In The News | Real Estate Blog of Schecter Law, PA

Archive for the ‘In the News’ Category

Pending Home Sales are Improving in Florida

September 8th, 2010

Last week we discussed a potential silver lining in the condominium market. Well today I have more encouraging news to share.

Following the expiration of the home buyer tax credit, we saw a significant drop in pending home sales. This led to concern not only for Florida realtors but also for homeowners that have properties for sale on the market.

The National Association of Realtors recently released the Pending Homes Sales Index, which shows considerable improvement in pending home sales. I’m sure this modest uptick is welcomed news throughout Florida.

According to NAR‘s website, “the Pending Homes Sales Index is a report that is released during the first week of each month. The index measures housing contract activity. It is based on signed real estate contracts for existing single-family homes, condos and co-ops. A signed contract is not counted as a sale until the transaction closes. Modeling for the PHSI looks at the monthly relationship between existing-home sale contracts and transaction closings over the last four years.”

Do you have any silver lining real estate news you want to share with us? Tell us in the comments section below.

Tags: NAR, National Association of Realtors, Pending Home Sales Index
Posted in Broward Real Estate, Fort Lauderdale Real Estate, In the News, Miami Real Estate, National Association of Realtors | No Comments »

South Floridians Involved in Mortgage Fraud Ring

June 19th, 2010

By Mark Schecter | 1 Comment »

South Florida Business Journal is reporting that federal authorities have arrested 485 people nationwide that are allegedly involved in a massive mortgage fraud ring.

This three-month operation is being referred to as the “largest crackdown” in U.S. history.

Of those arrested, 86 people in Florida are responsible for nearly $80 million of the fraudulent mortgages. Many of those charged are accused of falsifying documents to secure loans.

President Obama’s Financial Fraud Enforcement Task Force – a group of 21 agencies launched in November – is heading up the operation.

The agencies are expected to enforce nearly 200 civil actions to recover nearly $150 million, in addition to the criminal charges.

Other criminal actions in South Florida include:

“Eleven defendants, including a mortgage broker a real estate broker, a loan processor, and eight straw buyers, were charged in a scheme to defraud nine financial institutions of approximately $11.25 million in fraudulent loans on 15 residential properties.

Thirteen defendants, including a loan officer, a title agent, recruiter, and straw buyers, were charged in a mortgage fraud scheme that resulted in the approval and disbursement of approximately $16.9 million in fraudulent mortgage loans, causing losses of $9.7 million to the lender.

Four defendants, including a mortgage broker, a loan processor, and a straw buyer, engaged in a $2.5 million mortgage fraud scheme to purchase properties in Broward, Palm Beach and Lee counties.”

South Florida Real Estate News: Week Ending April 24

April 24th, 2010

By Mark Schecter | No Comments »

Real Estate Market is Showing Signs of Recovery

The federal goverment recently reported gains in new home sales. This followed the National Association of Realtors recent report of a 6.8 percent increase in existing homes sales.

New home purchases rose 26.9 percent in March, the largest one-month gain in 50 years.

Here is a video from MSN on the rise in new home sales:

Visit msnbc.com for breaking news, world news, and news about the economy

Read more here…

Fannie Mae to Change Rules to Help Troubled Homeowners

If you have sold your home in a short sale or given your deed back to the bank, you may be able to buy another home sooner than you expected.

As of April 14, Fannie Mae has decided to change rules and allow homeowners that have had trouble keeping their homes to purchase again in 2 years.

“To qualify for a new loan in the minimum two years, most borrowers will need to come up with down payments of at least 20 percent. If they can only scrape together 10 percent for a down payment, the mandatory wait will revert back to the former four-year minimum. And if their down payments are less than 10 percent, the wait could be even longer.”

While the new rules will not take effect until July 1, homeowners are welcoming this good news.

Read more here…

Facts Florida Homeowners should know about Chinese Drywall

Whether you are a Florida homeowner or not, it’s likely you have heard the news about the Chinese drywall fiasco and subsequent lawsuits.

Recently, the federal government suggested that the drywall be removed and replaced to resolve the problem. This has led several Florida residents to question the drywall installed throughout their homes.

Here are facts you should know about the drywall problems that are setting off lawsuits all over Florida.

South Florida Real Estate News: Week Ending April 17

April 17th, 2010

By Mark Schecter | 1 Comment »

Foreclosure Filings are on the Rise

Since last month, foreclosure filings in Broward County have increased along with the foreclosure rate. As homeowners struggle to find work, they are finding it more difficult to make their mortgage payments.

“Broward had the eighth-highest foreclosure rate among Florida’s 67 counties, with one in every 127 housing units receiving a filing.”

