Fannie Mae and Freddie Mac HAFA Programs
September 7, 2010 by Craig Baranowski
Filed under From My Blog
The Home Affordable Foreclosure Alternative Program, HAFA became effective and April 5th 2010 and has been a welcomed relief for homeowners seeking viable foreclosure alternatives. The HAFA program scheduled to expire on December 31st 2012 streamlines the short sale process enabling approval within 10 days and waives deficiency judgments on the short sale. The HAFA program was not available for any loan that way backed by Fannie Mae or Freddie Mac and thus eliminated many homeowners that would have been eligible for the HAFA program. Our team has already successfully closed HAFA short sales and have over a dozen in the pre-approval process with several lenders. So far the program has been a success with our homeowners who qualify and is a much needed breath of fresh air to a very frustrating and stressful short sale process.
On August 1st, 2010 Fanne Mae and Freddie Mac rolled out their own HAFA program for any loans backed by Fannie or Freddie. The Fannie Mae Home Affordable Foreclosure Alternatives (HAFA), which, like Treasury's Supplemental Directive 09-09 Revised, is designed to mitigate the impact of foreclosures on borrowers who are eligible for a loan modification under the Home Affordable Modification Program (HAMP), but ultimately were unsuccessful in obtaining one.
The Fannie and Freddie HAFA program will simplify and streamline the use of short sales and deed-in-lieu (DIL) options and use similar forms and timelines. Some of the major differences offered by the new Fannie Mae and Freddie Mac HAFA programs include, but are not limited to:
- Both institutions will pay the servicer a $2,200 incentive fee for successful short sales
- Both institutions will pay the servicer a $1,500 incentive fee for all successful DILs
- The Deed for Lease (D4L) is available for borrowers who request and are approved to remain in the property following a successful DIL
Specific details on these programs can be found by visiting the following links: eFannieMae.com.
Members of Team Baranowski are Certified Distressed Property Experts. We have over two years experience helping homeowners prevent foreclosures. If you or someone you know is in need of assistance or would like an assessment if you qualify for the HAFA program please give us a call at 850-259-1788 or email us at info@teambaranowski.com.
Bank of America Pilot Tests New Cooperative Short Sale Program
September 7, 2010 by Craig Baranowski
Filed under From My Blog
Well it appears Bank of America is yet again pilot testing another new short sale program. Bank of America seems to always be under fire for their lengthy short sale process with hundreds of thousands of homeowners in default. Our most popular blog posts and comments revolve around Bank of America short sales and frustration with their lengthy and confusing process. See related Bank of America Articles below:
- Bank of America formerly Countrywide short sale process streamlined?
- Bank of America and Equator (Formerly REOTrans)…Short Sale Nirvana?
- Bank of America Implements HAFA on Equator for Short Sales
- Bank of America formerly Countrywide New Short Sale Policies and Guidelines
Bank of America's new pilot short sale program is focused on helping homeowners avoid foreclosure. Bank of America has diligently worked to resolve issues with the traditional short sale process by implementing a paperless and streamlined short sale process on the Equator technology platform. This program has had it aches and pains, but is running fairly smoothly and has greatly reduced the time to process a short sale from a languishingly long 8 to 12 months to a more respectable 2 to 3 months.
Prior to Bank of America rolling out the government’s Home Affordable Foreclosure Alternatives (HAFA) Short Sale program in April, they began Cooperative Short Sale pilot program. This program is structured similarly to HAFA in that Bank of America will work with the homeowner and agent prior to marketing the property to gain agreement on the terms of the short sale so that once an offer is received the approval is streamlined. The objective of the Cooperative Short Sale program is to utilize this program for customers that do not qualify or fallout of the HAFA program. HAFA is always considered first and no HAFA eligible loans will be included in the program.
The Cooperative Short Sale program is still being developed and tested by Bank of America with a small number of homeowners. Some specific eligibility requirements will include asset reviews, no second liens or MI on the loan, and require participating investors.
Bank of America Cooperative Short Sale Program similarities to HAFA include:
* BofA will work with the customer prior to listing the home to help establish the listing price using a valuation to determine fair market value.
* BofA will ask that the property be actively marketed for 120 days. If it does not sell in that time, we will consider a deed-in-lieu of foreclosure to satisfy the mortgage.
* Since the appraisal and qualifications are completed upfront, short sale approval will take less than two weeks to complete.
Results from the pilot test will be used to design the upcoming expansion of the program. Announcements will be made when we expand this program beyond the pilot and will outline details of the program.
To read more about Bank of America's HAFA Program please visit their Website. Members of Team Baranowski are Certified Distressed Property Experts. We have over two years experience helping homeowners prevent foreclosures. If you or someone you know is in need of assistance please give us a call at 850-259-1788 or email us at info@teambaranowski.com.
Blue Mountain Beach Foreclosure 360 Village Blvd as Top Distressed Property Pick for September 7 2010
September 7, 2010 by Craig Baranowski
Filed under Craig's Top Investment and Distressed Property Pick
Village of Blue Mountain Beach is nestled between Highway 393 and 83 just north of Scenic 30A. This development offers beach access, an exercise room, a pool and functional common areas making this subdivision a perfect place for a vacation home of primary residence. The Scenic 30A corridor is in short supply of quality homes under $300K that are 3 Bedrooms or larger.
360 Village Blvd in Blue Mountain Beach is a 4 Bedroom 4 Bath home boasting a spacious 2,339sf in a beautiful 3 story home. This Bank of America Foreclosure has travertine and wood floors, solid surface counter tops, stainless appliances, custom cabinets throughout and raised ceilings. The top floor offers a wonderfully large recreation room with it own full bath, wet bar and central AC system. At under $120/sf this Blue Mountain Beach Foreclosure will not last long.
360 Village Blvd in Blue Mountain Beach
Homes in Village of Blue Mountain Beach
Scenic 30A Foreclosures
360 Village Blvd is a Bank of America Foreclosure. All offers with financing must be accompanied by a pre-qualification letter from Bank of America. Buyers are not required to finance through Bank of America.
Foreclosure 360 Village Blvd in Blue Mountain Beach
Offered at $274,900
2,339sf
4 Bedrooms, 4 Full Baths
Built in 2006
If you are interested in buying a distressed property on Scenic 30-A or if you are interested in Team Baranowski listing your home. Please give Tracy Baranowski a call at 850.259.4270 or Craig Baranowski at 850.259.1788 or email us info@teambaranowski.com.
Rosemary Beach Foreclosure 54 Round Road as Craig’s Top Distressed Property Pick for May 4 2010
August 10, 2010 by Craig Baranowski
Filed under Craig's Top Investment and Distressed Property Pick, From My Blog
5 Cash offers in 24 Hours – Under Contract!
Rosemary Beach has only had 4 Bank Owned Homes come onto the market: 57 Bourne Lane sold after being on the market for 14 days as an REO, the carriage house on 8 Dill Lane lasted 16 days on the market and 69 Johnstown Lane just went under contract on the 20th of April 2010. Bank Owned properties in Rosemary Beach do not last long! In fact there are currently 14 homes under contract and 16 have sold since January 2010 in Rosemary Beach which is a 16X increase from the same period in 2009! Homes are selling in Rosemary Beach and buyers are snatching up great buys quickly.
