What happens in Vegas will NOT stay in Vegas...

Bank of America To Unload 6,000 Bank Owned Homes in Vegas

19Jan10

Vegas

Bank of America plans to dump 6,000 bank owned homes in Las Vegas in 2010, according to the Las Vegas Review Journal.

A BofA executive told the paper it expects to release about 500 repossessed properties per month this year in the hard-hit region as the foreclosure rate increases.

This is the so-called “shadow inventory,” previously foreclosed homes that were kept off the market in the hopes loan modifications or short sales could be negotiated.

But a large percentage of loan modifications have re-defaulted and short sales have been difficult to process, despite tons of interest from potential buyers.

Steve Hawks, the director of the National Association of Short Sale Professionals, told the paper it’s taking an average of four to six months to complete a short sale, though he sees it dropping to 90 days in 2010.

That’s good news for Bank of America, which is reportedly receiving 40,000 new offers a month on short sales.

Unfortunately, the bank is also expected to be repossess 11,000 – 14,000 homes a month in the early part of this year and 29,000 – 35,000 by November and December.

Hawks said 22 percent of mortgage defaults were strategic, tied to underwater mortgages, adding that banks need to eliminate the hardship letter required for short sales and consider all those who fall behind on payments.

Last spring, Bank of America eased its short sale rules, requiring less of the proceeds from a property’s selling price go towards paying off an associated home equity line of credit or second mortgage.

Tax deductions for Homeowners make owning LUCRATIVE!

***I will start with my disclaimer – please consult a license CPA for tax advice and guidance***

Even in a down market, owning is oft times better than renting. This rings especially tru come tax season. The following 2009 tax deductions can only be applied to homeowners who owned DURING 2009…if you just bought or plan to buy this year, plan on them for 2010 tax season!

1. Mortgage Interest Deduction. Arguably the MOST POPULAR deduction, this deduction is meant to encourage homeownership by making it more lucrative than renting. Compare a own vs. rent scenario where the monthly payment is $1000. If your mortgage payment is $1000 and $900 of that is interest, you are allowed to REDUCE your GROSS INCOME by $10,800 ($900 x 12 months). There is no deduction for rent payments. Thus, a homeowner who grosses $50,000 per year will have that number reduced to $39,200. If he is in a 20% tax bracket, instead of paying $10,000 they will only pay $7960, a savings of $2140 on your tax bill.

2. Energy Efficiency Deduction. Have you upgraded to a solar water heater, solar panels, hi-efficiency A/C, new insulated garage door, or similar home improvement? You may be eligible for deductions that will lower your gross income OR dollar-for-dollar tax credits. The credit is 30% of the cost of installing such energy savers, up to a top credit of $1,500. Some credits are even more, depending on the project!

3. First-time Homebuyer Tax Credit. While not a tax deduction, this dollar-for-dollar tax credit is claimed on your taxes (which is why I included it in this article!) Put into action by the Obama Administration in 2009 to stimulate/encourage homebuyers and home sales, this max $8000 credit can only be claimed by meeting the following criteria:

• Buyers must NOT have owned within the last 3 years
• The purchase must be completed NO LATER THAN July 1, 2010

4. Real estate taxes paid in the same tax year can be claimed as a deduction.

5. If you used a traditional or Roth IRA for a downpayment on a purchase this year, plan on deducting up to $10,000 of that withdrawal on your taxes.

For more information on these and many other tax deductions related to owning or disposing of real estate, visit Kiplinger’s online at http://www.kiplinger.com/features/archives/2007/01/hometaxopedia.html

PLEASE TAKE A LOOK AT MY NEW LISTING!

Rich Cornelius www.RichCornelius.com | Coldwell Banker | 727.417.8814 680 Sandy Hook Rd, Palm Harbor, FL Awesome 4/2/2 in great Palm Harbor neighborhood 4BR/2BA Single Family House offered at $249,900 Year Built 1979 Sq Footage 2,295 Bedrooms 4 Bathrooms 2 full, 0 partial Floors 1 Parking 2 Car garage Lot Size 13,580 sqft HOA/Maint $0 per month DESCRIPTION 2295 SF, 4 BEDROOMS & 2 BATHROOMS, 2 CAR GARAGE w/ SCREENED POOL! Found in the popular Palm Harbor community of Westlake Village, this freshly updated ranch home offers abundant living space, plentiful storage, and a unique design sure to please every buyer. Buyers will love the split plan layout, central kitchen, and multiple living areas. The kitchen has been updated with: solid surface counters, brushed nickel hardware, and BRAND NEW, NEVER USED SS appliances! The 3 guest BR's and hall feature new laminate hardwood floors, paint, floor molding, ceiling fans, and window treatments. HUGE Inside utility room. Set on almost 1/3 of an acre, the home is complete with a fenced backyard, children's playset, and great curb appeal. Shingle roof only 10 yrs old (appr). Westlake Village is a friendly community featuring 30+ acres of parks and woods, Jr. Olympic-sized pool, new playground, 4 tennis courts, volleyball, basketball, Clubhouse & and citrus grove. Walk to the YMCA and A-rated Palm Harbor Univ HS. You won't find many homes for sale in here! HOA is $558 per year for 2010. No flood ins req'd. Non-evac zone. see additional photos below PROPERTY FEATURES - Central A/C - Central heat - Fireplace - Walk-in closet - Hardwood floor - Tile floor - Family room - Living room - Office/Den - Dishwasher - Refrigerator - Stove/Oven - Microwave - Stainless steel appliances - Attic - Laundry area - inside - Yard - Swimming pool COMMUNITY FEATURES - Clubhouse - Swimming pool(s) - Tennis court(s) - Lake - Playground ADDITIONAL PHOTOS Photo 1 Photo 2 Photo 3 Photo 4 Photo 5 Photo 6 Contact info: Rich Cornelius www.RichCornelius.com Coldwell Banker 727.417.8814 For sale by agent/broker Equal Opportunity Housing Posted: Dec 29, 2009, 5:54pm PST

