Wealth Creation NWFlorida

Facing Foreclosure? Read On ...

2009-03-15T11:15:00.002-04:00

Recently, a single mother lost her job in a central Florida town and was about to lose her house, too. But then she made a seemingly simple request of the bank: Show me the original mortgage paperwork. And just like that, the foreclosure proceedings came to a standstill. This homeowner, and others like her around the country, are managing to stave off foreclosure by employing a strategy that goes to the heart of the whole nationwide mess.

During the real estate frenzy of the past decade, mortgages were sold and resold, bundled into securities and peddled to investors. In many cases, the original note signed by the homeowner was lost, stored away in a distant warehouse or destroyed.
Persuading a judge to compel production of hard-to-find or nonexistent documents can, at the very least, delay foreclosure, buying the homeowner some time and turning up the pressure on the lender to renegotiate the mortgage.

In recent interviews with The Associated Press, lawyers, homeowners and advocates outlined the produce-the-note strategy. Exactly how many homeowners have employed it is unknown. Nor is it clear how successful it has been; some judges are more sympathetic than others. A Tampa lawyer, whose Consumer Warning Network Web site offers the free court documents this woman used to file her request, has played a major role in promoting the produce-the-note strategy.

Conversely, the deputy executive director of the American Securitization Forum, a group that represents banks, law firms and investors, dismissed the strategy as merely a stalling tactic. He said homeowners are “making lawyers jump through procedural hoops to delay what’s likely to be inevitable.” In his opinion, the original note is almost always electronically retained and can eventually be found.

Although Judges MAY be willing to accept electronic documentation; and, lenders are sometimes allowed to produce other paperwork to establish they are the holder of a loan, assembling such documents, to a judge’s satisfaction, takes time, which to homeowners is the point.

A University of Iowa study last year suggested that companies servicing mortgages are often negligent when it comes to producing the documentation to support foreclosure. In the study of more than 1,700 bankruptcy cases stemming from home foreclosures, the original note was missing more than 40 percent of the time, and other pieces of required documentation also were routinely left out.

The first big success of the produce-the-note movement came in 2007 when a federal judge in Cleveland threw out 14 foreclosures by Deutsche Bank National Trust Co. because the bank failed to produce the original notes.

Democratic Rep. Marcy Kaptur of Ohio endorsed the strategy in a fiery speech on the House floor during debate on the federal bank bailout last month. “Don’t leave your home,” she said. “Because you know what? When those companies say they have your mortgage, unless you have a lawyer that can put his or her finger on that mortgage, you don’t have that mortgage, and you are going to find they can’t find the paper up there on Wall Street.”

April Charney, head of foreclosure defense for Jacksonville Area Legal Aid in Florida, said the strategy has been so successful for her that she now travels around the country to train other lawyers in how to use it. She said she has gotten cases delayed for years by demanding that lenders produce paperwork they cannot find.

“This is an army of lawyers getting out there to stop foreclosures so we can get to the serious business of creating solutions,” Charney said. “Nothing good is going to happen as long as we continue to bleed homeowners.”

So, what about that central Floridian single mother's case? Well, she filed her "produce-the-note demand" last fall after the bank acknowledged that her original mortgage document had been lost or destroyed. Since then, there has been no activity on the foreclosure - no letters from the lender, and no court filings.

Real Estate Attorneys ... People to Count On

2009-03-15T10:37:00.002-04:00

Through the years, legislative bodies and professional organizations have tried to make it easier for Buyers and Sellers of residential properties to complete their transactions without the aid of attorneys. But more people these days are going to their closings accompanied by an attorney, or are at least having one review their sales and financing contracts in advance. And we agree!

Seems as though each and every day we hear horror stories of "sales gone bad" and the rising tide of foreclosures doesn't help one bit. It makes a lot more sense to seek a professional legal opinion BEFORE problems arise. It'll probably be the best $100 +/- you'll ever invest!

Suits occur after a sale ... before a sale in consummated ... when a contract is unfulfilled ... for specific performance ... just about anytime. With the aid of expert legal advice and, sometimes, the simplest addition of specific language, many problems are easily averted.

Many local REALTORS don’t like the idea of lawyers being involved in what should be a simple residential sale. With most firms not employing in-house counsel, they don't like shelling out the extra dollars from their commissions. But the laws are changing all the time, getting more complex, not less. And a legal review is a VERY good idea!

Septic Systems Flush with Change

2009-03-15T10:29:00.002-04:00

A move by the Florida Department of Health (DOH) to limit nitrogen seepage through septic systems could force some homeowners to install new and expensive septic systems. However questions remain, and one component worries Realtors: It calls for a septic inspection at the time of a home sale.

