If your on the fence thinking about buying a home or not, here is some food for thought.
NEW YORK – March 31, 2009 – The housing market is looking healthier. Here are six reasons why now is the time to jump into the market.
1. Uncle Sam is willing to help. First-time buyers (defined as anyone who hasn’t owned a home in the last three years) are entitled to a maximum $8,000 tax credit; interest rates are at record lows; and the Federal Reserve is doing its best to make mortgage loans available.
2. People have to live somewhere. About 800,000 new households are formed each year in this country, ensuring that the housing market will tighten, even if the economy doesn’t soar.
3. Borrowers leverage their investment. If you put $10,000 into the stock market and it earns 10 percent, you’ve earned $1,000. If you put $10,000 down on a home and its values increases 10 percent, you’ve made $10,000.
4. When prices come back up, you’ll have instant equity. In parts of the country where foreclosures have driven down prices, better times will mean the price of the home you buy will rise rapidly.
5. Mortgage costs stay the same. If you get a fixed-rate mortgage, the monthly payment stays the same – while everything else, including rent, goes upward.
6. You own it. There is something comforting in the notion that your home is your own. You can paint it any color you want, let the dog run in the back yard and hang a swing for the kids in the front. The Wall Street Journal, June Fletcher (03/27/2009)© Copyright 2009 INFORMATION, INC. Bethesda, MD (301) 215-4688
Rob Skeel , Realtor Cell --305-393-6300 Email--rob@robskeel.com
Century 21 Keysearch Realty--800-541-5019
Web Site-- http://www.robskeel.com/
Green Certified Real Estate Professional, FHA Certified
Find a Home http://robskeel.com/homes_for_sale.shtml
BLOG http://floridakeysrealestatebyrob.blogspot.com/
I really appreciate your referrals!
Monday, April 6, 2009
Wednesday, March 25, 2009
Florida Home Sales Continue to Improve-- Stock Market Irrational Pessimisim
The following are some interesting home sale statistics and comments about the stock market.
If your planning to buy a home in the Keys with the idea of keeping it for a while then this is a great time to buy.
HOME SALES
Florida's existing home sales rose 20 percent in February - the sixth consecutive month that sales activity showed increases in the year-to-year comparison, according to FAR. Statewide sales of existing condos increased 15 percent last month compared to the previous year; and February's statewide sales also were higher than January's figures in both the existing home and existing condo markets.
The Florida Keys real estate sales have also seen an increase over prior year. The low interest rates and reduced home prices have made this a great time to purchase a piece of paradise.
There are many great deals to be had. Just let me know what type of property your looking for and I'll find it for you!
Markets face ‘irrational pessimism’ NEW YORK – March 9, 2009 –
You’ve heard of “irrational exuberance,” right? That’s the expression Alan Greenspan coined more than a decade ago when he warned that investors could be bidding stock prices too high. His worry was that escalating asset values were trumping reality.These days, the opposite seems to be the case. Call it “irrational pessimism,” a fear that stock prices are headed in only one direction – lower and lower – because asset values and profits seem certain to fall.
Caught in the vortex of this new hopelessness are once-pristine blue chip stocks like General Electric Co., whose share price has plunged 45 percent in the last month to below $7 a share. Investors have become increasingly worried that losses at its financing arm could put a crippling dent in the conglomerate’s capital base.But before buying into the notion that all is lost, it’s worth remembering that stock indexes today are almost exactly where they were in 1996 when then-Federal Reserve Chairman Greenspan issued his warning.Investors ignored him then, pushing stocks higher for more than three years until the Internet stock bubble burst in 2000. Now, a growing number of market experts are saying the time may be near when the Cassandras of doom should also be ignored.“You can get to emotional extremes in both directions of the market,” said Hugh Johnson, chairman and chief investment officer of Johnson Illington Advisors. “Savvy investors think in those terms and they know how to get that to work in their favor.”By that, he points to the short-sellers who are playing a big role in what the market is doing today. They make money betting stocks will drop, and have set the tone in this current decline, which began after the market reached record highs in October 2007.Peter Sorrentino, senior portfolio manager at Huntington Asset Advisors, takes that one step farther. “The shorts are staging raids on our companies,” he said. “For the last two years, the best bet you could make on the market was against it.”Sorrentino knows that because his firm owns 6.4 million shares of GE, and he can’t understand why the stock is trading where it is given that parts of the Fairfield, Connecticut-based company by his count are worth a lot more than where its shares are trading now.He’s convinced the shorts have made it tough for anyone in the market – at GE and beyond – to think positively because they could get burned. Therefore, investors have decided it is easier to follow than fight them, even if a company’s finances say something else.