If I told you that you might qualify for a NO-INTEREST, 30 YEAR loan for $20,000, would you believe me? How about 50% of the purchase price???

You should. Because it's a no-brainer, steal of a deal for buyers! It's called the Neighborhood Stabilization Program (NSP) and it's coming to (or already present in) an area near (or around) you. It's a federal fund administrated by HUD and locally administered by municipalities.

So how do one go about getting this awesome benefit? Well, first you, as the buyer, need to meet some income qualifications. Among others, here are a couple:

• Maximum debt-to-income ratio is 50%
• The Homebuyer Assistance Program is available to families earning less than 120% of the median income for the Tampa Bay area. NSP requires that 25% of all funds be spent on families earning less than 50% of the median income.

So what homes qualify? They have to fall within the NSP areas to be eligible for the money. If you are in Pasco County, for example, you can click on the following site to see if your subject property qualifies:

http://gis1.pascocountyfl.net/nshood/

The beauty of the $20,000 2nd mtg is that buyers can also use it to wrap in closing costs, leaving little money needed to bring to closing.

If you are in the area, visit Tampa Bay Community Development Corp at www.TampaBayCDC.com for more info.

MLS MONTHLY REPORT NOV ‘09


TAMPA BAY AREA (tri-county) Homes Condos Total Units

Total Units Available: 18,307 9,278 27585

Total Units Pending: 2,407 954 3,361

Total Units Sold: 2,030 632 2,662

Absorption rate: 11.09% 6.81% 9.65%

Avg Days on Market 88 days 111 days 93 days

Months of Inventory 9.0 mons 14.7 mons 10.4 mons

Sold vs List Price % 94% 92% 94%

Sold vs Original List Price % 75% 79% 76%


PINELLAS COUNTY Homes Condos Total Units

Total Units Available: 6,681 5,519 12,200

Total Units Pending: 801 448 1249

Total Units Sold: 679 320 999

Absorption rate: 10.16% 5.80% 8.19%

Avg Days on Market 80 days 117 days 92 days

Months of Inventory 9.8 mons 17.2 mons 12.2 mons

Sold vs List Price % 93% 91% 93%

Sold vs Original List Price % 84% 75% 81%


N. BEACHES (476-478, 370-375) Homes Condos Total Units

Total Units Available: 590 1411 2,001

Total Units Pending: 38 87 125

Total Units Sold: 34 72 106

Absorption rate: 4.07% 5.10% 5.30%

Avg Days on Market 111 days 123 days 119 days

Months of Inventory 17.4 mons 19.6 mons 18.9 mons

Sold vs List Price % 93% 92% 92%

Sold vs Original List Price % 79% 83% 81%

I am pleased to announce that I have just earned the National Association of Realtor "SFR" designation - the Short Sale and Foreclosure Resource designation. With such a large contingent of my business being short sales and bank-owned foreclosures, I felt my clients would be best-represented by a realtor who is certified in such areas.

I take pride in handling my short sales with dogged determination and efficiency. To date, I have closed 10+ short sales with excellent results for my sellers. The key to Short sale success is constant communication with all parties involved. It keeps the banks moving forward, the buyers engaged, and the sellers optimistic.

Here are a couple terms that may be new to you:

1. Convenient foreclosure: This occurs when the seller already has a second dwelling to move to and will allow their over-mortgaged property to be taken back by the lender, regardless of their monetary assets.
2. Strategic foreclosure: An occurence where a homeowner will acquire a 2nd home BEFORE their 1st home goes into foreclosure with the express intent of allowing the 1st home to be taken back by the bank.

The bottom line: this massively-depreciated real estate market has affected just about everyone I know and I have re-committed myself to assisting embattled owners as best I can.

If you have any questions about the short sale process, just let me know. I don't profess to know EVERY thing about the sale process, as each bank is different. However, there are general rules that most banks adhere to and I'm always willing to share my knowledge to help a client.