In Broward, there are 6300 homeowners in the county facing foreclosure, which is up from 4600 this time last year. In Palm Beach, the foreclosure filings in March totaled nearly 4,000, which has doubled since April 2009.

Read more here…

Florida Senators Seeking Relief for Homeowners Affected by Chinese Drywall Litigation

Florida Senators have written letters to Fannie Mae asking the company to allow six months of mortgage relief for Florida homeowners affected by the Chinese Drywall problems.

This follows Fannie Mae’s decision to provide relief to the seven families awarded more than $2.5 million in damages weeks ago in federal court.

“Many homeowners with the problem drywall are concerned about possible health effects, though the government has yet to link the material to nosebleeds, respiratory problems and other reported symptoms. Some residents have moved out and are juggling temporary housing costs in addition to paying their mortgages.”

The senators are also asking that the homeowners’ credit ratings are not negatively affected by the drywall problems.

South Florida Real Estate News: Week Ending March 20

March 20th, 2010

By Mark Schecter | No Comments »

Broward County to Begin Online Foreclosure Auctions

Broward County begins a new era March 30 with online foreclosure auctions, a move expected to improve efficiencies and attract people worldwide who now can bid on homes in their bathrobes.

Broward, which had Florida’s third-highest foreclosure rate for February, will tweak its auctions based on lessons learned from Miami-Dade County, which moved the courthouse sales online Jan. 11. Palm Beach County auctions hit the Internet later that month.

Bidders must register for the online sales at Broward.realforeclose.com. Registration is free, but the county will charge a $60 fee to each winning bidder to cover the cost of automating the auctions. More than 1,000 people signed up as of March 18.

Shamrock Condominiums is Facing Foreclosure

Thirty-six units in the Shamrock Condominium conversion project in southern Miami-Dade County’s Kendall area face default.

FirstBank Florida, which is part of FirstBank Puerto Rico, filed a foreclosure lawsuit March 11 against C&R Properties at Kendall and managing member Carlos Chuman, according to Miami-Dade County Circuit Court records. It seeks $5.9 million outstanding from a 2007 mortgage, plus interest and fees.

Florida TaxWatch: Beware of Amendment 3

Florida TaxWatch issued a report Wednesday that finds most Floridians acknowledge that the Save Our Homes amendment is flawed policy.

The 1992 amendment to the Florida Constitution – which limits annual assessment increases to 3 percent – has resulted in “sometimes dramatically disproportionate tax burdens” among homeowners and is clearly “an unintended consequence of what has come to be regarded as a flawed policy,” the organization said.

The publication, titled “When Good Policies Go Bad: Unintended Economic Consequences of Assessment Caps,” says that, in 2008, voters expanded the policy to include non-homestead properties because business interests convinced the Tax and Budget Reform Commission that they carried a disproportionate share of the overall property tax burden. Amendment 1 set an annual 10 percent assessment increase limit for non-homestead property.

South Florida Real Estate News: Week Ending March 13

March 13th, 2010

By Mark Schecter | 1 Comment »

Home Buyer Tax Credit Deadline is Approaching

The deadline to used the home buyer tax credit is fast approaching. The $8,000 tax credit has been an incentive for people to purchase real estate. However, with the upcoming April 30th deadline, more and more new homebuyers are getting anxious about whether they will be able to benefit from the tax credit.

This has real estate agents split about the home buyer tax credit. Some agents have expressed concern about new homeowners rushing to buy homes they normally wouldn’t buy; while other agents hate to see the tax credit incentive expire.

Homeowners Walking Away from Mortgages

More and more homeowners are walking away from their homes due to plummeting property values. It can take Florida homeowners years (or decades) to recover the equity lost during the real estate market crash.

This is a sad truth that is compelling people to cut their losses and leave their homes behind by way of strategic default. Although the consequences can be severe, some homeowners believe the risks are worth leaving behind this financial burden.

Condo Associations Are Thrown a Lifeline

Reverse foreclosures are helping homeowner associations collect overdue maintenance fees. This is a topic that has been in the news a lot lately. Some homeowners have been refusing to meet their obligations to the condo associations.

Now, reverse foreclosures are being used as a tool to help them collect. How does this work? After a homeowner refuses to pay their maintenance fees, the association can file a foreclosure notice and secure the home’s title. While the association is unable to sell the property due to the bank’s lien, it can later collect from the bank.

South Florida Real Estate News: Week Ending March 6

March 6th, 2010

By Mark Schecter | No Comments »

Pending Homes Sales Up in South Florida

Pending home sales in Miami-Dade and Broward counties were up in February, as low prices and a tax credit for first-time home buyers appeared to drive sales.

