Loan Modifications and Short Sales

I come across many Miami homeowners that are trying to get their mortgage loans modified. I hear over and over again what a nightmare it is to get this accomplished. I recently tried to help a dear friend of mine and it opened my eyes on how difficult and time consuming this process is. Don't get me wrong, many succeed, but it's a tedious endeavour. We started a year ago submitted the required paperwork, every time I made contact they asked for more documentation, none that were originally on their list of required documents. We went over and over with this situation. All the documents are sent via fax, I use http://www.myfax.com/ and I have confirmation of all the paperwork that was sent and successfully received by the lender, but of course, many of these transmissions are lost in their system! Every time I spoke to a customer service rep or even an account manager (person handling your file), they all contradict themselves. For instance, some say that the sale date is on hold, others explain that the sale date is never on hold until the modification is approved. I participated in a meeting with account managers from Bank of America, several months ago, and I remember them saying that during the short sale process the property continues going through the foreclosure proceedings and it's not put on hold. But, then again, you get different answers from everyone that you come in contact with.

Another thing that you must keep in mind is that once your mortgage is in default they expect the full amount, plus the late fees, all in one lump sum. For instance, if you are behind on your mortgage payment for six months, they require the full six months plus the fees all at once, in order to bring your loan current. No payment plans will be considered, so every homeowner must think twice before defaulting, because there is no turning back!

I saw this video a few months ago referencing Modifications and Short Sales, it's quite interesting:

This makes a lot of sense, doesn't it?

Anyhow, I really feel for these homeowners who are struggling to get these modifications approved. I can't wait until this mess is all cleared up, maybe once it's over, everyone will know the correct way of working these accounts.

Downtown Miami is looking a lot like Hollywood California!

Downtown Miami is looking a lot like Hollywood California with the filming of Rock of Ages with Tom Cruise, Alec Baldwin, and Mary J. Blige. The stretch of North Miami Avenue between 13th and 14th street has been busy with activity as crews recreate a replica of a 1980s famous Sunset Boulevard. The current renovations are nothing short of movie magic. Crews have gutted, constructed, and painted formerly rundown buildings in order to mirror the real thing. You will see a transformation including locations such as the Bourbon Room, Frederick's of Hollywood, The Comedy Store, amongst others. It's thrilling to see this happening in our Downtown Miami neighborhood.

This is great for the City of Miami, especially for Downtown Miami which has been runned down for too long. It was time for our area to shine. This will bring a new wave of films our way and make our city stand out. I love living in Downtown Miami, it's such an exciting area. I hope to get a glimpse of the magic of movie making. I will keep you all posted on my adventure.

Production crews will remain on 14th street until August. Keep your eyes out for the celebs.

Strategic Default and Foreclosures

I came across this article pertaining to strategic default, (the decision by a borrower to stop making payments on a debt despite having the financial ability to make the payments)these borrowers decide to walk away and let the property go into foreclosure:

Fewer borrowers strategically defaulting
NEW YORK – June 27, 2011 – The percentage of borrowers who walk away from their mortgage despite still being able to pay is shrinking. Yet strategic defaults still account for nearly one-fifth of serious mortgage delinquencies, HousingWire reports.

About 17 percent of all mortgage defaults that are 60 days or more past due in the second quarter of 2010 were strategic defaults. In the second quarter of 2008, that percentage peaked at 20 percent — which is more than double the number of strategic defaults in 2006, according to a study from Experian, a credit reporting agency, and Oliver Wyman, a consulting firm.

Strategic defaults tend to be more common with borrowers who have jumbo mortgages and have higher annual incomes, according to Experian.

In the second quarter of 2010, 30 percent of strategic defaulters earned more than $150,000 a year, and only 9 percent earned less than $40,000, Experian reports. Furthermore, 33 percent of delinquent mortgages were on homes more than $1 million. For comparison, only 6 percent of homes priced at $50,000 were attributed to strategic defaults, Experian notes.

Experian notes borrowers with more expensive homes and higher incomes may be more financially savvy and be able to take the impact to their credit score more so than other types of borrowers.

As home values began to dip in 2007, more borrowers became underwater on their homes, causing some to stop paying their mortgage and walk away from their home.

Strategic defaults in general “aren’t likely to decline much unless residential housing prices increase and remain at higher levels,” according to the report. “Homeowners have to see for themselves that their neighbors’ houses are selling for higher prices.”