I recently had a client with an existing VA loan receive a notice in the mail concerning refinancing their loans with a company called Mortgage Investors Corporation. The company claimed they could save them thousands of dollars with an easy re-finance – all they needed to do was listen to a 15 minute in-home presentation. Following a hard pitch session at the owners home that lasted 4-5 hours, my clients were asked (and consented) to give the MIC rep a "good faith deposit" of $1000. HUGE RED FLAG!

IF YOU RECEIVE ONE OF THESE NOTICES, PLEASE READ THE FINE PRINT AND DO YOUR OWN RESEARCH!

Initial investigation finds that homeowners will have their loan converted to a HYBRID loan, which has a fixed rate for approximately 38 months and then slowly rises over the next 5-7 years, with a cap of 8% (this was told to my clients). This is in addition to fees and other costs put on the back end of the loan.

I am not saying what MIC is doing is illegal or fraudulent. Basically, they are taking a loan guaranteed by the government (VA loan) and modifying the terms for the homeowner. It’s a win-win for MIC…should the owner default, the government will cover the loan. Should the seller not default, they will have had upfront savings but back-end costs and possibly an interest rate much higher than their original rate. There are risks with this hybrid loan and homeowners contemplating this refinance would be well-advised to work the numbers thoroughly.

My local Better Business Bureau (http://www.bbb.org/west-florida/business-reviews/mortgage-bankers/mortgage-investors-corporation-in-saint-petersburg-fl-52003613) has recorded 114 consumer complaints against MIC.

Please remember, nothing is free. If it sounds too good to be true, it probably is. CAVEAT EMPTOR!

So I think I'm Mr. Smarty Pants when I convey all of my wonderful mortgage knowledge about exiating programs and loans available to clients, family, & friends. Oh yeah, I tell them confidently, the only 100% mortgage program available to buyers right now is Veterans Administration (VA) loans. Those loans are GUARANTEED by the VA and other lenders offer them to VA-qualified buyers.

But back up a minute...is it really the ONLY 100% mortgage loan available to buyers at the present time. I ate way too much on Turkey Day so I have no room to eat "crow", but I was wrong (and my wife tells me I can never accept being wrong ;-)...

I'll give you 5 seconds to guess ANOTHER 100% mortgage being offered to EVERY buyer right this minute...1...2...ok, you give up, right? Check this out - USDA loans.

Yes, you read that right - the same people that certify beef. Let's cut to meat (excuse the pun) of this article. In short, the Federal Gov't has set up two 100% loan programs for lower-income buyers of RURAL property - a "direct" and a "guaranteed" program. It's the coolest thing since sliced bread - all you have to do is find a home in their desginated "rural" area and you are on your way...

Here's the info straight from their site, http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=pageLoad&requestInfo=GuaranteedProgramInfo&NavKey=loan@21

Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.

Eligibility: Applicants for loans may have an income of up to 115% of the median income for the area. Area income limits for this program are here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. In addition, applicants must have reasonable credit histories.

Approved lenders under the Single Family Housing Guaranteed Loan program include:

1. Any State housing agency;
2. Lenders approved by:
HUD for submission of applications for Federal Housing Mortgage Insurance or as an issuer of Ginnie Mae mortgage backed securities;
3. the U.S. Veterans Administration as a qualified mortgagee;
4. Fannie Mae for participation in family mortgage loans;
5. Freddie Mac for participation in family mortgage loans;
6. Any FCS (Farm Credit System) institution with direct lending authority;
7. Any lender participating in other USDA Rural Development and/or Farm Service Agency guaranteed loan programs.

Terms: Loans are for 30 years. The promissory note interest rate is set by the lender.

There is no required down payment. The lender must also determine repayment feasibility, using ratios of repayment (gross) income to PITI and to total family debt.

Standards: Under the Section 502 program, housing must be modest in size, design, and cost. Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. New Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards. Existing manufactured housing will not be guaranteed unless it is already financed with an HCFP direct or guaranteed loan or it is Real Estate Owned (REO) formerly secured by an HCFP direct or guaranteed loan.

Approval: Rural Development officials have the authority to approve most Section 502 loan guarantee requests.

BUYERS AND SELLERS!

If you have a closing this week, Ida may have just put a damper on your plans.

Although it has been a quiet hurricane season for Floridians, there is a staanding rule that insurers will NOT bind homeowners insurance when a tropical system moves within a certain proximity to our area. Without insurance, mortgage companies will NOT underwrite their loan, which ultimately means buyers can't pay for the house at closing time.

Our standard Florida Association of Realtor contracts have a stipulation that covers rare instances like this and I urge buyers, sellers, and realtors to review the contract language. It's non-jeopardy for all parties, which is good.

The only problem I forsee is if a seller is consummating a short sale and the short sale deadling is the closing date this week. Hopefully the Loss Mitigation/Short Sale closer will be understanding, but that is not always the case.