The DOH plans to present rule language for the Wekiva Study Area (WSA) to the Technical Review and Advisory Panel (TRAP) on Feb. 19 at the Orlando Airport Marriott. While the rule applies to the Wekiva area, it’s considered a possible blueprint for expansion statewide.

The Florida Legislature appropriated $1 million in 2007 for the DOH to begin a multi-year study on cost-effective nitrogen-reduction systems. However, the DOH has stepped up the timeframe to reduce nitrogen around Central Florida’s Wekiva River area based on an earlier law, the 2004 Wekiva Parkway and Protection Act. The DOH believes it must, by law, create rule language for nitrogen seepage as soon as possible around the Wekiva.

Septic tanks are a key component of the DOH plan. Passive systems currently used would be replaced by performance-based treatment systems that require electricity to operate, and the cost for a new system is projected by DOH to run from $3,000 to $10,000. The DOH plan would allow an exemption for any community being attached to a public sewer by 2012.

The upgraded septic system would apply to all new home construction and any system being modified or repaired. Importantly though, the DOH also wants septic tanks to be inspected for nitrogen levels as part of any home sale, which in many cases will trigger a mandatory replacement. The rule does not state who pays for a mandatory septic tank upgrade, making it part of the property contract negotiations. If necessary, DOH will give the new owner 18 months to complete the change, though a permit must be pulled prior to closing. In addition to adding an expected cost to some transactions, the rule could change the value of homes in the eyes of buyers, making listings on a public sewer line preferable to homes with septic tanks.

In January 2008, the Florida Association of Realtors® Board of Directors voted to support the continued use and installation of properly functioning standard conventional septic systems. It also moved to get the association more involved by appropriating money for a study that specifically looks for ways to reduce nitrogen using current systems, or in some other way that is cost efficient. The Board also voted to oppose any efforts to speed up state mandates for the higher-cost systems.

For more information, visit the DOH Web site at: http://www.myfloridaeh.com

Home Prices Stabilizing

2009-02-15T16:06:00.001-05:00

Housing prices will hit bottom in the fourth quarter of 2009, predicts Moody’s Economy.com in a new report. “Despite the darkening national economic outlook and the weak conditions in the housing market, some positive signs give hope that a bottom in the housing market is coming into view,” the report says. On average, home prices will decline 36 percent from the peak in the first quarter of 2006, the report says. By the end of the housing downturn, nearly 62 percent of the nation’s 381 metropolitan areas will have experienced double-digit-percent declines in house prices, peak-to-trough, says the report. The declines will exceed 20 percent in about 100 metro areas, according to the report, and the recovery will be “lackluster.” “A number of uncertainties in both the housing and economic outlooks remain, and the risks tilt to the downside,” says Moody’s Economy.com Chief Economist, Mark Zandi.

10 Steps to Negotiating An Affordable Loan Modification

2009-02-15T13:58:00.001-05:00

Ralph R. Roberts, consumer advocate and spokesperson for Federal Loan Modification Law Center, LLP, released a list of the top 10 steps homeowners can take to negotiate an affordable loan modification. The following steps apply to homeowners working directly with a lender, as well as to those teaming up with an attorney or alternative third-party representative.

1. Come clean. It can be tempting to bend the truth when you are trying to convince a lender to approve a loan modification. Only by laying all your cards on the table and disclosing the truth can you begin to develop and implement solutions that will put you back on the path to long-term financial health.

2. Understand your lender’s point of view. As far as your lender is concerned, it all boils down to money. You are most likely to be approved if you can show modifying your loan will cost the lender less than a foreclosure.

3. Keep a cool head. Expressing anger toward your lender puts you in an extremely disadvantageous position. For example, your lender may decide that you are unreasonable and that foreclosing would be less costly overall.

4. Give them what they need. In order to expedite the situation, find out exactly which forms you need to fill out and which documents your lender needs to process your application. Make sure you provide everything to your lender or representative in the manner specified.

5. Ask for what you want. Before meeting with your lender, make sure you spend some time figuring out what you want and need. For example, how much can you realistically afford to pay each month?

6. Let them do their job. Loan modifications typically take between 30-90 days from start to finish. During this time, avoid the temptation to micromanage the process. To alleviate unnecessary anxiety, ask your lender for an anticipated timeline.

7. Get your financial house in order. Put a tracking system in place today and start developing a budget to ensure you are not spending more money than you are earning.