54 Round Road is the latest of the Bank Owned Properties or REOs to hit Rosemary Beach. Team Baranowski has been watching this him closely as it went through it assignment to an asset manager at Wachovia then be assigned to an REO agent and then go though some minor cosmetic updates…and onto the market. This home foreclosed in December and is being watched by many savvy buyers. The home snuck onto the market quietly as it was listed in Panama City MLS versus the Emerald Coast MLS and has not been seen by many 30A Realtors.
Rosemary Beach Homes and Condos for Sale
Rosemary Beach Distressed Property for Sale
Rosemary Beach Market Analysis and Market Snapshot
54 Round Road in Rosemary Beach
54 Round Road needs some TLC and upgrades to make it a classic Rosemary Beach Luxury Home. It's location is outstanding, situated on the South Side of Rosemary Beach with only a short walk to the Eastern Green and beach access. This home's corner location offers three sides of privacy with only one side sharing a property line with another home. This bank owned property in Rosemary Beach has a main house with 4 bedrooms and 3 and 1 half baths and a comfortable sized carriage house. 54 Round Road has a private courtyard, a large carport, 2 laundry areas and ample porch areas for enjoying the evening gulf breezes.
Rental income is estimated to gross $80,000 to $100,000 per year based upon the home's superior location, gulf views, size and functional floor plan. 54 Round Road would be a steal at $1.1 million to $1.2 million compared to other comparables in Rosemary Beach. With some key upgrades and chic furnishings this home would be valued at $1.5 million to $1.6 million! This wonderful Rosemary Beach home will not last long!
Rosemary Beach Bank Owned Property 54 Round Road
Offered at $975,000
3,136sf
5 Bedrooms, 4 Full Baths, 1 Half Bath
Built in 2001
If you are interested in buying a distressed property on Scenic 30-A or if you are interested in Team Baranowski listing your home. Please give Tracy Baranowski a call at 850.259.4270 or Craig Baranowski at 850.259.1788 or email us info@teambaranowski.com.
Summer’s Edge: 80 Chelsea Loop as Craig’s Top Distressed Property Pick August 2nd 2010
August 1, 2010 by Craig Baranowski
Filed under From My Blog
80 Chelsea Loop makes the top of my list as my Top Distressed Property Pick for this week. This beautiful home in Summer's Edge just foreclosed on July 29th and will be coming onto the market in a few weeks. What does that mean?
Our customers and subscribers of our newsletter will be the first to know about this hot property about to hit the market! 80 Chelsea Loop is two rows back from the Gulf of Mexico and has excellent views of the Gulf. This home is currently listed for $749,000 as a short sale until the property is assigned to an asset manager and put back on the market as a Bank Owned Property / REO. This amazing home in Summer's Edge will be snatched up for a steal! If you are interested call or email us to get on our HOT LIST for this property.
Summer's Edge Homes for Sale
30A REOs for Sale
30A Short Sales for Sale
Very Popular Beach Rental on the South Side of 30-A with unobstructed Gulf Views! Beautiful 4 bedroom home with 2 large living areas. Home features hickory wood flooring throughout, tile baths with granite counters, spacious kitchen with stainless steel appliances, breakfast bar and lots of cabinetry. Perfect home for rental or permanent residence – Summer's Edge is a well maintained neighborhood, with good rental history. Tastefully decorated throughout – Views of the beach can be seen from all the living areas, kitchen-dining, all exterior porches and most bedrooms. This house is a MUST see & Rental Machine.
80 Chelsea Loop in Summer's EdgeBuilt in 2008
3,000 sqft 4 Bedrooms, 3 Full Baths, 1 Half Bath
3 Stories Was offered at $749,000 when Foreclosed on July 29, 2010
* New sales price TBD…
If you are interested in this Bank Owned Property in Summer's Edge and would like to preview it or if you are interested in Team Baranowski listing your home, please give Tracy Baranowski a call at 850.259.4270 or Craig Baranowski at 850.259.1788 or email us info@teambaranowski.com
Uncertainty of Florida Real Estate Market Impacted by Oil Spill
August 1, 2010 by Craig Baranowski
Filed under From My Blog
Northwest Florida's impact from the BP Oil Spill has been significant. Although our pristine beaches and emerald waters were minimally impacted, the media blitz and uncertainty of the oil spill caused a major hick-up in our real estate market and our economy. Below is a summary of a study performed by the University of Florida that discusses the uncertainty of the Florida real estate market.
UF study: BP oil spill adds to uncertainty about Florida’s real estate market
GAINESVILLE, Fla. – July 30, 2010 – The BP oil spill threatens to swamp a shaky Florida real estate industry that had been bottoming out because of repeated economic blows, the latest University of Florida survey finds.
“The devastating effect of the spill on the Panhandle’s economy has created a giant cloud of uncertainty that is affecting all markets across the state,” said Timothy Becker, director of UF’s Bergstrom Center for Real Estate Studies, which issues its survey for second quarter 2010 earlier this week.
“Our respondents indicate that the effect of the oil spill is being felt across Florida despite the fact that oil is currently only showing up on beaches in the Panhandle.”
The oil disaster’s effects are a worry second only to poor job growth in what is already a precarious condition for Florida’ real estate markets, he said.
“Until we start seeing improvements in job rates, I don’t think things are going to get much better than they are right now,” Becker said. “Unemployment drives everything for the real estate market, and while unemployment has gotten slightly better this past quarter, it’s not a significant difference.”
Florida’s unemployment rate, which dropped from 11.7 percent in May to a seasonally adjusted average of 11.4 percent in June, continues to be the nation’s fifth highest, he said.
The two biggest changes since the last real estate survey is an increasingly positive outlook for investment in industrial properties and a more pessimistic one for apartments, Becker said. It’s unclear why the industrial sector has become more favorable; however, the appeal of apartments has waned because aggressive purchasing has snapped up the most desirable properties, he said.
“For the past year and a half apartments have been the star performer if there is a star performer among property groups,” he said. “But our respondents have seen that good assets coming into the marketplace have been bought up, so the possibility of finding quality pieces of properties in the future is not as good.”
The outlook for single-family housing development and sales declined this quarter as a result of the oil spill, stagnant job growth, expiration of government tax credits and continued high foreclosure rates, Becker said. While the number of foreclosed homes in Florida has declined, it is still high, ranking third behind Nevada and Arizona, he said.
“Our respondents remain negative about new home construction, although builders are continuing to buy finished lots on which to build on,” he said.
The vitality of both the residential and commercial sectors is brightest in South Florida, particularly Miami-Dade and Broward counties, Becker said. “It’s not a great market, but it’s the best market in the state,” he said. “It has the advantage of international diversification, with a lot of money coming in, and it’s very vibrant culturally.”
Even Miami’s condo market, with thousands of empty units, has improved, with investors purchasing large chunks of condo properties downtown and placing them on the rental market, Becker said.
