Are flood insurance premiums still supposed to go up?

Jan 30th, 2014
by edsmith.
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Flood insurance (NFIP) premiums have already gone up astronomically in the case of pre-FIRM homes, the result of the Biggert Waters Act. In this area, pre-FIRM generally refers to homes that were built before 1974.  Our elected politicians in D.C. are going through the motions but making little progress in the re-writing of this very bad legislation.

Our salvation may lie in the fact that FEMA failed to follow the rules and did not conduct the required cost studies before enacting. Therefore, a now pending lawsuit in federal court may provide our best option for relief.

More on this at: http://rem.ax/1fnwewZ

As always, please visit us at www.Ed-Terri.com or for questions, email us at smith@realtor.com

Ed & Terri Smith, Broker Owners
RE/MAX Coastal Properties
850-837-5500 x1

 

Posted in: Buyers, Condo, Home Ownership, Insurance, Sellers.

My partner and I are being foreclosed on. Why did I get served with papers when I am not on the note, just on the deed?

Jan 20th, 2014
by edsmith.
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The note is the obligation to pay, so it sounds like your partner may have to wage that battle alone. However, everyone that may have an interest in the disposition of the property will typically be served when the lis pendens is filed. That would include all of the parties on the deed, the HOA or condo association, second lien holders, etc.

It is not too late to structure a short sale just because you were served with foreclosure documents. In most cases, a short sale is the best option for the owner and lender. Please call us direct for more details.

As always, please visit us at www.Ed-Terri.com or for questions, email us at smith@realtor.com

 

Posted in: Bank Owned Properties, Credit, Current Events, Foreclosure, Short Sales.

Did I miss the opportunity to buy with really cheap interest rates? Are rates going to come back down?

Jan 6th, 2014
by edsmith.
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The scaling back of QE is expected to increase mortgage interest rates by 50 basis points over the course of the year. Some believe that the recent increase in rates pre-absorbed that anticipated impact.

However, to put it all in perspective, 2001 marked only the second time in Freddie Mac’s history (1971) that rates averaged below 7%. 2010 marked the first year that rates averaged below 5%. So by comparison, at 4.5%, today’s rates are still very cheap and it is a great time to buy!

As always, please visit us at www.Ed-Terri.com or for questions, email us at smith@realtor.com

 

Posted in: Buyers, Condo, Economy, Home Ownership, Market Trends, Sellers.

As an owner, can you really get paid by the banks for short selling your house?

Dec 17th, 2013
by edsmith.
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Yes. Many lenders (not all) will pay you, as the homeowner to cooperate in the short sale of your property. This is referred to by the lenders as “relocation assistance”.  This assistance is based on a number of factors, including the loan balance, current value of the property and the loss severity rate. At least one major lender has recently increased their limit on relocation assistance payments to a whopping $45,000!

For more on this topic, visit www.FloridaBrokers.com or email us at smith@realtor.com.

Posted in: Foreclosure, Sellers, Short Sales.
Tagged: ·

What happens to a rental property that I own after my bankruptcy?

Nov 8th, 2013
by edsmith.
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After your bankruptcy/debt is discharged, you are still the owner of record. Liability associated with the property typically resumes at that point.  After discharge, the bank may choose to file a foreclosure action or they may prefer to entertain a short sale proposal from you.

Some lenders will choose to actually pay you at closing for cooperating with a short sale after bankruptcy. In one such instance, our client received a check for $20,000. You should of course consult with your attorney before pursuing any post-bankruptcy real property action.

As always, please visit us at www.Ed-Terri.com or for questions, email us at smith@realtor.com

Ed & Terri Smith, Broker Owners
RE/MAX Coastal Properties
850-837-5500 x1

Posted in: Buyers, Current Events, Foreclosure, Home Ownership, Sellers.

Is the government shutdown impacting home sales?

Oct 10th, 2013
by edsmith.
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In an indirect sense, yes it is. Specifically, one of the biggest impacts on the real estate market is the psychological effect that it has on buyers. As to VA, FHA, Fannie Mae and Freddie Mac, all is well. They are processing loan packages as normal.

