Lately, sale agreements have been cancelled because the property appraised for less than the contract price. The buyer is unwilling or cannot put more money down for fear of overpaying in a percieved down market and the seller has already lost so much percieved value that the seller will not lower the price. The result is that the sale falls apart.

In some cases, the appraiser is not the cause. Fannie Mae and Freddie Mac purchase about half of all U.S. mortgages. If Fannie Mae, who buys the loans from the banks, finds banks are found guilty of price inflation, they force the banks to buy back the mortgage at a substantial cost. But if banks drop the appraisal value, they hope to avoid being accused or suspected of inflating the numbers.

Many lenders today will double-check an appraiser’s work by ordering a low-cost electronic valuation. These automated valuation systems only use public records and take no consideration to condition of the property and upgrades. If the electronic version is lower than the physical version, the banks will downgrade the true appraisal value to protect themselves. The result is that bank’s underwriters arbitrarily have been shaving value off the Buyer’s appraisal. At other times, the bank’s underwriters will ask the appraiser to explain the price difference, which can delay the closing.

Effective September 1st, banks selling their loans to Fannie Mae can no longer simply drop the appraisal value. In guidance issued June 30, Fannie Mae told it’s participating lenders that they must contact the appraiser to “resolve” disagreements. If that fails, banks must order a second appraisal and not rely on the automated software to determine the value. So now the banks cannot simply drop the original value that supports a sales contract.

After a close brush with the deadline, Congress has passed an extension of the Homebuyer Tax Credit closing deadline, the Homebuyer Assistance and Improvement Act (H.R. 5623). The extension applies only to transactions that have ratified contracts in place as of April 30, 2010 that have not yet closed. The legislation is designed to create a seamless extension the new closing deadline for eligible transactions is now September 30, 2010. There will not be a gap between June 30 and the date the President signs the bill into law.

For those looking to sell their luxury Florida home, the experienced team of Courtney Silverman Real Estate Group can help visit www.CourtneySilverman.com or call (954) 315-3925.

(PRWEB) June 23, 2010- as the economy remains uncertain and foreclosures have yet to decrease from alarming numbers the use of short sales is growing in request. Short sales allow the distressed homeowner the opportunity to repay their mortgage at the price the home sells for even if the price is less than what is owed on the property. This process can save many people from foreclosure and even bankruptcy. The professionals of Courtney Silverman Real Estate Group know the short sale process and can get your property sold quickly with the least amount of hassle to you and your family.

No Short Sale Service Fees
Courtney Silverman Real Estate Group understands the pressure that so many homeowners experience when finances require the need to sell a home in a short period of time. This is why Courtney Silverman requests no short sale service fees and works with home sellers to have a cash buyer for the properties in her hands. She has the knowledge and experience with short sales to help make the process as simple and stress free as possible. Through her experience as a real estate agent in Weston Florida she has a solid understanding of the true value of the properties throughout South East Florida including Broward County, Sunrise, Weston, Davie, Plantation and Fort Lauderdale. Homeowners can rest assure that she will use all of her relocation expertise for you.

South Florida Homes Sold For Eleven Million
With an experienced realtor on your side a home can sell for a bargain creating a win- win situation for both the homebuyer and the seller. A recent buyer jumped on a once in a lifetime opportunity to purchase their dream home at an unbelievable price such as this Miami Beach Estate (88 La Gorce Circle, Miami Beach, FL) that sold for $16 million. This newly built modern estate features two docks, a staff house, five-car garage, elevator and beautiful marble staircase. The price was the bargain of the year and is seen as the priciest residential deal in Miami Dade since Shaquille O’Neal sold his Star Island Mansion. For those looking to sell a luxury home in south Florida look no further as Courtney Silverman Real Estate Group knows how to sell luxury real estate like no other realtor in the sunshine state.

To learn more about short sales in South Florida visit www.CourtneySilverman.com or call (954) 292-0743.

EFFECTIVE APRIL 6, 2009  MINIMUM CREDIT SCORE FOR F.H.A. PURCHASES IS -600

The single most common question I am asked is, “What is happening with my homes value”?  This is not always an easy question to answer because there are so many variables from home to home.  There is good news for you if you live in the Broward County, area.  

Courtney Silverman Real Estate Group has developed a new internet system that will give you complete information on what is taking place with the market around your home.  This program gives complete details on homes listed, sold and value trends.  The program offers the numbers in easy to view graph form and it is very detailed and specific to your home and neighborhood.  You will even see a Google Earth view of your home and surrounding neighborhood.  The best part is that this analysis is sent to you by e-mail and the updated for your monthly.  You can take advatage of this great new system by visiting our web site at http://www.courtneysilverman.com/PageManager/Default.aspx/PageID=1628494.

