Defending Your Home Base Against Foreclosure
by Matt Englett
Throughout Florida, we see the number of foreclosures continue to rise. While Winter Park may have been more stable when the housing crisis began, the community is now feeling the impact of the foreclosure wave that is washing over our state and nation.
A recent report by RealtyTrac, Inc. found that Orlando's four county region, including the city of Winter Park, had nearly 8,000 homes with a foreclosure filing, notice of foreclosure or repossession by a lending group. This figure has doubled since last year's data collection. Now, more than ever, I hear from worried homeowners asking questions like: "What should I do if I can't pay my mortgage?" and "What should I do if I'm served a foreclosure notice?" People think there is little that can be done to defend against foreclosure. Good news that is absolutely not true.
Understand that many people, including elected officials and community groups at all levels, are working tirelessly to slow the rate of new foreclosures. There are, however, a few attempting to take advantage of scared, inexperienced homeowners who are faced with losing everything. My Advice: don't be afraid, get informed.
The most critical first step for individuals faced with mortgage foreclosure is to find and secure the services of an experienced attorney, familiar with these issues. A foreclosure filing should be viewed like a lawsuit, and you'll need someone who can successfully litigate your case. A thorough understanding of your mortgage right, which include, but are not limited to, loan modifications, is of the highest importance.
Be wary of non-attorneys offering assistance as they have no leverage in dealing with lenders. In the end, they cannot do anything to help their clients if a foreclosure case goes to court. Lenders have become keenly aware of this deficiency, and they will exploit your team's weakness.
There are a number of benefits linked to working with a reputable foreclosure attorney who can who can lead a dynamic defense. Your attorney will work to delay or stop foreclosure, and you will be able to set aside funds that can be used when seeking reinstatement. Furthermore, people who put up a strong defense have an extra leverage and are well positioned for future reinstatement. Working with a defense attorney, borrowers affected by foreclosures can use the legal process to achieve fair loan modification – a solution that allows people to keep their homes. This route reworks the terms of an existing mortgage, thereby lowering monthly payments and making the loan more affordable.
This can play out in various ways, including; the principal balance of the loan can be reduced; the interest rate lowered, and some or all of the past-due payments can even be eliminated. Essentially, homeowners get a new start on their credit report and improve their credit scores over a matter of months. Each situation is a different, and you must work with your trusted advisers to decide the best course of action for you and your family.
While the process may seem overwhelming, the bottom line is … a reputable attorney will be able to set you on the right course toward keeping your home. If you're in trouble, unable to make your mortgage payments or if a foreclosure complaint has already been filed against you, please do your homework and find experienced legal representation.
Matt Englett is a foreclosure defense attorney with the Orlando based firm of Kauffman, Englett And Lynd. He can be reached at 407-513-1901.
Wednesday, October 28, 2009
Monday, October 19, 2009
Buyers and Sellers get on the Same Page.
Buyers and sellers get on the same page
While property values down, pricing is no longer high-stakes game of roulette
By Candace Taylor
Zhann Jochinke, an associate broker at Argo Residential, put an alcove studio on the market last year for $525,000. But the offers that came in were as low as $390,000.
"People were putting bids out there just to see if the person had to sell," he recalled.
More recently, however, he convinced the seller to drop the price to around $490,000.
Offers began coming in at "5 percent or less off the asking price," he said. Now, the listing is in contract, and expected to close in the next month.
After months of uncertainty, Manhattan buyers and sellers are finally making a market. In the terrifying period after the Lehman Brothers crisis, so few properties were sold that pricing an apartment became a game of roulette. Buyers, too, were unsure what a property would trade for, and their offers were all over the map.
Plummeting prices made matters worse.
"Earlier in the year, recent comps were being considered, and then 10, 15, 20 percent was being subtracted to set a reasonable asking price," Jochinke said. "It wasn't uncommon, even at these prices, that offers would still come in well under ask."
