SELLERS - IT'S NOT GETTING ANY BETTER!
http://www.msnbc.msn.com/id/20829849/
Updated: 1 hour, 30 minutes ago
LOS ANGELES - The number of foreclosure filings reported in the U.S. last month more than doubled versus August 2006 and jumped 36 percent from July, a trend that signals many homeowners are increasingly unable to make timely payments on their mortgages or sell their homes amid a national housing slump.
A total of 243,947 foreclosure filings were reported in August, up 115 percent from 113,300 in the same month a year ago, Irvine, Calif.-based RealtyTrac Inc. said Tuesday.
It may open the door for the Fed to be proactive and lower the FEDERAL FUNDS RATE a 1/4 or 1/2 point - that has not been done in 4 years! Will it help the average homeowner in the throes of foreclosure? Probably not. It will merely serve to increase demand for money, which will trickle down to somewhat lower interest rates.
The IRS is now getting involved...they have started a new section for homeowners losing their homes through foreclosure:
http://www.irs.gov/newsroom/article/0,,id=174022,00.html
Sellers, it's not pretty out there - you ARE COMPETING with thousands of other sellers, relocation companies, bank-owned properties, pre-foreclosures, and in-foreclosure properties. Make no mistake - values will continue to decline for the forseeable future as this "mess" continues to unfold.
If you think you are immune, think again. Some economists and real estate professionals are saying we have only seen the beginning on of the foreclosure fallout - the "tsunami" has yet to hit!
Best of luck to all...
About Me
- Rich Cornelius
- Born in New York, I retired to the Tampa Bay area at the ripe old age of 18 months, and have been a resident ever since. I attended Embry-Riddle Aeronautical University, received my Bachelors Degree in Aeronautical Science and became an airline pilot with a major carrier. After 5 years in professional aviation, I joined Sand Key Realty, Sales & Rentals. While at Sand Key Realty, I successfully sold more than $10M in residential real estate, including one of the highest sales on record on Clearwater Beach. In June of '07, I joined Coldwell Banker Residential Real Estate in Clearwater so I could better serve family, friends and clients alike and meet all of their real estate needs. In real estate, as in aviation, I do it right the first time because of the trust and responsibility placed in me by my clients. Simply put, it’s all about the details.
1 comment:
To whom it may concern,
Can it get any worse than this.
We appreciate your review and empathy towards our situation, as detailed below.
Over the past two years, more than 70 home owners were scammed into buying into a property that is currently, ultimately valueless. The developer in charge has filed for bankruptcy, and owners have little cause for relief. Let me tell you our story, in brief:
• In 2005, PUIG Development Company purchased several apartment buildings with the intent of converting them to condominium units for resell.
• One in particular – now named Venetia Country Club – is in extremely bad shape, and is the topic of this letter.
First and foremost, the entire property and all of the buildings on the property have no certificates of occupancy, and owners are living there unlawfully. PUIG initially filed for contract/renovation permits but then fired the licensed contractors and had unskilled and unsupervised laborers do complicated electrical and plumbing work.
The City of Largo knew the building was not being brought up to code, but still allowed PUIG to continue working and selling units, with the developer’s promises to correct the problems. Even after over a year of shirking responsibility and more than $20,000 in accrued fines, the city still continued to allow PUIG to work and sell.
The City has now levied more than $95,000 in fines against the condo association, which will be ultimately turned over to the owners of condo in the next month. In addition, since PUIG filed for bankruptcy, the city has made it each individual unit owner’s responsibility to bring his/her unit up to compliance – a feat which could cost each owner several thousand dollars.
If the city cannot get people to comply with a lengthy and expensive inspection and correction process, they have threatened to kick people out on the streets. In fact, owners in one building were actually removed from their units for a period of time.
Also, many contractors and businesses have large claims against unpaid bills that PUIG has gathered, which will become the responsibility of the board at turnover.
Repeated requests for relief and review to the Florida department of Business Regulation have been denied since PUIG is in bankruptcy.
• Your first question might be, “Why weren’t the owners more careful when buying?”
PUIG provided fraudulent documentation to each owner, including:
• What many claim to be fraudulent termite inspections in the condo documents (an investigation is ongoing), which has now resulted in the need to tent and repair multiple buildings.
• Inspector reports in the condo. docs which highlighted satisfactory engineer reports. Once they had that, then they did undocumented work on the buildings and did not alert purchasers that the reports were invalid.
• A letter from the City stating that Certificates of Occupancy were not needed unless major renovations were done. Most owners did not realize that the work done invalidated the details in that letter. In fact, the city is now claiming that even with no work done in an individual unit, that letter is no longer valid.
• In the short term, owners have banned together to beg PUIG to assist with paying for basic bills, such as the Utilities and general maintenance to prevent homes from completely falling apart. They have refused to repair the laundry facility and have – some think intentionally - destroyed the pool. Yet, recent monthly budget filings (under the bankruptcy court), still show payments to employees who are supposed to be working on Venetia’s behalf. The owners have not seen, or been able to reach via phone, an employee in quite some time.
• Venetia owners cannot sell their units, and many will be unable to afford the massive costs of special assessments and increases in monthly dues, created by poor development and hidden under fraudulent activity. Although several owners got together to collect money for an attorney, that process could be lengthy and may not lead to any positive outcome.
• Help is hard to find, since help requires money, and with a developer in bankruptcy, money is in short order. The bankruptcy proceedings and depositions focus on shifting and structuring assets, and other such legal-ease, and do not even touch on the fear and concern that the owners of this complex are facing.
If you can, please considering helping us. The Owners of this complex purchased in good faith, only to find our homes are valueless and falling apart around us. Many owners are low to mid income earners, some are elderly and others are pregnant mothers. Most have invested their entire savings into a dream that is now going to be defunct. While this country was founded on the principal of “caveat emptor”, it is also known for its giving spirit towards people in times of need. We are in great need, and any resources that you could assist us with would be greatly valued.
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