The negative environment in the overall market is driving away prospective buyers, said Darin Newsom, senior analyst at the Omaha, Nebraska-based market information company DTN. “Right now no one wants to support this market,” he said.That may be driven by fear instead of reason.
Rob Skeel , Realtor
Cell --305-393-6300
Email--rob@robskeel.com
Century 21 Keysearch Realty--800-541-5019
Web Site-- http://www.robskeel.com/
Monday, March 2, 2009
4th Quarter & January 2009 Florida Home Sales Information
HOME SALES
Sales of existing single-family homes in Florida rose 13 percent in fourth quarter 2008 compared to the same period a year earlier, with a total of 30,163 homes sold, according to FAR's latest housing statistics. It marks the second consecutive quarter for increased existing home sales; sales activity rose 5 percent in 3Q 2008 compared to the same period the previous year. Existing condo sales increased 3 percent in the fourth quarter compared to 4Q 2007.
Florida’s existing home, condo sales rise in January 2009
Florida’s existing home sales rose in January, making it the fifth month in a row that sales activity showed increases in the year-to-year comparison. Existing home sales rose 24 percent last month with a total of 8,450 homes sold statewide compared to 6,810 homes sold in January 2008, according to FAR.
@ Florida Association of Realtors Posted: 02/26/09 at 0400 EST
The Keys haven't shown the same percentage increases but that is primarily because there aren't as many foreclosuers and short sales as the rest of the state. We have seen a trend beginning last October of average closed sales prices stabilizing and not falling as had been the case for the past 2 years.
Rob Skeel
Realtor
Century 21 Keysearch Realty
Green Certified Real Estate Professional
FHA Certified
305-393-6300
800-541-5019
www.RobSkeel.com
http://robskeel.com/homes_for_sale.shtml
BLOG http://floridakeysrealestatebyrob.blogspot.com/
I really appreciate your referrals!
Sales of existing single-family homes in Florida rose 13 percent in fourth quarter 2008 compared to the same period a year earlier, with a total of 30,163 homes sold, according to FAR's latest housing statistics. It marks the second consecutive quarter for increased existing home sales; sales activity rose 5 percent in 3Q 2008 compared to the same period the previous year. Existing condo sales increased 3 percent in the fourth quarter compared to 4Q 2007.
Florida’s existing home, condo sales rise in January 2009
Florida’s existing home sales rose in January, making it the fifth month in a row that sales activity showed increases in the year-to-year comparison. Existing home sales rose 24 percent last month with a total of 8,450 homes sold statewide compared to 6,810 homes sold in January 2008, according to FAR.
@ Florida Association of Realtors Posted: 02/26/09 at 0400 EST
The Keys haven't shown the same percentage increases but that is primarily because there aren't as many foreclosuers and short sales as the rest of the state. We have seen a trend beginning last October of average closed sales prices stabilizing and not falling as had been the case for the past 2 years.
Rob Skeel
Realtor
Century 21 Keysearch Realty
Green Certified Real Estate Professional
FHA Certified
305-393-6300
800-541-5019
www.RobSkeel.com
http://robskeel.com/homes_for_sale.shtml
BLOG http://floridakeysrealestatebyrob.blogspot.com/
I really appreciate your referrals!
Friday, February 13, 2009
Can you still buy without a fixed mortgage?
