Keller Williams Realty is Highest Ranked Again!

Team Baranowski is proud to be a part of such a dynamic and world class company as Keller Williams Realty. For the second year in a row we are breaking new barriers in the industry and continue to excel and exceed expectations in a severely distressed economy. Keller Williams continues to grow in size, strength and performance while others are struggling. It is our positive attitude and drive for excellence that allows our company to continue to be the best that we can be.

Congratulations to Keller Williams Realty!

Keller Williams Realty Receives Nod as the Highest Ranked in Customer Satisfaction

J.D. Power and Associates names company highest in customer satisfaction
for second year in a row

AUSTIN, TEXAS (September 2, 2009) —According to the J.D. Power and Associates 2009 Home Buyer/Seller StudySM, Keller Williams Realty, Inc., the third largest real estate company in North America, received the highest overall satisfaction ratings from home buyers among the largest full-service real estate firms for the second year in a row. The company also ranked second-highest among home sellers in the study.

“We couldn’t be prouder. This is an achievement our associates have truly earned. It is the face-to-face interaction and the relationships they build daily that has impacted this study and elevated Keller Williams Realty to another level in customer service,” said Mark Willis, CEO of Keller Williams Realty. “Knowing that this study was conducted during the toughest times the market has seen shows that spirit and dedication can make an impact.”

The study was produced by J.D. Power and Associates to measure home buyers’ and sellers’ customer satisfaction. The results of the home-buying experience were determined by three factors including the agent, office and the package of additional services.

“I am absolutely beaming with pride that our agents have been honored in such a fantastic way,” said Mary Tennant, president and COO of Keller Williams Realty. “We are lucky to be in business with such incredible business people, who have shown incredible resolve over the past two years. If there was a time to build their business, it is now.”

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About Keller Williams Realty Inc.:

Founded in 1983, Keller Williams Realty Inc. is the third-largest real estate franchise operation in the United States, with 679 offices and 73,000 associates in the United States and Canada. The company, which began franchising in 1990, has an agent-centric culture that emphasizes access to leading-edge education and promotes an economic model that rewards associates as stakeholders and partners. The company also provides specialized agents in luxury homes and commercial real estate properties. For more information, or to search for homes for sale visit Keller Williams Realty online at (www.kw.com).

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Switching to a New Buyer with a Bank of America Short Sale

I get hundreds of emails and blog posts on Bank of America Short Sales. It possibly could be from the millions of loans that were written by Countrywide Home Loans…but most certainly from the tens of thousands of frustrated sellers, realtors and buyers looking for answers on a Bank of America short sale.

Our team handles at least a dozen Bank of America at any given moment and we learn lots of tricks and loop holes to try and streamline and optimize the long and painful process. One mystery we could not solve is why do some short sales move right through the system when you switch buyers and other times you have to start all over?

The day before Thanksgiving we were scrambling trying to close out two Bank of America short sales. We got in touch with a wonderful and competent Bank of America negotiator…yes I said wonderful and competent. She handled our two issues with one phone call and we received closing documents on a short sale that had been lost in the system. We decided to push our luck and ask her for a special Thanksgiving favor.

We wanted the negotiator to review a file that had switched to a new buyer and we received closing docs and then the buyer walked. We then had a new offer in 3 days and the file was sent back to start over in the system.

This amazing and competent negotiator enlightened us on the “missing link” to adding a new buyer to a short sale.

The missing link to the mystery of why it works on one and not the other is pretty simple…Expired Documents.

As we all know, BPOs, financial statements and any documents in a short sale package have a limited shelf life in the Bank of America system. Typically it is 60 days. If the short sale is close to being approved they will extend the expiration date of the documents and continue processing. However, if you switch buyers with expired documents then the file becomes expired. Bank of America negotiators can not approve a short sale with expired documents.

So the loop hole is to update all of the files in the system to get a fresh “expiration date” on the file and then switch to the new buyer. This way the file is current and will not be closed by a Bank of America representative.

So simple it is almost frustrating.

If you are a troubled homeowner, or have a family member or friend facing foreclosure, please give us a call for a confidential consultation about the possibility of a short sale.  Call Craig Baranowski at 850.259.1788 or email  us @ info@teambaranowski.com. Team Baranowski has a 100% success rate for all of our short sales for 2009!

This site, Craig Baranowski or Keller Williams Realty is not providing legal or tax advice. The information provided is for educational and informational purposes only. It is recommended that sellers considering a short sale should consult an independent legal and tax adviser for more information.

Condo in Emerald Grande W-528 Harbor Walk Village as Craig’s Top Distressed Property Pick for November 27th 2009

There is no messing around with this unit. It is a bank owned unit in Emerald Grande in Harborwalk Village. Regions Bank is offering a sweet deal on this beautiful 3 bedroom 3 bath unit. Here is a quick tease:

Special Financing for a 30 Year Loan

3.5% 5/1 ARM

10.1% down

No Closing Costs

No inspections or property requirements

No exclusions for land, condos, or investment property

No Prepayment Penalty,

No Private Mortgage Insurance.

