HOUSE WORTH LESS THAN YOUR MORTGAGE?
A SHORT SALE MAY BE YOUR ANSWER!
CALL ROGER at 278-7779 to DISCUSS YOUR OPTIONS AND SAVE YOUR CREDIT

SHORT SALES AVOID FORCLOSURE AND MAY SAVE YOUR CREDIT
by Roger Perkins

Owners who are behind on payments, or own a home worth considerably less than their mortgage should consider all options open to them to save their credit and money at the same time.

Your first options should be to request a loan modification, which is simply a change in terms of the loan, which usually means lower monthly payment without credit damage.

If the homeowner has a temporary cash flow issue, a request for a loan forbearance is the next option. This reduces or delays payment until the loan can be brought current in the future.

While these two options serve as a practical alternative to forclosure, they still leave the homeowner with the same burden of debt.

The more favorable option is to negotiate a short sale with the lender. A short sale is an agreement to allow the home owner to sell the home for less money than is owed on the mortgage. The lender will take the proceeds from the sale as settlement for the mortgage debt. Not only is the homeowner's credit protected from negative reports when engaging in a short sale but, he or she is released entirely from the debt associated with a defaulted loan. What can be better than getting out clean and not having to deal with terrible credit? The lender also benefits by not having to deal with the cost of processing the home. It is a win-win situation.

Whether a short sale or one of the other alternatives is good for the homeowner depends on each unique situation. Before discussing any of the options with your bank call Roger Perkins at 278-7779 to discuss your unique circumstances. Roger is trained to help with any of these options and can negotiate directly with the bank, prepare the numerous documents required for the short sale, and of course market your home to a prospective buyer.

Address: 2471 Pinehurst Ln, Fleming Island, FL 32003

Directions: Hwy 17 S, to R on Fleming Island Plantation Blvd (2nd entrance to Fleming Island Plantation) to R onto Southern Links Dr, to L on Pinehurst. Home is on the corner.

WOW!! This home has it all! Great curb appeal and $42K in custom upgrades that include premium materials and workmanship throughout this gorgeous home! Too many to list here! This home shows like a model! This is a stunning 3/2 brick home on corner lot! Open floor plan w/ lots of natural light in all rooms. Formal LR & DR. Lg MBR & MBA. Great space planning in the lg. kitchen w/granite counters, lg breakfast bar, island w/storage, closet pantry & stainless steel appliances. Sliding doors lead from the FR to the covered patio and pool area. New fence in back yard and professional landscaping in front & back yard. Heated/screened in ground salt pool!

	Roger Perkins appears on the cover of NEFAR News. NEFAR News is the official publication of the Northeast Florida Association of REALTORS (NEFAR). Take a closer look at the magazine at http://www.nefar.com/nefar-printed-news.php.

 

Existing-home sales increased in February, reversing losses in January. Even so, sales activity remains relatively soft, reflecting additional layoffs and buyers waiting for housing provisions in the economic stimulus package to take effect, according to the National Association of Realtors®.

Existing-home sales—including single-family, townhomes, condominiums and co-ops—rose 5.1 percent to a seasonally adjusted annual rate of 4.72 million units in February from a pace of 4.49 million units in January, but are 4.6 percent below the 4.95 million-unit level in February 2008. Seasonal adjustment factors are more volatile in winter months, but sales rates over the past few months show dampened sales activity.

Lawrence Yun, NAR chief economist, said first-time buyers accounted for half of all home sales last month, with activity concentrated in lower price ranges. “Because entry level buyers are shopping for bargains, distressed sales accounted for 40 to 45 percent of transactions in February,” he said. “Our analysis shows that distressed homes typically are selling for 20 percent less than the normal market price, and this naturally is drawing down the overall median price.”

The national median existing-home price for all housing types was $165,400 in February, down 15.5 percent from a year ago when the median was $195,800 and conditions were close to normal; the median is where half of the homes sold for more and half sold for less. “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,” Yun explained.

Yun said a recovery in the West is much stronger than expected. “Strong sales gains in the West are led by California, where the median listing price is beginning to rise for the first time in three years,” he said.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said home shopping activity has picked up with housing affordability at a record high. “The number of buyers looking for homes rose 5 percent in February, and also was 5 percent above a year ago,” he said. “It appears most of the increase in buyer traffic occurred in the latter part of the month after the $8,000 first-time buyer tax credit was put in place. At the same time, mortgage purchase applications have risen, so we expect to see sales picking up around late spring.”

