Happy New Year!

Phew!!  The last 12 months have been somewhat eventful – a new president, banks going out of business, the Stock Exchange at an all time low, and the housing market crashing………

Many of us have been affected by one or more of the above. And like the government and banks, we have been unsure which way to turn.  With the New Year starting, we are all a little wiser and reassured that things can only get better.

Today’s Market

The real estate market has been very prominent in the media over the last two years, with prices plummeting and record number of foreclosures.  The banks have never before had to deal with such volume of real estate on their books and this has in some cases been their downfall. 

We are continuing to see a high volume of Short Sale properties entering the market and there are still a number of realtors and banks out there still educating themselves to deal with the volume.  Wells Fargo, Bank of America and JPMorgan Chase are hiring and training more staff, developing software systems for expediting short sales and increasing their marketing of short sale options to delinquent borrowers.

Experts predict that this first quarter will see an increase in activity due to historically low interest rates and everyone trying to beat the $8,000 Tax Credit deadline of June 30, 2010.  Sellers will face a busier market as early as February. So now is the best time to sell your home.

Proposed Treasury’s Plan

The Treasury and the Government are now insisting that the banks need to get organized and do whatever is necessary to keep homeowners in their homes. They are proposing that the Treasury would pay up to $1,500 for a homeowner to relocate, $1,000 to loan servicing companies that accept a sale and a maximum of $1,000 to help settle a second mortgage or subordinate lien.  The lender must agree to release the borrower from all liability of repayment of the balance for the mortgage, under the proposed Treasury plan.

Tax Credit

The $8,000 tax credit certainly helped young and first time buyers get into the housing market.  The extension issued in November will help the market continue to move during the first quarter of this year.  Buyers are taking advantage of the Tax Credit and historically low interest rates. This will help reduce the inventory and stabilize the house prices.

Sarasota Market

In December 2009, Sarasota recorded the highest number of sold transactions since March 2007. Short Sales and REO/bank owned properties impacted the Sarasota market in 2009.  Distressed property sales accounted for 40% of all sales compared to 21% in 2008.

Foreclosure and Short Sales

An estimated 7 million foreclosures loom in the next two to three years, according to RealtyTrac.  Foreclosure filings are still up 18% from a year ago and a new wave is expected this year as unemployment remains high and borrowers fall out of loan modification programs. More than half of the loan modifications of delinquent mortgages re-default within a year, according to a report by the Office of the Comptroller of the Currency.  The underlying problems are still there so the foreclosure crisis is likely to get worse before it gets better. More than 14% of homeowners with a mortgage are either late on their payments or in foreclosure and that number is expected to keep rising as unemployment remains stubbornly high.

Short Sale properties can benefit a neighborhood because they clear out stagnant homes and bring in fresh owners with intentions of improving.   It also releases the homeowner from a lien(s) that they are unable to pay due to a hardship, without hurting their credit score too much.

Credit Score

A borrower’s credit history after a short sale is typically reported as “settled” and considered as severe as a foreclosure. According to Minneapolis-based FICO Corp, it may drop a credit score of 780 to 620. 

I hope this information has been useful to you. If you know someone that is struggling with their mortgage and a short sale may be the way forward. Please do not hesitate to give them our contact details.  We are happy to help!

Murray Realty would like to wish everyone a Happy Holiday Season and a safe and Happy New Year!

Are you protecting your home ??????

 
As we enter into the cooler weather and with it the end of the hurricane season, we can be thankful for a quiet year during 2009. Not once this year did we have to stop work at our job sites and prepare the half-built structures for a possible “big wind”. Not only is this good news for our tourist trade and local economy, but it allows the CAT Fund, underwritten by Florida taxpayers, to carry over to next year without paying out for a natural disaster. Yet more importantly, it is good news for all of those homeowners that live in our county and don’t have adequate protection within their homes to defend against hurricane force winds.

 
If you have ever seen first hand the absolute devastation following a major storm such as Andrew, Charley or Katrina, you would immediately take steps to inquire howyou could prevent that damage from happening to your home.