Emerald Grande w-528 in Harbor Walk Village

Condos in Emerald Grande

Emerald Grande Market Analysis and Market Snapshot

Located in Harbor Walk Village with Restaurants, Retail shops, Clubs, and Destin’s Fishing Fleet. This 3 bedroom/3 Full Bath unit features 9′ ceilings, Spacious Balconies, High-End Cabinetry, Crown Molding, Granite Countertops in Kitchen and Baths, Stainless Appliances, Large Bar, Italian Porcelain Floors, Open Floor Plan, Spacious Master Suite with Separate Shower and Double Granite Vanities. Complex Amenities Include a Luxurious On-Site Lobby Featuring Solid Cherry Floors, 22′ Ceilings, and Chandeliers. There is a Full-Time Concierge Service and 24-Hour Room Service. The Resort also Features an Owners/Guests Only Full-Service European Spa with Sauna and Steam Room, Fitness center and Indoor Heated Pool, Huge Pool/Sun Deck with Food and Beverage Service. There is a Beach Club, with Private Beach Shuttles to Destin’s Sugar White Beaches, Access to Regatta Bay Golf and Country Club, a Kids Club, Private Owners Club Room, State-of-the-Art Business Center and Event Facilities, High-Speed Wireless Internet, On-Site Restaurants & Lounges. The Four Level Parking Garage has Full Time Valet Service and Security.

Emerald Grande W-528

3 Bedroom | 3 Bath

1,566sf

Currently Offered at $529,000

* The bank is anxious to get this property off their books for 2009. Call me to make an offer and get a fantastic deal!

If you are interested in this Emerald Grande Condo in Harbor Walk Village or would like to preview other distressed condos, please give Tracy Baranowski 850.259.4270 or Craig Baranowski  a call at 850.259.1788 or email  us info@teambaranowski.com.

IndyMac Approves Freeport Short Sale in 48 Days

It has been a very long year of negotiating short sales. It seems my days mostly consist of keeping buyers and sellers happy while the lender with the short sale package allows it to age like a fine wine. Except there is nothing fine about aging a short sale package. We employ every trick and tactic there is to speed up the short sale process and keep the files moving. 2009 has been a good year with every short sale eventually ending in a positive outcome for both the buyer and seller. It is always a great feeling helping a homeowner prevent a foreclosure.

This wonderful home in Freeport Florida just closed as a short sale.

Lender: IndyMac

Sale Price: $125,000

Short Sale Package Sent: September 17th

Short Sale Approved: November 5th

Approval Time: 48 Days

Prommissory Note: None

Cash Contribution: None

Buyer and seller and very happy!

If you are a troubled homeowner, or have a family member or friend facing foreclosure, please give us a call for a confidential consultation about the possibility of a short sale.  Call Craig Baranowski at 850.259.1788 or email  us @ info@teambaranowski.com. Team Baranowski has a 100% success rate for all of our short sales for 2009!

Majestic Sun Condo Unit A201 in Miramar Beach as Craig’s Top Distressed Property Pick for November 20th 2009

There are some amazing deals all over the Emerald Coast. Condo sales are up and many of the great deals on condos are being snatched up. This week I picked Majestic Sun Unit A201 as my top distressed property pick. Currently listed at $299,000 this is the lowest priced 3 bedroom 3 Bath Majestic Sun unit and has very strong rental income. It is a corner unit and is handicap accessible with a roll in shower to accommodate a wheel chair.

One of the few handicap accessible units in Majestic Sun. It has a larger shower and special provisions to accommodate a wheel chair. Beautifully decorated & fully furnished condo located in popular majestic sun located in the gated seascape golf & tennis resort. This 2nd floor unit has beautiful gulf views from the living room, kitchen and master bedroom. Seascape golf & tennis resort amenities include: 18 hole golf course, indoor/outdoor pool, fitness center with gulf views, conference center, tennis courts with new pro shop, freshwater lakes, approx. 2,000 ft deeded beach, rv & boat storage, seascape’s beach side whales tail restaurant and much more.

Majestic Sun Condos in Miramar Beach Florida

Majestic Sun Market Analysis and Market Snapshot

Majestic Sun Unit A201

1160 Scenic Gulf Drive

Miramar Beach, FL 32550

3 Bedrooms | 3 Baths

1,502 sf

Currently offered at $299,000

If you are interested in this Majestic Sun Condo in Miramar Beach or would like to preview other distressed condos, please give Tracy Baranowski 850.259.4270 or Craig Baranowski  a call at 850.259.1788 or email  us info@teambaranowski.com.

Another Record? Mortgage Delinquencies Up 58% in Third Quarter

It seems that the housing recovery never gets a break. It is a push and pull with good news and bad news…the Ying and Yang of a volatile market. A market trend that is closely watched by analysts is mortgage delinquencies. While the pace at which people fell behind on their mortgages slowed during the summer for the third consecutive quarter, the overall delinquency rate hit another record.

The third quarter of 2009 had a mortgage delinquency rate of 6.25 percent across the United States which is up 58 percent from 3.96 percent a year ago. The mortgage delinquency rate is reported by loans that are 60 or more days past due which is considered as the first step towards foreclosure.