An interesting development … Most all lenders had been requiring a form 4506 from the IRS when processing a home loan. This is a request for your tax return transcript. IRS is not processing such requests during the shutdown, so fortunately, almost all lenders responded by waiving the requirement!

For more info, please visit us at www.DestinFloridaRealEstate.com or for questions, email us at smith@realtor.com

Ed & Terri Smith, Broker Owners
RE/MAX Coastal Properties
850-837-5500 x1

Posted in: Buyers, Current Events, Economy, Sellers.
Tagged:

Hurricane Karen… Really?

Oct 5th, 2013
by edsmith.
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First and foremost, there is no Hurricane Karen.  It is a figment of Jim Canotore’s brain.

Our airport is shut down, the Destin Seafood Festival is cancelled, the county has declared a “state of emergency” and cancelled all scheduled weekend school events, blah blah blah ad nauseum.

OK, we get it, err on the side of caution. But local reaction appears more a reflection of weather channel hysteria than reality.  Want to know what a storm is going to do?  Go to the docks or the downtown Destin Waffle House early in the morning and you will be in the company of the greatest weather prognosticators in the area. They all concluded early-on that this was to be a non-event.  Most folks around here trust them far greater than Jim Cantore or anyone at the National Weather Service.

Tomorrow will prove them right or wrong 🙂

Posted in: Current Events.
Tagged:

How do we know if it’s best to get a 15 year fixed rate mortgage or a 30 year fixed rate one?

Sep 27th, 2013
by edsmith.
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If you can easily afford the 15 year payment, do it. Not only do you pay the loan off much more quickly, but you will receive a lower interest rate as well. This serves to create a dynamic that will result in a much accelerated equity build up and a more financially favorable monthly payment.

As an example, a $250,000  mortgage at 4.25% for 30 years would result in a monthly payment of $1,230.  That same loan amount at 3.5% for 15 years would result in a monthly payment of $1,787. Then consider that over the life of the loan, the 30 year option would result in total monthly payments of $442,800 vs $321,697 in the case of the 15 year. That’s $121,103 in savings!

For more info, please visit us at www.Ed-Terri.com or email us at smith@realtor.com

Ed & Terri Smith, Broker Owners
RE/MAX Coastal Properties
850-837-5500 x1

 

 

 

Posted in: Buyers, Credit, Economy, Home Ownership.

We have read about how you can just deed your home to a “holding” company to avoid foreclosure. Does this work?

Sep 1st, 2013
by edsmith.
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The one word answer … No! All standard mortgages today include a clause known as the “due on sale”. This clause states that if you sell, convey or transfer ownership of the property, the lender may invoke their right to acceleration, meaning they can “call the loan” making the entire balance due and payable.

Also remember that the mortgage, note and deed are entirely different animals. The deed only establishes ownership. It is the note that establishes who owes the money. The mortgage merely attaches the note to the property. You could deed a property to someone else, but the underlying note and mortgage (your obligation to pay) remain intact.

For more info, please visit us at www.destinfloridarealestate.com or email us at smith@realtor.com

Posted in: Economy, Foreclosure, Sellers.

Are the foreclosures and short sales drying up? Fewer of them seem to be available for purchase.

Aug 16th, 2013
by edsmith.
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Yes, they are. Distressed properties only represent 20% of the sales market this year as opposed to more than 40% just two years ago. Foreclosure filings are down an average of 37% as compared with last year. Strong buyer demand for distressed properties has caused the average sale price for such properties to increase by 27% as compared with last year as well.

The low interest rates that we are seeing have played a significant role in the reduction of distressed inventory. Call us for a list of what’s available today and be ready to act quickly!

For more info, please visit us at www.destinfloridarealestate.com . Please email questions to smith@realtor.com

Posted in: Bank Owned Properties, Buyers, Foreclosure, Home Ownership, Market Trends, Sellers, Short Sales.

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