Let's talk about a topic near and dear to my heart - short sales. Yes, this "dance with the devil" as I like to call them is full of twists and turns, highs and lows, yes's and no's...some may liken it to marriage ;-)

I digress. Short sales have become a common occurrence, with some areas seeing just a few and other places seeing 30%, 50%, and even 75% of homes in a short sale status. To recap for those not paying attention, short sales are when the home's fair market value is EXCEEDED by the mortgaged amount, leading to a deficiency or "short" on the mortgage. To head off these homes going back to banks as foreclosures, banks will accept less than what is owed while sometimes sticking the owner with the difference...and sometimes not.

That is what we will discuss today:

the relationship between a 1099C and a deficiency judgment!

A deficiency judgment (DJ) CAN be pursued on the amount of the mortgage "forgiven" by the lender. EXAMPLE: Joe has a $150k mortgage and short sells it, with bank approval, to Jan for $100k. That leaves a $50,000 DEFICIENT AMOUNT.

In foreclosure or a short sale, lenders are allowed to, but rarely do, pursue deficiency judgments against the former owners. The reasons lenders normally DON'T file for deficiency judgments are:

1) Practically impossible to collect as most owners foreclosed on don't have much money
2) Cost of litigation to achieve the deficiency judgment is costly
3) DJ's can be discharged in bankruptcy as unsecured debts.

Banks will routinely issue 1099c's instead. When issuing a 1099C (cancellation of debt), banks take the paper loss and pass it on to the former owner as "income" in the eyes of the IRS. Pls consult an accountant for what to do with a 1099c.

If you are issued a 1099C, one would think that the deficient amount is history and a DJ is out of the question, as the debt is being transferred as "income" to the homeowner. A reasonable assumption. However, according to Carolyn Secor, a Clearwater-based attorney who specializes in foreclosure defense and bankruptcy, the 2 are apples and oranges. A DJ is a civil litigation action and a 1099C is simply an IRS function. The 2, when held at arms length, are not truly related. HENCE, ONE CANNOT ASSUME THAT THE ISSUANCE OF A 1099C WILL PREVENT A DJ.

Short sale sellers will find the language in their approval letter. Banks will state they are releasing the lien so the sale will go through but ALSO accepting the proceeds as payment in full. Some banks go as far as telling you how it will be recorded with the credit bureaus. Unless you see the above language, or "satisfaction of mortgage", or something similar, do NOT assume you are being released from the note (mortgage).

Unfortunately, sellers are taking a chance when they are told they will receive a 1099C at the end of the year AND they don't see any written language releasing them from the obligations of the note. And sometimes that's all the sellers get. Only that seller can determine whether its worth completing the short sale and dealing with future ramifications.

Are you FHA-Approved????

That's an important question all condo, townhome, and villa owners should be asking.

Why? Great question.

The government has a program run through the Federal Housing Administration that will allow qualified borrowers access to mortgages of UP TO 96.5% of the home's value (notice I did not say contract price, as an FHA appraisal will supercede a contract price). The borrower has to come up with the other 3.5% down payment, as well as closing costs. Closing costs can be paid by the seller on behalf of the buyers.

This is a terrific program that gets buyers with meager savings and blemished (but not sub-prime) credit into homes. Think first-time homebuyers, newlyweds, single parents, lower-income, etc. Truly a great program that encourages home ownership among a class that doesn't qualify for conventional loans.

Ok, so that's FHA in a nutshell. How does that help you, the condo/TH/villa owner? Well, since the 100% loans have gone the way of the dodo bird (non-existent) it is one of the most popular loan programs in the market today, aside from VA loans. This means more and more buyers are qualifying under this program. THE FLY IN THE OINTMENT IS THAT THE COMPLEX HAS TO BE APPROVED BY THE FHA FOR FHA LOANS.

It's an involved process with forms, documentation, and some elbow grease. Some complexs, due to their restrictions, will never qualify. However, it's well worth it for enterprising residents to ensure they have explored getting approved for FHA loans.

How can you tell if you're already approved? Luckily, FHA has a continuously updated website to check. It's: https://entp.hud.gov/idapp/html/condlook.cfm

Most likely your complex will not be approved, but it's normally for lack of trying. Once approved, it's something you want to SCREAM from the rooftops and let all buyers know. Ask you Association if they have ever tried to get approval. If they have not, volunteer to be a liaison and get them approved. Visit HUD.gov for more info.

FHA is a gift to buyers AND SELLERS so do your best to take advantage of it today.

The Perils of Being Your Own Realtor!

We are the generation of DIY'ers...national brands have been built on empowering consumers and telling them they can do it themselves. Millions of dollars are spent assuring people they have the know-how and background to tackle any project, from fixing an electric socket (ZAPPPP!) to changing out an engine - yes, one of my college buddies actually attempted that (unsuccessfully by the way).