In Miami-Dade, the number of people who agreed to purchase a home in February was up 9 percent versus January at 9,164 homes and condos. Compared to year-ago levels, the number of pending home sales was up 61 percent, the Realtor Association of Greater Miami and the Beaches reported Thursday.

In Broward County, pending home sales increased 4.7 percent versus January to 7,791 homes. Compared to last year, pending sales in Broward were up 62 percent.

Read more here…

Foreclosure Statistics in South Florida Dropped

The number of foreclosures in South Florida this week dropped to 1,871 from 2,320 in the same week last year, according to data from Condo Vultures Realty. Year-to-date, the number of foreclosures dropped to 14,314 from 16,686 at the same point last year. The graph below shows foreclosure activity in South Florida’s three counties.

foreclosurerates

Read more here…

Commercial Upgrades in South Florida’s Office Sector

The bottoming out of the commercial market in South Florida has some businesses taking advantage and upgrading office space.

That’s especially true in downtown Miami and the office market near Miami International Airport that combined have around 2 million square feet of Class A office space coming on the market in 2010.

“You have new supply added and you have new opportunity,” said Bob Orban, senior vice president and branch manager at tenant representative advisory firm Studley.

In some cases, Orban said, tenants are moving up to Class A office space from Class B or Class C. In other instances, tenants are moving within the same class but to a newer building or renovated space. And they’re finding landlords willing to give them free months of rent or paying moving costs.

South Florida Real Estate News: Week Ending February 26

February 27th, 2010

By Mark Schecter | No Comments »

Mortgage Fraud Summit in South Florida

The first mortgage fraud summit will take place in South Florida. The Financial Fraud Enforcement Task Force chose Florida because it is among the worst states in the nation when it comes to the mortgage fraud crisis. According to a recent report from U.S. Financial Crimes Enforcement Network, South Florida is number one for residents involved in mortgage fraud related activity.

The agenda of the summit lists not only fraud schemes, but also predatory lending and other criminal acts against current and future Florida homeowners. Currently, there are 23 task forces at work in our nation and 67 mortgage fraud groups.

Hundreds Turn Out for Mortgage Modification Seminar

During a recent loan modification seminar, the Palm Beach County Convention Center was extremely busy and packed with homeowners desperately trying to modify their mortgages. There were people from Florida, the west coast and mid states in attendance.

Many homeowners are feeling the financial pressure and attended the seminar to get answers to their questions along with some sort of relief from the steep prices and terms that they have to deal with.

Some lenders’ failure to be straightforward with their clients and discuss their options has led many homeowners to seek help through seminars and conventions. Although travel costs can be expensive, the end result may be worth it if these individuals are able to modify their mortgages and/or discover better options.

Florida Cracks Down on Home Loan Rescue Companies

State regulators in Florida are cracking down on unlawful loan mortgage rescue companies. Several operations in South Florida have been ordered to stop their practices immediately due to recurring illegal activity.

As of January 1st 2010, loan modifiers, originators and lenders were all mandated to have a state mortgage broker’s license. As for upfront fees, they have been prohibited since 2008 although some businesses continue to operate by disobeying these laws. This is a welcome enforcement that will likely ease the minds of South Florida homeowners.

South Florida Real Estate News: Week Ending February 20

February 20th, 2010

By Mark Schecter | No Comments »

foreclosurenextexit

Foreclosure Rates in Florida Continue to Rise

It is no secret that Florida leads the nation in foreclosures. We’ve discussed foreclosures on this blog here and here. In 2009, Florida had its worst year on record for foreclosures in the region. By the end of 2009, the foreclosure rate was up 44% higher than the previous year.

The Mortgage Bankers Association of America recently released a quarterly survey showing a decline despite small improvements around the nation. This latest news has some people worried about the alarming statistics, while others remain hopeful that this foreclosure crisis will turn around.

Read more here…

Help for Fort Lauderdale Homeowners Facing Foreclosure

Chase is hosting a five day Homeownership Assistance Event in Fort Lauderdale from February 25th through March 1st to discuss options available to struggling homeowners that are facing foreclosure.

Chase hopes to provide needed solutions to current problems. This is good news for those that are finding it difficult to make timely house payments.

This five day event will be held at the Embassy Suites Hotel at1100 SE 17th in Fort Lauderdale from 8 am until 8 pm each day. For more information, interested parties should review this article.

Read more here…

Should Condo Associations Give Owners Notice Before Assessing Penalties?

