Pending Parkland and South Florida First-Time Homebuyers Receive 3 Month Extension For Tax Credit
Good news for homebuyers that are currently under contract on a home. The Federal Government has extended the $8,000 first time home buyer tax credit on all pending contracts until September 30, 2010.
Previous tax credit required buyers to close on or before April 30, 2010. Due to the overwhelming amount of purchases, the lending process is taking longer. Also, many pending sales were on short sale or distressed properties in South Florida, which take longer to negotiate than a convention sale. As a result, first-time homebuyers currently under contract will have an extension of 3 months (September 30, 2010) to close on their properties giving lenders more time to process the loans.
This 3 month extension will definitely help the real estate market! I just wish that the government would extend the tax credit to new buyers. I wrote a previous article entitled: Calling President Obama! Bring Back Real Estate Homebuyer Tax Credit! The tax credit really helped unload a quantity of South Florida real estate inventory, especially foreclosures and short sales.
But, what will the future hold? What new plan will the government and real estate community come up with in order to get new first-time home buyers off the fence to purchase this Summer and into the end of 2010?
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If you are interested in buying or selling a real estate property in Parkland, Coconut Creek, Coral Springs, or the rest of South Florida, please give us a call at 954-609-0591 or send a note to the squawk.
40 Parkland Single Family Sales In May, 2010 While South Florida Real Estate Foreclosure Filings Are Down
The Sun-Sentinel reported yesterday that Foreclosure filings down in Broward, Palm. Have we hit the peak of the foreclosure problem? Is our market showing signs of life?
According to a research report by CondoVultures.com, a South Florida real estate consulting firm, there was a 55% drop in Broward County and a 36% drop in Palm Beach County foreclosure filings.
The Squawk also also reported in our Monthly Parkland Market Update Report that there was a record 40 Parkland home sales in May, 2010 showing a significant increase in sales over the past few months.
RealtyTrac Inc., another foreclosure listing and monitoring company, believes that nationwide foreclosures will remain at high levels but sees foreclosures leveling off in the hardest hit areas around the country, including South Florida.
The reason for the optimism is that banks and lending institutions are starting to get with the program and are implementing better systems to help distressed homeowners through loan modifications and short sales. As a result, less people are walking away from their mortgages and avoiding foreclosures. Read our recent article: Should I Short Sale Or Let My Home Go Into Foreclosure?
Still, other real estate analysts believe the worst is not behind us yet. These skeptics think that that banks have not released all of their foreclosure inventory all at once in order not to flood the market with distressed properties. Banks fear that if more foreclosures are listed on the market, then there will be another major drop in prices causing nationwide panic.
The Parkland Parrot Real Estate Team sees the light at the end of the tunnel. We feel that the nation is not “out of the woods” just yet. But, we are confident that the South Florida real estate market is improving, especially in Parkland. As mortgage interest rates are now below 5% and low home inventory, it is the best time to purchase a real estate property in Parkland or South Florida. Please give your Parkland and South Florida real estate experts a call today at 954-609-0591.
To stay updated with all of the current Parkland real estate home information, receive our blog posts directly to your inbox by subscribing to the squawk.
If you are interested in buying or selling a real estate property in Parkland or South Florida, please give us a call at 954-609-0591 or send a note to the squawk.
Short Sale Easy Button – No To Foreclosure! Yes To Short Sale!
Almost every day, I receive this question from potential customers, friends, and even family members. Many people are perplexed with what to exactly do when faced with not being able to pay their current mortgage and housing payments. Have no fear! Banks and the government are FINALLY starting to get their acts to together.
Short sales are on fire in the distressed property market. In the not so distant past, short sales could take 6-12 months or longer to even come to fruition. A short sale is when a homeowner owes more on the mortgage than the property is worth. As a result, the bank agrees to sell the home short of what the borrower owes on the mortgage.