Here are a few ideas regarding different mortgage methods you may want to consider when your thinking of buying a home.
Can you still buy without a fixed mortgage?
ORLANDO, Fla. – Feb. 9, 2009 – Buying a house doesn’t necessarily require getting a 30-year, fixed-rate mortgage. More and more people are exploring alternative financing plans as it gets harder to get a conventional bank loan.Here are some creative ways to pay for a home, according to some financial experts:• Securities-backed loans. The lender gives the borrower 80 percent of the value of his stock portfolio. Then the lender holds the stock for between three and 10 years while charging a 3 percent to 5 percent interest on the loan. At the end, the borrower gets his original shares back. Both win if the stock has increased in value.•
Two-step mortgages. This fixed rate mortgage is amortized over 40 years, but the payment schedule is adjustable.•
Constant-amortization mortgage. Buyers start with a higher payment, but the loan is constantly re-amortized, so principal is reduced faster than with a conventional loan.•
Family loans. In the most successful arrangements, the family puts the agreement in writing and the lender charges the borrower a rate of interest high enough to pass IRS scrutiny, thus avoiding any gift tax.•
Assuming a mortgage. Buyers interested in purchasing a house in the pre-foreclosure stage might ask the lender if they can assume the mortgage. In some circumstances this can be a good deal
.Source: Forbes, Matt Woolsey (01/26/09)© Copyright 2009 INFORMATION, INC. Bethesda, MD (301) 215-4688
Questions, comments or suggestions on this article?
Can you still buy without a fixed mortgage?
ORLANDO, Fla. – Feb. 9, 2009 – Buying a house doesn’t necessarily require getting a 30-year, fixed-rate mortgage. More and more people are exploring alternative financing plans as it gets harder to get a conventional bank loan.Here are some creative ways to pay for a home, according to some financial experts:• Securities-backed loans. The lender gives the borrower 80 percent of the value of his stock portfolio. Then the lender holds the stock for between three and 10 years while charging a 3 percent to 5 percent interest on the loan. At the end, the borrower gets his original shares back. Both win if the stock has increased in value.•
Two-step mortgages. This fixed rate mortgage is amortized over 40 years, but the payment schedule is adjustable.•
Constant-amortization mortgage. Buyers start with a higher payment, but the loan is constantly re-amortized, so principal is reduced faster than with a conventional loan.•
Family loans. In the most successful arrangements, the family puts the agreement in writing and the lender charges the borrower a rate of interest high enough to pass IRS scrutiny, thus avoiding any gift tax.•
Assuming a mortgage. Buyers interested in purchasing a house in the pre-foreclosure stage might ask the lender if they can assume the mortgage. In some circumstances this can be a good deal
.Source: Forbes, Matt Woolsey (01/26/09)© Copyright 2009 INFORMATION, INC. Bethesda, MD (301) 215-4688
Questions, comments or suggestions on this article?
Friday, February 6, 2009
Home Prices may be Stabilizing
I'm beginning to see more articles like the following indicating the end of housing price declines is near.
In the Keys there has been a stabilizing of sales prices and an increase in the number of pending sales.
US housing markets from Florida to California have suffered price drops of 50 percent or more from their peak, but now, at long last, a bottom is within sight, likely in the fourth quarter nationally. sales are probably at bottom, stabilized by foreclosure sales, while construction will hit bottom in the first half of this year, although the pace of housing starts will remain very depressed until 2011. From the peak to the trough, total single-family home sales will have declined by 40 percent and housing starts by 70 percent.
@ CNBC Posted: 02/05/09 at 0201 EST
On a side note its been very cold here the past few days but nothing compared to the midwest and northeast parts of the country. The cold weather hasn't hurt the fishing particularly the sail fish which are reported to being boated on a record pace.
The National Association of Realtors has offerd an amendment to the Stimulus Package working its way through Congress to lower interest rate to 4.5% or less and have the first time home buyer credit changed to apply to all sales of primary residences. If these provisions are included it should help you purchase your Florida Keys Dream house.