But thanks to the uptick in activity that started in the spring and has carried over into fall, a new batch of closed sales is providing much more accurate information, allowing both buyers and sellers to get a clearer understanding of how much their properties are worth.
"We are able to list a property today at a number very similar to one that closed in the past couple of months," Jochinke said.
As a result, Antonio del Rosario, the president and co-owner of A.C. Lawrence, said he's now seeing accepted offers come in within 2 percent of the asking price, or "many times, at the asking price," he said, adding, "I'm seeing a lot of sellers align with the market."
A nearby example is Bernie Madoff's five-bedroom mansion in Montauk, which reportedly sold last month for more than its $8.75 million asking price.
The shrinking gap between buyers' and sellers' expectations makes it easier to put listings into contract, said Michael Garr, a senior vice president at Core.
"There is a tremendous increase in competitive offers from savvy buyers, which have resulted in more listings in contract," said Garr, who recently held an open house for a two-bedroom co-op at 105 West 13th Street in Greenwich Village that attracted 21 people. "Five months ago, I would have had half that number," he said.
Make no mistake: these deals are trading at lower prices than last year. But properties that have languished on the market for months are now beginning to move.
For example, last month, the Manhattan-based brokerage Marketing Directors sold a three-bedroom penthouse at the Platinum at 247 West 46th Street, a listing that first went on the market in September 2008.
According to city records, the selling price was $5.8 million -- down about 17 percent from the original asking price of $7 million.
"If both parties are realistic about the market, deals are being made," said Jacqueline Urgo, president of Marketing Directors.
As a result, inventory has not risen as precipitously as some had feared it might.
According to Jonathan Miller, the president of the appraisal firm Miller Samuel, there were 8,535 homes on the market in Manhattan at the end of August. That's 4 percent more than the same month last year.
However, it's 22 percent less than six months ago, when there were some 11,000 homes available for sale, he said.
"There is still a lot more on the market than there was two years ago," said Ric Swezey, a senior associate at the Corcoran Group, "but the market has stabilized from this time last year, which has allowed some of the inventory to be absorbed."
It's still anyone's guess how much prices will fall as the recession continues. But brokers report that the steep drop-off in prices that characterized the immediate post-Lehman aftermath seems to have stopped -- for the time being, anyway -- giving buyers and sellers enough breathing room to comfortably make purchases.
"I can confidently say pricing has finally stabilized," said del Rosario of A.C. Lawrence.
However, he cautioned, "I don't know how long it will last, since we have yet to see unemployment rates reach a plateau. Until that part of our economy has stabilized, I don't think the housing market in [New York] or in any part of the country can stand on solid ground."
Experts agree with del Rosario that unemployment and other market fundamentals remain weak, making a speedy return to the boom years -- and prices -- of the mid-2000s very unlikely.
Also, even as buyers exhibit renewed confidence and interest in real estate, strict lending requirements are slowing the buying process.
"Our contracts and closings are up, but there is still no financing," said Marilyn Harra Kaye, president of MLBKaye International Realty, adding that buyers have been asking, "When will the FICO [credit] scores come down to get financing?"
The continued underlying market weakness is most evident in the higher-end market, which has been particularly hard-hit by the lack of available jumbo mortgages.
"The weakest part of the market continues to be homes priced above $2 million," said Steven McArdle, the principal of Urban Marketing. "However, I'm seeing tremendous activity in homes priced at $1.5 million and below."
Also, on the very high end of the market, some listings are beginning to change hands, or at least generate new interest (see "Trophy listings at lower prices"). Early last month, news broke that a townhouse at 165 East 70th was sold in August for $13.5 million to John Mack, the CEO of Morgan Stanley.
The rental market is exhibiting similar trends, with activity greater than it was in the immediate aftermath of Lehman's collapse.
