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Buying Mortgage information

Good-Faith Estimates To Improve Dramatically

On January 1, 2010, new rules adopted by the Department of Housing and Urban Development go into effect.  These ruleshudseal_teal_1 are going to give borrowers a much more realistic estimate of what their closing costs are going to be so there are fewer surprises at the closing table.

  • Good-faith estimates will now be on a uniform form, so borrowers can more easily compare settlement fees and loan charges among lenders.
  • The form will break-down fees into three categories:  those that can’t increase from original estimates, those that can increase by as much as 10% and those that the lender has no control over.  Fees that can increase up to 10% are limited to a total 10% in that category so, if at closing, two items increase by 10%, the most the borrower will pay is the 10%.

Although the new rules do not guarantee a borrower’s actual closing costs will be exactly what the good-faith estimate states, it will be a lot better and closer to reality than many of these estimates currently are.  The fact that these new uniform good-faith estimates are also going to be included in a new HUD-1 will allow borrowers to compare what they were told with the actual charges.  The new HUD-1 will also break out the title insurance premiums so that the borrower can see what percentage is going to the insurance and what portion is a fee to the title agent.

What should you do if you are shopping for a mortgage now and plan on purchasing a home before the new rules come out?  Use HUD’s shopping for a mortgage brochure to get you started.

Categories
Buying Selling

First Time Homebuyers Tax Credit Extended and Improved

tax credit 2What does the bill that President Obama signed into law on Friday mean to you if you are a first time homebuyer?  It means that you did not miss out on the First Time Homebuyers Tax Credit and may be able to qualify for it now, even if you didn’t before.  Why?  Because the new First Time Homebuyers Tax Credit:

  • expanded the credit to higher income individuals and married couples,
  • expanded the credit to existing sellers who are looking to move up or downsize their primary residence as long as  they owned and occupied the residence for five consecutive years out of the previous eight,
  • extended the deadline until April 30, 2010 to be under contract as long as closing takes place by June 30, 2010

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Florida Life Freebies Neighborhood News Resources

South Florida Farmer’s Market Opens Today!

The Yellow Green Farmers Market, South Florida’s largest farmers market, opens today in Hollywood, Florida.  Spend the day visiting some of the more than 300 vendors, snack on goodies, and buy natural products by local vendors..

Categories
Buying Foreclosures

Foreclosures: Are They A Good Deal?

foreclosure 1e With so many foreclosures on the market today, many buyers think they can get a good deal in a foreclosure.  Sometimes foreclosures are not the best deal.  This apartment was stripped bare, including the entire kitchen, all bathroom fixtures, the doors, baseboards, even the air conditioner was ripped out!  There was no way to do an inspection.

To minimize his risk, the buyer had several contractors come through to determine the cost of replacing everything and took those costs into account in his offer to the bank.  His offer was accepted and he got a very good deal compared to the price of other recent sales in the building.

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Buying Foreclosures Market Summary Selling

Miami Real Estate – Single Family Homes Market Summary

Below is a quick snap shot of what the real estate market for single family homes looked like in October.  These numbers are derived from the Multiple Listing Service and though they do not include For Sale By Owners and anything not listed on the MLS, they are indicative of what is going on in our local markets.  The closed sales may be slightly underestimated due to the lag time in posting the sale in the MLS.

Coconut Grove

  • Closed Sales: 14.  3 short sales, 1 REO. Highest Sales Price: $1.7 million. Lowest Sales Price: $154,900.
  • Pending Sales: 22
  • Active Listings: 177 down from 217 at end of Sept.   Highest List Price: $18 million. Lowest List Price: $65,900.
  • Summary: Inventory is down from the end of the third quarter.

Coral Gables

  • Closed Sales: 33.   1 short sales, 2 REOs.   Highest Sales Price: $5.15 million.  Lowest Sales Price: $358,000.
  • Pending Sales: 89
  • Active Listings: 432.  Highest List Price: $49.5 million.  Lowest List Price: $235,000
  • Summary: Inventory  decreased to 432 down from 450 at the end of  the third quarter.   The number of closed sales that were short sales or REOs are down significantly from the end of the third quarter, when there were 11 each closed short sales and REOs.

Key Biscayne

  • Closed Sales: 3.  0 short sales, 1 REO.   Highest Sales Price: $3.5 million.   Lowest Sales Price: $820,000.
  • Pending Sales: 4.
  • Active Listings: 129.   Highest List Price: $24.950 million.   Lowest List Price: $789,000.
  • Summary: Sales are down, inventory is the same as of the end of the third quarter.

Miami Beach

  • Closed Sales: 13.  No short sales, 4 REOs.  Highest Sales Price: $9.7 million.  Lowest Sales Price: $240,000
  • Pending Sales: 53
  • Active Listings: 380.  Highest List Price: $29.9 million.  Lowest List Price: $200,000.
  • Summary: Inventory has decreased slightly.  The number of closings that were short sales or REOs have decreased significantly since the end of last quarter.