“Across the rest of the state condos are still bad news,” he said. “Sales are not very good because it’s difficult if not impossible to get bank financing to purchase them.”
With so many condos in Florida located on beachfront property, there are new fears that things could get worse, depending on how widespread the oil spill is, he said. He also noted other financial and political uncertainties loom.
A large group of commercial mortgages are coming due and it’s unclear whether the loans will be extended or they will come to market with large numbers of foreclosures, Becker said. These properties, which are bundled together, would have to be paid off with additional financing, but none is available, he said.
“Over the next few years there is close to a trillion dollars in real estate loans coming due that will need to be refinanced and there is just not the money to do that,” he said.
Politically, perhaps the biggest concern statewide is voters’ decision in November on Amendment 4, a constitutional amendment that would require a taxpayer-funded referendum for changes to local government comprehensive plans, he said.
“Our respondents believe that passage of Amendment 4 could be the nail in the coffin of the real estate industry in Florida,” Becker said. “Several respondents indicated that the uncertainty of its outcome is affecting purchase decisions even on entitled land, with potential buyers backing out of contracts.”
Nationally, Congress’s decision on the extension or expiration of the Bush era tax cuts and the passage of the financial reform bill is likely to affect real estate markets, although how is not known yet, he said.
Panama City Beach Condo Market Analysis for July 2010
August 1, 2010 by Craig Baranowski
Filed under From My Blog, Local Real Estate News
Venturing into Panama City Beach this summer you will notice two things: First the beaches are spectacular and oil free and second Pier Park is HOT! I am convince Pier Park will be the top destination along the Emerald Coast for shopping and dining. The new airport is rocking and almost all of the flights into Northwest Florida Beaches International Airport are FULL! So how do the Real Estate number look for Panama City Beach condos?
Panama City Beach condos are continuing to struggle in the Real Estate rebound in Northwest Florida. A volatile combination of limited availability of loans to purchase condos, struggling HOAs and an excess of new condo inventory…Panama City Beach Condos are struggling to get back on track. Although the oil spill made little physical impact on our beaches it did negatively impact condo rental income and rental rates as vacationers looked for "oil spill specials". I also believe the oil spill impacted sales transactions as sales volume and pending contracts are off 2009 numbers.
The GoodAverage listing and sales prices are up for 2010 Grand Panama Beach Resort is the top selling condo year to date with 39 sales Grand Panama Beach Resort Market Analysis and Snapshot
The Bad
Short Sales and foreclosures continue to represent a large portion of available inventory Bank Owned and Short sale transactions are up 81% from the same period a year ago Foreclosures and short sales will continue to enter the Panama City Beach Condo Market Year to date sales and pending listings are down compared to 2009
Panama City Beach Condo Market Summary and Analysis for July 2010 pdf Version
Scenic 30-A & Emerald Coast Market Summary and Analysis for July 2010 pdf Version
Dune Allen Short Sale Dune Breeze Villas as Craig’s Top Distressed Property Pick for July 19 2010
July 19, 2010 by Craig Baranowski
Filed under Craig's Top Investment and Distressed Property Pick, From My Blog
Just Reduced to $279,000! Call 850-259-1788 for details!
Dune Allen is a very popular area along Scenic 30A. Pristine sugary white sand beaches are just a step away, as well as the beautiful coast dune lake, Oyster Lake. This week's top distressed property pick is a fabulous townhouse in Dune Allen in Dune Breeze Villas. This Villa has all the elements of a hot buy: Gulf views, easy gulf access, lake views, community pool, low HOA, spacious floor plan, garage, incredibly low price!
Dune Breeze Villas 43B Dune Breeze in Dune Allen
Short Sales on Scenic 30A
Foreclosures on 30A
Fantastic opportunity to own in Dune Allen! This spacious townhouse has scenic Gulf and lake views, plus easy walking paths lead you to our pristine sugar-white sandy beaches. Located right off Scenic Highway 30A. With plenty of space to spread out and relax, this townhome in Dune Allen plenty of amenities to make you feel at home. Light, open, fresh color scheme, carpet and ceramic tile throughout. Large Master Suite with private bath, jacuzzi tub, and large private patio deck with Gulf and lake views. Excellent floor plan with each bedroom having its own private bath! Walking distance to Santa Rosa Beach and Golf Club, and only ten minutes from fabulous shopping and dining at Gulf Place and Seaside (East) or Destin/Sandestin (West). Enjoy those tranquil, beautiful sunsets you've dreamed about while sipping your favorite drink from either of our two spacious patios, out by the docks on Oyster Lake!
43B Dune Beeze in Dune AllenBuilt in 2001
2,496 sqft 4 Bedrooms, 4 Full Baths
2 Stories Currently offered at $349,900
If you are interested in this town home in Dune Allen and would like to preview it or if you are interested in Team Baranowski listing your home, please give Tracy Baranowski a call at 850.259.4270 or Craig Baranowski at 850.259.1788 or email us info@teambaranowski.com
Walking Away from $1mil+ Mortgages
July 19, 2010 by Craig Baranowski
Filed under From My Blog
I have written a number blog posts about strategic defaulters where owners choose to not pay their mortgage even though they can afford to pay. When the real estate market began its downward slide it mostly comprised of sub-prime mortgages. Analysts warned of "A rated" and prime mortgage defaults were looming on the horizon. The Emerald Coast and Scenic 30A has an abundance of $1mil+ properties and appears that well-healed or wealthy homeowners are defaulting on their mortgages at a higher rate than other segments.
LOS ALTOS, Calif. – July 9, 2010 – Wealthy homeowners are defaulting on their mortgages at a higher rate than other segments of the population, according to the research firm CoreLogic.
More than one in seven borrowers with home loans of $1 million or more are seriously delinquent, according to research, compared to just one in 12 with mortgages for less than $1 million. The bottom line is the rich have stopped paying the mortgage on their residential, second home and investment properties at a rate that greatly exceeds the rest of the population.
According to the New York Times, CoreLogic economists speculate that well-off borrowers are making calculated moves to shed poorly performing real estate, just as they would any other soured investment. “The rich are different: they are more ruthless,” said Sam Khater, CoreLogic’s senior economist. Though hard to prove, the CoreLogic data suggest that the rich do not appear to be particularly worried about being sued by their lender or frozen out of future loans by Fannie Mae, possible consequences of default.
The delinquency rate on investment homes where the original mortgage was more than $1 million is now 23 percent. For cheaper investment homes, it is about 10 percent.
With second homes, the delinquency rate for both types of owners was rising in concert until the stock market crashed in September 2008. That sent the percentage of troubled million-dollar loans spiraling up much faster than the smaller loans.
“Those with high net worth have other resources to lean on if they get in trouble,” said Khater. “If they’re going delinquent faster than anyone else, that tells me they are doing so willingly.”
The rich and successful often come naturally to this sort of attitude, said Brent T. White, a law professor at the University of Arizona, who studied strategic defaults.
“They may be less susceptible to the shame and fear-mongering used by the government and the mortgage banking industry to keep underwater homeowners from acting in their financial best interest,” White said.
