http://www.g-sig.com/
Have you ever found a home that you fell in love with but just needed too much work to repair? Well you’re not alone. Foreclosed properties, abandoned properties and those homes that have been neglected by the previous owners all fall into this category.
With foreclosed and short sale properties making up nearly 50% of all home sales the probability of finding a home that needs repairs are extremely high. Most of the time first time home buyers do not have the funds available to make these repairs and have to pass up on their dream home.
This scenario does not have to play out any longer. FHA has developed a program that far too many people do not know about. It has been around for almost 20 years. It’s called the FHA 203K loan program.
Under the 203K loan program qualified borrowers can obtain a single loan with only 3.5% down that will cover both the purchase price of the home and the costs to improve the property all into one single loan. These repairs must be completed by a licensed contractor and bids must be submitted in order to figure out the repair costs that will be bundled into the total loan amount.
Surprisingly, since its creation the 203K loan program has had declined enrollment – until 2007 when the foreclosure crisis began to spread nationwide. In 2008 the number of FHA 203k Loans issued were 6,700, that is almost double the amount of 203K loans issues in 2007 alone. Presently, in 2009 – the number of 203K loans expected to be issued is on pace to be doubled again with reports indicating that nearly 11,000 203K loans will be issued in the 2009 year.
Distressed properties are becoming more and more apparent in every neighborhood and this FHA Loan program is the answer that many potential homeowners can take advantage of. It allows these buyers to put little money down – only 3.5% and be able to finance all repairs into one single loan.
For more information on this 203K loan program, contact http://www.fha.gov/
For more information on Foreclosure news, and new products and services homeowners can take advantage of visit our blog weekly at http://www.gsigllc.com/
Friday, August 21, 2009
Wednesday, August 19, 2009
Foreclosures flood the market – home prices fall, but rate slows
http://www.g-sig.com/
During the second quarter of 2009 the average price of a single family home sold for $240,000 up from $229,200 in the first quarter of the same year, the Florida Association of Realtors said. Home sales also rose 8% from 1 year prior.
Foreclosure properties fell in Palm Beach County in the month of July says RealtyTrac. In July there are approximately 2,700 homes in some stage of foreclosure, this number is down 24% from July of 2008.
North of Palm Beach County, in St. Lucie County 1 in 87 houses were being foreclosed upon, the second highest rate in the state of Florida (Lee County #1). Statewide however, foreclosure filings rose 23% and nationwide foreclosure filings rose 32% from last year 2008.
Hope prices however dropped by 15.5% nationally from a year ago due to the amount of foreclosed properties in the market. As of today – the existing single family home has an average sales price of $174,100.
Many economist and real estate experts say that this is not the bottom, even though there are signs of an economy recovering again. The amount of foreclosure homes in the market is rising. However, the markets previously saturated with these foreclosures such as Broward, Palm Beach and Miami-Dade Counties no longer are on top of the list in the state. They have been replaced by counties such as St. Lucie, Lee, and Polk Counties.
Experts say that the first wave of foreclosures that hit these major U.S. and Florida cities is over. What is to come next is a second wave of foreclosure properties that will hit the secondary cities that were once on the bottom of the list.
After this wave is over and government initiatives take place to save homeowners much like they did for the Southern 3 counties, we can expect the real estate market to level off.
For more information on the foreclosure market, and real estate news check back with us weekly at http://www.gsigllc.com/
During the second quarter of 2009 the average price of a single family home sold for $240,000 up from $229,200 in the first quarter of the same year, the Florida Association of Realtors said. Home sales also rose 8% from 1 year prior.
Foreclosure properties fell in Palm Beach County in the month of July says RealtyTrac. In July there are approximately 2,700 homes in some stage of foreclosure, this number is down 24% from July of 2008.
North of Palm Beach County, in St. Lucie County 1 in 87 houses were being foreclosed upon, the second highest rate in the state of Florida (Lee County #1). Statewide however, foreclosure filings rose 23% and nationwide foreclosure filings rose 32% from last year 2008.
