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Friday, June 10, 2011

Home Equity is near a record low

Due to the falling prices of Real Estate, home equity has been chipped away at.  The typical home owner has 38% equity vs. 61% a decade ago.  This is near the lowest point since WWII.

Even with the low mortgage rates of today (which many can not qualify for) the rates have failed to help the depressed housing market.  The home prices in large cities have fallen to 2002 levels.


The falling values is resulting in home owners being "under water."  Typically if you pay down your mortgage, your home equity goes up. As it stands now, the amount of money you pay down is not enough to counter the housings markets dip. 

In order to understand this, imagine you are jogging to catch a person walking in front of you.  This is you paying off your mortgage.  Once you catch the person, you are paid off and every step past them is equity in your house.  Now you are jogging, but the walker has started sprinting.  The further the person gets from you, the longer it will take to catch them.  In turn, more difficult to pay off your mortgage. 


Now this is a simplification, but may help you visualize the issue. 


Of the 74.5 million homeowners in the US, about 60% currently have a mortgage.  Out of of that 60%, 23 % are "under water" and about 5% are close to being "under water"


The US Government did withhold the cash incentives it set up for lenders under its 2-year-old foreclosure prevention program.  They thought it would prevent 4 million foreclosures, but it only helped less than 700,000 people.

The typical home in foreclosure sells 20% discounted on average.  In turn, it erodes prices in the neighborhood. 

We need a big change to save the home owner.




http://www.PTAGflorida.com 
Reference to the AP

Wednesday, June 8, 2011

Fannie revamps rules on delinquent loans: servicers must strive to build a “strong customer service relationship,”

WASHINGTON – June 8, 2011 – Fannie Mae recently announced new rules that will require mortgage servicers to act more quickly and consistently in helping troubled homeowners avoid foreclosure.

Fannie told servicers they must strive to build a “strong customer service relationship,” better understand why the borrower is missing payments, and educate them on ways to prevent foreclosure.

“We want homeowners to be able to understand their options when facing foreclosure, and we want servicers to reach homeowners early in the process, communicate frequently and clearly, and help them avoid foreclosure,” says Jeff Hayward, senior vice president of Fannie Mae’s national servicing organization.

Also among the revamped guidelines, Fannie told servicers they will be required to contact homeowners verbally and in writing within 120 days after a loan first becomes delinquent. They will need to try to complete a loan modification or other option that keeps the borrower in their home or helps the borrower avoid the foreclosure process.

If foreclosure is unavoidable, servicers will need to follow a clear timeline and must begin the foreclosure process once a loan has been delinquent for more than 120 days. Servicers also must make it clear when a property in the foreclosure process will be sold.

Source - AP

We may be found at www.PTAGflorida.com

Tuesday, June 7, 2011

38% of homeowners with 2nd mortgages are underwater

A CoreLogic Inc. report shows that 38 percent of homeowners with second mortgages are underwater, compared to just 18 percent of borrowers without such loans.

Underwater homeowners who extracted cash from their properties via loans or lines of credit had negative equity of $83,000 on average, versus $52,000 for those who did not.

The report indicates a drop in underwater homeowners to 22.7 percent in the first quarter from 23.1 percent in the fourth quarter as more foreclosures were completed.

Monday, June 6, 2011

Does your home have defective drywall - Let us know, your building assessment could be ZERO

The Florida Legislature has passed a law, House Bill 965 allowing County Property Appraisers to assess buildings with defective imported drywall at zero dollars. This means the owners of these homes will pay no taxes on the buildings, while they are being repaired. They will, however, be responsible for paying the taxes on the land and on any extra features such as pools and patios.

Although aspects of House Bill 965 are still being clarified by the Florida Department of Revenue, the Miami-Dade Property Appraiser’s Office is implementing this ‘zero assessment policy’ for the 2010 tax roll.
Homeowners with defective drywall must visit the Office of the Property Appraiser and present documented evidence of these conditions. Such documentation could include a report by a professional engineer, building inspector or environmental scientist. Insurance claims can also be used to substantiate your case.

http://www.PTAGflorida.com

Broward County percent change in total property value from 2010 -2011, where does your City fall.

Broward County
City                                         2011 2010
Coconut Creek                        0.6 -10.6
Cooper City                            2.2 -5.9
Coral Springs -                        1.1 -10.8
Dania Beach -                         2.3 -8.4
Davie -                                    1.4 -7.4
Deerfield Beach -                    4.6 -14.8
Fort Lauderdale -                    3.5 -10.6
Hallandale Beach                    0.2 -13.8
Hillsboro Beach -                    1.4 -7.1
Hollywood -                            2.2 -11.8
Lauderdale-by-the-Sea -         2.0 -7.4
Lauderdale Lakes -                 3.1 -20.7
Lauderhill -                             4.7 -21.0
Lazy Lake                               2.6 -9.9
Lighthouse Point                     1.3 –11.2
Margate -                                 2.9 -19.4
Miramar -                                1.0 -16.0
North Lauderdale -                 7.4 -24.3
Oakland Park -                        5.2 -16.6
Parkland                                  4.3 -7.4
Pembroke Park -                      1.5 -5.8
Pembroke Pines                       0.5 -11.6
Plantation                                0.2 -10.3
Pompano Beach -                    4.0 -14.7
Sea Ranch Lakes                     1.0 -2.6
Sunrise -                                  2.8 -11.5
Southwest Ranches -                2.7 -5.7
Tamarac -                                2.6 -19.1
West Park -                             8.9 -26.8
Weston                                    1.4 -10.5
Wilton Manors -                      3.2 -13.8
Unincorporated -                     8.3 -13.5
County total -                          1.9 -12.1
 *annexation in 2011

Miami-Dade percent change in total property value from 2010 -2011, where does your City fall.


Miami-Dade City                                2011 2010

Aventura -                                           1.1 -10.2
Bal Harbour -                                      2.0 -6.1
Bay Harbor Islands -                           5.2 -20.5
Biscayne Park -                                   3.4 -22.0
Coral Gables                                       0.0 -7.0
Cutler Bay -                                        2.0 -22.7
Doral -                                                 5.4 -10.7
El Portal                                              1.8 -17.6
Florida City -                                      15.4 -23.5
Golden Beach -                                   2.2 -9.6
Hialeah -                                             6.5 -18.3
Hialeah Gardens -                               5.9 -14.5
Homestead -                                        9.6 -31.2
Indian Creek                                       0.3 -5.9
Islandia                                               1.3 -19.4
Key Biscayne                                      1.5 -8.5
Medley -                                              7.6 -7.0
Miami -                                                3.8 -15.3
Miami Beach -                                     0.8 -10.5
Miami Beach (Normandy Shores)        2.0 -13.4
Miami DDA                                        10.9 -11.2
Miami Gardens -                                 7.3 -17.5
Miami Lakes -                                     3.7 -11.0
Miami Shores -                                    1.0 -9.6
Miami Springs                                     1.3 -8.9
North Bay Village -                              7.1 -26.4
North Miami -                                     8.0 -20.8
North Miami Beach -                          3.9 -20.4
Opa-locka -                                         8.6 -15.8
Palmetto Bay -                                     2.4 -5.8
Pinecrest                                              0.8 -5.5
South Miami -                                     1.7 -7.3
Sunny Isles Beach                               2.9 -8.2
Surfside -                                            6.3 -8.8
Sweetwater*                                       262.7 -17.6
Virginia Gardens -                                8.0 -3.8
West Miami -                                      4.1 -13.1
Unincorporated -                                 6.0 -15.1
County total -                                      3.3 -13.4
*annexation in 2011