McMillan noted that more potential buyers are learning about the tax credit, just as the traditional spring home-buying season begins. “In this changing market, smart buyers and sellers consult with Realtors® who can advise them about current conditions in their area, and counsel them on the best way to move forward,” he said.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage edged up to 5.13 percent in February from a record low 5.05 percent in January; the rate was 5.92 percent in February 2008. Last month’s average mortgage rate was the second lowest since data collection began in 1971. Last week the rate further declined to 4.98 percent.

Total housing inventory at the end of February rose 5.2 percent to 3.80 million existing homes available for sale, which represents a 9.7-month supply at the current sales pace, unchanged from January. In the six months prior to February, the total number of homes for sale had steadily declined from a record level last July.

Single-family home sales rose 4.4 percent to a seasonally adjusted annual rate of 4.23 million in February from a level of 4.05 million in January, but are 3.6 percent below the 4.39 million-unit pace in February 2008. The median existing single-family home price was $164,600 in February, down 15.0 percent from a year ago

Information derived from; Custom House Publishers Inc. 3/23/2009

Carrie Bay | 03.20.09

Jacksonville, Florida-based Lender Processing Services, Inc. (LPS), a provider of technology and services to the mortgage industry, has released the results of a recent study that reveals the impact of foreclosure, or REO, sales on home prices. Using LPS' newly developed, proprietary home price index that can include or exclude REO sales, the company conducted a study of changes in regional home prices between 2007 and 2008 in the nation's top housing markets.

LPS found that the largest drop in prices of REO sales were observed in Riverside County, California. Home prices fell by 28 percent in Riverside County in 2008 compared to the year before; however, including REO sales, prices fell by 34 percent on an annual basis.

The study also found that, including REO sales, home prices declined by 29 percent during 2008 in the Phoenix market, where analysts cite significant overbuilding. When REO sales were excluded from the analysis, though, the price decline was less severe at 19 percent year over year.

LPS reported that the gap between home prices with and without REO sales was smallest in Seattle, New York, and Cambridge, Massachusetts. The company says this is further evidence that the current downturn in the housing market is regional.

While the Western states, Michigan and Florida saw double-digit declines in home prices over the past year, other regions have fared much better. However, LPS says its study results show further deterioration in the housing market will most likely deepen the REO discount levels in these less-impacted markets as well.

Nima Nattagh, Ph.D., SVP of applied analytics at LPS, commented, "While the gap between REO sales prices and the rest of the market was very slim prior to 2007, our study shows that gap is growing at an accelerating pace. In general, markets that experienced sharp drops in home prices in 2008 also saw deeper REO discounts."

According to Nattagh, the ability to differentiate between the general trend in home prices and REO sales is important because it allows REO asset managers to make more informed decisions about disposition strategies. "Using our unique home price index, LPS provides a mechanism to separate the general trend in home prices from the trends in foreclosure and REO sales, enabling the industry to more accurately price REO properties and better monitor the health of the housing market," Nattagh explained.

Article derived from: DSNews.com

 

Address: 2319 Range Crescent Ct, Fleming Island, FL 32003

STUNNING 4/3 BRICK HOME WITH PRESERVE AND WATER VIEWS!

Directions: South on Hwy 17 to R on CR 220, R on Lakeshore, L on Country Walk, L on Range Crescent to end of cul-de-sac.

Light and bright home with large windows, wood blinds and neutral colors throughout. Beautiful hardwood floors in the Formal Living and Dining Rooms and neutral colored wall to wall carpet in all bedrooms and Family Room. The open kitchen has tile floors, granite counters & breakfast bar. The large Family Room has built in bookshelves, a gas fireplace with a large mantle and remote. The Large Master Bedroom has French doors that lead to the lanai. The large Master Bath has a garden tub, glass block window, separate shower and dual sinks. The home backs onto a Preserve that provides privacy and has gorgeous water views from the family room, kitchen MBR and screened lanai! Attached two car garage.

Mortgage applications zoomed upward last week, with the index rising 21.2 percent on a seasonally adjusted basis to 876.9 from 723.4 the previous week, according to the Mortgage Bankers Association.

On an unadjusted basis, the index increased 20.7 percent compared to the previous week and was up 31.2 percent from the same week a year ago.

Much of the increase was in refinances, reflecting a significant decline in rates. The refinance index increased 29.6 percent, while the purchase index was up only 1.5 percent. The refinance share of mortgage activity reached 72.9 percent.