Unfortunately, these potential transactions turned into “long sales,” as the process took countless months of trying to get the bank to agree to the short sale but to no avail. But, banks are starting to organize themselves better by hiring more mortgage professionals to help in their short sale negotiating departments. As a result, short sales account for almost a quarter of all real estate sales in the first quarter of 2010 and will continue to grow.
Specifically, Bank of America, who holds the most residential mortgage loans in the country has recently started using an online program called Equator to process not only their bank foreclosure properties (REO’s), but now their short sale inventory. Short sales now offer the banks an easier solution to getting properties quickly off their books. Also, short sales are becoming a better financial options for banks. When a bank forecloses on a property, it can cost them up to 50% of the home’s worth in fees and carrying costs. Short selling can cost the banks 20%, which is a significant difference!
Under the new Home Affordable Foreclosure Alternatives program rolled out by the government earlier this year, distressed borrowers will now earn a $3,000 “relocation incentive” to help with moving costs. Servicers of loans will also receive $1,500 for handling each short sale.
The goverment program also helps investors that own the mortgage notes with $2,000 in exchange for working with the second-lien holders and sharing the proceeds of the short sales. Finally, the 2nd lien holder will now receive up to $6,000 for releasing their claims and allowing the short sale to take place. This last incentive is truly helping expedite the process, as 2nd lien holders demanded a lot of money from the proceeds and would “kill the deal.”
Many banks are also providing release of debts to distressed homeowners at the closing of the short sales. In a recent Sun-Sentinel article, analysts expect a barrage of lawsuits to recoup the mortgage debt loss from borrowers that walked away from their homes. “Under Florida law, banks have 5 years after they finally foreclose on a home or after the deficiency judgment and up to 20 years to collect. Lenders and banks can make claims on borrower’s assets and even garnish wages.
It is very important to learn the facts from an experienced real estate professional and real estate attorney. Know your rights! Your bank has an attorney, and so should you! Short selling your property also allows you to clean up your credit faster and actually enable you to purchase a new home in as little as a few years instead of 7 years or more if you had a foreclosure on your record.
Please give your South Florida short sale experts a call today at 954-609-0591. Our team is here to help answer any and all of your questions and concerns and to discuss all of your options.
To stay updated with all of the current Parkland real estate home information, receive our blog posts directly to your inbox by subscribing to the squawk.
If you are interested in buying or selling a real estate property in Parkland or South Florida, please give us a call at 954-609-0591 or send a note to the squawk.
Calling President Barrack Obama & The Federal Government! We need to keep the real estate market moving in the right direction. No matter if you are a Republican or Democrat, there is no doubt that the $8,000 first time home buyer tax credit made a positive impact on the real estate market, especially in South Florida.
When all parties in Washington D.C. can FINALLY agree that the tax credit was a success, why can’t we continue the momentum? CondoVultures.com, a real estate research firm, concluded that approximately 22,000 homes in Dade, Broward, & Palm Beach County are currently under contract and awaiting to close.
As a result, there was a 138 percent increase in pending sales compared to November 2008, with many buyers paying over asking price. The Parkland Parrot Real Estate Team had over 11 pending contracts in the past two months. We contribute 80% of the sales due to the first time homebuyer tax credit and low interest rates.
Now that Uncle Sam has stopped writing tax credit checks and interest rates are on the rise, many skeptics believe that sales will decrease in May, June, and July. People also forget that FHA mortgage guidelines will tighten in the Summer months making it more difficult for buyers to purchase properties. Will these buyers go back on the fence? Will mortgage rates reach 7% by 2011? Unless the President or Congress steps in and reinstates the tax credit, only time will tell!
To stay updated with all of the current Parkland real estate home information, receive our blog posts directly to your inbox by subscribing to the squawk.
If you are interested in buying or selling a real estate property in Parkland and need to speak with a Parkland Realtor or South Florida Realtor, please give us a call at 954-609-0591 or send a note to the squawk.
Del DeMarino (left), had to take less money for his Coral Springs home because of foreclosures and short sales nearby. His real estate agent Michael Citron is helping him deal with a difficult market. 