One Million Foreclosures in 2010!
July 19, 2010 by Craig Baranowski
Filed under From My Blog
It is hard to imagine that our court systems are buried in foreclosures to the point that we have almost 1 million foreclosures in backlog in the Florida courts which will take years to process. Walton, Bay and Okaloosa county have been ramping up the foreclosures and running about 8 foreclosure sales a day. I am seeing less foreclosures being postponed and more being pushed through the system.
Nationally they are expecting more than 1 million households will loose their homes to foreclosure in 2010! This is an astonishing number and does not include land foreclosures or commercial property foreclosures. The next 6 to 12 months is going to be an interesting ride as the bulk of foreclosures work their way through the court systems.
LOS ANGELES (AP) – July 15, 2010 – More than 1 million American households are likely to lose their homes to foreclosure this year, as lenders work their way through a huge backlog of borrowers who have fallen behind on their loans.
Nearly 528,000 homes were taken over by lenders in the first six months of the year, a rate that is on track to eclipse the more than 900,000 homes repossessed in 2009, according to data released Thursday by RealtyTrac Inc., a foreclosure listing service.
“That would be unprecedented,” said Rick Sharga, a senior vice president at RealtyTrac.
By comparison, lenders have historically taken over about 100,000 homes a year, Sharga said.
The surge in home repossessions reflects the dynamic of a foreclosure crisis that has shown signs of leveling off in recent months, but remains a crippling drag on the housing market.
The pace at which new homes falling behind in payments and entering the foreclosure process has slowed as banks continue to let delinquent borrowers stay longer in their homes rather than adding to the glut of foreclosed properties on the market. At the same time, lenders have stepped up repossessions in an effort to clear out the backlog of distressed inventory on their books.
The number of households facing foreclosure in the first half of the year climbed 8 percent versus the same period last year, but dropped 5 percent from the last six months of 2009, according to RealtyTrac, which tracks notices for defaults, scheduled home auctions and home repossessions.
In all, about 1.7 million homeowners received a foreclosure-related warning between January and June. That translates to one in 78 U.S. homes.
Foreclosure notices posted monthly declines in April, May and June, but Sharga said one shouldn’t read too much into that.
“The banks are really sort of controlling or managing the dial on how fast these things get processed so they can ultimately manage the inventory of distressed assets on the market,” he said.
On average, it takes about 15 months for a home loan to go from being 30 days late to the property being foreclosed and sold, according to Lender Processing Services Inc., which tracks mortgages.
Assuming the U.S. economy doesn’t worsen, aggravating the foreclosure crisis, Sharga projects it will take lenders through 2013 to resolve the backlog of distressed properties that have on their books right now.
And a new wave of foreclosures could be coming in the second half of the year, especially if the unemployment rate remains high, mortgage-assistance programs fail, and the economy doesn’t improve fast enough to lift home sales.
The prospect of lenders taking over more than a million homes this year is likely to push housing values down, experts say.
Foreclosed homes are typically sold at steep discounts, lowering the value of surrounding properties.
“The downward pressure from foreclosures will persist and prices will be very weak well into 2012,” said Celia Chen, senior director of Moody’s Economy.com.
She projects home prices will fall as much as 6 percent over the next 12 months from where they were in the first-quarter.
Economic woes, such as unemployment or reduced income, continue to be the main catalysts for foreclosures this year. Initially, lax lending standards were the culprit. Now, homeowners with good credit who took out conventional, fixed-rate loans are the fastest growing group of foreclosures.
There are more than 7.3 million home loans in some stage of delinquency, according to Lender Processing Services.
Lenders are offering to help some homeowners modify their loans. But many borrowers can’t qualify or they are falling back into default. The Obama administration’s $75 billion foreclosure prevention effort has made only a small dent in the problem.
More than a third of the 1.2 million borrowers who have enrolled in the mortgage modification program have dropped out. That compares with about 27 percent who have received permanent loan modifications and are making payments on time.
Among states, Nevada posted the highest foreclosure rate in the first half of the year. One in every 17 households there received a foreclosure notice. However, foreclosures there are down 6 percent from a year earlier.
Arizona, Florida, California and Utah were next among states with the highest foreclosure rates. Rounding out the top 10 were Georgia, Michigan, Idaho, Illinois and Colorado.
Copyright 2010 The Associated Press, Alex Veiga, AP Real Estate Writer. AP Real Estate Writer Alan Zibel in Washington contributed to this report.
Distressed Interest Rates?
July 19, 2010 by Craig Baranowski
Filed under From My Blog
Distressed property, foreclosures, bank owned property, short sales, REO's…that is all I hear on a daily basis. Every day I add new prospective buyers into my contact management system and the large white board on the wall of the office and everyone has a note that says, "wants a great deal."
Most of my conversations go like this…"I am looking for distressed property. I know you hear this all the time, but I want a great deal. Not a good deal, but a GREAT deal!' I have to laugh because when the real estate market was booming and prices were skyrocketing people were buying anything and everything. Now when prices are at historically low levels everyone wants an even a better deal!
So the magic question is…how much better of a deal can you get? Let's throw in distressed interest rates which are at the lowest levels we have seen in decades! There can not be a better time to buy than right now! I call them distressed interest rates as they are ridiculously low interest rates and the cost of ownership is at the lowest levels we may see in our lifetime!
Let's do some fun math on a $450,000 mortgage amortized over 30 years:
We will compare the market peak in 2005 to 2010 at the market bottom…
2005: $450,000 @ 6.25% monthly payment is $2,770.73
2010: $450,000 @ 4.59% monthly payment is $2,304.21 [Bankrate.com 7/19/2010]
WASHINGTON – July 16, 2010 – Mortgage rates were unchanged this week at the lowest point in decades, but it hasn’t been enough to jump-start the housing market.
Government-sponsored mortgage buyer Freddie Mac said Thursday the average rate for 30-year fixed loans this week was 4.57 percent. That’s the same as a week earlier and the lowest since Freddie Mac began tracking rates in 1971.
The last time home loan rates were lower was the 1950s, when most mortgages lasted just 20 or 25 years.
Rates have fallen since the spring. Investors, concerned with the European debt crisis, have poured money into the safety of Treasury bonds. Treasury yields have fallen and so have mortgage rates, which tend to track yields on U.S. debt.
However, low rates have yet to fuel home sales and have sparked only a modest increase in refinancing activity.
The housing market has slowed since federal tax credits for homebuyers expired at the end of April. And the latest decline in mortgage rates is unlikely to boost the market.
Mortgage rates have hovered near record lows for some time, so most people who can afford to buy homes or qualify to refinance their loans have already done so in the past 18 months. Doing so again wouldn’t be worth the cost for most.
Meanwhile, millions of Americans are unable to take advantage of the low rates. Many have seen the value of their homes plummet and have little or no equity. Or they lack good credit or steady income to get or refinance a mortgage.
Rates could go lower and still not budge the housing market, analysts say. That’s because a person without a job can’t afford a home and a person worried about losing their job is unlikely to do so either.
To calculate the national average, Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.