Statistics from TransUnion’s database of 27 million consumer records show that mortgage delinquencies remain the highest in Nevada, Florida, Arizona and California.

1. Nevada, the rate reached 14.5 percent, up from 7.7 percent a year ago.
2. Florida, the rate was 13.3 percent, up from 7.8 percent last year.
3. Arizona, the rate hit 10.4 percent, up from 5.5 percent in 2008.
4. California, the rate jumped to 10.2 percent, from 5.8 percent last year.

These four states could continue to see depressed housing prices as foreclosures continue to flood the market.

Is a Next Wave of Foreclosure on the Horizon?

Industry experts have been closely monitoring and trying to predict if and when the next wave of foreclosure will hit. Many fear that a second wave of foreclosures is poised to hit the market and potentially undermine much of the housing recovery efforts as more homes add to the glut of inventory and drive down prices.

Many of the housing recovery efforts by the Obama administration have targeted homeowners in financial distress. The Making Home Affordable program was intended to have hundreds of thousands of financially devastated homeowners stay in their homes via a mortgage modification or avoid foreclosure by doing a short sale. These housing recovery efforts have delayed thousands of foreclosures.

It is estimated that  about 7 million properties are destined to go into foreclosure in 2010 compared to 1.27 million properties in early 2005, according to a September study by Amherst Securities Group.

There is a significant lag time between a borrower going deliquent and the bank taking the home via foreclosure. Here’s why:

1. Moratoriums. New state laws imposing short-term moratoriums have slowed the timeline from delinquency to foreclosure.

2. Overwhelmed lenders. Banks dealing with a surge in refinancing, mortgage modifications and defaults are overwhelmed with demand, so it can take longer to initiate a foreclosure sale.

3. Modifications. Many loans now are first examined to see if they might qualify for a modification. This drags out the timeline and means it is taking longer for homes to go into foreclosure.

4. Asset write-downs. Banks may in part be waiting to liquidate homes through foreclosure because they don’t want to write down the value of the asset. Lenders can keep homes on the books at a higher value until they are sold at foreclosure.

If the projections are correct this could have a significant impact on home prices across the country. We will keep an eye on how this will impact Walton, Okaloosa and Bay Counties.

Bank of America’s Irresponsible and Unacceptable Short Sale Practices Must Change

Well it is a catchy title. I know we all yearn for any improvements with Bank of America’s current short sale and mortgage modification track record. A track record that is abysmal and most certainly one of the worst in the industry. I recieve dozens of phone calls and emails from angry customers across the country complaining about Bank of America. All feel improsoned with inadequate and unacceptable response times on Bank of America short sales and mortgage modifications. Many buyers and sellers have put their lives on hold and live in turmoil while Bank of America literally watches the dust collect on thousands of files with little to no action for weeks or even months…or shuffles the paperwork from one negotiator to another with little to no progress on the file’s status. This is not how the customers were treated when Bank of America was writing the loans.

With 1 in 5 loans in Florida estimated to be with Bank of America, formerly Countrywide, it is clear that this issue has raised the eyebrows of a number of people in Florida that can prompt change or at least raise the issue up to the executive ranks at the nation’s largest lenders .

Today, Tuesday November 17th, Attorney General McCollum sent a letter to the Florida Executives of Bank of America, JP Morgan/Chase, Wells Fargo and Wachovia. He called upon the executives to provide homeowners with a fair and efficient loan modification process. To help solve the crisis he requested the executives to meet with him and discuss the bank’s responsibility to make immediate and necessary changes.

Whether this letter will create any action from the executives remains to be seen. It is clear however, that the issue will not be buried or swept under the rug. Too many homeowners, home buyers and industry professionals are impacted by this crisis and their demands for change can be heard loud and clear across the country.

In McCollum’s letter he states Florida borrowers are:

·         Placed on hold for excessive periods when calling for help

·         Forced to speak to unknowledgeable representatives

·         Transferred from department to department and person to person

·         Forced to submit identical paperwork again and again

·         Provided no avenue or recourse for complaints

·         Never informed  about the status of their loan modifications

Bill McCollum says these practices are “irresponsible and unacceptable”.

These are all the same issues affecting the processing of short sales. Any positive change to the processes and procedures for short sales and mortgage modifications would be welcomed with open arms.

You can read Bill McCollum’s letter to Bank of America by clicking HERE.

If you are a troubled homeowner, or have a family member or friend facing foreclosure, please give us a call for a confidential consultation about the possibility of a short sale.  Tracy Baranowski at 850.259.4270 or Craig Baranowski at 850.259.1788 or email  us @ info@teambaranowski.com. Team Baranowski has a 100% success rate for all of our short sales for 2009!

