to extend the closing if the seller is willing, if not, you lose the home and start looking again not knowing you cannot get a loan. The next home the same thing happens, you ask for an extension due to the loan. You really found a steal and do not want to lose it but the seller will only extend the closing, because it happened before to them, if you risk your deposit and additional security. You do this only to find out the lender lied and you cannot get a loan. Did you know that the letter the lender wrote, without verifying assets, income etc., is a violation of brokerage rules with a fine or loss of licence. This is very low risk to lenders because the buyers do not know the rules and thus do not turn them in.

How can a lender handle an out of state sale?
Very poorly! if at all.

First they do not know about assessments and how to handle them up front on a loan.
 New government rules just this month.
Appraisals how do they handle appraisals in areas they know nothing about? Very badly. They call around until they get a cheap appraiser and have them do it without knowing the market conditions or comparables. They most likely do it soley by computer and never view the homes. Why is that bad for you? Low appraisals means you have to come up with the difference between sales price and appraised price or lose it.

I recommend a lender without compensation. Why?

The lender I recommend does not compensate me at all except for a thank you. It is a law that I do not break. Then why do I do it? We forgot about one very important item. I just wasted perhaps 20hrs, my gas and expertise for nothing. Not to even mention the buyers time and loss. All that my agents and I want is the sale and the loan to go through for your sake and mine.

What about the lender?

He is one of the best experts I have worked with in 26 years of working with buyers, he is honest, he is thorough, if he gives you a letter of pre-qualification, it will close. Why is he willing to work so hard? Because I give him my clients and he does not want to lose the business. Are his rates competitive? Yes very.

How long will it take to get a pre-qualification letter?

Once you supplied the lender all of the information, 3 days. He may ask for other information due to new rules in January 2010 and or change the loan due to your circumstances like self employed or asking for seller concessions.
These are different types of loans.

If you are looking to buy a home, condominium, duplex etc in or around Cape Coral and you contact me as a Real Estate expert to find a home, then listen to me, please. Three buyers this month alone did not listen. None closing. Is that you? Why am I not adding his name here? I do not want other agents to read this and tie him up and many reading this are just lookers that may call just because they are curious. If you are my client and willing to work with a very experienced Buyers agent, then ask me.

If you hire an expert, listen to him or her!

Thank you,

Joseph Beauvais

· Mortgage insurance premium (MIP) will be increased by 50 bps to 2.25% to build up capital reserves and bring back private lending

· New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA's 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%

· The allowable seller concessions will be Reduced from 6% to 3%

· There will be an Increased enforcement on FHA lenders

What this means to you! Fewer buyers will qualify. Others lenders soon to follow.

 If you are considering a purchase, do not wait.

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

Interest rates are at historic lows but cyclical trends suggest they will soon rise. Home buyers may never see such a chance again, writes Marc Roth

By Marc Roth Roth on Real Estate December 2009

.Maybe you already have a house and you don't want to move. Or maybe you're a Trappist monk and have forsworn all earthly possessions. Or whatever. But if you want to buy a house, now is the time, and if you don't act soon, you will regret it. Here's why: historically low interest rates.

As of today, the average 30-year fixed-rate loan with no points or fees is around 5% which is the lowest the rate has been in nearly 40 years.

In fact, rates are so well below historic averages that it should make all current and prospective homeowners take notice of this once-in-a-lifetime opportunity.

And it is exactly that, based on what the graph shows us. Let's look at the point on the far left.

In 1970 the rate was approximately 7.25%. After hovering there for a couple of years, it began a trend upward, landing near 10% in late 1973. It settled at 8.5% to 9% from 1974 to the end of 1976. After the rise to 10%, that probably seemed O.K. to most home buyers.

But they weren't happy soon thereafter. From 1977 to 1981, a period of only 60 months, the 30-year fixed rate climbed to 18%. As I mentioned in one of my previous articles, my dad was one of those unluckily stuck needing a loan at that time.

Interest Rate Lessons

And when rates started to decline after that, they took a long time to recede to previous levels. They hit 9% for a brief time in 1986 and bounced around 10% to 11% until 1990. For the next 11 years through 2001, the rates slowly ebbed and flowed downward, ranging from 7% to 9%. We've since spent the last nine years, until very recently, at 6% to 7%. So you can see why 5% is so remarkable.

So, what can we learn from the historical trends and numbers?

First, rates have far further to move upward than downward; for more than 30 years, 7% was the low and 18% the high. The norm was 9% in the 1970s, 10% in the mid-1980s through the early 1990s, 7% to 8% for much of the 1990s, and 6% only over the last handful of years.

Second, the last time the long-term trends reversed from low to high, it took more than 20 years (1970 to 1992) for the rate to get back to where it was, and 30 years to actually start trending below the 1970 low.

Finally, the most important lesson is to understand the actual financial impact the rate has on the cost of purchasing and paying off a home.