So when it comes to selling your own home, you can do that, too. Right? Well, the answer is not so clear cut. Most people know the majority of homes are sold via realtors and brokerages. However, a small share of homes are sold By Owner and those owners don't have any real estate sales background. The advent of the internet age has made this a distinct possibility, an easier mountain to climb so to speak. But there are pitfalls in this approach that will take you longer to sell and possibly decrease your net profit. Here are a couple of danger areas to avoid:

The Overly Proud Owner: I had this experience 2 weeks ago. Sellers bragged to my buyers that they were "Professional Homeowners". By the time we were done, my buyers were so detailed-to-death and tired of saying "oh, wow, that is a terrific shade of blue" that we high-tailed it out. But Mr. Professional Homeowner was on our heels and followed us to our cars, still bragging about his home. I finally had to start my car and drive away to get him to stop.

Is a proud owner extolling the virtues and upgrades of their home a bad thing? Not necessarily. But the fact that he was over-priced by about 10% scared the buyers away - the odds are so slim that someone so impressed with their own home would consider a below-list price offer.

The Uninformed Homeseller: I come across this alot with people representing themselves. Lawyers commonly say the quickest way to lose a legal case is to represent yourself. Harsh, but probably true. Well, one quick way to a lawsuit (if things go south) is by representing yourself in a home sale if you're not up-to-date on the latest and greatest "gotchas".

Example 1: You own a home built in 1977. Using a pre-printed contract from the internet, you lock up a buyer and close in 30 days. After closing, a lawyer for the buyer calls asking for the full contract and addenda. Unfortunately, you had n ot realized that FEDERAL LAW requires a pre-1978 home to have a Lead-based Paint Disclosure signed by all parties.

Example 2: You are selling your mothers home and want to move it quick. In 2002, it had a settlement issue that was repaired and the home was remodeled in and out. Since know other problems have cropped up, you put a sign in the yard and 5 months later you slide the keys to the new buyers. A month later, you get a call from a lawyer representing the buyer. They are looking for the Sellers Disclosures which state the home had a repaired settlement issue. The new buyers were putting in a pool and the workers discovered the pier-and-grout system that stabilizes the home. You thought you mentioned it to them in passing and that they were ok with it, but with no WRITTEN disclosures, you're in hot water.

The Oops, I Can't Advertise That? Homeseller: This is a big one. You are selling your home and putting an ad in the paper. Knowing your home is perfect for single people, you mention in the ad that the home has a terrific location for single owners or owners without children while also being perfect for Christians, as there are 3 churches in walking distance. Ooops. You just violated the Civil Rights Act of 1968, aka the Fair Housing Act, which protects people with children from being discriminated against while also disallowing religious discrimination.

Ok, so I dramatize a bit for illustrative purposes. But the point is that real estate transactions can be unintentional minefields, for lack of a better term. As GI Joe once put it, "knowing is half the battle".

One result of our over-supply of homes for sale is that many homesellers have turned into landlords, for good or for bad. Tightened mortgage regulations and economic hardships have increased the pool of available renters so there's a good chance a seller looking to rent their property will successfully rent it out.

Many sellers continue to market and sell their property with the permission of the tenant. Normally, tenants receive discounted rent or a lower deposit in exchange for keeping the property in showing condition and being flexible with showing appointments.

What happens when the property actually goes under contract while tenants are on property??? In Florida, the existing lease must be honored in accordance with the terms specified within the lease. So if the tenancy continues 6 months after the closing date, the new owners shall assume landlording duties and responsibilities as outlined in Ch 83 of the Florida Statutes. Many leases, especially for homes for sale, specify rights and responsibilities as it pertains to the sale and disposition of the property while being rented. Normally it requires 30 - 60 days notice to the tenant which allows them to line up other housing.

Many tenants living in a home that's also for sale, when given sufficient notice of such sale, are very cooperative. Don't forget that after the initial showing, a home that's under contract will need to have additional inspections, appraisals, and possible followup showings in accordance with the sales contract. That will require an understanding tenant and the best way to achieve that is for a Landlord to be understanding and protective of the tenant's privacy.

But what happens if there is no lease in place (a month to month for example) when a home goes under contract? Well, the law references the previous lease with respect to cancellation of an unwritten lease:

83.57 Termination of tenancy without specific term.--A tenancy without a specific duration, as defined in s. 83.46(2) or (3), may be terminated by either party giving written notice in the manner provided in s. 83.56(4), as follows:

(1) When the tenancy is from year to year, by giving not less than 60 days' notice prior to the end of any annual period;

(2) When the tenancy is from quarter to quarter, by giving not less than 30 days' notice prior to the end of any quarterly period;

(3) When the tenancy is from month to month, by giving not less than 15 days' notice prior to the end of any monthly period; and

(4) When the tenancy is from week to week, by giving not less than 7 days' notice prior to the end of any weekly period.

Basically Florida law only requires a MINIMUM of 15 days notice for a tenant on a month to month unwritten lease. That's really not much time, so I would recommend a minimum of 30 days.

Florida law also gives the landlord (or their agent) the ability to access the property to further the sale of that property. All access is conditioned upon "Reasonable Notice" to the tenant.

