Real Estate Vocabulary - J

joint tenancy

A form of ownership or taking title to property which means each party owns the whole property and that ownership is not separate. In the event of the death of one party, the survivor owns the property in its entirety.

judgment

A decision made by a court of law. In judgments that require the repayment of a debt, the court may place a lien against the debtor's real property as collateral for the judgment's creditor. Alternative spelling is "judgement."

judicial foreclosure

A type of foreclosure proceeding used in some states that is handled as a civil lawsuit and conducted entirely under the auspices of a court. Other states use non-judicial foreclosure.

jumbo loan

A loan that exceeds Fannie Mae's and Freddie Mac's loan limits, currently at $227,150. Also called a nonconforming loan. Freddie Mac

Source: Real Estate ABCs

Buy this month!

Amir Korangy, publisher of real estate magazine The Real Deal, says that buying a home during the holiday season can yield deals not available in warmer months.

"The real benefit of buying during the holiday season is that sales activity is extremely low and sellers tend to panic if they still have their house on the market. They figure that no one wants to move in the cold weather, so you have an advantage on negotiability. However, as a buyer, you have less selection," says Korangy.

He adds that fewer houses tend to be listed at the end of the year because decorations and winter weather make holding an open house more difficult.

Daniel Hedaya, president of Platinum Properties, a Wall Street-based real estate services firm, says that the biggest roadblock for any buyer, regardless of time of year, is financing.

"Typically it takes about a month to get financing in place with appraisals, applications, etc... However, if you are well prepared, it is possible to accomplish this. It all really hinges in whether or not you have identified the property, have investigated financing, and have your attorney in place ready to review contracts. If you are able to pay with all cash, it would make the likelihood of moving in before year’s end very real possibility," says Hedaya.

Above all, buyers who know for certain they've found the property they want should act decisively. "With this timeline, you have to be able to make decisions quickly and efficiently. Don’t waste time deliberating on what to do, just be prepared to make things happen. Have all your ducks in a row when you identify the property so you can make a call to your lawyer, bank, and real estate agent that you’re ready to go."

Source: Fox Business 

Sunny Isles

Sunny Isles, Florida, near Aventura, is considered Florida's Riviera. According to the city of Sunny Isles:

     Sunny Isles Beach, the City of Sun and Sea, is located on a barrier island in the northeast corner of Miami-Dade County, bounded by the Atlantic Ocean on the east and the Intracoastal Waterway on the west. Golden Beach lies to the north, Bal Harbour and Haulover Park are immediately to the south.
     Sunny Isles Beach is midway between downtown Miami and Fort Lauderdale with easy access to business centers, entertainment, sports and recreational facilities, and tourist attractions. Residents and visitors can fly into either Miami International or Fort Lauderdale/Hollywood International airports, or cruise into the Port of Miami or Port Everglades and be in Sunny Isles Beach within 20 to 30 minutes.
     Almost one million vacationers visit Sunny Isles Beach annually to enjoy the 2 ½ mile-long fine sand beach and outdoor amenities such as water sports, boating, fishing, and tennis as well as the abundant shopping, dining and entertainment options nearby. The landmark fishing pier is a local favorite while the beautiful Samson Oceanfront Park provides a children's play area and space to relax; meet friends and enjoy the sunrise.
     The City is experiencing a major redevelopment renaissance on the east side of Collins Avenue, the main thoroughfare. Zoning laws ensure that view corridors and beach access pathways will always offer residents a life with a view. To the west of Collins Avenue, the City is building parks, improving the infrastructure and laying the groundwork for future redevelopment.
     The emphasis of most of the redevelopment is on residential condominium construction. The City is steadily replacing outdated motels with luxury residential oceanfront development. Much of the residential construction is not for year-round occupancy, however the statistics show a steady growth in young families who desire to be near the ocean.

I specialize in houses in this area and would love to show you some property that may become your new home. Who knows, you may become Sunny Isles resident number 20,833!

All I Want for Christmas is a New House

Everyone wants a good deal, and a wonderful home. So how can you get both at once? Elizabeth Weintraub says those days may be fast approaching. 

