A recent newsbreak indicates State Farm Florida is pulling out of the homeowner insurance business in Florida. This is a surprise move that will leave more than 800,000 policyholders without coverage and will cause almost certain turmoil in the Florida insurance marketplace.

State Farm Florida president, Jim Thompson, claims they're "faced with steep declining resources to cover future claims and expenses" and says the company "...has little choice."

Thompson said the company's plan requires regulatory review, and State Farm Florida will not begin dropping policies under the plan until that process is complete. Florida, however, has no law on the books that would prevent State Farm from leaving the state's homeowner insurance market.

State Farm Florida emphasized that it was submitting a two-year plan that seeks to limit disruptions for customers, and if approved, will allow them time to find coverage with other insurers. (State Farm is Florida's largest private homeowner insurer, second only to state-sponsored Citizens Property Insurance Co.)

State Farm is also Florida largest automobile insurer with more than 3 million policies. The company says it will continue to offer auto coverage. However, a 2007 state law pushed by Gov. Charlie Crist prevents insurers from offering only auto policies if they offer both auto and homeowners in other states. And so it SHOULD be! If they want Florida's lucrative auto insurance business, they should offset that with the POSSIBILITY - not certainty - just POSSIBILITY of potential homeowner losses.

Seems as though State Farm wants their cake - and wants to eat it too. I say - NO WAY!

Labels: Business, Condos, Finance, Florida, Florida Panhandle, Insurance;, Investment, Panama City, Real Estate, Vacation

With the opening of the new airport in 2010, traffic flow had to be addressed - here's what's happening.

Initial plans call for 2 lane County Road 388 (it runs East West and is located just south of the newly planned Bay County airport) to be 4 laned between State Rd 77 and State Rd 79. Then, to accommodate our sister county to the West, another section of new 4 lane will extend west from State Rd 79 to Hywy 98 east of Peach Creek in Walton County. This new roadway, dubbed the West Bay Parkway, should provide better access to the new airport and improved hurricane evacuation efficiency. Don’t get too excited, though. The Bay County planning stages alone are predicted to take up to 3 years with the Walton County portion adding another 2 on top of that.

Labels: Business, Deals, Florida, Florida Panhandle, Investment, Military, Panama City, Real Estate, Vacation

Stephen Elias, author of "The Foreclosure Survival Guide: Keep Your House or Walk Away with Money in Your Pocket" has the following take on foreclosures:
"Businesses know that they can take advantage of legal options to change or abandon the terms of the contracts they sign ... but individuals tend to be far more reluctant to do so. Just as people don't like to file for bankruptcy, they don't want to allow a foreclosure," Elias said. "They feel they should pay their debts."

Some change their minds when they see the hopelessness of their situation or the advantages of walking away from what they owe. But others feel honor-bound to pay if they possibly can. Such folks will do what they can to avoid foreclosure, and move out as soon as it's clear they're losing their homes. Those folks aren't stupid. What may not be the smartest decision in financial terms is still the right choice for them. "It's so much more important to listen to your heart and go that way," Elias said, "than to take advice from someone like me."

If you're weighing whether to fight for your home, Elias suggests you ask yourself these three questions:
(1) Can you make your mortgage payments while meeting your other obligations? Those obligations include feeding your family, paying your other bills and saving for retirement. If you can trim your expenses and reduce your bills to make your mortgage more manageable, clearly you should. But if your payment already gobbles up half or more of your gross income and more increases are on the horizon, your situation may be untenable.
(2) Can you keep your home without raiding your retirement funds? It's almost never a good idea to dip into your 401(k) or individual retirement account to pay continuing bills. Withdrawals trigger serious tax penalties and deprive you of future tax-deferred returns -- figure that every $1,000 withdrawal costs you $10,000 in future retirement income. That sacrifice might be worth it if you'll actually keep your house, but many who are tempted to raid their retirement funds will only delay, rather than prevent, the loss of their homes. Then they're left with no home AND no retirement.
(3) Is a rescue in sight? Don't mortgage your future by holding out for a rescue that may never come. Talk to a HUD-approved housing counselor. These folks know all the details of the loan modification plans and can help you assess whether, and how much, you'll be helped. You can find referrals through your Personal Real Estate Consultants.