Rates on 15-year fixed-rate mortgages decreased to an average of 4.06 percent, down from 4.07 percent last week. Rates on five-year adjustable-rate mortgages averaged 3.85 percent, up from 3.75 percent a week earlier.
Rates on one-year adjustable-rate mortgages fell to an average of 3.74 percent from 3.75 percent.
The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount. The nationwide fee for all types of loans in Freddie Mac’s survey averaged 0.7 a point.
Copyright 2010 The Associated Press, Alan Zibel (AP Real Estate Writer). All rights reserved.
Rosemary Beach: 54 Round Road HOT Property Alert!
June 30, 2010 by Craig Baranowski
Filed under Craig's Top Investment and Distressed Property Pick, From My Blog
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Hot Property Alert! Rosemary Beach Foreclosure 54 Round Road!
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Foreclosure in WaterSound Beach 216 Gulf Bridge Lane Hot Property Alert!
June 18, 2010 by Craig Baranowski
Filed under From My Blog
Reduced to $919,900! 3,415sf and Under Contract September 3rd 2010!
The last foreclosure in WaterSound Beach to come onto the market, 189 Gulf Bridge Lane, had 3 offers in the first 24 Hours. This WaterSound Beach Foreclosure is due to hit the market in early July 2010. This WaterSound Beach Foreclosure will not last long. If you are interested in this home please give either Tracy or Craig a call at 850-259-4270 and 850-259-1788 or email @ info@teambaranowski.com
216 Gulf Bridge Lane in WaterSound Beach
3,415sf
6 Bedrooms
6 Baths and 1 Half Bath
Built in 2008
Offer price TBD
Homes in WaterSound Beach
Condos in WaterSound Beach
WaterSound Beach Market Analysis and Market Snapshot
Custom built home with lots of upgraded features including 5 1/4" Australian Cypress Wood floors, kitchen cabinets by Quaker Made with 1" cabinet doors, frameless glass on showers and high-end granite in kitchen as well as in bathrooms. The kitchen in the main house comes complete with Viking Appliances, a built-in ice maker as well as built-in wine cooler/storage. living area is wired for surround sound. There are two indoor and two outdoor. The home is wired for a security system and the outdoor fireplaces with gas logs. The brick arched wall inside the home adds warmth and beauty. The carriage house features GE appliances. There are ample views of the gulf as well as the lake. Step out the front door and walk across the street to the boardwalk to the pier. It's just a short stroll to the amazing pool and beautiful meeting room
If you are interested in this home please give either Tracy or Craig a call at 850-259-4270 and 850-259-1788 or email @ info@teambaranowski.com
Foreclosures in Florida Courts Have a 3-Year Backlog
June 18, 2010 by Craig Baranowski
Filed under From My Blog
Foreclosures are finally moving through the court systems in Florida. We have seen a surge in new foreclosures hitting the market recently [See Emerald Coast Foreclosure Hot Sheet]. It is estimated that there are over 1 million foreclosures in the Florida Courts clogging the system. With a 40% increase in bank repossessions in May, to more than 90,000, compared to the same period last year, we are going to see even more foreclosures hit the market.
According to a story by the Washington Post, economists are predicting a 3-year backlog of foreclosures!
TALLAHASSEE, Fla. – June 14, 2010 – Shortly after Orlando Eslava’s bank started to push him through the foreclosure process last year, he got some good news: He was eligible for a government mortgage relief program that would lower his loan payments. But the lender plowed ahead with the foreclosure sale anyway, taking back the condo in Aventura, Fla., even as Eslava made payments under the federal plan.
When a Florida judge learned of the foreclosure, she threw out the case and nullified Eslava’s existing mortgage balance.
Eslava’s case reflects the state of confusion among lenders and courts as they struggle to keep up with a backlog of millions of delinquent homeowners making their way through the foreclosure process. Bank repossessions jumped more than 40 percent in May, to more than 90,000, compared with the same period last year, according to data released Thursday by RealtyTrac, an online service that tracks the foreclosure market.
That uptick is likely to continue this year, and it could take at least three years to work through the backlog of delinquent borrowers, economists say. In many cases, lenders are pushing their cases through overwhelmed courts and facing emboldened homeowners challenging the repossession of their homes on technical grounds.
By the time HSBC began the foreclosure process last year, Eslava, 53, had been trying to get a loan modification for more than a year. In November, a judge approved HSBC’s request to proceed with the repossession and set an April 9 sale date. But after discovering that HSBC could not produce proof that it held Eslava’s mortgage note, the judge ordered the bank to post a $414,000 bond.
The next day, Eslava learned that he was eligible for the federal foreclosure prevention program, which would lower his mortgage payments to $620 a month from about $1,000.
“It was a big relief. Like it was finally going to be over,” Eslava said.
The loan modification should have prevented the foreclosure. But HSBC continued to oppose efforts by Eslava’s attorney, Sheleen Khan, to cancel the foreclosure sale. “All he was looking to do was modify the loan,” Kahn said. “It was very trying for him and nerve-racking for me because we didn’t know what would happen.”
Eslava made several payments under the government relief program, but HSBC foreclosed on the home in April. Kahn filed a motion to overturn the sale, pointing out that in addition to ignoring the loan modification, the bank had not posted the bond required by the judge.
Miami-Dade Circuit Court Judge Jennifer Bailey agreed and brought both sides back to court in early May. Noting that 60,000 foreclosure filings were made in Miami-Dade County last year and that every hearing takes precious minutes, Bailey lambasted the bank’s attorneys for wasting time.
“It doesn’t sound like much, but [every case] represents a situation where the bank’s position is constantly shifting and changing because they don’t know what the Sam Hill is going on in their files,” Bailey said, according to a transcript of the hearing.
“Why did you lose the note? Because you’re operating at the same level of chaos and disorganization that caused you to oppose the motion to cancel the sale when” Eslava had been given a loan modification, Bailey said. A few minutes later, Bailey sanctioned the bank by wiping out Eslava’s mortgage debt. The mortgage note “is null and void. Mr. Eslava is relieved of the debt,” Bailey said.
Eslava, who was not at the hearing, was shocked by the news. He had hoped that the foreclosure would be reversed and that he would remain in the government program. “It’s naturally a good feeling,” he said. “I did everything I was supposed to do.”
HSBC, which as the trustee owns the legal title to Eslava’s loan on behalf of a group of investors, said it does not comment on the specifics of legal matters.
Wells Fargo, which acted as the servicer on the loan, said in a statement: “We work hard to comply with all applicable legal requirements and we expect the firms we work with – in this case, Florida Default Law Group – to do the same. Although this was a technical error on their part, if we make a mistake, we fix it and we hold others we work with to the same high standards.”
Florida Default Law Group, which represented both banks in court, declined to comment.
There have been similar cases in New York and Illinois in which frustrated judges have wiped out a homeowner’s mortgage, but it is still far from a trend, said Diane E. Thompson, attorney on foreclosure issues at the National Consumer Law Center. “I don’t think that homeowners or their advocates should step into court and expect judges to do this for them, even if the lender can’t come up with the note,” Thompson said.