 
In a hurricane, the pressures on a house are enormous.  If a window or door breaches, it is the differential in pressure that causes a sudden rush of air into the house that then blows out garage doors, windows and French doors, lifts drywall from ceilings and causes roofs to fail with catastrophic consequence.

 
All of the waterfront homes that we have built since 2001, when the new impact code for new construction was passed, include the most stringent forms of protections against wind, weather and surge. Masonry and exterior frame walls have all been beefed up to withstand impact and uplift pressures; new construction homes are required to be built above the relevant flood plain, thereby combating flood waters and surges; but by far, the best form of protection for a house is to install either impact windows or shutters.

 
Impact windows are designed with toughened glass to protect against hurricane force winds and flying debris. In addition, they provide security against intruders, dramatically reduce outdoor noise and can filter out over 90% of UV light. The negative side to impact windows is the cost of the window itself and the cost of installation.
A versatile alternative is to install shutters on your home’s openings. Depending upon your budget, the design of your house and the ease of installation, there are many types of shutters to choose from including Lexan panels, rolling shutters, accordion shutters, Armor Screen and Bahama or Colonial shutters.

The evidence is clear. When news cameras flew over the devastation of Hurricane Charley, it was shockingly apparent which houses had been built to the new FEMA codes and which houses had no defense against the destructive 145mph winds.

 
Having just survived another hurricane season, now is the time to assess what you can do to ensure that your home survives many more.

 
Murray Homes is a Certified Building Contractor #CBC1250846

SHORT SALE OR FORECLOSURE?

Listed below are the options?

1. Do Nothing – Not the best option, this will generally end in foreclosure.
2. Payoff/Refinance – Completely pay off the loan or refinance.
3. Reinstatement – Paying the entire default amount plus interest, attorney fees, late fees, taxes, missed payments and fees.
4. Loan Modification – Utilizing the existing mortgage company to refinance the debt or extend the terms of the loan.  To do this you need to qualify with the lender.
5. Forbearance – Lender may be able to arrange a repayment plan based on the homeowners financial situation.  Temporary payment reduction or suspension of payments.
6. Partial Claim – A loan from the lender for the 2^nd loan to include back payments, costs and fees.
7. Deed in Lieu of Foreclosure – Give the property back to the bank instead of the bank foreclosing.  Generally need to be up to date with payment and home has been well maintained.  This is not available if there are two different lenders.
8. Bankruptcy – This option can liquidate debt and/or allow more time. Bankruptcy lawyers can advise.
9. Short Sale – If the property has no equity, also know as a pre-foreclosure sale, can be negotiated with your lender by a Real Estate Professional if the amount owed is MORE than the property’s value.

Murray Realty has made this our priority to keep up-to-date and informed, with the current requirements for the Short Sale market.  We can help you decide which is the best path for you and also, assist you with selling your home and negotiating with the bank.  During this time we recognise that this is a very emotional and stressful time and we work hard to make the transition as smooth as possible.

August 2009 saw an almost 20 percent increase in local property sales than reported in August 2008, most likely fueled by the $8,000 first-time homebuyer tax credit, an economy in the midst of recovery after a two-year recession, and continuing low interest rates.

Total sales nearly reached the 500 level again, with 496 properties changing hands. The total included 382 homes and 114 condos. This compares to 329 homes and 86 condos sold in August 2008, for a 19.5 percent increase from last year at this time. The total was an expected drop from the July 2009 overall sales of 595, due to the traditional slower summer season. But the fact that sales did not dip as low as last year brought a sigh of relief from most local real estate brokers.

Most of the statistics continue to point to a market in the initial stages of recovery. Inventory levels continued to decline. There were 3,949 single family homes for sale at the end of August, compared to 4,067 for sale at the end of July, and down 11.8 percent from the 4,477 at the end of June. Condos experienced a similar decline, to 2,343, from 2,447 at the end of July and 2,587 at the end of June. Inventory remains at the lowest point in more than 5 years – a good sign for a market in recovery.

In August 2008, the inventory of unsold single family homes stood at 6,461 – roughly 63 percent higher than this year. For condos, there were 2,407 properties on the market in August 2008 – nearly the same as this year’s figure of 2,343.

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