State law allows Florida homeowners to claim up to a $50,000 Homestead Exemption (HEX) on their primary residence.  The first $25,000 of this exemption applies to all taxing authorities.  The second $25,000 excludes School Board taxes and applies to properties with assessed values greater than $50,000.

All property Tax Exemption Applications are due March 1^st.

Here’s how to file:

GENERAL QUALIFICATIONS AND INFORMATION

To qualify for the Homestead Exemption, the applicant must at minimum meet the following criteria as of January 1:

•    Be a U.S. citizen or legal resident

•    Own the property (i.e., have legal or equitable title)

•    Occupy the property as his/her permanent residence (to the exclusion of all others). Click here for a complete list of documents accepted as proof of Florida residency

•    Only those qualified persons listed on the exemption application will receive the exemption benefits.  If the property is held jointly by husband and wife, either party may apply in person for the homestead exemption

•    If you purchase a home after January 1, you may inherit the previous owner’s HEX, but only for the first year that you own the property.  After the first year, you will need to apply for your own Homestead Exemption.

 AUTOMATIC RENEWAL OF EXEMPTIONS
Once an application has been approved the exemption will automatically renew annually until the property is sold, is no longer the homeowner’s primary residence, or the exemption holder requests that it be removed. 

Dade County: http://www.miamidade.gov/pa/exempt_homestead.asp

Broward County: http://www.bcpa.net/homestead.asp

Don’t forget about the first-time homebuyer credit when you file your taxes this year. If you bought a main home after April 8, 2008, and before July 1, 2009 and did not own a main home during the prior 3 years, you may be able to take this credit. 

Contact Courtney Silverman Real Estate Group for your next home purchase. We use a Buyer Book, which explains every step in the process, so there are no surprises.

 Happy New Year! And welcome to year two of the U.S. recession and year one of the global recession. As we head into 2009, the U.S. economy continues to plunge like an aircraft that has lost all lift. There is very little in the economic tea leaves to give economists hope that a recovery is nigh. I am not one to dwell on the doom and gloom. Honestly, I’m not sure how much more bad news readers can take. So let me start with some positives.
 
 First, the sector that led the U.S. economy into this economic and financial morass–housing–is about to turn a corner and start adding, at least modestly, to economic growth in 2009, perhaps as early as this summer. After nearly three years of steep contraction, U.S. home builders, those that remain standing, have been through the worst housing decline since the Great Depression. Building permits have dropped from a cyclical peak of 2.3 million units in September 2005 to a mere 616K units in November 2008. That’s a 73 percent decline so far, and takes out the low-water mark on all previous post-war housing declines. It is fairly clear, given the renewed drop in homebuilder confidence and continued oversupply of new homes, that homebuilding will continue lower in the first quarter of 2009, but before year end, expect housing to be one of the first sectors to lead the U.S. out of recession.
 
 Article by
 Scott Anderson
 Senior Economist
 Wells Fargo Economics

You bought your home three to four years ago. You financed with a low adjustable rate loan. Darn, the adjustable rate has reset and you need to refinance the loan. Uh oh, the house is worth less than your loan amount. Are you a candidate for a short sale? Here is some general information short sales.

There are no set guidelines and no guarantees for short sales. Each bank is different with the timeline it takes to respond to the borrower.

The employees of the lender that are negotiating the sale ARE NOT there for the benefit of the buyer or the seller. Their only goal is to collect as much money as possible for the lender. The lender typically will:

• Misrepresent their own policies or use other means to intimidate or scare the parties involved into paying more money.

• Require the seller to sign a note or new loan for the balance of the mortgage due.
• Change their price and terms up until the moment of closing.
• Pursue a judgment against the seller for total amount of the shortfall.
• Investigate the seller for indications of mortgage fraud if there are unexplainable gaps or discrepancies in the seller’s current financial situation and what he claimed at the time the loan was granted.
• Expect the home to initially be listed at or close to market value and have the asking price dropped accordingly until viable offers are received.
• Require the property be sold “as is”.
• Require an offer be made before they will consider discussing a short sale.
• Give an “approval” letter that is just a thinly disguised “maybe”.
• Set caps on payments to Realtors, title companies.
• Set restrictions for amounts paid to investors negotiating assignments or simultaneous closings.
• Set restrictions on issuing clear title.

The investor who bought your loan wants as much money as possible. When considering a short sale, they will be evaluating whether it makes more financial sense to foreclose on the property of accept the short sale.

 

Courtney Silverman is a top performing Realtor in the Courtney Silverman Real Estate Group at the Keyes Company / Realtors located in Weston, Florida. Courtney has high success in closing short sale real estate transactions. Give her a call at 954-389-3459 ext 36251.