Hope prices however dropped by 15.5% nationally from a year ago due to the amount of foreclosed properties in the market. As of today – the existing single family home has an average sales price of $174,100.
Many economist and real estate experts say that this is not the bottom, even though there are signs of an economy recovering again. The amount of foreclosure homes in the market is rising. However, the markets previously saturated with these foreclosures such as Broward, Palm Beach and Miami-Dade Counties no longer are on top of the list in the state. They have been replaced by counties such as St. Lucie, Lee, and Polk Counties.
Experts say that the first wave of foreclosures that hit these major U.S. and Florida cities is over. What is to come next is a second wave of foreclosure properties that will hit the secondary cities that were once on the bottom of the list.
After this wave is over and government initiatives take place to save homeowners much like they did for the Southern 3 counties, we can expect the real estate market to level off.
For more information on the foreclosure market, and real estate news check back with us weekly at http://www.gsigllc.com/
Tuesday, August 11, 2009
Home values appear to be leveling: still falling but at a slower rate
http://www.g-sig.com/
According to Zillow.com home values fell 12% in the second quarter compared to one year ago. However, the rate of decreasing values has slowed dramatically for the first time since the fall of 2007. Home values have declined for the tenth straight quarter with an average home value of $186,900.00.
Home prices have not yet leveled out. According to L.A. based Foreclosure-Support their research shows that during the first quarter of 2009 one out of every 2 homes was a short sale or a foreclosure sale. Foreclosure and short sales have now accounted for nearly half of all home sales.
This trend will continue as long as there are still foreclosures in the pipeline of lenders and banks that have a backlog of properties that are awaiting foreclosure or re-modification decisions from banks. This trend of foreclosures will continue and has been present in our real estate market for the past two years.
When the housing crisis first began potential buyers were shell shocked and were not quick to make decisions or purchases. After foreclosures began and properties started to infiltrate the market many homeowners and investors alike realized the potential to find great deals on property.
Foreclosure homes sell anywhere from 10% to 60% of the sales price for the same property one year ago. A lot has to do with the market the property is located in. For example, foreclosure homes selling in areas with relatively low or no other foreclosure properties will sell at a relatively high price in comparison to those properties that sell in areas where there is an abundance of foreclosure properties driving the sales price down.
High demand areas such as Los Angeles, North Carolina and most notably Miami, FL have reported a big increase in foreclosure sales, proof that buyers are ready, willing and able to purchase these homes and are just waiting for the market to level out – or wait for that next great deal.
For more information on foreclosure properties in South Florida and the latest foreclosure news and trends check back with us at http://www.gsigllc.com/
According to Zillow.com home values fell 12% in the second quarter compared to one year ago. However, the rate of decreasing values has slowed dramatically for the first time since the fall of 2007. Home values have declined for the tenth straight quarter with an average home value of $186,900.00.
Home prices have not yet leveled out. According to L.A. based Foreclosure-Support their research shows that during the first quarter of 2009 one out of every 2 homes was a short sale or a foreclosure sale. Foreclosure and short sales have now accounted for nearly half of all home sales.
This trend will continue as long as there are still foreclosures in the pipeline of lenders and banks that have a backlog of properties that are awaiting foreclosure or re-modification decisions from banks. This trend of foreclosures will continue and has been present in our real estate market for the past two years.
When the housing crisis first began potential buyers were shell shocked and were not quick to make decisions or purchases. After foreclosures began and properties started to infiltrate the market many homeowners and investors alike realized the potential to find great deals on property.
Foreclosure homes sell anywhere from 10% to 60% of the sales price for the same property one year ago. A lot has to do with the market the property is located in. For example, foreclosure homes selling in areas with relatively low or no other foreclosure properties will sell at a relatively high price in comparison to those properties that sell in areas where there is an abundance of foreclosure properties driving the sales price down.
High demand areas such as Los Angeles, North Carolina and most notably Miami, FL have reported a big increase in foreclosure sales, proof that buyers are ready, willing and able to purchase these homes and are just waiting for the market to level out – or wait for that next great deal.