Podcast 30A Radio – Real Estate Round Up: Cameron Hughes of Chancey Design Partnership as Featured Guest, November 13th, 2009

Podcast #22 of Real Estate Round Up, South Walton’s Real Estate News hosted by Craig and Tracy Baranowski on 30A Radio. Weekly broadcast is at 9am CST on 107.1FM in beautiful Seaside Florida, visit www.30aradio.org for a complete program guide. Featured stories are Cameron Hughes of Chancey Design Partnership talks about Hurricane requirements and design standards for 30A communities of WaterColor and WaterSound, 86Tidal Bridge Way Gulf Front Home in WaterSound Beach as our Luxury home spotlight of the week and 86 Banfill Street Gulf Front home in Inlet Beach as our Distressed Property Spotlight of the week,  Bank of America and REOTrans/ Equator Short Sale Nirvana, a new name for Northwest Florida’s Airport?

Great News…Foreclosure’s Dip 3% in October from September…What the Bad News?

Everyone is pushing hard to get good numbers out to the public to curb fears that the real estate market is rebounding and that foreclosures are slowing down. October marked the third straight monthly decline of foreclosures. The great news is that foreclosure prevention programs are helping many borrows. The bad news is that foreclosure prevention programs are delaying foreclosures and skewing the numbers to make the situation look better that it really is. Lenders have been delaying foreclosures as they might qualify for the federal loan modification program.

We need to keep a very close eye on the unemployment numbers through the 2009 holiday season and I hope we do not see a massive surge in foreclosures in the first half of 2010.

Foreclosure filings are still up 19 percent from a year ago, RealtyTrac Inc. said Thursday, and rising job losses continue to threaten the stabilizing trend. More than 332,000 households, or one in every 385 homes, received a foreclosure-related notice in October, such as a notice of default or trustee’s sale. That’s down 3 percent from September.

Banks repossessed more than 77,000 homes last month, down from nearly 88,000 homes in September.

Nevada has the nation’s highest foreclosure rate for the 34th month in a row, followed by California, Florida, Arizona and Idaho. Rounding out the top 10 were Illinois, Michigan, Georgia, Maryland and Utah.

Among cities, Las Vegas had the highest rate, the report showed. One in 68 homes there received a foreclosure filing in October, more than five times the national average. Seven of the top ten metros were in California, led by Vallejo and Modesto at No. 2 and 3.

After three years of declines, home prices reversed course in June and have been rapidly climbing month-over-month. This will rebuild home equity and reduce the number of borrowers that owe more than their homes are worth.

Still, foreclosures remain near record highs and the mortgage industry is still struggling to manage the onslaught. The government has had to push many lenders to participate in the Obama administration’s loan modification plan.

The Treasury Department said Tuesday that more than 650,000 borrowers, or 20 percent of those eligible, had signed up for temporary trial plans lasting up to five months. But since the beginning of September, only about 1,700 modifications had been made permanent. The Treasury Department expects to release updated data later this month.

Congress last week also extended and expanded a key federal tax credit for homebuyers that has been credited for boosting home sales recently.

Buyers who have owned their current homes for at least five years are eligible for tax credits of up to $6,500, while first-time homebuyers – or anyone who hasn’t owned a home in the last three years – would still get up to $8,000. To qualify, buyers have to sign a purchase agreement by April 30, 2010, and close by June 30.

Northwest Florida has been posting strong sales numbers for real estate transactions, however we are not seeing are price growth and do not expect to until mid 2010.

If you are a troubled homeowner, please give us a call for a confidential consultation about the possibility of a short sale. Please give Tracy Baranowski a call at 850.259.4270 or Craig Baranowski at 850.259.1788 or email  us @ info@teambaranowski.com. Team Baranowski has a 100% success rate for all of our short sales for 2009!

Gulf Front Home in Grayton Beach 186 Banfill Street as Craig’s Top Distressed Property Pick for November 13th, 2009

I had a very hard time choosing this weeks property to spot light because this is such a beautiful home it is hard to believe it is a short sale. This home is a Gulf Front home in Grayton Beach. It arguably has the best views on 30A.

Most Expensive Distressed Waterfront Homes

Gulf Front Home in Grayton Beach 186 Banfill Street

186 Banfill Street is currently being offered at nearly $1mil below recent appraisal.  This amazing home is situated on the southeast corner of charming Grayton Beach, one lot west of Grayton Beach State Park. Unobstructed permanent views of the gulf. Perched on the edge of Western Lake, its panoramic views are truly one of a kind and encompass dune lake, an unfettered stretch of gorgeous white sand beach as well as the beautiful emerald Gulf waters our area. The house overlooks the area where Western Lake and the gulf meet so you have no one between you and the gulf. This home is as special as its unique location. Built from only non-toxic materials and products, from the sub-flooring to the paint, it is also handicap accessible with special provisions that include a commercial elevator and handicap accessible full bath. An award-winning kitchen and bath. The ground floor is home to a large laundry and mud room with a half bath and dry heat sauna. This luxury home features three master suites, each with great views and large bathrooms. The top floor is the main living level and commands the most stunning views this home has to offer while enjoying a cozy gas log fireplace. This is the ultimate Gulf Front Home and is a distressed property in Grayton Beach. This home is a short sale.

Grayton Beach Gulf Front Home 186 Banfil Street

4,579sf

4 Beds / 5.5 Baths

Built in 2005

Offered at $3,900,000 or $851.71/sf

If you are interested in this gulf front distressed home in Grayton Beach and would like to preview other distressed gulf front homes, please give Tracy Baranowski 850.259.4270 or Craig Baranowski  a call at 850.259.1788 or email  us info@teambaranowski.com.

