iPhone app maps nearby home values based on user’s location

SEATTLE – April 30, 2009 – A new iPhone application will allow users to stand in front of a house and see a local map that includes homes’ details and Zillow.com estimates of each home’s estimated value. Thanks to GPS technology, the map will follow the user as he drives or walks.

The Zillow iPhone App allows iPhone users to view the company’s 88 million U.S. homes. Zillow offers an estimated value for 95 percent of the homes in the U.S., though the company calls them “Zestimates,” perhaps because the accuracy of a specific home’s value cannot be considered valid without a more thorough comparative market analysis.

Zillow says the application will include details, photos and contact info for 3.4 million for-sale listings – for sale by agent and also for sale by owner listings. Users can also download data on recently sold homes. Zillow has also added “Make Me Move” listings, which potential sellers can use if they’re willing to move but only if the price is right – and generally higher than comparable market prices.

In addition to using the app when traveling neighborhoods, iPhone users can also search for homes by address, neighborhood, ZIP code or city, even if they’re not nearby. The Zillow iPhone App is free to download, and now available for both the iPhone and iPod touch in Apple’s App Store starting today.

To see a demonstration of the iPhone App, go to: http://www.zillow.com/iphone

© 2009 FLORIDA ASSOCIATION OF REALTORS®

Senate passes bill targeting mortgage fraud

MORTGAGE FRAUD

The U.S. Senate voted Tuesday to hire hundreds more FBI agents and prosecutors to investigate the estimated 5,000 allegations of mortgage fraud reported each month. The Senate bill is estimated to cost more than $265 million a year for the next two years, but fines and penalties could make the program pay for itself.

Read the full story:
http://www.floridarealtors.org/NewsAndEvents/n5-042909.cfm

US consumer confidence soars in April

Hopeful signs about the economy boosted Americans’ moods in April, sending the Consumer Confidence Index, a closely watched barometer of sentiment, to its highest level since November. At 39.2, the index surpassed economists’ expectations by almost 10 points.

Read the full story:
http://www.floridarealtors.org/NewsAndEvents/n1-042809.cfm

Auction adventure: Home sale brings out buyers

More buyers are looking for bargains these days: A recent auction at the Tampa Convention Center featured 105 homes all across Florida’s Gulf Coast from Weeki Wachee to Sarasota. About 1,150 people participated in the auction and 75 properties sold, bringing in $7.1 million.

Read the full story:
http://www.floridarealtors.org/NewsAndEvents/n2-042709.cfm

First-time homebuyers must close by Nov. 30 – contract not enough

WASHINGTON – April 24, 2009 – If first-time homebuyers wait until November to sign a sales contract, it’s probably too late to get the $8,000 tax credit. To qualify, buyers must close before Dec. 1 – a signed contract is not enough. New construction should be started by mid-summer to qualify.

According to the National Association of Realtors, a “home is considered as ‘purchased’ when all events have occurred that transfer the title from the seller to the new purchaser. Thus, closings must occur before December 1, 2009 for purchases to be eligible for the credit.”

Noting that deadline, the National Association of Builders kicked off a campaign notifying buyers that if they want the tax credit, they should plan to sign a construction contact soon.

Mike Dishberger of Sandcastle Homes Inc. in Houston, Texas, says that building a home from scratch can take anywhere from four to six months depending on the floor plan and location. Assuming it takes the full six months, first-time homebuyers should sign a new-home construction contract no later than May 31, 2009.

While it’s possible to rush an existing-home sale and go from contract to closing in only a few weeks, that schedule could cause a problem for last-minute buyers who wait until November. If an onslaught of buyers hope to beat the clock, title agencies and others involved in the closing process could get backlogged during November, and the IRS does not consider “planned closing dates” for the tax credit – only actual closing dates.

To qualify for the tax credit, home buyers must have not owned a home for three years prior to the purchase and have a modified adjusted gross income (MAGI) less than $95,000 for single tax payers and $170,000.

More information on the first-time home buyer tax credit, visit floridarealtors.org at: http://www.floridarealtors.org/NewsAndEvents/n1-021709.cfm.