When is the best time of the year to buy a home? There are at least two days of the year that give buyers the edge. Would you like to guess which two days are best for buying a home?
The best day of the year to buy a home is Christmas Day.
Almost nobody looks at homes on Christmas Day. But buying on Christmas Day is a smart move. If you scout out the homes on which you'd like to make offers a few days before Christmas, you'll be better positioned.
Why is Christmas Day so attractive?

• People are in good moods, celebrating, opening presents, enjoying family.

• People are more inclined to be generous, even if it means coming down on the price. "Hey, it's Christmas, hon; just sign it."

• Few buyers are out looking at homes during Christmas week, so the chance of multiple offers or any competition whatsoever is very low.

• Home prices are at a 12-month low in December.

• If a person has their home on the market over Christmas, that person is definitely serious about negotiating and selling that home. You can bet on it. Better yet, why not write an offer?

Of course, the key is to find a real estate agent who will a) work on Christmas and b) be aggressive enough to worm her way into the seller's home without batting an eyelash. Those agents are out there.

The second best day? Easter Sunday.

Easy Searches

In this information age, we know you like to do everything at your desk. You shop, you research, you keep in touch, all in your most comfortable chair at the keyboard. Deena Landsman is making real estate searches just as easy! Simply click here for a host of opportunities to get you started. Whether you're looking for a single-family home or a boat dock, we have what you need at your fingertips.

Prefer to do things the usual way, call me. We're full service for you!

Real Estate Vocabulary - H

hazard insurance

Insurance coverage that in the event of physical damage to a property from fire, wind, vandalism, or other hazards.

Home Equity Conversion Mortgage (HECM)

Usually referred to as a reverse annuity mortgage, what makes this type ofmortgage unique is that instead of making payments to a lender, the lender makes payments to you. It enables older home owners to convert the equity they have in their homes into cash, usually in the form of monthly payments. Unlike traditional home equity loans, a borrower does not qualify on the basis of income but on the value of his or her home. In addition, the loan does not have to be repaid until the borrower no longer occupies the property.

home equity line of credit

A mortgage loan, usually in second position, that allows the borrower to obtain cash drawn against the equity of his home, up to a predetermined amount.

home inspection

A thorough inspection by a professional that evaluates the structural and mechanical condition of a property. A satisfactory home inspection is often included as a contingency by the purchaser.

homeowners' association

A nonprofit association that manages the common areas of a planned unit development (PUD) or condominium project. In a condominium project, it has no ownership interest in the common elements. In a PUD project, it holds title to the common elements.

homeowner's insurance

An insurance policy that combines personal liability insurance and hazard insurance coverage for a dwelling and its contents.

homeowner's warranty

A type of insurance often purchased by homebuyers that will cover repairs to certain items, such as heating or air conditioning, should they break down within the coverage period. The buyer often requests the seller to pay for this coverage as a condition of the sale, but either party can pay.

HUD median income

Median family income for a particular county or metropolitan statistical area (MSA), as estimated by the Department of Housing and Urban Development (HUD).

HUD-1 settlement statement

A document that provides an itemized listing of the funds that were paid at closing. Items that appear on the statement include real estate commissions, loan fees, points, and initial escrow (impound) amounts. Each type of expense goes on a specific numbered line on the sheet. The totals at the bottom of the HUD-1 statement define the seller's net proceeds and the buyer's net payment at closing. It is called a HUD1 because the form is printed by the Department of Housing and Urban Development (HUD). The HUD1 statement is also known as the "closing statement" or "settlement sheet."

Source: Real Estate ABC

Real Estate Vocabulary - G

government loan (mortgage)

A mortgage that is insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) or the Rural Housing Service (RHS). Mortgages that are not government loans are classified asconventional loans.

Government National Mortgage Association (Ginnie Mae)

A government-owned corporation within the U.S. Department of Housing and Urban Development (HUD). Created by Congress on September 1, 1968, GNMA performs the same role as Fannie Mae and Freddie Mac in providing funds to lenders for making home loans. The difference is that Ginnie Mae provides funds for government loans (FHA and VA)

grantee

The person to whom an interest in real property is conveyed.

grantor

The person conveying an interest in real property.