Bank of America and Equator (Formerly REOTrans)…Short Sale Nirvana?

I am sure you are all thinking that I am in outer space mentioning nirvana and Bank of America Short Sales in the same sentence. But before you think I am crazy, I did have a most enlightening day on Monday that led me to believe that maybe…just maybe…we can achieve short sale nirvana. My day started as a normal Monday usually does in Northwest Florida…phone calls, emails, more phone calls and a hurricane (Ida) looming hundreds of miles away. As I was going through my voice-mails, I had message from a gentlemen at Equator (formerly REOTrans.com) asking to speak with me. I immediately called the number back with my mind racing as to why I would be receiving a call from Equator…was it the numerous blog posts on Bank of America Short Sales and the new Equator relationship or just someone wanting to speak with me about the account I have with them.

I called the number and gentlemen by the name of Chris answered the phone. Once we got past introductions it was clear Chris was very interested in learning what my understanding was of the Equator and Bank of America relationship as it pertains to short sales. I explained how I had a few short sales transitioned from the Bank of America system to the Equator system and it appeared there was a disconnect as to what was the next step would be in the short sale process. From my blog it appeared that a few others were experiencing the same situation where Bank of America representatives did not know the next steps with Equator or how to make the short sale proceed forward.

What I learned next was not shocking, but was extremely interesting and made me hopeful that short sale nirvana can be achieved…just when?

First, a little bit about Equator (formerly REOTrans.com)…Equator is a technology platform.  They are the leader in automating the Default industry. They are the chosen platform for 17 of the top 25 lenders nationwide and have handled over 63 million transactions that represents over $67 billion in transactions. For Bank of America they have spent almost 8 months building a Bank of America Short Sale Portal. If you click the link you will see the Bank of America Short Sale Processing System. Yes, that is correct…Bank of America has a short sale processing system built just for them that will completely and dramatically change the way they handle and process short sales…and it is powered by the Equator technology platform. This is the same platform that has processed millions of transactions and has been completely customized for short sales.

Well that is the good news. The not so surprising news is that Bank of America does not know how to utilize the system yet. They are so overwhelmed with the volume of foreclosures, mortgage modifications and short sales that they are not able to adequately train and effectively roll out this system…a system that could be short sale nirvana if there is such a thing.

Let’s assume this is short sale nirvana, how is the system supposed to work? Pay attention so you can help train your Bank of America loss mitigation specialist on how the process works:

1. Bank of America calls the borrower and authenticates the borrower by verifying loan numbers, contact information and etc.
2. Bank of America representative then REGISTERS and INVITES the borrower to the Bank of America Short Sale Processing System via EMAIL (this is where the wheels fell off on the short sales we have on this system)
3. Bank of America Short Sale Processing System Portal will send an email to the borrow where the borrowerr will authenticate their access to the portal
4. Borrow then selects their agent in the system (you are registered with REOtrans.com right?)
5. The portal will then email the agent associated with the borrower and their specific short sale
6. Agent and borrow can then upload files and have full insight into the process and next steps of the short sale. No guessing, no nagging, no waiting on hold for hours upon hours
7. BPO agents, Appraisers, Investors, Fannie Mae, PMI and others are all linked into the system so the short sale will process smoothly and efficiently

Equator is working on allowing the Real Estate Agents to initiate the short sale process and authenticate the borrower and invite the borrower to the system. This will greatly simplify the process since some borrowers may be adverse to using the system and learning how to use the portal.

So how is this nirvana?

Equator has standardized the short sale process and developed proven work flow to manage the process…yes a standardized process and work flow…could you imagine having that with Bank of America on a short sale? Or any of the big service providers?

Many of the evaluation components such as BPOs and Appraisals would be initiated via the Short Sale portal and will speed the process up from 7 to 10 days to 24 hours. Right now I would be ecstatic for 7 to 10 day turn around…24 hours would be nirvana!

Investor, PMI and Fannie Mae approval would be automated and reduce processing time down from months to days. All of these companies have already worked with Equator on millions of REO transactions so the systems, processes and work flow are in place and proven to work. They are not reinventing the wheel, they have optimized and customized the system to specifically handle short sales.

According to Chris 7 other large lenders will be launching a similar Short Sale Portal in the next 3 months. Which is exciting news as we are all anticipating short sales to continue to flood the market for at least another two years.

As my conversation was ending with Chris Saitta, I asked him what his role was at Equator. He replied, “I am the CEO.” I was pleasantly surprised that Chris would take the time out of his busy schedule to personally call me and discuss the Bank of America Short Sale Portal and how it could significantly reduce the short sale processing time. Many thanks Chris for your time.

On a side note: Equator’s call center has been completely overwhelmed with calls regarding Bank of America Short Sales. Please keep in mind that Equator is a technology platform for handling short sales. They do not negotiate or approve short sales for Bank of America. It would be like calling Quickbooks to find out where your tax refund from the IRS is.