© 2009 FLORIDA ASSOCIATION OF REALTORS®

U.S. House panel to target predatory’ mortgage lending

PREDATORY LENDING

If passed by Congress, the Mortgage Reform and Anti-Predatory Lending Act of 2009 would end bonuses for brokers who steer borrowers into higher-priced loans, and require brokers to confirm borrowers’ income. Proponents say it’s a simple goal: Make sure homeowners can actually afford their loans.

Read the full story:
http://www.floridarealtors.org/NewsAndEvents/n2-042309.cfm

Florida’s existing home, condo sales rise in March 2009

ORLANDO, Fla. – April 23, 2009 – Florida’s existing home sales increased in March, making it the seventh month in a row that sales activity demonstrated gains in the year-to-year comparison, according to the latest housing data released by the Florida Association of Realtors® (FAR). March’s statewide sales also increased over the previous month’s sales level in both the existing home and existing condo markets.

Existing home sales rose 30 percent last month with a total of 13,085 homes sold statewide compared to 10,080 homes sold in March 2008, according to FAR. Statewide existing home sales in March were 32.7 percent higher than February’s statewide sales.

Florida Realtors also reported a 25 percent rise in statewide sales of existing condominiums in March, continuing a trend in recent months for higher statewide sales of both the existing home and existing condo markets compared to year-ago levels. Statewide existing condo sales last month increased 37.2 percent over the total units sold in February.

Fifteen of Florida’s metropolitan statistical areas (MSAs) reported increased existing-home sales in March and 13 MSAs also showed gains in condo sales. It marks the ninth consecutive month that a majority of markets have reported increased sales.

Florida’s median sales price for existing homes last month was $141,300; a year ago, it was $201,700 for a 30 percent decrease. Industry analysts with the National Association of Realtors® (NAR) report there is a significant downward distortion in the current median price due to many discounted sales, including a large number of foreclosures. The median is the midpoint; half the homes sold for more, half for less.

The national median sales price for existing single-family homes in February 2009 was $164,600, down 15 percent from a year earlier, according to NAR. In California, the statewide median resales price was $247,590 in February; in Massachusetts, it was $252,500; in Maryland, it was $253,200; and in New York, it was $210,000.

NAR’s latest housing industry outlook reported that entry-level buyers are seeking bargains, which resulted in sales of distressed properties accounting for 40 to 45 percent of February’s transactions. “Given the downward distortion in price comparisons due to distressed sales, it’s important for owners to keep in mind that this doesn’t equate to a similar loss of value for traditional homes in good condition,” said NAR Chief Economist Lawrence Yun.

In Florida’s year-to-year comparison for condos, 4,388 units sold statewide compared to 3,503 units in March 2008 for a 25 percent increase. The statewide existing condo median sales price last month was $108,700; in March 2008 it was $172,300 for a 37 percent decrease. In the latest data available at press time, NAR reported the national median existing condo price was $172,200 in February 2009.

Interest rates for a 30-year fixed-rate mortgage averaged 5 percent last month, down significantly from the average rate of 5.97 percent in March 2008, according to Freddie Mac. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state’s large to medium-size markets, the Melbourne-Titusville-Palm Bay MSA reported a total of 539 homes sold in March compared to 445 homes a year ago for a 21 percent increase. The existing home median sales price was $123,700; a year ago, it was $159,000 for a 22 percent decrease. In the year-to-year comparison for the existing condo market, a total of 113 units sold in the MSA last month, up 24 percent compared to 91 condos sold the previous March. The market’s existing condo median price was $123,100; a year ago, it was $164,300 for a 25 percent decrease.

2009 © FLORIDA ASSOCIATION OF REALTORS

Worst foreclosure rates found in 4 states

FORECLOSURES

The 26 U.S. cities with the worst foreclosure problems are concentrated in Florida, California, Arizona and Nevada, according to RealtyTrac. Two state cities made the top 10: The Cape Coral-Fort Myers area ranked second while Port St. Lucie came in at No. 10.

Read the full story:
http://www.floridarealtors.org/NewsAndEvents/n3-042209.cfm

Program a boost to new homebuyers

DOWNPAYMENTS

The Realtors Care Foundation, established in 2007 as a nonprofit arm of the Greater Tampa Association of Realtors, recently launched a downpayment assistance program to help prospective first-time homebuyers.