Average interest rates were down:

• 30-year fixed-rate mortgages decreased to 4.89 percent from 4.96 percent;
• 15-year fixed-rate mortgages decreased to 4.52 percent from 4.54 percent;
• 1-year ARMs decreased to 6.20 percent from 6.21 percent.

Source: Mortgage Bankers Association (03/18/2009)

Address: 7220 Capercaillie Trail, Jacksonville, FL 32210

UNIQUE, VERY PRIVATE, BEAUTIFULLY MAINTAINED 3BR/2BA LOG HOME

Directions: From I-295 North to 208 West (Wilson Blvd., exit 17), to right on Old Middleburg Rd, to right on Capercaillie Trail.

Over 2,600 sqft of living space! Vaulted ceilings/cedar beams, beautiful polished hardwood floors, stained glass windows and light fixtures, built in bookshelves, huge terraced rear deck off of the kitchen, French doors, spacious family room w/ large stone wood burning fireplace, new tile in kitchen & baths, carpet in bedrooms and loft/bonus room. The loft also has a large stone wood burning fireplace, pool table & wet bar. The pool table covey’s with the sale! Two bedrooms upstairs, master bedroom & bath downstairs. The property backs up to a creek, has loads of privacy and is move-in-ready!

Address: 1991 Woodlake Drive, Fleming Island, Fl 32003

Directions: From US Hwy 17 South to right on Eagle Harbor Pkwy (Eagle Harbor entrance) to left on Woodlake. Home is on the left side.

GORGEOUS 4/3.5 HOME WITH WATER TO GOLF VIEWS!

Nestled on one of Eagle Harbor's most desirable home sites, this beautiful, 3,555 sqft, all brick, 4 BR, 3.5 BA home offers gorgeous vistas of the 8th fairway, its lagoon and conservation area from almost every window of the family living areas as well as the master bedroom. There is a huge center bonus room/study. Enjoy all of the luxury features and upgrades of this custom J. A. Long home! All of the drapery and window treatments, ceiling fans, pool table, wine cooler, refrigerator, washer and dryer convey with the sale!

Address: 2332 Country Side Drive, Fleming Island, FL 32003

One of the most desirable home sites in Eagle Harbor!  Fabulous location with serene and private panoramic views. This home has great curb appeal with mature plantings and trees. There is an open floor plan with formal living and dining rooms. A custom built-in tech center with desk and cabinets above provides lot of extra working space. The flooring is a mixture of ceramic tile and wall to wall carpeting. The large family room is filled with natural light and has a gas fireplace with mantle.  There is also installed surround sound! The spacious kitchen has 42'' raised panel cherry cabinets with under cabinet lighting, granite counter tops and breakfast bar, stainless steel range, refrigerator, microwave, dishwasher and eat-in area. There is a split bedroom plan with a large master suite that overlooks the lagoon views. The master bathroom has separate vanities, garden corner tub and glass enclosed shower. French doors lead to the large, screened  lanai with ceiling fan and those gorgeous private views! 

Freddie Mac is launching a rental initiative, which will give former owners and tenants of foreclosed property the opportunity to lease their recently foreclosed properties month to month.

The REO rental initiative will be managed by HomeSteps, Freddie Mac’s national real estate unit, and implemented through several national property management firms. Freddie Mac has about 8,500 properties in various stages of foreclosure.

Freddie Mac also will continue to suspend evictions through March 31 to ensure that former owners and occupants have an opportunity to explore new options available to them.

To qualify for a lease, the tenant or former owner must occupy the property and show they have adequate income to pay the monthly rental amount established by the property management company based on market rents for the area. Occupants must agree to allow HomeSteps to show the home to potential buyers during the lease period.

Source: Freddie Mac (03/05/2009)

COME TO OUR OPEN HOUSE THIS SUNDAY, March 8, 2009 from 1-5 p.m. IN PACE ISLAND!

Address: 1875 Royal Fern Lane, Fleming Island, FL 32003

Brokers aren't generally liable for failing to give buyers information they already know.
By Mariwyn Evans | March 2009

A buyer who learned from an inspection report that there were signs of water damage on the property can’t later hold a broker or seller liable for failing to disclose those problems, ruled a South Carolina court.