In its first-ever peak-season rental report, released late last month, Citi Habitats found that average rents across Manhattan -- excluding incentives -- dropped by more than 8 percent between May and August 2009, compared to the same four months in 2008. Studio apartments and two-bedroom apartments showed the steepest drop, at 11 percent.
Another rental report, prepared by the brokerage TDG/TREGNY, found that rents for all categories of apartments had dropped between 6 and 10 percent from September 2008 to last month.
"While activity has increased, the numbers have not shown significant improvement," the report said. "Rents have stabilized, but at levels nearly 10 percent back from already depressed 2008 numbers.
"And although vacancies showed improvement this month, they have yet to establish the trend necessary to absorb the considerable amount of excess inventory that is continuing to depress the market."
Overall, brokers are breathing a sigh of relief, as business appears to be getting somewhat back to normal. But they acknowledge the market is not out of the woods.
"The general sentiment is that we still have a long way to go, but any future declines in the market will be slower and less of a free fall," said Kristin Hitsous, an associate attorney at real estate law firm Rosabianca & Associates.
While property values down, pricing is no longer high-stakes game of roulette
By Candace Taylor
Zhann Jochinke, an associate broker at Argo Residential, put an alcove studio on the market last year for $525,000. But the offers that came in were as low as $390,000.
"People were putting bids out there just to see if the person had to sell," he recalled.
More recently, however, he convinced the seller to drop the price to around $490,000.
Offers began coming in at "5 percent or less off the asking price," he said. Now, the listing is in contract, and expected to close in the next month.
After months of uncertainty, Manhattan buyers and sellers are finally making a market. In the terrifying period after the Lehman Brothers crisis, so few properties were sold that pricing an apartment became a game of roulette. Buyers, too, were unsure what a property would trade for, and their offers were all over the map.
Plummeting prices made matters worse.
"Earlier in the year, recent comps were being considered, and then 10, 15, 20 percent was being subtracted to set a reasonable asking price," Jochinke said. "It wasn't uncommon, even at these prices, that offers would still come in well under ask."
But thanks to the uptick in activity that started in the spring and has carried over into fall, a new batch of closed sales is providing much more accurate information, allowing both buyers and sellers to get a clearer understanding of how much their properties are worth.
"We are able to list a property today at a number very similar to one that closed in the past couple of months," Jochinke said.
As a result, Antonio del Rosario, the president and co-owner of A.C. Lawrence, said he's now seeing accepted offers come in within 2 percent of the asking price, or "many times, at the asking price," he said, adding, "I'm seeing a lot of sellers align with the market."
A nearby example is Bernie Madoff's five-bedroom mansion in Montauk, which reportedly sold last month for more than its $8.75 million asking price.
The shrinking gap between buyers' and sellers' expectations makes it easier to put listings into contract, said Michael Garr, a senior vice president at Core.
"There is a tremendous increase in competitive offers from savvy buyers, which have resulted in more listings in contract," said Garr, who recently held an open house for a two-bedroom co-op at 105 West 13th Street in Greenwich Village that attracted 21 people. "Five months ago, I would have had half that number," he said.
Make no mistake: these deals are trading at lower prices than last year. But properties that have languished on the market for months are now beginning to move.
For example, last month, the Manhattan-based brokerage Marketing Directors sold a three-bedroom penthouse at the Platinum at 247 West 46th Street, a listing that first went on the market in September 2008.
According to city records, the selling price was $5.8 million -- down about 17 percent from the original asking price of $7 million.
"If both parties are realistic about the market, deals are being made," said Jacqueline Urgo, president of Marketing Directors.
As a result, inventory has not risen as precipitously as some had feared it might.
According to Jonathan Miller, the president of the appraisal firm Miller Samuel, there were 8,535 homes on the market in Manhattan at the end of August. That's 4 percent more than the same month last year.
However, it's 22 percent less than six months ago, when there were some 11,000 homes available for sale, he said.