Read the full story:
http://www.floridarealtors.org/NewsAndEvents/n2-042209.cfm

Sellers Beware Short Sale Scams

We have been doing Short Sales for almost two years now and we have been pretty successful in assisting our customers through what can be considered to be one of the most difficult times in their lives. The dream of owning a home and now that dream has come to an end at least for now. We are Realtors with RE/MAX and take our job very serious and it troubles us when we hear the stories of the people who are preying on someone in trouble.

We negotiate all of our short sales ourselves. We try and make light of the fact that we have most of the banks on our Alltel Circle of Friends, but it is true. When we get an offer on one of our listings we have a above 90% success in closing. Between the two of us we spend a great portion of the day speaking, faxing, and re-faxing documents for the 2^nd and 3^rd time to the banks.

OK, now for what is bothering us. We have heard about realtors who are doing things to expedite the sale (as they say) and submitting an Option Contract on the purchase of the home in pre-foreclosure. Here is an example:

Seller (Customer) owns a home with $200,000.00 mortgage and they are 2-3 months behind in payments. The Realtor has someone or submits an offer themselves to purchase the home for $125,000 (this price is below what is now market value) and they are now (Buyer 1) for this example let’s say value is $155,000.00. They record an option contract with the Clerk of Courts in the county where the home is located. And then they submit the offer to the bank and either negotiate the process themselves or use a third party to negotiate for the seller. Sounds good so far, usually the Realtor will explain that this contract will speed up the process since the banks are so overwhelmed with the number of short sale requests they are getting today.

Now the home stays active in the MLS system and the Realtor is advertising the home at $160,000.00 and listed as a short sale. Let’s say Buyer 2 submits an offer for $150,000 and the person who has the Option Recorded is the signatory as Seller on this contract now. But is it really a short sale? If Buyer 1 buys the home from seller and the bank accepts the $125,000 offer is it truly a short sale to Buyer 2?

The Realtor never submits the $150,000.00 offer to the bank, why not? Isn’t it their responsibility to represent their customer and submit the highest and best offer to the bank? One would think since a $25,000 difference to the bank could be the difference in forgiveness of the loss or the original Seller having to sign a promissory note for the deficiency.

But here is a scenario that can happen and sometimes it does.

Listing agent may represent Buyer and Seller for the Option Contract sale which could be between 5 or 6% commission in the short sale. $7,500.00 wow that is a lot of money right, but for some that is not enough. They think that they need to make more. Because if they are the option holder and become the Seller for Buyer #2 then they make the difference between $125,000.00 what they purchased the home for during the short sale. And then the new sales price of $150,000.00 which would be $25,000.00 more minus closing costs and if another Realtor is involved they must pay that realtors commission. What a mess right?

It astonishes us that people can justify to themselves that they are doing what is right for their customer by doing this. We have never submitted a bogus offer or an option contract in any of our short sales, the process if done correctly can take 30-45 days of price reductions to get the home within where you will get an offer on the home, this also will solidify to the bank that you did your due diligence and tried to sell the home for Fair Market Value but could not. Once an offer is received by the bank it averages 60-75 days for the banks to go through their process (baring no lost documents) that is why all of our packets go to the bank with the loan number on each page.

We can say from personal experiences that this Option Contract can be deemed a good thing, but we have actually been contacted by Realtors and investors who want to purchase our customers homes and have said to us that they will negotiate the short sale. Yeah right! I am sure that they will submit a really good offer on our customer’s behalf. In one instance we explained that this Seller actually was in the mortgage industry and sat down with two or three Realtors before contacting us and chose us to represent them because of all the shady practices and they were presented during the listing presentation. These people do not represent the customer and that is our responsibility they are our customer.

We also had a company call us and say that they could free up our time by negotiating the short sale for us. We asked what their success rate was and they responded 25%. Well that is significantly below what we are doing now so we passed. We believe in what we are doing and know that it is the ethical thing and will never waiver from it. We feel so confident in what we are doing that we are willing to provide anyone who is interested or does not believe what we are saying they can contact our customers. We have completed the Certified Distressed Property Expert Course this year and can say that this one of the best course we have ever taken. The course was informative and took us through the ins and outs of a short sale. No gimmicks or tricks, just work. Yes we are professionals with a license and this is our chosen profession. Work and vacation are not supposed to be the same thing. If you are in need of any assistance please do not hesitate in calling us with any questions.

Sellers beware; bad times bring out bad people.