83.53 Landlord's access to dwelling unit.--

(1) The tenant shall not unreasonably withhold consent to the landlord to enter the dwelling unit from time to time in order to inspect the premises; make necessary or agreed repairs, decorations, alterations, or improvements; supply agreed services; or exhibit the dwelling unit to prospective or actual purchasers, mortgagees, tenants, workers, or contractors.

(2) The landlord may enter the dwelling unit at any time for the protection or preservation of the premises. The landlord may enter the dwelling unit upon reasonable notice to the tenant and at a reasonable time for the purpose of repair of the premises. "Reasonable notice" for the purpose of repair is notice given at least 12 hours prior to the entry, and reasonable time for the purpose of repair shall be between the hours of 7:30 a.m. and 8:00 p.m. The landlord may enter the dwelling unit when necessary for the further purposes set forth in subsection (1) under any of the following circumstances:

(a) With the consent of the tenant;
(b) In case of emergency;
(c) When the tenant unreasonably withholds consent; or
(d) If the tenant is absent from the premises for a period of time equal to one-half the time for periodic rental payments. If the rent is current and the tenant notifies the landlord of an intended absence, then the landlord may enter only with the consent of the tenant or for the protection or preservation of the premises.
(3) The landlord shall not abuse the right of access nor use it to harass the tenant.

Selling a property with a tenant can be an involved, sensitive situation that requires the utmost in care and compassion. When in doubt, one almost always gets more "flies" with honey rather than vinegar!

Recently, I have had 2 mind-numbing experiences with permits. Yep, the bane of a homeowner's existence. Permits issued by a municipality are actually a good thing as they provide:

1. Uniformity of building codes
2. conformity to building codes
3. an acceptable level of safety in construction
4. a way to track improvements to a property

I have come to learn that in Florida, title searches conducted by title companies do not examine public records for any open permits that have not received final inspections. Basically, they are not a lien and property can be transferred with open permits. That moves the onus to both Buyers and Sellers to ensure their property has no open permits.

So how do you find any open permits? The easiest Sway is to contact the city or county building department and asked for a property card printout. It should show any additions or improvements that have had a permit pulled. It will NOT show any record of unpermitted additions or improvements.

Let's say there is an open permit, for example, on a window replacement. What should a buyer do? First, determine with the municipality if the permit is in fact still open, i.e. no final inspection. The easiest method to resolve that is to contact the contractor who installed it and have them call for the final inspection. If the homeowner did it, then the homeowner calls in the final inspection. That should do it.

If the contractor is out of business, then the homeowner MUST close the permit by requesting the final inspection on the contractor's behalf.

Addition permits can be trickier to finalize but they can be done. If a permit was never pulled on an addition, that may be quite costly and intensive for the seller. If the buyer goes through with the purchase and assumes responsibility for the home, the municipality may REQUIRE the new owner to rectify the permit issue, which may include larger fees, penalties, and invasive inspections.

So do yourself a favor and check for permits!

Rich is on vacation this week and his posts will return next week!

August stats are in and they aren't half bad. We have not fropped through 28,000 units yet, which I would have liked to see. I still believe our "healthy" Tampa Bay area levels are around 15,000 - 18,000 homes for sale. So we are slightly less than double our normal inventory, which is still applying downward pressure to prices.

I am amazed that some of average sale prices are up to 25% LOWER than their original listing price and around 85% - 90% of the current list price.

However, there are buyers out there. Recently wrote an offer for a client for a small bank-owned forclosure that was on the market for just 3 days. Wouldn't you know the realtor had 10+ offers in under 72 hours of listing the property! Normal retail homes in average condition will find their values similiar to what they were in 2002 & 2003...you can't change it and the new privacy fence or low flow toilets will not add extra value to the home.

MLS MONTHLY REPORT August ‘09


TAMPA BAY AREA (tri-county) Homes Condos Total Units

Total Units Available: 19,009 8,999 28008

Total Units Pending: 3,252 988 4,240

Total Units Sold: 2,031 578 2,609

Absorption rate: 10.68% 6.42% 9.32%

Avg Days on Market 96 days 103 days 98 days

Months of Inventory 9.4 mons 15.6 mons 10.7 mons

Sold vs List Price % 93% 91% 93%

Sold vs Original List Price % 83% 80% 82%


PINELLAS COUNTY Homes Condos Total Units

Total Units Available: 6,927 5,442 12,369

Total Units Pending: 1073 459 1532

Total Units Sold: 653 297 950

Absorption rate: 9.42% 5.46% 7.68%

Avg Days on Market 86 days 110 days 94 days

Months of Inventory 10.6 mons 18.3 mons 13.0 mons

Sold vs List Price % 91% 90% 91%

Sold vs Original List Price % 78% 79% 78%


N. BEACHES (476-478, 370-375) Homes Condos Total Units

Total Units Available: 588 1511 2,099

Total Units Pending: 55 103 158

Total Units Sold: 36 80 116

Absorption rate: 6.12% 5.29% 5.53%

Avg Days on Market 130 days 124 days 126 days

Months of Inventory 16.3 mons 18.9 mons 18.1 mons

Sold vs List Price % 83% 88% 85%

Sold vs Original List Price % 72% 78% 75%

Foreclosures seems to rule the real estate headlines these days, and rightly so. The banks who offered mortgages to anyone with a pulse (and even some WITHOUT!) fostered an anything-goes atmosphere of real estate speculation, which culminated in the miserable situation we now find ourselves in - empty, desolate homes dot our landscape, falling more into disrepair every day. If you're unlucky enough to have one of these abandoned foreclosures in close proximity to your home, you need to understand that the immediate future can change the valuation of your home for years to come. I offer this example:

