What is a robo-signer and why did some banks stop foreclosures?

Robo-signing is a media term used to describe the process whereby foreclosure affidavits were (allegedly) executed without being reviewed. As a result of the recent scrutiny, many lenders chose to curtail certain foreclosure processes. This is to allow for additional review to ensure that proper procedures are being followed. The current foreclosure moratorium is both voluntary and temporary. We expect foreclosure filings to resume very quickly.

 

For more info please visit http://www.FloridaBrokers.com

I am renting and just got served by a bank that is foreclosing the house. Is my lease enforceable?

According to S. 896, (enacted as Public Law 111-22) passed and signed into law on May 20, 2009, your lease may be valid if it was executed before the owner received a notice of default from the lender. Otherwise, you may be given a 90 day eviction notice. Most lenders will offer you cash-for-keys, meaning that they will pay you to move out and leave the property in broomswept condition.

If I am buying a house and the appraisal comes in $50,000 low, does the seller have to sell it to me at that price?

Typically, the seller would have the option of selling at the appraised value, allowing the transaction to proceed as otherwise planned. However, the obligations and rights of both buyer and seller are dictated by the terms of the sales agreement. Review your specific contract language as pertains to appraisal contingencies with your Realtor or attorney to determine what options are available.

Does the new health care law really place a 3.8% tax on real estate sales?

Yes and no. The government is now referring to this as an “investment tax” that they claim would only apply to “high income” individuals. However, many folks with moderate incomes that have a large capital gain in a given year may suddenly find themselves classified as “high income” individuals. The sale of a second home, or perhaps even the sale of a primary residence could trigger this high income designation.

Contrary to news stories being circulated around the internet, this tax will be computed based upon your profit and not the sales price of a property. Unless scrapped by Congress, this new health care tax law will become effective in 2013.

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http://www.FloridaBrokers.com

How bad will a bankruptcy hurt my credit report?

First and foremost, bankruptcy should be your absolute last option. Oftentimes, an individual’s credit score has been so decimated leading up to a bankruptcy filing that it makes little difference.

While most derogatory information can stay on your credit report for seven years, a bankruptcy may remain for ten years. There are many alternatives that should be considered prior to filing.

If you are employed or otherwise have some income and assets, you may be much better off negotiating with your creditors. On the other hand, if you have very little income and no assets, there is not much that a creditor can do to you, aside from obtaining an unenforceable judgment against you.

There are many free services out there such as Legal Aid that may be able to provide you with professional legal advice to help you make the best decision given your particular circumstances. But beware of the many predator operations lurking out there on the internet that promise to make your financial problems simply go away. Most of these companies are scam operations that can leave your credit and your pocket book in far worse shape than before.

 

If the market is so slow, why is every property that I call about already under contract?

You must have good taste in real estate!  It is not so much that the market is slow, rather that values are simply soft. With all-time record low interest rates and attractive asking prices, competition amongst buyers and investors for good deals is very strong right now.  We regularly receive multiple offers within the first week on new listings. To take advantage of the best deals out there, you must know the market and then be able to move quickly.

If I make an offer on a property, isn’t the listing agent required by law to present it to the seller?

Not necessarily. Particularly in the case of bank owned properties, we are seeing more cases in which the seller (bank) instructs the listing agent to only submit offers that meet certain criteria such as price range, closing time frames, and the utilization of special addenda.

As lenders continue to wrestle with the overwhelming demands and requirements to process the rising number of foreclosures nationwide, this will likely become more commonplace.

For information on short sales, bank foreclosures and general real estate topics, please visit www.FloridaBrokers.com  or email us at smith@realtor.com

I was told that I don’t need a survey if I’m paying cash for a home in a platted subdivision. True?

No. If you purchase a property for cash that has an existing encroachment (or two) you could have real problems when you try to resell in the future. Yard buildings, driveways, fences, easements, swimming pools and even roof overhangs can all be sources of frustrating encroachments. 
 
We once saw a case in which the house itself was built 15 feet over the neighbor’s property line. Had the buyer elected to pay cash without the benefit of a survey, they could have ended up with a lot of cash tied up in a property that they could neither sell nor even borrow against. Their equity would be frozen indefinitley.
 
One other option. Many title insurers wil accept a prior survey. That is, so long as the seller is willing to sign a sworn affadavit at closing stating that nothing has changed to affect the boundaries since that prior survey was drawn. 

Alive and Well Despite BP and the Media

So, BP has finally succeeded in capping the Deepwater Horizon well … While that is great news, there will still be little mention in the media of the fact that our beaches here along the Emerald Coast are oil and tar ball free.  Over the past two weeks, Terri and I have traveled by boat from Perdido Key to Port St. Joe.  The only oil we have seen is called Banana Boat or Coppertone or No Ad, etc etc … And it was most definitely smeared all over the beachgoers, locals and tourists alike.

 

The cable news networks have been bad enough in their irresponsible coverage of this event, but what about the print media!!! My God!! With huge declines in readership and shrinking ad dollars, some of the print media has been the most reckless and desperate of all. Photos of sludge on the beach at Grand Isle Louisiana with headlines indicating it to be Florida??? Criminal!!

 

Even more criminal is the fact that BP is NOT paying reasonable claims as they would like to have everyone believe. Dragging their feet and digging in their heels, these Keystone Cops are going to deny the majority of legitimate claims.  When BP says “We are going to make this right”, it really means “If you don’t like it, sue us”.

 

After nine consecutive months of increased sales transactions over the previous year, the month of June fell flat. That is because there is a 30 – 60 day lag between cause and effect in real estate sales. The impact of April and May will be felt in June and July.  Over time, the public will come to realize that all is well and that life is still good on the Emerald Coast.   Most Gulf Coast regulars are already aware but had already cancelled their plans for this year. So business-wise, fall and winter will most likely be fairly normal.  By spring, business should be much improved. Time will tell.  It always does.

Flood Insurance Floats Again

For the fourth time since last December,  Congress and the Senate have agreed (imagine that) to temporarily extend the National Flood Insurance Program (NFIP),  just as Hurricane/Tropical Storm Alex struck the Texas Gulf Coast. The measure to reauthorize the federal flood insurance program is only good through September 30, 2010, at which point Congress and the Senate may very well allow it to again expire. The President is expected to sign the current legislation.

During these lapses, new flood insurance policies could not be issued. Now that the program is temorarily reinstated, new and renewed policies are effective retroactively. There is a 30-day waiting period after issuance of a new policy before it takes effect,  unless it is issued in conjunction with a purchase. The rationale behind this is that homeowners may purchase flood insurance in the case of an immediate threat, only to cancel after that threat passes.