Let’s put pressure on Bank of America to get their loss mitigation specialists trained and knowledgeable on the Equator system. Let’s use this system already. I want short sale nirvana!

Podcast 30A Radio – Real Estate Round Up: Home in Seaside Luxury Spotlight and Inlet Beach Development Distressed Property Spotlight, November 6th, 2009

Podcast #21 of Real Estate Round Up, South Walton’s Real Estate News hosted by Craig and Tracy Baranowski on 30A Radio. Weekly broadcast is at 9am CST on 107.1FM in beautiful Seaside Florida, visit www.30aradio.org for a complete program guide. Featured stories are 2352 E Scenic Hwy 30-A Home in Seaside as our Luxury home spotlight of the week and Pinewood Preserve Development in Inlet Beach as our Distressed Property Spotlight of the week,  Strategic Defaults, little improvements that make a big difference in Luxury Homes, a quick glance at October’s Real Estate sales numbers, and looking into the motivation for moving?

Strategic Defaults on the Rise

Last week I wrote about Strategic Defaults where homeowners are choosing to default on their mortgages even though they can continue to pay them. It has become an increasing trend in the United States as foreclosures continue to rise and home values plummet. Many homeowners are faced with homes whose mortgages are hundreds of thousands of dollars more than the homes are worth. With projected slow housing recovery many owners see a long and expensive wait for home values to return…time and money they are not willing to spend. These homeowners opt to strategically default on their mortgages and walk away.

According to Experian 588,000 borrowers voluntarily gave up on their mortgage payments in 2008, twice as many as the previous year. Strategic defaults are going to be a very significant factor in the continuing foreclosure crisis in the United States and will heavily impact Northwest Florida.

CitiMortgage, part of Citigroup, said 20 percent of their defaults are the result of homeowners strategically giving up on their loans.

“It’s a very large number and it’s a very, very significant risk to the housing recovery,” said Sanjiv Das, chief executive officer of CitiMortgage.

In Northwest Florida where the market has been heavily speculated, we are seeing a significant number of strategic defaults and the numbers will continue to rise until the market turns around.

If you are a troubled homeowner, please give us a call for a confidential consultation about the possibility of a short sale. Please give Tracy Baranowski a call at 850.259.4270 or Craig Baranowski at 850.259.1788 or email  us @ info@teambaranowski.com. Team Baranowski has a 100% success rate for all of our short sales for 2009!

Development in Inlet Beach Pinewood Preserve as Craig’s Top Distressed Property Pick for November 6th, 2009

This is an excellent opportunity for a developer to get into an approved development with infrastructure already in place. Pinewood Preserve is located in distinctive Inlet Beach Florida, between Panama City Beach, Lake Powell, and Scenic Highway 30-A and a short drive from the new international airport opening in May 2010. Pinewood Preserve is centrally located to the world class beaches of South Walton, Pier Park, numerous dining opportunities, entertainment, various coastal dune lakes and State Parks. With 33 pristine lots available, Pinewood Preserve integrates the home sites and amenities with the existing landscape to create a relaxed environment unique to Pinewood Preserve.

Inlet Beach Development Pinewood Preserve 33 Lots with Infrastructure

Amenities

Private Pool – to be built

Centrally Located

Landscaped for seclusion

Preservation areas to protect the natural wildlife

Short distance to many public beach accesses

Minutes away from shopping, dining, entertainment and golf

Close proximity to Lake Powell and Florida State Parks

All of the infrastructure has be completed for Pinewood Preserve except for the entrance amenity, pool and pool house. With 33 lots this is a great opportunity to get a great deal on a property in Inlet Beach.

If you have more questions or would like to view this development in Inlet Beach, please call Craig Baranowski @ 850-259-1788 or email info@teambaranowski.com.

Almost There…Tax Credit Extension Passes House and Senate

This new news is almost old news. We have been talking about extending the first time home buyers tax credit for so long that we are just waiting for it to finally happen.

The $8,000, first-time homebuyer tax credit has not yet been extended beyond its Nov. 30 end date, but it’s very close to gaining a longer life. We are all patiently waiting and have been communicating to potential buyers that the change is on the horizon.

today, the extension was added as an amendment to an existing bill, HR 3548, that extends unemployment benefits. The U.S. Senate passed that bill on Wednesday and, after debate, the U.S. House passed HR 3548 this afternoon. It now needs only President Obama’s signature to become law, and the White House has indicated he will sign it, perhaps as early as tomorrow.

Until the president signs the bill, however, it is not law.

In addition to extending the tax credit for first-time home buyers under the current rules, the bill adds a smaller tax credit for move-up homebuyers who have lived in the house for five of the past seven years. The bill also increases the income limits of home buyers from $75,000 (single) to $125,000; and from $150,000 (married) to $225,000.

Florida down payment assistance

After the president signs the bill and extends the tax credit, the Florida Homebuyer Opportunity Program – a down payment and closing costs assistance program relating to the federal tax credit –automatically gets extended too. The state still has about $28 million available for home buyers. The money is essentially a loan to first-time buyers; they receive it upfront, use it for a down payment or other costs, and pay it back once they get their federal refund.