In the Keys there has been a stabilizing of sales prices and an increase in the number of pending sales.
US housing markets from Florida to California have suffered price drops of 50 percent or more from their peak, but now, at long last, a bottom is within sight, likely in the fourth quarter nationally. sales are probably at bottom, stabilized by foreclosure sales, while construction will hit bottom in the first half of this year, although the pace of housing starts will remain very depressed until 2011. From the peak to the trough, total single-family home sales will have declined by 40 percent and housing starts by 70 percent.
@ CNBC Posted: 02/05/09 at 0201 EST
On a side note its been very cold here the past few days but nothing compared to the midwest and northeast parts of the country. The cold weather hasn't hurt the fishing particularly the sail fish which are reported to being boated on a record pace.
The National Association of Realtors has offerd an amendment to the Stimulus Package working its way through Congress to lower interest rate to 4.5% or less and have the first time home buyer credit changed to apply to all sales of primary residences. If these provisions are included it should help you purchase your Florida Keys Dream house.
Tuesday, January 13, 2009
Is now the time to buy a house in Florida?
Is now the time to buy a house in Florida?
The answer to that question is hardly simple, given the prolonged housing slump and the nationwide recession. It also depends on a complex mix of personal issues and factors, including, of course, “The Fear Factor.”If you own a home and need to sell it before you can afford to buy a better one, you might find that difficult for another year or so – maybe longer – because of the glut of properties still on the market and the state of the U.S. economy.
But if you are a first-time buyer, the situation is different. Do you have enough cash for a down payment – at least 3.5 percent for a Federal Housing Administration loan, as much as 20 percent for a conventional bank loan – plus closing costs? And is your job or career relatively stable?If the answers are yes and yes, then you have options. Still, is this the right time to take the plunge?“Now is a much better time than a year and a half ago,” said Chris Toadvine, a certified financial planner in Orlando and president of the Financial Planning Association of Central Florida. “I think home prices may fall a bit further, but if I were a buyer, I would not be trying to time a bottom.”From a dollars-and-cents perspective, it’s certainly a buyer’s market.
Asking prices for Orlando-area homes have not been so low at any time in the past four or five years, and the number of properties on the market is still at or near record levels.“There’s a substantial amount of inventory still to be sold,” said Hank Fishkind, a private economist who analyzes the Florida and Central Florida real-estate markets for Attorney’s Title Insurance Fund and other industry groups and companies.Foreclosures will continue adding to the volume of homes for sale and keep downward pressure on prices throughout the year, Fishkind predicts, though he notes that the rate of increase in the number of foreclosures is now slowing.The median sales price for existing homes in Central Florida has fallen about 30 percent in the past year, to well below $200,000. Prices are now back to levels last seen in the spring of 2004. New-home prices in the Orlando area have dropped about 20 percent from their 2006 peak, according to some industry surveys, to just more than $300,000, and are still heading down.Others’ pessimism can pay off. As a result, homes are much more affordable now than they were only a year ago. For example, a first-time homebuyer with the median household income of $34,947 in January 2008 had only 75 percent of the income needed to afford the median-priced existing home, which cost $188,275 at the time. But as of two months ago, a first-time buyer making the median of $35,334 had 96 percent of the income needed to afford that median-priced starter home, which by November cost $141,971.Denise Kovach, a certified financial planner with Certified Financial Group Inc. in Altamonte Springs, said that, for first-time homebuyers who do not have to sell an existing house, this is a decent time to consider making a move. “As with the stock market, usually the best time to buy is when everyone is feeling most pessimistic,” she said.Those first-time buyers can take advantage of a relatively new federal tax credit for primary residences purchased by July 1, 2009. The credit reduces your income tax dollar for dollar as much as $7,500, with the size of your credit depending on your home’s purchase price. It’s actually more like an interest-free loan from the government, because the IRS “recaptures” the credit during the next 15 years, or when the home is sold.Most homebuyers during the early years of a mortgage also “itemize” on their federal tax return to take advantage of the deductions they can take for property taxes and home-loan interest. But even those who claim just the standard deduction can use another new tax break to deduct at least part of their property taxes: $1,000 for joint filers, $500 for singles.