Source: RealEstateABC

Projects That Add Value to Your Home - Part 2

Check out these additions that are sure to add value to your home when you're ready to refinance or sell!

• Solid Core Outer Doors
• Dead Bolt Locks
• Door Bell/Intercom Systems
• Security System
• Motion Activated Exterior Lights
• Storm Doors
• Storm Shutters
• Ceiling Fans
• Overhead Lighting
• Water Purification System 
• Energy Efficient AC System
• Energy Efficient Appliances
• Water Efficient Toilets
• Hidden Fireproof Safe

Renovations and additions are endless. Choosing the right project for your home is toughest decision. For more information on the current market and property listings, visit my website!


Source: Max-Info

Projects That Add Value to Your Home - Part 1

When you're looking to refinance or sell your home, you'll want to get the best offer possible and that may require some renovations to increase the value of your home.

Here are a few ideas that are sure to add value and an extra sparkle to your home:

• Work on the appearance of your yard. Your front yard creates the first impression to potential buyers. Having it neat and clean can score you points!
• New paint or siding can increase property value faster than any other single renovation. 
• Fence in your yard. This creates a larger market for your home, especially for potential buyers who value privacy or who have pets and/or children and need a fenced in yard.
• Landscaping adds personality to your home. Even better than having a clean cut lawn, adding trees, bushes or flowers can make the home feel more welcoming. Just be careful not to go overboard.
• Make sure gutters are in working condition. Clear all gutters of clogs and ensure they are clean. Rusty gutters visible to a potential buyer can be a turn off. 
• Porches and covered decks add major appeal to a home. If funding is available, consider adding a deck in the backyard, great for barbecuing and dinners outdoors!
• A paved or concrete driveway that is free of grease stains and offers ample parking is always a plus! If you don't have the budget to replace the driveway, rent a pressure cleaner to wash away unsightly stains.
• Ample lighting in the home gives potential buyers a secure feeling. Be sure to check bulbs in rooms throughout the house to ensure every light is working. 
• Key rooms to renovate in the home are the bathrooms, kitchen and master bedroom. Any renovations, such as appliance upgrades, can add a great deal of value to your home.

Stay tuned to my blog for more great tips on adding value to your home. And remember, if you're in the market for a new home, visit my website for great listings! 

Source: Max-Info

Bank of America launches Test-and-Learn Program

Florida has become a testing ground for a new pilot program from Bank of America. This program offers extra incentive payouts to homeowners to agree to (and complete) a short sale on their homes.

Incentives range from $5,000 - $20,000 and the program is offered on a limited basis. Because Florida sees a higher percentage of foreclosures than any other part of the country, Bank of America finds it to be the perfect place for launching its "Test-and-Learn" Program.  If the program is successful in Florida, it could be expanded into other states.

Florida homeowners who qualify for the program will receive a mailer from BofA or can learn more about the program from real estate agents who handle the pre-approved short sales for BofA.

To find out if you qualify for the program, you can contact a Bank of America specialist at 877-459-2852, or for more information on the current market and opportunities, visit my website!


Source: DSNews

South Florida Trends - Fall Update

The housing market is always fluctuating. Check out this information about how the market is looking right now!

-Average Home Price - $280-$340,000

-Average Price Compared to Last Year - Up 10-15% or more

-Average Time on Market - 0-30 Days

-Prices As % of Asking Price - 95-100%

-Buyers' or Sellers' Market - Active seller's market

-Multiple Offers on Homes - Yes

-Housing Inventory - Limited

-Greatest Activity - Move-up and relocating buyers. Single-family homes; condos and townhomes

-Reason to Buy/Sell - Single-family homes sell quickly. Condos and townhomes are hard to find.

-Nearest Metro Area - Miami, Fl

-Housing Hot-Spots - Anything on waterfront

For more information on the current market in your area, give me a call or visit my website! 