If you are interested in learning more about First-time home buyer programs, please give Tracy Baranowski a call at 850.259.4270 or Craig Baranowski at 850.259.1788 or email  us info@teambaranowski.com.

Is It Trendy to Default on Mortgages? Are You a Strategic Defaulter?

It seems if you are not defaulting on your mortgage, you are one of the few in many neighborhoods. As home prices decline buyers are opting to take the hit on their credit and try to bailout on their mortgages. These people are called “Strategic Defaulters” and they are increasing in numbers in many areas across the country.

If you are a troubled homeowner, please give us a call for a confidential consultation about the possibility of a short sale. Please give Tracy Baranowski a call at 850.259.4270 or Craig Baranowski at 850.259.1788 or email  us @ info@teambaranowski.com. Team Baranowski has a 100% success rate for all of our short sales for 2009!

This article is a great read…

SAN DIEGO – Oct. 13, 2009 – Scott Conroy pays the mortgage every month on his one-bedroom condo in San Diego, even though it’s worth 33 percent less than what he owes, and it may take more than a decade to break even.

Homeowners like Mr. Conroy who can afford their monthly payments are weighing whether to sell and pay the difference, stick it out until housing prices recover, or walk away.

In the United States, 26 percent of borrowers owe more than their home is worth, said Karen Weaver, global head of securitization research for New York-based Deutsche Bank Securities Inc. In parts of California, Florida and Nevada, it’s as high as 75 percent.

So-called strategic defaults, in which homeowners stop paying their mortgages while remaining current on other debts, rose 128 percent to 588,000 last year, according to Experian PLC, a Dublin-based credit-checking company, and Oliver Wyman, a New York-based consulting firm. Two-thirds of those who walked away defaulted on their primary residences.

“You’re looking at an extremely long horizon in order to see a return of home values to where they were at their peak,” said Stan Humphries, chief economist for Zillow.com, the Seattle-based real estate data service. “It could be 15 to 20 years in some markets.”

Strategic defaulters represent about 4 percent of all homeowners underwater. That trickle could become a flood as the likelihood recedes that home prices will soon return to their peak values, said Rick Sharga, senior vice president of Irvine, Calif.-based RealtyTrac Inc., an online seller of real estate data.

In San Diego, where Mr. Conroy lives, home values are down about 40 percent since March 2006 when he bought his place, according to the S&P/Case-Shiller Index of 20 U.S. metropolitan areas. Prices have rebounded for three consecutive months, returning to the October 2002 level, before the start of the housing boom. Nationwide, home values are what they were in September 2003, according to the Case-Shiller index as of July.

“You have to ask yourself: Are you just renting the home from the bank?” said Michael Joe, a foreclosure expert at the Legal Aid Center of Southern Nevada. “Would it be cheaper to walk away and rent across the street?”

Mr. Conroy, 32, and his wife purchased their home for $385,000 in March 2006, a month before marrying. The property was reassessed this summer for $250,000. The couple is trying to save, he said, knowing they may have to move to a bigger place within 18 months to start a family.

“We’ve given up on this dream of having equity in our home,” Mr. Conroy said. “We don’t expect to walk away with cash in hand, we expect to pay.”

State laws

More homeowners may opt to take a hit to their credit score rather than come up with cash to cover the loss, especially in California and the nine other U.S. states where the legal repercussions of foreclosures are less than other parts of the country, said Mr. Sharga.

Ten states are so-called nonrecourse, prohibiting deficiency judgments after most home foreclosures: Alaska, Arizona, California, Hawaii, Minnesota, Montana, North Dakota, Oklahoma, Oregon and Washington, according to the National Consumer Law Center, based in Boston. The bank can repossess your home in those states, not other assets, to settle the debt.

In California, a second-mortgage holder may try to pursue a delinquent borrower to repay through litigation, said Rick Brooks, a financial adviser with the San Diego-based wealth advisory firm Blankinship & Foster LLC. Banks generally prefer not to sue because it can easily cost $60,000 or more, said Debra Guzov, co-founder of the law firm Guzov Ofsink LLC, based in New York.

Banks may be more willing to accept foreclosure alternatives, such as a short sale or deed-in-lieu of foreclosure, in states where a lender can’t sue for personal assets, said Brad Geisen, chief executive officer of Foreclosure.com, based in Boca Raton, Fla.

In a short sale, the borrower finds a buyer for the home at an acceptable price and the bank agrees to forgive the difference, said Greg McBride, senior financial analyst with North Palm Beach, Fla.-based Bankrate.com. In a deed-in-lieu of foreclosure, the bank sells the home after a similar debt negotiation.

Tax break

A 2007 law exempts from tax up to $2 million of debt forgiven in a foreclosure or similar proceeding for a primary residence, according to Internal Revenue Service spokesman Eric Smith. The tax break extends to 2012.

The lender’s willingness to negotiate varies and depends on the loan balance, condition of the property, location and resale opportunities, said Alberta Hultman, chief executive officer of USFN, an association of U.S. mortgage banking attorneys based in Tustin, Calif.