Many states are dealing with the backlog of homeowners winding their way through the process with mediation programs, requiring lenders in some cases to consider a loan modification before moving forward with a foreclosure. Maryland lawmakers approved a similar program this year. “That is a more hopeful trend, and it has the potential to resolve these disputes for everybody,” Thompson said.
Copyright © 2010 washingtonpost.com.
Foreclosure HOT Sheet Combined Residential Panama City MLS
June 16, 2010 by Craig Baranowski
Filed under From My Blog, REOs Combined Residential Panama City
Below are the most recent foreclosure and REO listings for Homes, Condos and Townhomes in the Panama City MLS for the past 7 Days.
ALL Foreclosures in Panama City and Surrounding Areas – Click HERE
Foreclosure HOT Sheet Residential Land Emerald Coast MLS
June 16, 2010 by Craig Baranowski
Filed under From My Blog, REOs Residential Land Emerald Coast
Below are the most recent Land foreclosure and REO listings in the Emerald Coast MLS for the past 7 Days.
ALL Vacant Land Foreclosures in Destin, 30A and Surrounding Areas – Click HERE
Foreclosure HOT Sheet Combined Residential Emerald Coast MLS
June 16, 2010 by Craig Baranowski
Filed under From My Blog, REOs Combined Residential Emerald Coast
Below are the most recent foreclosure and REO listings for Homes, Condos and Townhomes in the Emerald Coast MLS for the past 7 Days.
ALL Foreclosures in Destin, 30A and Surrounding Areas – Click HERE
Sunset Beach Short Sale 32 Sunset Beach as Craig’s Top Distressed Property Pick for June 14 2010
June 15, 2010 by Craig Baranowski
Filed under Craig's Top Investment and Distressed Property Pick
HAFA Approved: 32 Sunset Beach Sold for $485,000!
If you like the east end of Scenic 30-A by Rosemary Beach and desire the privacy of a gated community on the south side of 30-A then Care Free Cottage in the gulf front community of Sunset Beach is your opportunity to embrace coastal luxury living. This quaint 3 bedroom, 3 bath court yard home is in the private gated gulf-front community of Sunset Beach. One of the largest courtyard homes in Sunset Beach with an optimized floor plan adding additional space in the living room.
Sunset Beach optimizes Care Free coastal living with their patio homes that are maintained by the community up to the first floor. This beautiful home is a fantastic buy on the south side of 30-A and a short walk to Rosemary Beach.
32 Sunset Beach in Seacrest
Homes in Sunset Beach
A short walk down a cobblestone lane, lined by majestic grand palms will lead you to a gulf front pool and the sparkling gulf waters of the Emerald Coast. Wide walking and bicycling paths connect you with Rosemary beach 1/4 mile to the east, and Alys beach 1/4 mile to the west. This upscale community has everything nearby, and the beach and pool make the days easy and carefree. This home generated excellent rental income while on a seasonal rental program.
32 Sunset Beach in SeacrestBuilt in 2003
1,400 sqft 3 Bedrooms, 3 Full Baths
2 Stories Currently offered at $554,500
If you are interested in this luxury home in Sunset Beach and would like to preview it or if you are interested in Team Baranowski listing your luxury home. Please give Tracy Baranowski a call at 850.259.4270 or Craig Baranowski at 850.259.1788 or email us info@teambaranowski.com
Real Estate Oiled Property The New REO?
June 15, 2010 by Craig Baranowski
Filed under From My Blog
It has been a long 56 days since the offshore oil drilling platform, Deepwater Horizon, exploded in the Gulf of Mexico near Louisiana. Since that day it has been a wild and scary roller coaster ride of doom and gloom as local residents, vacationers and anyone that has a personal or financial investment in Northwest Florida waits to see what will happen next. I receive calls every days asking about the oil spill. Everyone wants to know what will happen to the Real Estate market?
I try to be the eternal optimist and rationalize that whatever happens to our beautiful beaches we will overcome the situation and bounce back stronger. This morning I was riding my bike along Scenic 30-A and Front Beach Road and saw hundreds of people outside enjoying our amazing weather, sunshine and sandy white beaches. Seeing people waiting in line at Charlie's Doughnuts in Alys Beach, families riding their bikes with their children, dozens of runners burning up miles on the multi-use trails, and couples walking side by side with a coffee in their hand made me believe it was business as usual on the Emerald Coast.
With an estimated 100 million gallons of oil that have leaked into the Gulf of Mexico I try to wrap my brain around the impact it will have on our area. I run through my usual list of items that impact our beaches every year and try to fit oil into the category. We usually get Red Tide every few years…we get June Weed in June that washes ashore…hurricanes in hurricane season…jellyfish…yellow flies. Even after all of these events, our beaches are still beautiful and they replenish through their natural cycle as they have for millions of years. Then I think about all of the man-made stuff that impacts our beaches…fireworks…beach toys…bottles…cigarettes and etc. Even with all of these our beaches are pristine and some of the cleanest Blue Wave Certified beaches in the world with the whitest sand and most beautiful emerald green water.
So what is going to happen if, or when, our beaches will be impacted with dime sized highly weathered tar balls…or an oil sheen? Is this going to be more or less of an impact than red tide or trash on the beach? How many tar balls will we get? How easy will it clean up? Will in naturally correct itself over time? What will it do to our Real Estate Market?
To say that the Deepwater Horizon oil spill has not impacted our real estate market would be a lie. As we all know buying and selling of real estate is both a financial and emotional decision. Currently, all of the impact on our real estate has been driven by emotion as we have no physical impact from the oil…yet.
Unfortunately, the oil spill makes an excellent news story especially since the oil is still leaking. Short term the oil spill will impact many individuals that rely on rental income to either cash flow or help carry the costs of their real estate as vacationers nervous about the oil spill cancel their vacations. In addition, many buyers that have been jumping into the market were doing so with the financial infusion of rental income to offset carrying costs. Speculation that our beaches will be closed due to the oil spill have cause a few rental cancellations, but not a significant amount. Overall, rentals and visitors to our beaches remain strong…very strong. Memorial day was an incredible weekend and week with many of the area developments at 100% occupancy. I had a few customers calling me trying to find a place to stay as everything was booked.
If oil does reach our shores and our beaches are closed many of the properties relying on rental income to offset carrying costs will encounter financial hardship. With financial hardship in an already struggling real estate market means more mortgage defaults. More mortgage defaults means more pre-foreclosures…which ultimately will become short sales or REOs. Although it is too soon to tell if our beaches will close. I will tell you that as of today the beaches are clean and oil free. So come on out and enjoy are area. I can assure you that if our beaches are impacted we will overcome the oil and come back stronger than ever.
by Craig Baranowski
For updates on the Deepwater Horizon oil spill, please visit http://www.southwaltonluxuryhomes.com/blog/deepwater-horizion-oil-spill-south-walton-beach/
Walking Away from Underwater Mortgages
May 25, 2010 by Craig Baranowski
Filed under From My Blog
In November 2009 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 may take a long time to recover.. Many homeowners are faced with homes whose mortgages are hundreds of thousands of dollars more than the homes are worth. With a 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.