Source: HouseHunt

Real Estate Vocabulary - F

 

• Federal Housing Administration (FHA) - An agency of the U.S. Department of Housing and Urban Development (HUD). Its main activity is the insuring of residential mortgage loans made by private lenders. The FHA sets standards for construction and underwriting but does not lend money or plan or construct housing. 

• Fee simple estate - An unconditional, unlimited estate of inheritance that represents the greatest estate and most extensive interest in land that can be enjoyed. It is of perpetual duration. When the real estate is in a condominium project, the unit owner is the exclusive owner only of the air space within his or her portion of the building (the unit) and is an owner in common with respect to the land and other common portions of the property. 

• FHA mortgage - A mortgage that is insured by the Federal Housing Administration (FHA). Along with VA loans, an FHA loan will often be referred to as a government loan.

• First mortgage - The mortgage that is in first place among any loans recorded against a property. Usually refers to the date in which loans are recorded, but there are exceptions.

• Fixed-rate mortgage - A mortgage in which the interest rate does not change during the entire term of the loan. 

• Fixture - Personal property that becomes real property when attached in a permanent manner to real estate. 

• Flood insurance - Insurance that compensates for physical property damage resulting from flooding. It is required for properties located in federally designated flood areas. 

• Foreclosure - The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt. 

Stay tuned for more important real estate vocabulary or visit my website for more help on your home search!


Source: RealEstateABC

Real Estate Vocabulary - E

 

• Earnest money deposit - A deposit made by the potential home buyer to show that he or she is serious about buying the house.  

• Easement - A right of way giving persons other than the owner access to or over a property.

• Encroachment - An improvement that intrudes illegally on another's property. 

• Equal Credit Opportunity Act (ECOA) - A federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs. 

• Estate - The ownership interest of an individual in real property. The sum total of all the real property and personal property owned by an individual at time of death. 

• Eviction - The lawful expulsion of an occupant from real property. 

• Executor - A person named in a will to administer an estate. The court will appoint an administrator if no executor is named. "Executrix" is the feminine form.

Stay tuned to my blog for more real estate vocabulary and visit my website for more information on finding your dream home! 


Source: RealEstateABC

Make the Right Green Changes!

Many homeowners have decided to start making green changes to their homes. While this can be beneficial, making the wrong green changes can end up costing you more.

If you're looking to make green changes to manage your energy costs, look into these three things to help you get the most for your money:

1. Seal and insulate duct-work that runs through unheated spaces. By insulating rooms like the garage or the attic, you can improve your heating system by 20%!

2. Invest in a programmable thermostat. You can save an average of 8% on your energy bill by having your thermostat programmed to certain temperatures throughout the day, especially when you aren't home.

3. Seal air leaks. Air can leak out of your doors and windows if they aren't sealed and caulked properly. This lost air can cost you an extra 10% on your energy bill.

Remember, these home changes will come at some expense, but done properly they will save you tons of money in the long run!

As always, I thank you for visiting my blog! Visit my website for more great information on available homes and properties in the South Florida area!

Housing Affordability at Record Highs

It's no secret that many people have been waiting for just the right time to invest in a home, and right now seems to be that time. Housing affordability was at a record high through the second quarter of this year, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index.

Although tight credit conditions and our sluggish economy are posing roadblocks for potential buyers, many cities across the country are seeing stabilization and even recovery in their housing markets.

Among the most affordable housing markets in the US are in:

-Syracuse, NY
-Indianapolis, IN
-Dayton, OH
-Lakeland, Fl
-Winter Haven, Fl

Conversely some of the least affordable housing markets in the US right now are in:

- New York, NY
- San Francisco, CA
- Redwood City, CA
- Los Angeles, CA
- Honolulu, HI

Do your research when searching for your new home to learn as much as you can about the housing market in your area. And remember, I am here to help!

Let's Be Fair...

Today's Real Estate vocab lesson is brought to you by the keyword fair.

Fair Credit Billing Act : A federal law that governs credit and charge card billing errors. If a credit or charge card company violates any provision, consumers can sue to recover damages.