"There is still a lot more on the market than there was two years ago," said Ric Swezey, a senior associate at the Corcoran Group, "but the market has stabilized from this time last year, which has allowed some of the inventory to be absorbed."
It's still anyone's guess how much prices will fall as the recession continues. But brokers report that the steep drop-off in prices that characterized the immediate post-Lehman aftermath seems to have stopped -- for the time being, anyway -- giving buyers and sellers enough breathing room to comfortably make purchases.
"I can confidently say pricing has finally stabilized," said del Rosario of A.C. Lawrence.
However, he cautioned, "I don't know how long it will last, since we have yet to see unemployment rates reach a plateau. Until that part of our economy has stabilized, I don't think the housing market in [New York] or in any part of the country can stand on solid ground."
Experts agree with del Rosario that unemployment and other market fundamentals remain weak, making a speedy return to the boom years -- and prices -- of the mid-2000s very unlikely.
Also, even as buyers exhibit renewed confidence and interest in real estate, strict lending requirements are slowing the buying process.
"Our contracts and closings are up, but there is still no financing," said Marilyn Harra Kaye, president of MLBKaye International Realty, adding that buyers have been asking, "When will the FICO [credit] scores come down to get financing?"
The continued underlying market weakness is most evident in the higher-end market, which has been particularly hard-hit by the lack of available jumbo mortgages.
"The weakest part of the market continues to be homes priced above $2 million," said Steven McArdle, the principal of Urban Marketing. "However, I'm seeing tremendous activity in homes priced at $1.5 million and below."
Also, on the very high end of the market, some listings are beginning to change hands, or at least generate new interest (see "Trophy listings at lower prices"). Early last month, news broke that a townhouse at 165 East 70th was sold in August for $13.5 million to John Mack, the CEO of Morgan Stanley.
The rental market is exhibiting similar trends, with activity greater than it was in the immediate aftermath of Lehman's collapse.
In its first-ever peak-season rental report, released late last month, Citi Habitats found that average rents across Manhattan -- excluding incentives -- dropped by more than 8 percent between May and August 2009, compared to the same four months in 2008. Studio apartments and two-bedroom apartments showed the steepest drop, at 11 percent.
Another rental report, prepared by the brokerage TDG/TREGNY, found that rents for all categories of apartments had dropped between 6 and 10 percent from September 2008 to last month.
"While activity has increased, the numbers have not shown significant improvement," the report said. "Rents have stabilized, but at levels nearly 10 percent back from already depressed 2008 numbers.
"And although vacancies showed improvement this month, they have yet to establish the trend necessary to absorb the considerable amount of excess inventory that is continuing to depress the market."
Overall, brokers are breathing a sigh of relief, as business appears to be getting somewhat back to normal. But they acknowledge the market is not out of the woods.
"The general sentiment is that we still have a long way to go, but any future declines in the market will be slower and less of a free fall," said Kristin Hitsous, an associate attorney at real estate law firm Rosabianca & Associates.
Tuesday, October 13, 2009
4 Ideas for Selling Real Estate in a Slow Market
Author: Joshua Dorkin
http://www.biggerpockets.com/ August 25th, 2006
The CBS Early Show interviewed Wall Street Journal reporter June Fletcher, who covered four helpful ideas for selling your home.
1. SET YOUR PRICE REALISTICALLY
“Look at what other similar houses in the neighborhood are selling for and then set your price at 10 percent under the market. . . This is a counterintuitive move,” she admits, but, “by setting your price 10 percent under the market, your home will get more attention. You’ll get more people looking at your home and you’ll create a sense of urgency to get people to act to buy. This urgency, and a greater number of people looking at your home, drive up the price by creating a bidding war for it.”
2. MAKE MEMORY POINTS
“What is a “memory point”? Fletcher calls it “that special detail that is memorable and sets your house apart from the others. It makes your house memorable. Everyone has granite counters these days. So, you might want to install a concrete one for a fraction of the price. And, it will be distinctive. ”
3. USE UNUSUAL ADVERTISING MARKETS
“Think of publications that don’t usually have real estate ads, such as alumni magazines, hobby magazines, train magazines, places you wouldn’t usually think about, but where your ad will really stand out.”