Price plunge near bottom, experts say. For potential buyers who have everything they need lined up and are ready to sign on the dotted line – but are holding off for fear the house they buy will keep losing value in the coming year – industry professionals can’t offer any guarantees. But they generally agree that most, if not all, of the historic plunge in values has likely run its course.In coming years, they expect a slow but steady increase in property values, at or slightly above the rate of consumer inflation, without dramatic leaps fueled by lax lending practices and easy money. Those days are long gone.Credit standards are higher now than they were just a couple of years ago, and full documentation of income and good credit scores are required of those seeking the best home-loan deals.“I think that, if someone buys a home today and locks in a low-rate, long-term mortgage, they will be glad they did 10 years from now,” Toadvine said.
Copyright © 2009 The Orlando Sentinel, Fla., Jerry W. Jackson. Distributed by McClatchy-Tribune Information Services.
There are people buying the home of their dreams. I just sold a great ocean front home in the Keys. I'm working with a number of buyers that are seeking their own dream house and I can help you find yours too!
Rob Skeel
Realtor
Century 21 Keysearch Realty
Green Certified Real Estate Professional
FHA Certified
305-393-6300
800-541-5019
http://www.robskeel.com/
http://robskeel.com/homes_for_sale.shtml
The answer to that question is hardly simple, given the prolonged housing slump and the nationwide recession. It also depends on a complex mix of personal issues and factors, including, of course, “The Fear Factor.”If you own a home and need to sell it before you can afford to buy a better one, you might find that difficult for another year or so – maybe longer – because of the glut of properties still on the market and the state of the U.S. economy.
But if you are a first-time buyer, the situation is different. Do you have enough cash for a down payment – at least 3.5 percent for a Federal Housing Administration loan, as much as 20 percent for a conventional bank loan – plus closing costs? And is your job or career relatively stable?If the answers are yes and yes, then you have options. Still, is this the right time to take the plunge?“Now is a much better time than a year and a half ago,” said Chris Toadvine, a certified financial planner in Orlando and president of the Financial Planning Association of Central Florida. “I think home prices may fall a bit further, but if I were a buyer, I would not be trying to time a bottom.”From a dollars-and-cents perspective, it’s certainly a buyer’s market.
Asking prices for Orlando-area homes have not been so low at any time in the past four or five years, and the number of properties on the market is still at or near record levels.“There’s a substantial amount of inventory still to be sold,” said Hank Fishkind, a private economist who analyzes the Florida and Central Florida real-estate markets for Attorney’s Title Insurance Fund and other industry groups and companies.Foreclosures will continue adding to the volume of homes for sale and keep downward pressure on prices throughout the year, Fishkind predicts, though he notes that the rate of increase in the number of foreclosures is now slowing.The median sales price for existing homes in Central Florida has fallen about 30 percent in the past year, to well below $200,000. Prices are now back to levels last seen in the spring of 2004. New-home prices in the Orlando area have dropped about 20 percent from their 2006 peak, according to some industry surveys, to just more than $300,000, and are still heading down.Others’ pessimism can pay off. As a result, homes are much more affordable now than they were only a year ago. For example, a first-time homebuyer with the median household income of $34,947 in January 2008 had only 75 percent of the income needed to afford the median-priced existing home, which cost $188,275 at the time. But as of two months ago, a first-time buyer making the median of $35,334 had 96 percent of the income needed to afford that median-priced starter home, which by November cost $141,971.Denise Kovach, a certified financial planner with Certified Financial Group Inc. in Altamonte Springs, said that, for first-time homebuyers who do not have to sell an existing house, this is a decent time to consider making a move. “As with the stock market, usually the best time to buy is when everyone is feeling most pessimistic,” she said.Those first-time buyers can take advantage of a relatively new federal tax credit for primary residences purchased by July 1, 2009. The credit reduces your income tax dollar for dollar as much as $7,500, with the size of your credit depending on your home’s purchase price. It’s actually more like an interest-free loan from the government, because the IRS “recaptures” the credit during the next 15 years, or when the home is sold.Most homebuyers during the early years of a mortgage also “itemize” on their federal tax return to take advantage of the deductions they can take for property taxes and home-loan interest. But even those who claim just the standard deduction can use another new tax break to deduct at least part of their property taxes: $1,000 for joint filers, $500 for singles.