Fair Credit Reporting Act. : A federal law passed in 1971 that regulates the activity of credit bureaus. It is designed to prevent inaccurate or obsolete information from staying in a consumer's credit file and requires credit bureaus to have reasonable procedures for gathering and maintaining information.

Fair Debt Collection Practices Act. : A federal law passed in 1977 which outlaws debtor harassment and other types of collection practices. The act regulates collection agencies, original creditors who set up a separate office to collect debts, and lawyers hired by the creditor to help with collections.

Fair Housing Act : Landmark federal law passed in 1965 and amended in 1988 that makes it illegal to deny rent or refuse to sell to anyone based on race, color, religion, sex or national origin. The 1988 amendment expanded the protections to include family status and disability.

Stay tuned for more and visit my website for all of your home buying and selling needs!

Source: Housing Trends

Escrow - What is it?

An escrow is a deposit of funds or deed by one party for the delivery to another party upon completion of a particular condition or even, such as closing on your home.

No matter which side of the purchase you are on, you want the assurance that no funds or property will change hands until all instructions in the transaction have been followed completely and accurately. The escrow holder has the obligation to safeguard the funds/documents while in their possession, and to disburse them only when all provisions of the escrow have been complied with.

There are four mail principals to the escrow - the buyer, the seller, the lender and the borrower. These principals cause the escrow instructions to be created, signed and delivered to the escrow officer. It a broker is being used, he/she will normally provide the escrow officer with the necessary information, instructions and documents. The escrow officer processes the escrow in accordance with the instructions provided. Once all conditions of the escrow have been met, the escrow can be considered closed.

The duties of the escrow holder include:

• Following the instructions of the principals
• Handling the funds/documents in accordance with instructions
• Paying all bills as authorized
• Responding to authorized requests from the principals
• Closing the escrow when all terms and conditions have been met

For more information on an escrow, contact me today!

Source: RealEstateABC

First Time Home Buyer Tips

So you're ready to buy your first home! Check out some of these first-time home buyer tips before you get started!

1. Check the selling prices of similar homes in the area you'd like to purchase. Finding out what surround homes are worth will give you a good idea of the price range you'll be looking at.

2. Use a mortgage calculator to see what you can afford and what your payments would be.

3. You home costs should add up to about 1/3 of your total income each month. Do the numbers to see what your total monthly housing cost would be, to ensure you look for a home you can afford.

4. Find out what the upfront costs are for the home you want to purchase. Closing costs can add up, so plan ahead

5. Speak to a reputable real-estate agent, like me, Deena Landsman! I can help you learn more about the currently real estate climate and help you find what you're looking for!

6. Consider unexpected costs such as new appliances, roof repairs, plumbing issue, etc. Remember, when you are a home owner, you can't run to your landlord to have these things fixed. You are now responsible for taking care of them yourself.

Remember, you don't have to go it alone! Give me a call and I'll be right by your side!

Real Estate Vocabulary - D

Here are some more important real estate key words to help you in your home search or sale!



Debt-To-Equity Ratio - The relationship of the loan and equity components which, for example if the debt is $80,000 and the equity is $20,000, there would be a debt ratio of 4:1 or the equivalent to an 80% loan to value ratio.

Declaration of Homestead- A recorded document that protects a homeowner from foreclosure by certain judgment creditors.

Delinquent Mortgage - A mortgage that involves a borrower who is behind on payments. If the borrower cannot bring the payments up to date within a specified number of days, the lender may begin foreclosure proceedings.

Down Payment - The upfront cash commitment paid by the buyer. It makes up the difference between the sales price of a property and the loan amount obtainable.

Dual Agent - An agent who represents both parties in a transaction.

Due Diligence - The making of every reasonable effort to perform one's contractual obligations. Example - A prospective home-buyer signed a sales contract contingent on the sale of her present residence.

Due-On-Sale Clause - Provision in a mortgage or deed of trust calling for the total payoff of the loan balance within the event of a sale or transfer of title to the secured real property. A contract provision which authorizes the lender at its option to declare immediately due and payable sums secured by the lender's security instrument upon a sale of transfer of all or any part of the real property securing the loan without the lender's prior written consent.