4. ADVERTISE ABROAD
“No matter what happens in our economy, our homes are still a bargain to people in other parts of the world like Germany and Japan. Learn to think globally.”
If your thinking of buying or selling your home feel free to call me.
Michael Scearce
336-209-0049
http://www.biggerpockets.com/ August 25th, 2006
The CBS Early Show interviewed Wall Street Journal reporter June Fletcher, who covered four helpful ideas for selling your home.
1. SET YOUR PRICE REALISTICALLY
“Look at what other similar houses in the neighborhood are selling for and then set your price at 10 percent under the market. . . This is a counterintuitive move,” she admits, but, “by setting your price 10 percent under the market, your home will get more attention. You’ll get more people looking at your home and you’ll create a sense of urgency to get people to act to buy. This urgency, and a greater number of people looking at your home, drive up the price by creating a bidding war for it.”
2. MAKE MEMORY POINTS
“What is a “memory point”? Fletcher calls it “that special detail that is memorable and sets your house apart from the others. It makes your house memorable. Everyone has granite counters these days. So, you might want to install a concrete one for a fraction of the price. And, it will be distinctive. ”
3. USE UNUSUAL ADVERTISING MARKETS
“Think of publications that don’t usually have real estate ads, such as alumni magazines, hobby magazines, train magazines, places you wouldn’t usually think about, but where your ad will really stand out.”
4. ADVERTISE ABROAD
“No matter what happens in our economy, our homes are still a bargain to people in other parts of the world like Germany and Japan. Learn to think globally.”
If your thinking of buying or selling your home feel free to call me.
Michael Scearce
336-209-0049
Thursday, October 8, 2009
FREE TICKETS
I've got 2 tickets to the Rockingham American 200 this Sunday. Anybody want them? They're free! Call me 336-209-0049
Monday, October 5, 2009
Insulating your Wallet with Home Insulation!
Insulating Your Wallet With Home Insulation
by Phoebe Chongchua
Heating and cooling for an average home account for 50 percent to 70 percent of a homeowner's energy usage. If your home isn't adequately insulated that can mean added costs that deplete your wallet each month.
The Energy Efficient Codes Coalition (EECC) strives to achieve an initial 30 percent boost in the energy efficiency of the 2009 International Energy Conservation Code (IECC) over its 2006 counterpart. The EECC writes on its Web site, "Because homes and other buildings are the largest sectors for US energy and electricity consumption, using 40 percent of US energy and 71 percent of its electricity, respectively and, at 37 percent, the largest single source of American's greenhouse gas emissions, they represent the nation's last great frontier of wasted energy.
The move toward building more energy-efficient homes is increasing. According to the 2006 McGraw-Hill Construction Residential Green Building SmartMarket Report, by 2010 green homes will make up 10 percent of new home construction; that's up from just 2 percent in 2005.
Actor Brad Pitt has given his time and energy to bring awareness to the energy-efficiency movement by taking ownership of efforts that build green homes through his foundation. In the aftermath of Katrina the community of homes being built under the "Make It Right New Orleans" housing charity is considered "the largest and greenest community of single-family homes in the world", according to U.S. Green Building Council President, CEO & Founding Chair, Rick Fedrizzi. Four years after the devastating hurricane struck, green houses are rising from the wreckage. So far there are only about 15 homes completed in the Lower 9th Ward, but Pitt says that there will be 150 by the end of 2010. He claims that the families living in these homes are paying significantly reduced electrical and utility bills.
But energy-efficient homes still remain the exception. There are approximately 45 million homes in the U.S. that lack the proper levels of Insulation.