It appears according to a recent survey shows that more than 40% of homeowners with a mortgage say they would consider abandoning their property. This is a very interesting article and brings to light something that may continue to drag out foreclosures and short sales for a long time.
More than 40 percent of homeowners with a mortgage say they would consider abandoning an "underwater" property, according to a national online survey released Thursday.
The study conducted this month by Harris Interactive for real estate firms Trulia and RealtyTrac touched on a topic that affects many South Floridians.
More than 371,000 homes in Palm Beach, Broward and Miami-Dade counties were worth less than the mortgage amount at the end of the first quarter, Zillow.com said recently.
Pete Flint, chief executive of Trulia, said on a conference call with reporters he "absolutely expects" more homeowners to walk away in the coming years as the stigma of foreclosure fades.
This is the fifth such survey of consumer attitudes since 2008, but the first time questions about underwater mortgages were included, Flint said.
Because South Florida home prices have fallen by more than 40 percent since the peak of the housing boom in 2005, underwater borrowers here may have to stay put for a decade or more until they can break even in a sale, housing experts say.
Some of these homeowners say they're unwilling or unable to wait that long.
RealtyTrac executive Rick Sharga said many borrowers are disgusted with their lenders, feeling as though the banks are "stonewalling" their attempts to seek mortgage modifications and stay in the homes.
"There's a lot of visceral anger at the banks right now," Sharga said, adding that there may be fewer people walking away from homes if they felt lenders were negotiating in good faith.
Lenders insist they are, pointing to the mortgage modification offices they've set up across the country to help borrowers who can demonstrate actual need.
"With people who can afford their payments but their home is worth less than what they owe, that is not considered a hardship," said Nancy Norris, a spokeswoman for banking giant Chase.
Sharga says the nation's housing market is in the process of a "long, slow, relatively flat recovery that probably won't feel much better until about 2013."
The Mortgage Bankers Association issued a report Wednesday that sent mixed signals about delinquencies and foreclosures. Some figures indicating a drop in the rate of distressed loans weren't seasonally adjusted, but other numbers that were adjusted showed minor increases in late payments.
Jay Brinkmann, chief economist for the trade group, said in a statement that Florida is getting worse when it comes to delinquencies and foreclosures.
Meanwhile, Sharga and Flint said lenders are doing a good job of managing inventories of foreclosed homes.
RealtyTrac has as many as 800,000 bank-owned homes in its database, but less than 30 percent are for sale. Gradually putting those on the market helps prevent major price declines, Sharga said.
Copyright © 2010 Sun Sentinel, Fort Lauderdale, Fla., Paul Owers. Distributed by McClatchy-Tribune Information Services.
Bank Owned Property 134 Grayton Trails as Craig’s Top Distressed Property Pick May 24 2010
May 24, 2010 by Craig Baranowski
Filed under Craig's Top Investment and Distressed Property Pick
Foreclosures are finally working through the court systems and we are slowly seeing some outstanding properties come onto the market as an REO or Bank Owned Property. Grayton Beach has always been a hot area for homes and some great properties and great buys have come and gone on the market. This week's top distressed property pick is a beautiful property on the secluded and private street of Grayton Trails Road. Some of the best and most exclusive and premier properties are on Grayton Trails Road and many were our featured properties.
134 Grayton Trails Road is tucked away in the private hammock of grayton trail, the area's best kept secret. This unique, custom design house and guest house by local architect Flip Spann, construction by Morris & Company, professional decor by design spectrum group. This home is tricked out with the luxury amenities that would make any savvy buyer's eye light up with delight.
134 Grayton Trails Road REO
30-A Bank Owned Property and REO
Main house is 3,083sf, 3 bedrooms, 4 baths with an additional bunk-recroom that can be used as 4th bedroom. The 1st floor features a large laundry and 3 additional storage areas. Bunk/recroom and pool bath accented in rough cut pine buckboard open onto huge screened lanai with heated pool, patios and full service kitchen area, all with travertine flooring. Huge 3 car and separate 1 car garages on each side of courtyard entry at front of house. 2nd floor with sizeable open kitchen and dining area flows into 570 square foot family room which includes vaulted tongue-n-groove ceilings, hand crafted custom entertainment center. Master and 1st bedroom each have private porches. Wide plank pine flooring throughout. Partially covered terrace off rear overlooks pool. Custom audio/video each floor. Specialty cabinets/shelving/lighting. Security system. All natural gas cooking and Renai tankless water heaters. High velocity heating and cooling system(s). Andersen doors and windows. Main house wired for whole house generator. 748 sq' 1 br 1 ba guest house over additional 2 car garage/extra storage/work area/1/2 ba located off courtyard in rear of main house. All carefully situated on almost 3/4 acre canopied by huge oaks, magnolias, hickory's completely contained by distinctive 5' black powder coated fence allows for room to run for pets and/or kids. Grayton's many restaurants, shops within walking distance,or drive onto grayton beach access with permit. Public access/boat launch to western lake nearby.
Foreclosure 134 Grayton Trails Road
Offered at $1,475,000
4,163sf
5 Bedrooms, 6 Full Baths, 1 Half Bath
Built in 2006
If you are interested in buying a distressed property on Scenic 30-A or if you are interested in Team Baranowski listing your home. Please give Tracy Baranowski a call at 850.259.4270 or Craig Baranowski at 850.259.1788 or email us info@teambaranowski.com.
Gulf Front Short Sale in Water’s Edge 158 Geoff Wilder as Craig’s Top Distressed Property Pick for May 17 2010
May 17, 2010 by Craig Baranowski
Filed under Craig's Top Investment and Distressed Property Pick
Water's Edge is a fabulous gulf front community that borders Rosemary Beach. This small community in Seacrest Beach is close to the areas best restaurants, shops and community activities. This amazing Gulf Front Short Sale offers amazing Gulf views from all three floors of the home. What I like best about the home is the abundance of usable space available with the home. This home in Water's Edge has a two car garage, an elevator, two kitchens, a separate lock out guest quarters, two fireplaces and a spacious living area. If you are looking for an amazing gulf front home with room for a family and guests under $2 million, this is the home for you!
Water's Edge Homes for Sale
158 Geoff Wilder in Water's Edge
Gulf Front Distressed Property
This beautiful 4BR/4.5BA Gulf Front home sits within the exclusive Waters Edge subdivision located in popular Seacrest Beach. Enjoy exquisite beach front views from every angle at anytime of day! This property is truly a wonderful setting. The house features a spacious floor plan including separate lockout guest quarters. two kitchens, hardwood & tile flooring, elevator, two fireplaces, two car garage, and more! This property will be great for personal residence, or can sleep over 10 people as a vacation rental! Don't miss out on this extraordinary gulf front opportunity.
Gulf Front Short Sale 158 Geoff Wilder
Offered at $1,850,000
3,007sf
4 Bedrooms, 5 Full Baths, 1 Half Bath
Built in 2002
If you are interested in buying a distressed property on Scenic 30-A or if you are interested in Team Baranowski listing your home. Please give Tracy Baranowski a call at 850.259.4270 or Craig Baranowski at 850.259.1788 or email us info@teambaranowski.com.