For more information on foreclosure properties in South Florida and the latest foreclosure news and trends check back with us at http://www.gsigllc.com/
Friday, August 7, 2009
Condo Owners Beware – Protect Yourself
http://www.g-sig.com/
Many owners of condo’s think that the monthly due’s they pay covers the insurance on their home. This in fact is a fallacy that many homeowners should research further. The monthly fees that condo owners pay go toward payment of a master insurance policy. What many condo owners do not know is that the master policy the association has most commonly only covers those public areas such as parking lots, walkways, pools, clubhouses, tennis courts, and exterior of buildings.
A HO-6 Insurance Policy covers the condo owner against all other threats, many which the association’s master policy doesn’t cover. For example, if a condo unit is burglarized, damaged by fire or flood, or someone injures themselves, your HO-6 insurance policy would cover it. This is similar to renters insurance except it covers the condo owner specifically.
The HO-6 insurance policy is designed to cover other damages that may incur as well such as water leaking from your condo unit and causing damage to the unit below. Any damage caused by this leak would be covered by your insurance, whereas the master HOA policy would not.
It should be noted however that many times an HOA’s insurance policy will cover certain items and damages in a condo unit. The HO-6 insurance policy can be designed to fill the gaps that the HOA’s insurance policy does not cover.
HOA insurance policy will not cover personal property or liability inside the condo unit; it also will not cover any additional upgrades or improvements you made. These are just a few of the very notable items that you may want to protect yourself against as a condo owner.
It is important as a condo owner to review your associations, or in many times Co –Op’s Master Insurance Policy. Many items may be covered by this policy and many important items that you thought may be covered are not. Contact your local insurance agent to get specific details on the policy and needs that best fit you.
For more information on South Florida Real Estate News and the Latest South Florida Foreclosure developments check back with us weekly at http://www.gsigllc.com/
Many owners of condo’s think that the monthly due’s they pay covers the insurance on their home. This in fact is a fallacy that many homeowners should research further. The monthly fees that condo owners pay go toward payment of a master insurance policy. What many condo owners do not know is that the master policy the association has most commonly only covers those public areas such as parking lots, walkways, pools, clubhouses, tennis courts, and exterior of buildings.
A HO-6 Insurance Policy covers the condo owner against all other threats, many which the association’s master policy doesn’t cover. For example, if a condo unit is burglarized, damaged by fire or flood, or someone injures themselves, your HO-6 insurance policy would cover it. This is similar to renters insurance except it covers the condo owner specifically.
The HO-6 insurance policy is designed to cover other damages that may incur as well such as water leaking from your condo unit and causing damage to the unit below. Any damage caused by this leak would be covered by your insurance, whereas the master HOA policy would not.
It should be noted however that many times an HOA’s insurance policy will cover certain items and damages in a condo unit. The HO-6 insurance policy can be designed to fill the gaps that the HOA’s insurance policy does not cover.
HOA insurance policy will not cover personal property or liability inside the condo unit; it also will not cover any additional upgrades or improvements you made. These are just a few of the very notable items that you may want to protect yourself against as a condo owner.
It is important as a condo owner to review your associations, or in many times Co –Op’s Master Insurance Policy. Many items may be covered by this policy and many important items that you thought may be covered are not. Contact your local insurance agent to get specific details on the policy and needs that best fit you.
For more information on South Florida Real Estate News and the Latest South Florida Foreclosure developments check back with us weekly at http://www.gsigllc.com/
Tuesday, August 4, 2009
Congress Passes Bill To Allow Foreclosure Rentals
http://www.g-sig.com/
Last week congress passed a bill that will allow any bank that is registered with the FDIC to lease their bank owned properties back to the homeowner who was previously foreclosed upon.
This aims to alleviate two major problems facing our housing market today. The first being an over abundance of vacant properties with vacancy days ranging from 60 to 200 days, that lead to increased damages, thefts and trespassing. This also leads to the second major problem – while homes sit vacant, and cause an eye sore to neighborhoods they also decrease the value of the surrounding homes and areas, making our home valuations lower than they already are.