Dwelling - A place where people live such as apartments, hotels, mobile homes, nursing homes, and single-family houses.

For more information, visit my website!

Source: RealEstateWords

Real Estate Vocabulary - C

The Real Estate vocabulary continues!



Called Loan - A loan that is due and payable at the demand of the lender usually as a result of an acceleration or alienation clause becoming effective.

Cancellation Clause - A provision in a contract that gives a party the right to terminate his or her obligations upon the occurrence of specified conditions or events.

Capital Appreciation - The appreciation accruing to the benefit of the capital improvement to real estate.

Certificate of Occupancy - (COO) A document issued by a local government to a developer or in some cases others which permits a structure to be occupied by the general public and generally indicates that the building is in compliance with public health and building codes.

Certified General Appraiser -Generally any professional who has met the local or state requirements and passed the appropriate certification exam and is capable of appraising any type of property.

Class of Property - A subjective division of buildings as to their desirability to tenants and investors which is based on age location construction quality attractiveness of style level of maintenance etc.

Closing Costs - The miscellaneous expenses buyers and sellers normally incur at settlement in the transfer of ownership of real property over and above the cost of the property such as recording fees attorney fees title insurance premium etc. Closing costs which may consist of title insurance costs lender attorney fees appraisal fees and more can add thousands of dollars to your borrowing costs.

For more information, visit my website!


Source: RealEstateWords

Real Estate Vocabulary - B

Here are some more Real Estate terms that will help you in your home search!

Balloon Mortgage - An installment payment on a promissory note usually the final one for discharging the debt which is significantly larger than the other installment payments provided under the terms of the promissory note.

Bankruptcy - The inability of a debtor to pay one’s financial debts when due and where relief has been sought and has been granted through a special court action that makes it possible to resolve or eliminate the debtor’s debts.

Bid - The amount a party offers to pay on the home.

Bilateral Contract - A contract under which two parties exchange promises for the performance of certain acts. For example - Mr. A promises to buy Mr. B’s house and Mr. B promises to transfer its title to Mr. A.

Blanket Mortgage Or Trust Deed - A loan that covers two or more properties and often an entire subdivision where those properties are pledged or conveyed as security for the debt and which permits the borrower to obtain a partial re-conveyance when a parcel is sold.

Bleeding A Project - 1. In new construction overstating expenses and fees so as to divert a larger than normal amount of the project costs to the developer’s profit. 2. In managing existing real estate so as to obtain the highest possible current income from it.

Blighted Area -A district affected by detrimental influences of such an extent that real property values have seriously declined as a result of adverse land use and/or destructive economic forces. An area with rapidly depreciating buildings and no recognizable prospect.

Book Value - The current value for accounting purposes of an asset expressed as original cost plus capital additions and less accumulated depreciation.

Breach Of Contract - The violation of any terms or conditions in a contract without having a legal excuse such as the failure to make a loan payment when due.

Broker - A natural or legal person employed by another for a fee to carry on any legally-identified broker activity.

Budget - An itemized list of expected income and expenses prepared on a weekly monthly or annual basis.

Building Inspection - A physical review of property as construction progresses to insure that each major component – foundation plumbing electrical wiring roofing materials meets the building codes.

Build-To-Suit - A contract whereby an owner of land offers to construct a building on his or her land as specified by a potential tenant and then to lease land and building to that party.

Do you have questions about any of these terms? Give me a call!


Source: RealEstateWords

Real Estate Vocabulary - A

Jumping into Real Estate, as a buyer or a seller, can be overwhelming and confusing if you're not up to par on your terminology. Here are a few terms to help!

Advance Commitment - The institutional investor’s prior agreement to provide long-term financing upon the completion of a construction project.

Advance Fee - 1. A fee paid in advance of any services rendered such as in obtaining a loan. 2. Sometimes unlawfully charged in connection with the illegal practice of obtaining a fee in advance for the advertising of property or businesses for sale with no intent.

Advancement - A gift from a parent to a child in anticipation of the share the child will eventually inherit from the parent’s estate which is intended to be deducted from the inheritance.