Condominium associations have been in the news recently as some condo owners grow impatient with other owners that, despite being delinquent on their association and maintenance fees, continue to enjoy and benefit from the same luxuries as those that pay their dues on time.

As discussed last week, two bills (House Bill 329 and Senate Bill 1196) were introduced that if passed would assess penalties on condo owners that fall behind in their association and maintenance fees. These bills have been gaining support since they became public knowledge.

In response to these bills, delinquent owners have been striking back alleging that it is unfair to punish or restrict them without proper notice. They have introduced a new bill to protect the delinquent condo owners. Bill S.B. 968, if passed, will force condo associations to send out notices to delinquent owners before any penalties can be lawfully enforced against the owners.

The two sides of this issue are definitely heating up. We will keep you posted of any developments.

South Florida Real Estate News: Week Ending February 13

February 13th, 2010

By Mark Schecter | No Comments »

Can Court Ordered Mediation Reduce the Foreclosure Rate?

According to recent statistics released by the Florida Supreme Court, foreclosures in the Tri-County area are on the rise. In 2009 alone, more than 143,000 home mortgages fell into default. Since then, foreclosures are up 13.2%.

The Miami and Fort Lauderdale areas were among the top 10 locations in Florida with the highest foreclosure rates. Another report released recently, also indicates Florida has the second highest foreclosure rate in the nation. This means that this problem may be affecting the local economy statewide.

So, what’s being done? In a word, mediation.

Due to overwhelming number of foreclosure lawsuits, Supreme Court Chief Justice Peggy A. Quince ordered every circuit court in Florida to create a mediation program to put in place for individuals involved in the foreclosure process. This is an effort to resolve disputes between owners and lenders without the need for a long, drawn out litigation process.

Prior to participating in mediation, homeowners will be required to undergo foreclosure counseling. This allows them an opportunity to get a better understanding of what they should expect in the process. The new mediation rule may significantly reduce the burdens felt by the borrowers and the courts, and have a positive impact on the foreclosure rate in Florida.

Read more here…

Florida Condos Target Delinquent Owners

Many condominium owners in South Florida are growing tired of neighbors that refused to pay maintenance fees and maintain their properties, but still get to enjoy the same amenities as owners that timely pay the fees they’re responsible for.

While associations are on the hook to pay their bills, delinquent owners are able to watch free cable TV paid for by the association, elect board members and even collect rent from tenants without forwarding a dime to the association they owe money.

There seems to be a general consensus among the condominium owners that struggle to make sure all of their fees are paid in full, and that’s delinquent owners are taking advantage of the condo associations. And, this is not fair to those struggling every month to pay their share to the associations.

As a result of this growing concern, two bills are on the table to stop condo owners from neglecting their obligations. Those bills are:

House Bill 329 – This bill is specifically designed for condo associations, and is sponsored by Rep. Julio Robaina.
Senate Bill 1196 – This bill is designed to address condo and homeowner associations, and is sponsored by Senator Mike Fasano.

If these two bills are passed, the law will be amended to limit the amenities delinquent condo owners receive, and assess strict sanctions on people that fail to stay on top of their payments.

The restrictions that will be put in place could prevent delinquent owners and their tenants from accessing the swimming pools, clubs, etc, and also take away their right to vote at board elections. Most condo owners welcome the Senate and House bills and are happy to see something being done to curb this delinquent behavior.

Archive for the ‘In the News’ Category

Real Estate Market is Showing Signs of Recovery

Fannie Mae to Change Rules to Help Troubled Homeowners

Facts Florida Homeowners should know about Chinese Drywall

Foreclosure Filings are on the Rise

Florida Senators Seeking Relief for Homeowners Affected by Chinese Drywall Litigation

Broward County to Begin Online Foreclosure Auctions

Shamrock Condominiums is Facing Foreclosure

Florida TaxWatch: Beware of Amendment 3

Home Buyer Tax Credit Deadline is Approaching

Homeowners Walking Away from Mortgages

Condo Associations Are Thrown a Lifeline

Pending Homes Sales Up in South Florida

Foreclosure Statistics in South Florida Dropped

Commercial Upgrades in South Florida’s Office Sector

Mortgage Fraud Summit in South Florida

Hundreds Turn Out for Mortgage Modification Seminar

Florida Cracks Down on Home Loan Rescue Companies

Foreclosure Rates in Florida Continue to Rise

Help for Fort Lauderdale Homeowners Facing Foreclosure

Should Condo Associations Give Owners Notice Before Assessing Penalties?

Can Court Ordered Mediation Reduce the Foreclosure Rate?

Florida Condos Target Delinquent Owners

Are you leaving your Florida business vulnerable? Find out!