Price plunge near bottom, experts say. For potential buyers who have everything they need lined up and are ready to sign on the dotted line – but are holding off for fear the house they buy will keep losing value in the coming year – industry professionals can’t offer any guarantees. But they generally agree that most, if not all, of the historic plunge in values has likely run its course.In coming years, they expect a slow but steady increase in property values, at or slightly above the rate of consumer inflation, without dramatic leaps fueled by lax lending practices and easy money. Those days are long gone.Credit standards are higher now than they were just a couple of years ago, and full documentation of income and good credit scores are required of those seeking the best home-loan deals.“I think that, if someone buys a home today and locks in a low-rate, long-term mortgage, they will be glad they did 10 years from now,” Toadvine said.
Copyright © 2009 The Orlando Sentinel, Fla., Jerry W. Jackson. Distributed by McClatchy-Tribune Information Services.
There are people buying the home of their dreams. I just sold a great ocean front home in the Keys. I'm working with a number of buyers that are seeking their own dream house and I can help you find yours too!
Rob Skeel
Realtor
Century 21 Keysearch Realty
Green Certified Real Estate Professional
FHA Certified
305-393-6300
800-541-5019
http://www.robskeel.com/
http://robskeel.com/homes_for_sale.shtml
Wednesday, November 12, 2008
Aid and assistance for financially troubled homeowners
We've been hearing for weeks that help is on the way for homeowners with problem mortgages. If your in that situation or know someone that is, hopefully this information will be helpful.
Florida CFO Sink launches ‘Florida Housing Help’ web site TALLAHASSEE, Fla. –
Nov. 10, 2008 –
To provide immediate assistance to Florida homeowners searching for federal housing assistance, Chief Financial Officer Alex Sink and her Financial Action Team (FACT Team) announced the launch of “Florida Housing Help,” a new Web feature at www.MyFloridaCFO.com. “Florida Housing Help” offers resources for homeowners, veterans, local governments and taxpayers who could potentially benefit from the recently-passed Housing and Economic Recovery Act of 2008 (HERA). “From veterans to new homeowners, millions of Floridians stand to benefit from the federal HERA legislation designed help Americans weather the current housing crisis,” says Sink, who oversees the Florida Department of Financial Services. “We launched ‘Florida Housing Help’ to help Floridians better understand the federal resources available to them. Ultimately, we hope this initiative will bring more federal dollars to our state.” HERA legislation became law in July 2008. CFO Sink created her FACT Team, made up of stakeholders and financial and housing experts, to identify the funds available to Floridians and help homeowners take advantage of these resources. Sink says that “Florida Housing Help” will be updated on an ongoing basis as additional information becomes available. For further assistance, Floridians may also contact CFO Sink’s Consumer Helpline at (877) 693-5236. ©
2008 FLORIDA ASSOCIATION OF REALTORS®
Government launches sweeping new loan aid effort
The government and the mortgage industry are launching the most sweeping effort yet to help troubled homeowners by speeding up the process for renegotiating hundreds of thousands of delinquent loans held by Fannie Mae and Freddie Mac.The Federal Housing Finance Agency, which seized control of the two mortgage finance companies in September, announced the plan along with other government and industry officials, including Hope Now, an alliance of mortgage companies organized by the Bush administration last year.“Foreclosures hurt families, their neighbors, whole communities and the overall housing market,” said James Lockhart, the housing finance agency’s director. “We need to stop this downward spiral.”The plan could have tremendous importance because Fannie Mae and Freddie Mac own or guarantee nearly 31 million U.S. mortgages, or nearly six of every 10 outstanding. Still, government officials did not have an estimate of how many people would qualify for the new program.Officials hope the new approach, which goes into effect Dec. 15., will become a model for loan servicing companies, which collect mortgage payments and distribute them to investors.