Every quarter-point change in interest rates is equivalent to approximately $6,000 for every $100,000 borrowed over the course of a 30-year fixed. While different in each region, for the sake of simplicity, let's assume that the average person is putting $40,000 down and borrowing $200,000 to pay the price of a typical home nationwide. Thus, over the course of the life of the loan, each quarter-point move up in interest rates will cost that buyer $12,000.

Loan Costs

Stay with me now. We are at 5%. As you can see by the graph above, as the economy stabilizes, it is reasonable for us to see 30-year fixed rates climb to 6% within the foreseeable future and probably to a range of 7% to 8% when the economy is humming again. If every quarter of a point is worth $12,000 per $200,000 borrowed, then each point is worth almost $50,000.

Let's put that into perspective. You have a good stable job (yes, unemployment is at 10%, but another way of looking at that figure is that most of us have good stable jobs). You would like to own a $240,000 home. However, even though home prices have steadied, you may be thinking you can get another $5,000 or $10,000 discount if you wait (never mind the $8,500 or $6,500 tax credit due to run out next spring). Or you may be waiting for the news to tell you the economy is "more stable" and it's safe to get back in the pool. In exchange for what you may think is prudence, you will risk paying $50,000 more per point in interest rate changes between now and the time you decide you are ready to buy. And you are ignoring the fact that according to the Case-Shiller index, home prices in most regions have been trending back up for the last several months.

If you are someone who is looking to buy or upgrade in the $350,000-to-$800,000 home price range, and many people out there are, then you're borrowing $300,000 to $600,000. At 7%, the $300,000 loan will cost just under $150,000 more over the lifetime, and the $600,000 loan an additional $300,000, if rates move up just 2% before you pull the trigger.

What I'm trying to impress upon everyone is that if you are planning on being a homeowner now and/or in the foreseeable future, or if you are looking to move your family into a bigger home, then pay more attention to the interest rates than the price of the home. If you have a steady job, good credit, and the down payment, then you really are being offered the gift of a lifetime.

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

I changed only a few words.

This will be the last blog for a while. Christmas, New Year and my birthday.

I hope all of you have a wonderful holiday season. I know I will.

My company has broken record sales this month since it began. Wow!

New Housing Numbers Show SWFL Home Sales/Prices Heading Towards Recovery. Especially Cape Coral and Fort Myers. Real Estate is GREAT!

The Housing Market in Southwest Florida has been slowly recovering for the last few months. Inventory has been being purchased at ever-increasing rates, however in November, the home sale prices actually started to rise as well.

According to the Realtor Association of Greater Fort Myers and the Beach, the new sales numbers look promising, the group released the following data earlier this month:

* Home sales in November 2009 were up 70.5 % over November 2008

* 1,245 single family homes sold in November, bringing the 2008 total to 15,336 (8,768 homes sold in all of 2008)

* Of November's home sales, 47.4 percent were bank-owned.  Conventional sales made up 33.7 percent.

* Pending sales for the month were 3,741, a 57.5 percent increase over last year.

* 6,976 homes are currently in the MLS system, which is down from 12,106 at the same time last year.

It looks like those wise enough not to wait any longer are getting the picture.

January is going to be very busy again for us.

Remember! You cannot steal in slow motion.
For those of you that trust the news more than someone that does this daily for a living, you will snooze and loose.

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

McLEAN, Va. – Dec. 18, 2009 – Mortgage rates rose for the second consecutive week but the number of homeowners who applied for refinancing remained strong.

The average fixed rate on a 30-year mortgage was 4.94 percent this week, up from 4.81 percent last week, Freddie Mac said Thursday.

Mortgage rates are closely tied to yields on long-term government debt, which have risen since the average fixed rate on 30-year mortgages hit a record low of 4.71 percent the week of Dec. 3.

A Federal Reserve program to buy $1.25 trillion in mortgage-backed securities has kept rates on 30-year mortgages around 5 percent this year. The program, geared to make homebuying more affordable, is set to end next spring.

The low rates resulted in a wave of refinancing activity: Roughly three out of four mortgage applications were for refinancing during the first two weeks of December, the Mortgage Bankers Association reported.

Freddie Mac collects mortgage rates each week from lenders around the country. Rates often fluctuate, even within a given day.

The average rate on a 15-year fixed mortgage rose to 4.38 percent from 4.32 percent last week.

Rates on five-year, adjustable-rate mortgages averaged 4.37 percent, up from 4.26 percent last week. Rates on one-year, adjustable-rate mortgages rose to 4.34 percent from 4.24 percent.

The rates do not include add-on fees known as points. The nationwide fee for loans in Freddie Mac’s survey averaged 0.7 point for 30-year loans. The fee averaged 0.6 point for 15-year and five-year loans, and 0.5 point for one-year mortgages.

 Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.