In the case (McLaughlin v. Williams, S.C. Court of Appeals, 2008), a home inspection report requested by a prospective buyer indicated high moisture levels and mold on the property, even though the seller’s disclosure did not indicate water damage. Despite the report, the buyer closed on the property. After the purchase, the buyer learned that water damage had created structural problems on the property and he filed suit against the seller, the listing broker, and his own buyer’s representative for misrepresentation of the property.

Both the trial court and the appeals court dismissed the lawsuit. Misrepresentation presumes that the buyer reasonably relied on statements made by the defendants. However, since the buyer had received the home inspection report, he was informed of the potential water damage and did not rely solely on the disclosure statement. The court also considered whether the buyer’s representative had any liability for allegedly telling the buyer that the inspection report was not a cause for concern. The buyer’s rep’s statement didn’t alter the fact that the inspection report had alerted the buyer to a potential problem, negating reliance on the disclosure form. And since the disclosure report was the seller’s responsibility, the practitioner was not deemed responsible for its accuracy.

SOURCE: http://www.realtor.org/rmolaw_and_ethics/in+court/pastarticles/0903_incourt_buyerresponsible#authorbio

by Gail Marks Jarvis

Receiving $8,000 to buy a house is a tempting deal. And Uncle Sam is willing to offer it to you, under certain conditions.

Under the economic stimulus plan that became law last week, if you are buying a home for the first time, you can get your hands on up to $8,000. In fact, if you are one of the savvy people who saw the housing bubble threat in 2005, sold your home and have been renting since then, this could be an especially sweet deal if you go bargain-hunting this year.

Under the rules for the new $8,000 tax credit, you have to buy your first home between Jan. 1 and Nov. 30, or have had no ownership interest in a home for the last three years, said James Seidel, director of federal taxes for Thomson Reuters.

This could be a way to help repay someone else (or yourself) for lending you money for the down payment, or to receive $8,000 to save for emergencies. Keep in mind, however, that Uncle Sam doesn’t put the money directly into your hands when you need it most—at the point when you close, or complete the legal formalities, on the purchase of your home. You have to come up with your down payment first, then file your tax return and seek the $8,000 as a tax credit.

As a credit, you receive money the way you would a tax refund. The good part: This is a refundable credit, which means that even if you do not owe much in taxes, the government will give you the money, Seidel said. That makes it better than a normal credit or a deduction.

There are some caveats: You would receive less than $8,000 if the house you buy costs less than $80,000, or if you owe the government taxes that weren’t taken out of your paychecks. The $8,000 is a maximum. If the house you buy costs less than $80,000, you will receive 10 percent of the price.

For people desperate for a down payment, the waiting period might not work. But for those who can turn to a relative for $8,000, the homebuyer could use the cash at the closing on their new home, move into the house, apply for the credit on their 2008 tax return, obtain the money from the government and repay the relative if necessary.

The $8,000 credit that just went into effect is a much better deal than the one aimed at luring homebuyers last year. In 2008, first-time homebuyers could receive a $7,500 tax credit, but important strings were attached: The homebuyer has to repay the sum to the government over 15 years.

In contrast, homebuyers this year can receive $8,000 without any obligation to repay the money, provided they live in the home for three years.

And if people buy a home soon, they can capture the new $8,000 credit quickly, on their tax return for 2008.

Even if you filed your 2008 tax return already, a first-time buyer can still claim the credit on a home purchased early this year. Seidel suggests filing an amended return with Form 1040X. If you plan to buy a home later this year, you can request an extension of your 2008 taxes and claim the credit as you complete your tax return by Oct. 15, Seidel noted. The other option is to claim the credit on your 2009 tax return.

Despite the attractive credit, however, buying a home is not a simple decision.

Home prices are still dropping, and unemployment is rising, so think carefully about whether your job is secure and how you will pay for your home if you lose income.

As a rule of thumb, people should not buy homes if the monthly payments will consume more than 28 percent of their income and if they are carrying balances on their credit cards from month to month.

Before buying, run through your income and expenses to make sure a house is affordable now and will continue to be if you face a layoff. For a new homeowner, keep in mind that you must calculate mortgage payments; condo fees, if applicable; property taxes; homeowner’s insurance; utilities; and maintenance. As a rule of thumb, it’s wise to put aside $150 a month for home repairs in case you must call in the plumber or face some other unbudgeted expense. Try working a budget with www.kiplinger.com/tools/budget/index.html.  

SOURCE: Distributed by McClatchy-Tribune Information Services.
Date Added: 2/24/2009