Bank of America Getting a Report Card?
May 4, 2010 by Craig Baranowski
Filed under From My Blog
Well it may be about time. It appears after many long months of distressed borrowers trying desperately modify their mortgage or short sale their property their frustrations may be finally heard. It has recently been reported that the Treasury Department is planning to rate mortgage companies on how they treat customers as part of the Obama administration's $75 billion foreclosure relief effort.
How do you think Bank of America and other will rate?
Read the full story below….
The new report will include measurements of how each company is handling borrowers and is expected by July, Treasury Secretary Timothy Geithner told Senate lawmakers on Thursday.
More than 100 companies participate in the program, which is designed to help up to 4 million borrowers avoid foreclosure.
Speaking in unusually strong language, Geithner said many companies "are not responding to the needs of responsible and increasingly desperate homeowners."
If they don't comply with the program's rules, he said, "We will withhold incentives or demand their repayment."
The program is designed to lower borrowers' monthly payments by reducing mortgage rates to as low as 2 percent for five years and extending loan terms to as long as 40 years. Mortgage companies get taxpayer incentives to reduce borrowers' monthly payments. Homeowners have to complete at least three months of payments to qualify for permanent loan modifications.
About 231,000 homeowners have completed this process so far. That's about 20 percent of the 1.2 million borrowers who started the program over the past year.
Many experts say that's inadequate. "Families are tragically being foreclosed on when foreclosure was preventable," said Richard Neiman, New York's top banking regulator and a member of the independent Congressional Oversight Panel. The panel was set up to oversee the government's financial bailout programs.
And the number of dropouts is rising. About 155,000 homeowners didn't complete the initial trial phase. Another 2,900 fell out even after their loans were modified. Many more are still in limbo.
Copyright © 2010 The Associated Press, Alan Zibel, AP real estate writer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
WaterSound Beach Short Sale 90 S Founders Ln as Craig’s Top Distressed Property Pick for April 26 2010
April 26, 2010 by Craig Baranowski
Filed under Craig's Top Investment and Distressed Property Pick, From My Blog
WaterSound has had some excellent distressed buys in the past 18 months. 97 West Yacht Pond just sold on April 9th for $1.75mil as a short sale. It was a beautiful 4,061sf home. 189 Gulf Bridge Lane was a bank owned property and had 3 contracts in the first 24 hours of being on the market! This week there is another incredible buy in WaterSound Beach…90 S Founders Lane and it is a short sale!
There are some great buys…but they are going fast. If you want premium property in WaterSound for an incredible price, you need to move quick!
Short Sale in WaterSound Beach 90 S. Founders Lane
Homes in WaterSound Beach
Bank Owned Property and Short Sales in WaterSound Beach
90 S Founders Lane in in a very desirable location just steps from the beach! This home features 5 bedrooms, 5 baths, 3819 square feet, two car garage and more! Large open living area! Incredible kitchen, Wolf, Sub-zero, and Bosch appliances! 3 bedrooms on the main floor each with their own bath! Living, Dining, Kitchen and master on the 2nd level! 5th bedroom/bunk area on the 3rd level leading to the tower with spectacular gulf views! Central vacuum and large closets! Australian Cypress floors! Carriage house over the 2 car garage with private porch area! The home is also very close to one of WaterSound's largest pool areas! Watersound Beach is situated on 1 mile of private, white beach, offers a gated entry, 24-hour security, lush landscaping, the finest Beach Club in Northwest Florida, tennis, pools & walking trails. Property is being sold fully furnished!
WaterSound Beach Short Sale 90 S Founders Lane
Offered at $1,795,000
3,819sf
5 Bedrooms, 6 Full Baths, 1 Half Bath
Built in 2006
If you are interested in buying a distressed property on Scenic 30-A or if you are interested in Team Baranowski listing your home. Please give Tracy Baranowski a call at 850.259.4270 or Craig Baranowski at 850.259.1788 or email us info@teambaranowski.com.
Second Mortgage Bail Out with HAMP?
April 21, 2010 by Craig Baranowski
Filed under From My Blog
The Obama administration's home owner's modification program, HAMP, has been a huge disaster since its launch in August 2009. The HAMP program has helped very few homeowners modify their mortgages. In an effort to continue to bailout a failing program the Obama administration has extended the HAMP program to second mortgages. I am not too sure about its effectiveness, but the program has been released and Bank of America was the first major lender in the program to send letters to homeowners struggling with their mortgages.
WASHINGTON – April 21, 2010 – The Obama administration’s initiative to help homeowners obtain modifications of second mortgages is getting off the ground.
Just this month, Bank of America became the first major lender in the program to send letters offering modifications to home-equity loan customers struggling with their loans.
Citigroup, JPMorgan Chase and Wells Fargo joined the program in March, when updated guidelines were issued by the government.
Those banks hold about half of the USA’s second liens.
The program, originally introduced in August, is aimed at overcoming an impediment to permanent modifications of first mortgages.
Holders of first mortgages have been reluctant to take losses unless the holder of the second-lien mortgage does, too. More borrowers are staying current on their second mortgages, however, which has made those lenders less inclined to take losses.
“This is a huge concern for consumers,” says Marietta Rodriguez, national director for homeownership and lending at national non-profit NeighborWorks America. “You have two financial institutions trying to get a payment out of you. How do you respond?”
The government’s second-mortgage program, called 2MP, offers incentives to borrowers, mortgage servicers and investors to modify second mortgages. How it works:
• When a borrower’s first loan is modified under the federal program, known as the Home Affordable Modification Program (HAMP), and the servicer of the second loan is also a participant in HAMP, that servicer must offer to modify the borrower’s second lien.
• Servicers can stretch the term of the second loan to 40 years.
• Second-lien lenders must defer the payment of the same proportion of principal that was deferred or forgiven on the first loan.
The second loans also must have originated on or before Jan. 1, 2009, to be eligible for a modification.
Modifying a mortgage with a second lien can be more difficult because of the additional parties involved.
A second lien may be held by another servicer or investor, and getting all parties to agree on interest rate reductions or other steps to ease borrowers’ monthly payments can be time-consuming or difficult. The government program aims to make the process easier.
The number of homeowners who will get assistance is limited.
While the program is expected to reach up to 1.5 million homeowners who are struggling to afford their mortgage payments, there are an estimated 19 million residential junior liens, with an average balance of $57,000 as of January, according to First American CoreLogic.
Up to 50 percent of at-risk mortgages have second liens, according to the Treasury Department.
Even with the incentives the government is offering mortgage lenders to modify second mortgages, they could still prove to be an obstacle as pressure grows to reduce borrowers’ loan principal.
“First-lien holders become more reluctant to do principal reduction because of the second” lien, says Jack Schakett, loss mitigation strategies executive at Bank of America. “Everyone is calling for doing more principal reduction. Second liens will be a problem.”
Copyright © 2010 USA TODAY, a division of Gannett Co. Inc., Stephanie Armour.