Your neighbors move out overnight, leaving a seemingly nice home empty. Day after day, you drive by the home, watching the lawn wither, the weeds grow, and imagining the dank, humid air inside the non-ventilated home. But you continue driving, hoping the bank sells it soon. The reality is that it takes the bank 12 - 18 months to take ownership of the property. When they do, the home looks so bad that it fetches only 75% of what a normally maintained home in your neighborhood would get. To make matters worse, the new owner (investor) wants to rent it immediately for positive cash flow and the new tenants are less than desirable. The home's condition continues to spiral and before you know it, the neighbors start moving out. You can see where this leads....but there's hope IF you decide it's worth your time!

After the home has been abandoned, don't wait. Time is NOT on your side. Get together with your neighbors (like you've been saying you always wanted to do) and devise a schedule to keep the lawn mowed, the weeds pulled, the shrubs trimmed, and even the pool somewhat clean (which will be hard if there is no electric). Plan on sharing maintenance on the property for at least a year or more! However, with 4 - 8 immediate neighbors, it's easy to share the duties. Here are some of the benefits of maintaining a foreclosure property:

1. You will bond with your neighbors. Even if you meet every 2nd saturday to give the property a crewcut, you will get to know your neighbors in a way you probably never imagined. You'll find them just as concerned and just as ready to pitch in as you.
2. The foreclosure home will always be presentable. This is important for your home's value, the prospective buyers of the foreclosure, and even an EXCELLENT way to deter crime and vandalism, which is common with foreclosed homes.
3. You won't have to worry about rodents and other critters. A lawn that has not been mowed in months is a havens for rats, snakes (sometimes poisonous), and other animals, some which may prey on your pets. Keeping the foreclosure house's yard "beat Back" ensures this will not be a problem for you or your neighbors.
4. Keep chemicals in the pool. This may cost you some money (maybe $20 monthly) but the effects will be great. A pool left unchecked will turn black in a week and become a breeding ground for mosquitoes and other pests. These bugs will invariably drift around neighboring properties, increasing chances of transmitting diseases such as malaria (unlikely), West Nile virus, encephalitus, and other not-so-nice ailments.
5. You will keep your home's value up! Previous studies have indicated that for every foreclosure within 1/4 mile from your home, your property value will decline 1%. Now this was before the foreclosure flood, but it's not entirely unrealistic. While your property value may decrease because of the FORECLOSURE itself, I believe a well-maintained foreclosure home will almost always sell for more money than a foreclosure home in complete disrepair, which will affect you LESS!
6. Call your county code enformcement. They may not be able to do anything right away AND they are somewhat overwhelmed right now, but the county is an excellent means to ensure the property is somewhat maintained. The county can dispatch lawn maint crews to spruce up the home and then tack it onto a lien which must be paid BEFORE the home is sold. However, I would not depend on the county.

Ok, now there are some issues to consider before forming your neighborhood QRF (quick reation to foreclosure) force. First, ensure the property is actually abandoned. Piles of mail, old newspaper, and a vacant home are good indicators. Also, there is some liability with going on a property you don't own to perform maintenance, so you should seek county or legal guidance. If you get hurt, you will most likely have little recourse so don't undertake this without proper risk assessment. Also, do NOT break into the home...do what you can to secure it (boards over windows, lock doors, etc).

Extraordinary times call for extraordinary measures and the only one who can change the bleak foreclosure landscape in your neighborhood is YOU!.

Having quite a few listings stretching from 1 BR condos to 5 BR SFHs, I have gathered a few simple ideas to help sellers better PRESENT their homes and POSITION them to seller quicker and for more money!!! These things can be done ideally before your listing appointment with your realtor, but if it's after the fact, that's ok, too. Your realtor will probably want to reschedule photos and video for when the home is presented perfectly.