Short sales or deeds-in-lieu of foreclosures are considered the same as a foreclosure on your credit score, said Craig Watts, spokesman for Minneapolis-based FICO Corp., owner of the credit-scoring formula most widely used by U.S. lenders.

A foreclosure remains on a credit report for seven years. Credit scores can begin to rebound in as little as 2 years if bills are paid on time, according to FICO.

“You really want to think through the inability to borrow and higher rates that you’ll pay,” Christopher Van Slyke, a partner at Trovena LLC, a wealth management firm based in La Jolla, Calif., said of walking away.

“If you don’t have the gun to your head, then stay right where you are,” said Cheryl Morhauser, a financial adviser based in Nevada City, Calif., whose clients’ average net worth is $1.5 million to $3 million.

Jennifer Albaugh, 34, plans to keep her Las Vegas home, where prices have dropped 49 percent since she bought it in December 2004, according to the S&P/Case-Shiller index.

Ms. Albaugh, who owns a fabric store, might have sold her 3,000-square-foot house for as much as $550,000 four years ago, she said. Today she owes more than $300,000 on her mortgage and says her house isn’t worth even close to that. She and her husband are still looking to buy a bigger home for their two kids, especially while rates are low, and might turn their current home into a vacation rental, she said.

“Walking out of your house to get a better deal down the street is just not the right thing to do,” she said. “It hurts everybody.”

Social stigma

Morality and social stigmas play an important role in whether someone who can afford the payments will walk away, said Paola Sapienza, professor of finance at Northwestern University’s business school, in a July study on strategic defaults. Eighty-one percent of 1,646 homeowners interviewed think it is morally wrong, the study found.

“If you know someone who’s done it, you’re way more likely to do it,” Ms. Sapienza said. “That’s the scariest part, is that there might be some contagion part of this.”

Ms. Albaugh and Mr. Conroy, the San Diego homeowner, said they’re frustrated by the lack of help for homeowners like them who keep paying.

“It seems like the banks are more willing to work with people who aren’t making their payments rather than people who are,” Mr. Conroy said.

Copyright © 2009 The Washington Times; Margaret Collins, Bloomberg News. Distributed by McClatchy-Tribune Information Services.

Bank of America Implements Equator formerly REOTrans Platform for Short Sales

It appears Bank of America is not yet ready to come out of the closet about their relationship with Equator (REOTrans) even though they have been directing customers doing short sales towards this platform. I had reported on this recent change back in early October SEE Bank of America formerly Countrywide NEW NEW Short Sale Process…REOTrans.com.

We have had a few short sales directed onto the new Equator platform and then neither Bank of America nor Equator know what to do next. Below is a recent article by Carrie Bay for the DS News that explains the situation a little bit more.

Either way you cut it…Bank of America as well as other banks need to get in gear and streamline the short sale processes. We hear a lot of talk and little action to make things better. The only thing that has been streamlined is that the negotiators and agents have learned how to deal with Bank of America and set expectations that the short sale process will be long and frustrating.

I am in the “wait and see” mode on whether Equator and Bank of America can improve their broken systems and get this relationship put into high gear and make things happen. With 88% of distressed properties being short sales in the Emerald Coast Multiple Listing Service…we can not avoid or ignore this logjam of short sales and need immediate and significant action from the lenders.

The article is below…

California-based Equator (formerly known as REOTrans) says it has launched the industry’s first-ever short sale module for a large national lender.

Although Equator declined to name the lender, the San Francisco Chronicle has reported that Bank of America is the company in question. A representative from BofA recently told the paper that they were using the Equator platform to manage the short sale process. “This is the first time that short sales have been handled through an electronic platform,” said Equator CEO Chris Saitta. “With our new system, everyone works together in real time, dramatically improving communication and approval timelines for our client, its borrowers, vendors, and real estate agents.”

Short sales, in which a lender and borrower reach an agreement to dispose of a property threatened by foreclosure at a price that is “short” of the amount owed on the mortgage, have become more popular among lenders lately as a viable method for dealing with distressed properties. According to Equator, the number of successful short sales has increased spectacularly across the country in the wake of the foreclosure crisis.

Kevin Kieffer, a Realtor with Keller Williams Realty in Danville, California, told the Chronicle, “A year ago I wouldn’t touch a short sale. It would be random prices banks wouldn’t agree to, you would be tied up six months hoping to get a property sold. But now we’re seeing banks up front negotiating prices and giving us criteria. They’re getting creative to make things move.”

Equator says the keys to a successful short sale are accessibility, responsiveness, communication, and fulfillment. By adopting its short sale platform, the company says large lenders, such as the unnamed Bank of America, can ensure troubled borrowers have 24/7 access to a portal through which they can provide the necessary information to process a short sale and receive real-time status updates electronically.

“Short sales can be a daunting, complicated, frustrating task for everyone involved,” Saitta said. “This fresh approach using our sophisticated platform makes it fast and efficient for all parties involved.”

Equator’s short sale module also automates decisioning for the lender, handles approvals for faster turnaround, provides quick fulfillment, and assures full compliance with government programs, Saitta said.