To qualify, borrowers would have to be at least three months behind on their home loans, and would need to owe 90 percent or more than the home is currently worth. Investors who do not occupy their homes would be excluded, as would borrowers who have filed for bankruptcy. Borrowers would get help in several ways: The interest rate would be reduced so that borrowers would not pay more than 38 percent of their income on housing expenses. Another option is for loans to be extended from 30 years to 40 years, and for some of the principal amount to be deferred interest-free.
Rob Skeel Realtor
Century 21 Prestige Realty Group
305-393-6300 800-541-5019
www.RobSkeel.com
http://robskeel.com/homes_for_sale.shtml
Florida CFO Sink launches ‘Florida Housing Help’ web site TALLAHASSEE, Fla. –
Nov. 10, 2008 –
To provide immediate assistance to Florida homeowners searching for federal housing assistance, Chief Financial Officer Alex Sink and her Financial Action Team (FACT Team) announced the launch of “Florida Housing Help,” a new Web feature at www.MyFloridaCFO.com. “Florida Housing Help” offers resources for homeowners, veterans, local governments and taxpayers who could potentially benefit from the recently-passed Housing and Economic Recovery Act of 2008 (HERA). “From veterans to new homeowners, millions of Floridians stand to benefit from the federal HERA legislation designed help Americans weather the current housing crisis,” says Sink, who oversees the Florida Department of Financial Services. “We launched ‘Florida Housing Help’ to help Floridians better understand the federal resources available to them. Ultimately, we hope this initiative will bring more federal dollars to our state.” HERA legislation became law in July 2008. CFO Sink created her FACT Team, made up of stakeholders and financial and housing experts, to identify the funds available to Floridians and help homeowners take advantage of these resources. Sink says that “Florida Housing Help” will be updated on an ongoing basis as additional information becomes available. For further assistance, Floridians may also contact CFO Sink’s Consumer Helpline at (877) 693-5236. ©
2008 FLORIDA ASSOCIATION OF REALTORS®
Government launches sweeping new loan aid effort
The government and the mortgage industry are launching the most sweeping effort yet to help troubled homeowners by speeding up the process for renegotiating hundreds of thousands of delinquent loans held by Fannie Mae and Freddie Mac.The Federal Housing Finance Agency, which seized control of the two mortgage finance companies in September, announced the plan along with other government and industry officials, including Hope Now, an alliance of mortgage companies organized by the Bush administration last year.“Foreclosures hurt families, their neighbors, whole communities and the overall housing market,” said James Lockhart, the housing finance agency’s director. “We need to stop this downward spiral.”The plan could have tremendous importance because Fannie Mae and Freddie Mac own or guarantee nearly 31 million U.S. mortgages, or nearly six of every 10 outstanding. Still, government officials did not have an estimate of how many people would qualify for the new program.Officials hope the new approach, which goes into effect Dec. 15., will become a model for loan servicing companies, which collect mortgage payments and distribute them to investors.
To qualify, borrowers would have to be at least three months behind on their home loans, and would need to owe 90 percent or more than the home is currently worth. Investors who do not occupy their homes would be excluded, as would borrowers who have filed for bankruptcy. Borrowers would get help in several ways: The interest rate would be reduced so that borrowers would not pay more than 38 percent of their income on housing expenses. Another option is for loans to be extended from 30 years to 40 years, and for some of the principal amount to be deferred interest-free.
Rob Skeel Realtor
Century 21 Prestige Realty Group
305-393-6300 800-541-5019
www.RobSkeel.com
http://robskeel.com/homes_for_sale.shtml
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