Palmetto Bay

  • Closed Sales: 6. 1 short sale, 1 REO.   Highest Sales Price: $625,00. Lowest Sales Price: $142,600.
  • Pending Sales: 52
  • Active Listings: 154.  Highest List Price: $2.85 million. Lowest List Price: $155,000.
  • Summary: The number of closed sales due to short sales is down significantly from the end of September.

Pinecrest

  • Closed Sales: 14.  1 short sale and 2 REOs.  Highest Sales Price: $2.6 million.  Lowest Sales Price: $419,000.
  • Pending Sales: 35
  • Active Listings: 211.  Highest List Price: $5.9 million. Lowest List Price: $349,000.
  • Summary: Although the inventory in Pinecrest decreased slightly from 227 at the end of  September to 210 at the end of October, the current inventory level divided by the number of sales closed in October result in a 15 month supply of properties.  The median price of current listings is $1.395 million and 30% of the listings are over $2 million.

South Miami

  • Closed Sales: 3. 0 short sales, 1 REO.   Highest Sales Price: $325,000. Lowest Sales Price: $266,000.
  • Pending Sales: 30
  • Active Listings: 68.  Highest List Price: $1.880 million. Lowest List Price: $62,300.
  • Summary: The number of closed sales is down slightly from the second quarter, which had 28 closed sales.  Inventory is up from 28 at the end of June.


Categories
Freebies Neighborhood News South Miami

South Miami Art Festival

South Miami Art FestivalIt’s that time of year again…Art season in South Florida.  After visiting the South Miami Art Festival, stop by one of the great local restaurants in South Miami.  Blu has great pizzas and salads, Town Kitchen and Bar has great calamari, salads, sandwiches and mixed menu, and Cafe Pastis has mussels, quiches, and an extensive French menu.

Categories
Selling

Transportation is Going to the Dogs, Literally!

Doggie BusDoggie BusI love seeing the Doggie Bus on its route home. !

Categories
Buying Market Summary Selling

Miami Real Estate Market – Pending Sales, What Do They Really Mean?

pending sale signThe National Association of Realtors reported a 21.2 percent increase  in pending home sales for the month of September. This is the 8th consecutive monthly gain so, what does that mean in terms of the real estate market?  The answer, as always, is it depends on the location.  The NAR number is a national number so it takes in the number of pending sales across the country.  There are some areas of the country, such as the Northeast, that had a decrease in pending sales  from August to September.

On a national basis, the increase in pending home sales bodes well for the housing market since most pending sales result in closed sales within 1 – 4 months.  If you are currently trying to buy or sell real estate, you need to look at what all the numbers are doing in the location where you are buying or selling.  In addition to looking at pending and closed sales; look at the inventory;  price per square foot of listings, pending and recently closed sales; and the number of short sales and foreclosures in each category.  All of these numbers will give you a good picture of what is going on in your market and will guide you in your offers if you are a buyer and your pricing if you are a seller.

Categories
Selling

The Short Sale Process For Sellers

If you are selling your property and you owe more on your mortgage than the property is worth, you will have to do a short sale.  The following documents are going to be the minimum required by your lender to determine whether they will approve a short sale.

  •  Hardship Letter – explain in detail what your hardship is.  Include your name and loan number in the letter.
  •  Tax Returns  from the last 2 years
  •  W-2’s from the last 2 years
  •  Bank Statements (2 most recent months)
  •  Payroll Statements/check stubs from employer (2 most recent months)
  •  Financial Statement listing all of your assets and liabilities.
  •  Recent mortgage statement or coupon showing balances.  Include loan number, monthly payment, and the name/address of all mortgage /lien holders.
  •  Listing Agreement if you are selling your property through a Realtor
  •  Sale and Purchase Contract executed by Seller/s and Buyer/s
  •  Loan Commitment/Approval Letter received from Purchaser
  •  Preliminary Net Sheet (HUD-1)  prepared by Closing Agent)
  •  A Comparative Market Analysis (to be prepared by Listing Agent
  •  Any additional documents required by Lender/s to be submitted

The short sale process takes a long time, so in addition to having all of the above-mentioned paperwork you will need to have patience.  EWM Title has a lot of experience doing short sales and has created a short sale package to assist you.

Categories
Neighborhood News Pinecrest

Romero Britto, Andy Warhol and Local Artists Featured At Pinecrest Gardens

A Community Foundation of Pinecrest art exhibit and fundraiser is scheduled for November 7 at Pinecrest Gardens. Please click on the invitation for details and ticket information.  Proceeds will go for improvements at Pinecrest Gardens.