1. Trim bushes and low-hanging trees! Overgrown shrubbery and trees are a TRIPLE-whammy: 1) Buyers can't see alot of the house enough to fall in love with it 2) It will make your home look smaller than it is 3) Buyers will wonder what other home maintenance has been let go.
2. Keep your lawn manicured! I know this is hard in our water-conscious world, but having a lawn doesn't require as much water as one would think (except in a drought and buyers understand). Water in the early morning, pre-dawn hours and do this just 1 - 2 times per week to supplement regular rainfall. Keep the lawn mowed AND EDGED so it presents as nice as possible.
3. Keep that pool BLUE! Ok, it takes a little money to keep your pool in swimming condition, but for the $25 - $50 per month, you could realize $1000's in extra profit. A green/brown/black pool is SUCH a turnoff...the home could be beautiful, but the pool might turn off buyers completely.
4. Windows need to be cleaned and have screens! Dust/wash the inside and WASH the dirt off the outside. A clean window lets in more light which makes the house show better and who really wants to see the doggy drool on the glass????
5. Change your A/C filters regularly. Changing your A/C filters will accomplish a few things: 1) Will allow cleaner air to circulate the home 2) will remove some odors which is rule 1 of selling homes 3) will allow more cool air to circulate, which will keep your home cooler (rather than struggling to maintain a temperature).
6. Spring for the color! Don't hesitate to spend $100 and buy some beautiful flowering perennials. They will add some "pop" to your home's exterior and the Buyers will fall in love with it!
7. Clean your gutters! My personal favorite is the weeds that grow in seller's gutters. Seeing that, you know they haven't touched them in MONTHS, if not years! You may not think it a big deal, but it falls in line with the trimming - full, overflowing gutters can lead to major water intrusion issues. Let the Buyers know you worked hard to keep your home in tip top shape by keeping those gutters clean.
8. Pressure wash. Discolored, moldy walking surfaces leading to someone's house will set expectations in a Buyer's mind that MAY not be reversible. Hire a local person (or rent a machine from an equipment rental place) and you'll be glad you did.

Wow, what a busy week! I had an epiphany this morning when I was contacted by a client concerning a permit issue on their home. I simply went to PinellasCounty.org, found the building dept, called them, and had a list of permits emailed to me w/i 10 mins. Issue resolved. However, I realized that an non-local buyer or seller may have no idea where to start looking for answers to common questions. Here's a few numbers you shoud keep handy:

Pinellas County (www.PinellasCounty.org):

• Building Dept & Zoning 727-464-3888
• Permitting 727-464-3621
• Court Clerk 727-464-6171 (great for finding recorded Rules & Restrictions)
• Property Appraiser 727-464-3207 or www.pcpao.org
• Tax Collector 727-464-7777 or www.taxcollect.com (registering your vehicle)
• Pinellas Co Water 727-464-4000

Electric Co:

• Progress Energy 727-443-2641
• FP & L 800-226-3545
• Tampa Electric 813-223-0800

Cable Co:

• Brighthouse 727-329-5020
• Verizon FIOS 800-VERIZON
• Knology www.knology.com

Well, the summer rush has come to an end. Much like the peak we saw in 2006, we may have just experienced another peak (I believe future trends will bear this out) in our 2009 home buying trend. Our market has been having meaningful month over month gains, especially in our monthly ABSORPTION RATE, but that has come to an end with July's numbers. Absorption rates for each category - Tampa Bay area, Pinellas County, and the Beaches - all decreased in July compared to June's rates. I believe this to be a seasonal decrease and not indicative of a steeper market decline.

What did continue to go down was our inventory - YEAH! When our inventory gets back to pre-runup levels - less than 20,000 units and closer to 15,000 units - we will see home prices stabilize. Unfortunately, we are still at 28,000+ units. at our current rate of sale, there will be no price stabilization until AT LEAST Summer 2010...more likely END of 2010. It's not the best news, but it is the light at the end of the tunnel.

The Beaches continue to be extremely soft, compared with Tampa Bay and Pinellas County as a whole.

MLS MONTHLY REPORT July ‘09


TAMPA BAY AREA (tri-county) Homes Condos Total Units

Total Units Available: 19,354 9,261 28615

Total Units Pending: 3,243 973 4,216

Total Units Sold: 2,274 662 2936

Absorption rate: 11.75% 7.15% 10.3%

Avg Days on Market 101 days 106 days 102 days

Months of Inventory 8.5 mons 14.0 mons 9.7 mons

Sold vs List Price % 94% 91% 93%

Sold vs Original List Price % 82% 80% 81%


PINELLAS COUNTY Homes Condos Total Units

Total Units Available: 7,039 5,599 12,638

Total Units Pending: 1029 457 1486

Total Units Sold: 733 354 1087

Absorption rate: 10.4% 6.32% 8.6%

Avg Days on Market 85 days 110 days 93 days

Months of Inventory 9.6 mons 15.8 mons 11.6 mons

Sold vs List Price % 93% 89% 92%

Sold vs Original List Price % 85% 79% 83%


N. BEACHES (476-478, 370-375) Homes Condos Total Units

Total Units Available: 599 1535 2,134

Total Units Pending: 52 99 151

Total Units Sold: 32 86 118

Absorption rate: 5.34% 5.6% 5.53%

Avg Days on Market 115 days 151 days 141 days

Months of Inventory 18.7 mons 17.8 mons 18.1 mons

Sold vs List Price % 88% 90% 89%

Sold vs Original List Price % 81% 77% 78%