Adverse Possession - A method of acquiring title to real property through the continued possession of the property under certain conditions for the statutory period by a person who is other than the owner of record. 2. A means of acquiring title where an occupant has been in actual open notorious and continuous occupancy of a property under a claim of right for the required statutory period.

Aesthetic Value - The additional value a property enjoys based on subjective criteria such as look or appeal.

Affidavit - A statement or declaration reduced to writing and sworn to or affirmed before a public official who has authority to administer an oath or affirmation.

Affirmative Action Program - A detailed plan used to overcome the causes and affects of discriminatory policies in the hiring employment and/or training of minority members of society.

Stay tuned to the blog for more important Real Estate terms to come! And feel free to check out my website for more information on finding your dream home!


Source: RealEstateWords

What is a Short Sale?

A real estate short sale is when your mortgage banking establishment agrees to accept less than what is owed on the home.

Basically it is an alternative to selling your home when you owe more than what your home is worth. This is a less costly alternative to foreclosures, which banks prefer. This is why banks have become more lenient with accepting short sale offers.

For more information on short sales, visit my website.

Source: http://www.whatisashortsale.org/

What is a Strategic Default?

What is a strategic default?

Let’s first define strategic default in simple terms. Wikipedia says:

A strategic default is the decision by a borrower to stop making payments (i.e. default) on a debt despite having the financial ability to make the payments.

This is particularly associated with residential and commercial mortgages, in which case it usually occurs after a substantial drop in the house’s price such that the debt owed is (considerably) greater than the value of the property – the property negative equity or “underwater” – and is expected to remain so for the foreseeable future, such as following the bursting of a real estate bubble. Such borrowers are called “walkaways.”

How do Americans feel about strategic default?

• The number of underwater homeowners who believe it is okay to default on your mortgage if you are under financial distress has almost doubled in the last twelve months (14% to 27%).
• 47% of people that are underwater and behind on their mortgage have considered strategic default.
• Those who know a strategic defaulter are more likely to have considered defaulting.
• 1 in 5 Americans knows a strategic defaulter.

Basically, as more people enter into negative equity, more will be tempted to ‘walk away’ from their mortgage obligations which will increase the homes going into foreclosure.

For more information on this and other real estate news, visit my website!

Source: KCM

Chase Bank Gives Incentive to Florida Homeowners

Homeowners across Florida, especially those behind on their mortgages, are looking for a way to improve their situation. Chase has been making these Florida homeowners a deal they can't refuse! Since last fall, Chase has been offering a sum of money ranging from $10,000 - $20,000 in exchange for the homeowner agreeing to a short sale on their home.

Simply stated, Chase is offering to forgive and forget any money that is owed to the bank as well as handing out cash bonuses to those homeowners willing to have a short sale on their home.

In doing so, banks forgo messy and time consuming foreclosures for both themselves and the homeowners. If you're a homeowner who can benefit from this process, contact your Chase lender or visit one of Chase's 13 mortgage help centers across the state.

While this deal is only available based on individual circumstances, taking the step to find out if you qualify could be your best move!

For more information on the housing market in South Florida, visit my website!


Source: The Real Deal

Real Estate - A GOLDen opportunity?

Everyone has something to say about the real estate market.  Lately it is to the tune of how now is not the best time to buy a home or that owning a home has never been a good investment.  Most say it will be a long time before real estate again begins to appreciate.

This is very familiar to whoever followed gold values in the 90s.

Gold had dropped from over $400 an ounce to $250 an ounce (a 40% decline) from February 1996 to August 1999. People ran from gold as though it was a plague.

Reports were rampant of investors and spectators predicting that gold would never again be worth investing in.

But, everyone knows what happened next. The proclamation of gold’s death was rather premature. Gold rose from $250 an ounce to over $1,400 an ounce in the next twelve years.

I believe that the Real Estate market will rebound with similar strength.  Those who continued to believe in gold as an investment were rewarded. Those who continue to believe in real estate as a sound investment will also be rewarded.

Visit my website to find your golden opportunity!

source: Keeping Current Matters Blog