If you decide to explore foreclosure ... Avoid scams. Ignore anyone who contacts you offering foreclosure help or demanding huge upfront payments. HUD counselors, or those from the National Foundation for Credit Counseling, can provide the information you need for free. If you decide you need an attorney's help to save your home, get a referral from your local bar association or Personal Real Estate Consultant. Learn more about the foreclosure process. It varies widely from state to state, moving faster in some than in others and carrying different risks. In some states, for example, lenders can sue you for the difference between what you owe and what the foreclosed home sells for; in others, the risk is lower or nonexistent. Elias' book is an excellent primer, but you'll also want to talk to a bankruptcy attorney.

Lastly, keep an eye on the bankruptcy news. Right now, a bankruptcy doesn't do much to help you keep your home unless you can quickly catch up on your payments. But Congress may soon allow bankruptcy judges to modify terms on primary residence mortgages. If your principal could be reduced and your payments made more affordable, the cost of a Chapter 13 bankruptcy filing could be worthwhile -- but again, you'll want an attorney's advice.

Labels: Business, Finance, Fixing Credit; Bad Credit; Improving Credit Score, Florida Panhandle, Foreclosure, Investment, Real Estate, Short Sale

Company executives are reporting FNMA is testing a new "short sale" program aimed at reducing the number of foreclosures by pre-approving sales where homeowners sell their houses for less than the amount owed. How will it work? No one is totally certain yet - but - the plan is to have a branch of the company be responsible for determining an acceptable listing price (for a so-called "short sales") even before a buyer has been found. Is is a smart move? Only time, and submitted offers, will tell.

Labels: Business, Condos, Deals, Finance, Florida, Florida Panhandle, Foreclosure, Investment, Panama City, Real Estate, Short Sale, Vacation

Homeowners who are having trouble staying current on their mortgages may get some help from the Economic Stabilization Act. The law authorizes the government to work with mortgage servicers and struggling borrowers to modify the loan terms on the mortgages the government owns.

The new law expands the FHA homeownership program as part of the economic stimulus package. Under that program, borrowers facing foreclosure can refinance into FHA backed financing IF the original lender writes down the balance of the mortgage to the current market value,. In some instances, the current market value may be greater than the short sale offers being made from investors to the banks. Another benefit is that current homeowners would get to keep their property at today's market value. And if history has taught us anything - it's taught us that property values WILL rise again.

This program is DEFINITELY something owners should consider and address with lenders should they find themselves having trouble staying current with their mortgage and facing possible foreclosure.

Labels: Business, Condos, Credit Partners, Deals, Finance, Florida, Florida Panhandle, Foreclosure, Investment, Panama City, Real Estate, Short Sale, Vacation

Several months ago, we reported in the HotSpot NewsNote, that state Legislators passed a pilot program allowing municipalities to issue special permits for "doggie dining" areas. Not many moved forward. Now, however, the Panama City Beach City Council passed the first reading of a new law that will allow authorized restaurants to accommodate dogs "in special outside dining areas."

It seems as though several of our council members were approached by local eateries (particularly in the Pier Park area) to establish the permitting process - and why not? Plenty of outside activities ... plenty of sunshine ... plenty of grass ... and increased traffic from the canine lovers of the world!

Yes - there are some strict rules that accompany the new law - but, it should be fun. Who knows, we might even progress to frisbee tosses and obstacle courses - that'd be a BLAST!

Labels: Business, Condos, Deals, Dining, Finance, Florida, Florida Panhandle, Investment, Panama City, Real Estate, Vacation

The U.S. Department of Housing and Urban Development recently launched a new, comprehensive website to assist Americans with improving financial literacy, sustaining healthy homeownership and achieving financial security. The My Money, My Home, My Future website (http://portal.hud.gov/portal/page?_pageid=73,7620944&_dad=portal&_schema=PORTAL) provides a range of interactive resources to inform users about the importance of financial literacy, including a Self-Assessment Tool, online games and informative classes.

The new site provides a wide-range of information about all avenues needed to be successful on the road to greater financial education, including:

* Building a Financial Foundation;
* Sustaining Healthy Homeownership; and
* Achieving Financial Security.