Source: “Overall Strategic Default on the Decline,” HousingWire, (June 23, 2011)

Insurance for Rental Properties

In Downtown Miami, as well as in many areas in Florida, many buyers are purchasing for investments and renting the properties. In the other hand, many current homeowners are loosing their homes, forcing them to rent and many tenants are being asked to move due to foreclosures. This article will give you an insight on the differences in rental insurance. In Miami condos, the interior is not insured by the condo association which pays your homeowners policy, only the exterior is covered. If something happens inside, you have to replace it and it's money out of pocket, unless you are insured. To be a landlord, you have to educate yourself, it's not as easy as purchasing and renting, there is a lot involved.

Please read on, and being a landlord myself, if you have any questions just ask.

• 

  Understanding Landlord Insurance

  Turning your home into a rental or buying an investment property? Expect to pay up to 20% more for the right insurance policy to protect your property. Read

Visit houselogic.com for more articles like this.

Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®

Miami Dade Property Taxes

It's amazing how many homeowners seem to be paying higher property taxes than they should. Where I live at Loft2 in Downtown Miami, I see property taxes as high as $4000. I understand that if the property is not owner occupied the taxes would be higher but not this high, especially when the values have decreased significantly! It's sad that so many homeowners in the Miami Dade County area, do not actually fight these tax rates or are not aware that they are so high. Homeowners, whether investors, or primary residents, need to be aware of the market values, especially during the changing market that we are all experiencing. Many homeowners are experiencing financial difficulties and just lowering their properties taxes will make a difference.

I read an article in the USA TODAY where it states:

From Florida beachfronts to Nevada deserts, fed-up homeowners are challenging property tax bills that have stayed high despite the housing crisis. Retiree Carol Schneider, 63, of Ferguson, Mo., never saw herself as a tax rebel: "In the past, I just paid my taxes whether I agreed with them or not," she says. "But the last tax bill increased so much ... I decided to fight it." She prevailed, persuading St. Louis County to cut her tax bill in half.

Homeowners need to start educating themselves and start looking at the numbers. If you believe that your property taxes are high do as Carol Schneider did, fight for your rights! My friend, also fought her taxes in Miami Dade County, it took her a long time to get a hearing, she felt frustrated with the county clerks that she encountered but she moved forward and her case was heard. I myself, fought my property taxes in Broward County two years in a row and yes, they were lowered and this was on an investment property.

My suggestions: Read your tax bill, ask a local realtor to check the sales and give you the market value for that year, get your gear together and fight! We need to let the property appraisers office know that we do know what is going on, that we are educated.

Downtown Miami Rentals

Downtown Miami real estate rentals are up, as in every other city in Florida.  Potential tenants need to know that not too many homeowners in the Miami rental market are willing to negotiate prices. The prices that are listed are mostly firm so as a suggestion from an experienced Downtown Miami Realtor if you can't afford the listing price do not even bother viewing it. Of course, you can always negotiate the price but make sure that you can afford the listing price not to be disappointed. 

The average price in the area is $1200 for a loft unit at Loft2 in Downtown Miami, this is a studio with an average of 650 square feet, in other buildings such as 50 Biscayne the average price is $1400 for the same square footage. The Ivy, also located in Downtown Miami average price for 750 square feet is $1450. When looking for a two bedroom unit the prices rise to $1600+ average. Many potential tenants think that because of such high real estate inventory in the Downtown Miami area that the prices are lower but in reality, they are not. Many homeowners and tenants are being forced out of their homes due to foreclosures and many need to rent, this brings the demand for rentals to a new level.

Be honest about what you can afford, this way you will not be disappointed.

Christmas Tree Lighting 2009 Downtwon Miami

What wonderful weather for the traditional Christmas Tree Lighting in Downtown Miami at Bayfront Park. The festivities included Christmas Carols and the spectacular tree lighting!

Come and visit Downtown Miami, take a walk at Bayside Market Place, eat, shop and take a wonderful walk to Bayfront Park to see our wonderful Christmas tree. Enjoy the wonderful winter weather that Miami has to offer. Also, take a look around at the wonderful highrises including Downtown Miami businesses as well as Downtown Miami condos such as 50 Biscayne, The Everglades, Marina Blue, 900 Biscayne Bay, and Ten Museum.

Here is a preview:

I love Downtown Miami living, what is there not to love.

Let me know if you are also interested in the Downtowm Miami Living experience, call me 305-951-3588.

"zmiami like a native!"