An increase in bank owned homes will mean that supply is greater than demand which will lead to lower home values, leaving current homeowners – those who are not in danger of foreclosure, with little to no equity left in their homes.
With congress passing the new bill last week, if you financed your home from an FDIC registered bank, they will soon have the option to allow the current homeowner (the one who is being foreclosed upon) to lease the property from the bank. The term of the lease can go up to five (5) years.
This option is available to those homeowners where banks acquired properties through foreclosure of deed in lieu. Rent to own options are also available to the owners in hopes of owning the same property again after a certain pre determined term. The rent to own option would only be available to those leases signed within the next 2 years.
With this new option banks are no longer faced with the grueling task of managing and holding a property on their books while it sits vacant waiting for a buyer to purchase the property. The banks philosophy here is that a property that is generating rent, whether it be for 2 years or 5years, is still better than a property sitting vacant.
Freddie Mac, which is government sponsored already allows their foreclosed homeowners to stay on a month to month rental basis. The long term lease option has not yet been made available to them.
This new act will help to solve many problems. Most importantly it will allow the homeowner to stay where they are, take care of their home and not have to go through the process of relocation. Ultimately what this plan hopes to achieve is a stabilization of market values. Those vacant homes that diminish the appeal of a neighborhood and decrease home values will now stay occupied. The lower the foreclosure rates the better for each neighborhood as well as valuation.
The act was passed last week by Congress and may take a few weeks for the full effect as well as rental option to hit the mainstream. A vast majority of banks are registered with the FDIC, Check with your lender if you are facing foreclosure to see if leasing is an option they would consider.
For more information about the latest South Florida foreclosures, news and updates check back with us weekly at http://www.gsigllc.com/
Last week congress passed a bill that will allow any bank that is registered with the FDIC to lease their bank owned properties back to the homeowner who was previously foreclosed upon.
This aims to alleviate two major problems facing our housing market today. The first being an over abundance of vacant properties with vacancy days ranging from 60 to 200 days, that lead to increased damages, thefts and trespassing. This also leads to the second major problem – while homes sit vacant, and cause an eye sore to neighborhoods they also decrease the value of the surrounding homes and areas, making our home valuations lower than they already are.
An increase in bank owned homes will mean that supply is greater than demand which will lead to lower home values, leaving current homeowners – those who are not in danger of foreclosure, with little to no equity left in their homes.
With congress passing the new bill last week, if you financed your home from an FDIC registered bank, they will soon have the option to allow the current homeowner (the one who is being foreclosed upon) to lease the property from the bank. The term of the lease can go up to five (5) years.
This option is available to those homeowners where banks acquired properties through foreclosure of deed in lieu. Rent to own options are also available to the owners in hopes of owning the same property again after a certain pre determined term. The rent to own option would only be available to those leases signed within the next 2 years.
With this new option banks are no longer faced with the grueling task of managing and holding a property on their books while it sits vacant waiting for a buyer to purchase the property. The banks philosophy here is that a property that is generating rent, whether it be for 2 years or 5years, is still better than a property sitting vacant.
Freddie Mac, which is government sponsored already allows their foreclosed homeowners to stay on a month to month rental basis. The long term lease option has not yet been made available to them.
This new act will help to solve many problems. Most importantly it will allow the homeowner to stay where they are, take care of their home and not have to go through the process of relocation. Ultimately what this plan hopes to achieve is a stabilization of market values. Those vacant homes that diminish the appeal of a neighborhood and decrease home values will now stay occupied. The lower the foreclosure rates the better for each neighborhood as well as valuation.
The act was passed last week by Congress and may take a few weeks for the full effect as well as rental option to hit the mainstream. A vast majority of banks are registered with the FDIC, Check with your lender if you are facing foreclosure to see if leasing is an option they would consider.
For more information about the latest South Florida foreclosures, news and updates check back with us weekly at http://www.gsigllc.com/
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