That causes not only higher household utility expenses but also more health hazards. According to the Harvard University School of Public Health, thermal insulation not only helps with energy efficiency but also contributes dramatically to public health. Studies show that increasing insulation reduces energy usage and emissions which result in fewer deaths and instances of respiratory and cardiovascular ailments that are often associated with air pollution.
Experts say that homes under 10-years old could be lacking the proper amount of insulation. Taking steps to adequately insulate your home can help your current financial picture (federal tax credits and incentives may apply). Increased insulation can also be considered a very valuable benefit when it comes time to sell. If you've already upgraded your insulation and are listing your home on the market, it's a good idea to make that known in marketing materials. Insulation is a hidden advantage. It's not as easy as showing off a newly remodeled kitchen, however, it can be a big influencer for buyers—especially if you educate them about the upgrades that you've made and how that transfers to savings for them once they're living in the home.
Published: October 2, 2009
Thinking of making a change? Call me for a free market analysis on your home or a list of great homes available in the area.
Michael Scearce GRI, AHWD, CDPE
336-209-0049
www.MichaelScearce.com
Michael@MichaelScearce.com
www.RENTrrc.com
by Phoebe Chongchua
Heating and cooling for an average home account for 50 percent to 70 percent of a homeowner's energy usage. If your home isn't adequately insulated that can mean added costs that deplete your wallet each month.
The Energy Efficient Codes Coalition (EECC) strives to achieve an initial 30 percent boost in the energy efficiency of the 2009 International Energy Conservation Code (IECC) over its 2006 counterpart. The EECC writes on its Web site, "Because homes and other buildings are the largest sectors for US energy and electricity consumption, using 40 percent of US energy and 71 percent of its electricity, respectively and, at 37 percent, the largest single source of American's greenhouse gas emissions, they represent the nation's last great frontier of wasted energy.
The move toward building more energy-efficient homes is increasing. According to the 2006 McGraw-Hill Construction Residential Green Building SmartMarket Report, by 2010 green homes will make up 10 percent of new home construction; that's up from just 2 percent in 2005.
Actor Brad Pitt has given his time and energy to bring awareness to the energy-efficiency movement by taking ownership of efforts that build green homes through his foundation. In the aftermath of Katrina the community of homes being built under the "Make It Right New Orleans" housing charity is considered "the largest and greenest community of single-family homes in the world", according to U.S. Green Building Council President, CEO & Founding Chair, Rick Fedrizzi. Four years after the devastating hurricane struck, green houses are rising from the wreckage. So far there are only about 15 homes completed in the Lower 9th Ward, but Pitt says that there will be 150 by the end of 2010. He claims that the families living in these homes are paying significantly reduced electrical and utility bills.
But energy-efficient homes still remain the exception. There are approximately 45 million homes in the U.S. that lack the proper levels of Insulation.
That causes not only higher household utility expenses but also more health hazards. According to the Harvard University School of Public Health, thermal insulation not only helps with energy efficiency but also contributes dramatically to public health. Studies show that increasing insulation reduces energy usage and emissions which result in fewer deaths and instances of respiratory and cardiovascular ailments that are often associated with air pollution.
Experts say that homes under 10-years old could be lacking the proper amount of insulation. Taking steps to adequately insulate your home can help your current financial picture (federal tax credits and incentives may apply). Increased insulation can also be considered a very valuable benefit when it comes time to sell. If you've already upgraded your insulation and are listing your home on the market, it's a good idea to make that known in marketing materials. Insulation is a hidden advantage. It's not as easy as showing off a newly remodeled kitchen, however, it can be a big influencer for buyers—especially if you educate them about the upgrades that you've made and how that transfers to savings for them once they're living in the home.
Published: October 2, 2009
Thinking of making a change? Call me for a free market analysis on your home or a list of great homes available in the area.
Michael Scearce GRI, AHWD, CDPE
336-209-0049
www.MichaelScearce.com
Michael@MichaelScearce.com
www.RENTrrc.com
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