One of the most unique features of this website is the Self-Assessment Tool. The Self-Assessment Tool provides an extensive guide to help users learn more about personalized options for purchasing and/or refinancing their home. Users will be prompted to answer a few questions. Based on the answers given, the Self-Assessment Tool lists numerous links to visit on-line to learn more about the necessary and correct steps to own a home, refinance a home, enhance their financial skills, and much more.

Some of the other links on My Money, My Home, My Future give detailed information about:

* 9 Steps to Buying a Home
* Housing Counselors and Lenders
* Banking, Credit and Building Wealth
* Foreclosure Process and Alternatives
* Refinancing Loans and FHA Insured Loans

This new site is also located on www.HUD.gov and www.FHA.gov both in easy to find locations on the main web pages.

Labels: Business, Credit Partners, Finance, Fixing Credit; Bad Credit; Improving Credit Score, Florida, Florida Panhandle, Foreclosure, Investment, Panama City, Real Estate, Short Sale

Times … they are a changin’! The stock market sucks! Some banks were so overextended – the Fed stepped in and closed them down. Even FNMA and FMAC were in such dire straits that the government had to bail them out. So, waddawedo now?

First – we need to recognize we’re in a recession. It happens. I think the last one was in 2001 (albeit a modest one). Anyone over the age of 50 probably remembers their parents talking about the great depression. (1929-1933). My grandfather had been in America for less than 10 years and was a furrier. To make ends meet, he & my grandmother lived atop their store in a small apartment, worked sales and manufacturing alone and saved what they could. They kept most of their discretionary income in a shoe box, big envelopes and a mattress – after all, nobody trusted banks!

This certainly is NOT a time to keep money under your bed, in a mattress or buried in the backyard. If you’re one of the lucky ones who has some “ready cash,” it’s time to buy if your credit’s okay. Especially real estate!

Whether it be a vacation home or vacant land for use or sale at a later date. When the recession ends (economists are predicting this will be in the not too distant future), the value of real estate will rise again as it always has.

Labels: Business, Condos, Credit Partners, Deals, Dining, Finance, Florida, Florida Panhandle, Foreclosure, Investment, Panama City, Real Estate, Short Sale, Vacation

Many of the folks we come in contact with feel there’s no better time to start building equity in real estate … to own a little piece of this earth. Only one problem, many of them live in urban sprawls, like Atlanta, where the pace is quick, the traffic unbearable, and the prices outta sight! So, what are more and more of these folks, unhappy with the stock market, starting to do? Contact WealthCreation in an effort to buy a place outside the city… near the coast. Not vacation homes or rental properties alone – but – vacant land as well. Historically, vacant land has proven to be a valuable part of balanced portfolio. And, in today's market - vacant land is VERY affordable!

Over the past year, the number of homes and land bought for investment purposes has risen and the number is still growing. While some of WealthCreation’s sales have been due to increased speculation, market analysts believe that both first time home buyers AND aging baby-boomers are buying away from the urban sprawls. Their options? Buy a summer home, vacation rental or plot of land where they plan to retire.

What should you look for?
(1) Know your market. Talk to your Personal Real Estate Consultant (that’s us!). Is the area growing? What are the comps? What type of appreciation can “reasonably” be forecasted in today’s market?
(2) Know what extra costs you may face. In addition to property management fees, don’t forget you’ll also pay property taxes and, in some cases, community association fees as well. Adjust your financial calculations accordingly.
(3) Ask questions about what you can expect should you decide to rent the property. Not everyone will have family or friends close by to watch over and help with their rentals. Property management companies charge as little as 5% or as much as 50% depending on the service provided and property location. B-I-G difference!

Successful investors, with full lives, face the same frustrations and hurdles as everyone else. The difference is the way they handle their “indecisions.” Rather than feeling immobilized by their worries, successful people conquer them. They know “You Can Make Money or You Can Make Excuses – But – You Can’t Do Both!” After all – according to Dr. Richard Carlson, courage is best described as being afraid and “doing it anyway.”

Make this New Year Prosperous. Resolve to Step Up…Ask Questions…Get Involved…Make Reservations … Decide … & as Nike says … “Just Do It! “

Labels: Business, Condos, Credit Partners, Deals, Dining, Finance, Florida, Florida Panhandle, Foreclosure, Investment, Military, Panama City, Real Estate, Short Sale, Vacation