8. Keep everyone posted of any changes. If anything changes related to your financial situation, be sure to keep your loan modification representative or lender in the loop.

9. Make sure the lender’s offer is truly affordable. If the loan modification is unaffordable or makes your budget so tight that you are only one car repair or medical bill away from defaulting again, head back to the negotiating table to try to work out a better deal.

10. Hold up your end of the bargain. The key to success is discipline and commitment. All the effort you spend setting up a plan is of no use if you don’t follow the plan you created or agreed to.

NorthWest Florida Expecting Rebound

2009-02-15T13:49:00.003-05:00

Al Muller had numbers on parade Wednesday when he spoke to the Navarre Area Board of Realtors about where the local real estate market has been and where it is. But what his audience of nearly 90 really wanted to know was: How soon will things get better?

Muller’s answer: That pretty much depends on the intersection of projected & actual trend lines when it comes to sales. That would align the ability to buy based on actual income and when prices become affordable again. “When will the two lines meet?” Muller asked rhetorically. “Optimistically, by the end of 2009 ... pessimistically, by the end of 2010 ... realistically the middle of next year.”

Muller is with Metro Market Trends, which provides reporting and analysis information on real estate sales, tracking and market share for Florida and South Alabama. His PowerPoint presentation showed resales of single-family homes down 19 percent in Navarre and on Navarre Beach since 1991. Condo resales are down 58 percent for the same span. “Booms are followed by busts,” Muller said, “but bubbles are followed by carnage. ... This is the first time in our history that a real estate decline has pushed the economy into recession, instead of the other way around.” Declining home prices and an increasing foreclosure rate were factors he listed on both the positive and negative sides of the ledger. “That’s our medicine,” Muller said, “and there is no other answer but time.”

Unless, of course, President Barack Obama’s administration and key federal agencies intervene.

“We forget that the federal government now owns Freddie Mac and Fannie Mae,” Muller said, “and if they want to decide Monday that rates are 4 percent on a 30-year fixed loan, they can do it. ... This would mean something to people who could refinance or people who are sitting on the fence about buying.”

James Baker from Fort Walton Beach-based mortgage banker Baker and Lindsey Inc. saw elements of hope in the presentation. “It’s felt negative for a long time, but the data he has supports our feeling that there’s good mixed in with the bad,” Baker said. “What struck me most was hearing that it’s much worse in other areas. That means we can feel better about this market coming out of it sooner.”

And what about those 4 percent loans? “Definitely not a pipe dream,” Baker said. “It would be one of the most effective things the government can do. It would help people buy homes, and if they refinanced with that rate, the value and the payments would be more in line. That would make people feel better about their homes, and that would directly affect foreclosures.”

Housing Tax Credit Downsized

2009-02-15T13:42:00.003-05:00

A new tax credit of up to $8,000 for first-time homebuyers that’s being included in the economic stimulus package was far less than the homebuilding industry wanted, and analysts expect it will provide only a modest boost to the battered U.S. housing market.

The tax credit is part of the economic stimulus package expected to be signed by President Barack Obama on Monday. It was scaled back from a Senate proposal of $15,000 and limited to first-time buyers who act between the start of this year and the end of November. The credit for 10 percent of the value of a home, up to $8,000 was estimated to cost the government $6.6 billion. It starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.

Struggling homebuilders, already looking ahead to the traditional spring selling season, had been counting on Congress to help spur pent-up sales after completing the worst year for new home sales since 1982. Executives for one major builder noted earlier this week that they had seen an uptick in traffic over the weekend as many prospective buyers learned of the Senate’s original incentive provision. But with that proposal gone, Wall Street analysts said the homebuyer provision will have a negligible effect on homebuilders’ fortunes. “Congress, unambiguously, left the builders out in the cold,” said Deutsche Bank analyst Nishu Sood. “It’s a pretty big disappointment that they scaled it back.”

Real estate agents were more optimistic. The National Association of Realtors projected the change will stimulate an additional 200,000 home sales. The big unknown, however, was the state of the economy. With employers laying off thousands of workers, many potential homebuyers are nervous about making such a big financial commitment.

Mortgage rates remain low, falling this week to a national average of 5.16 percent for a 30-year fixed-rate mortgage, according to mortgage finance company Freddie Mac. But credit remains tight and borrowers need a downpayment of at least 3.5 percent to qualify for a loan backed by Federal Housing Administration, a popular option for many first-time buyers.

Many potential buyers haven’t saved up enough money for a downpayment. “If you don’t have a way to get that, the tax credit doesn’t do them much good,” said James McCanless, an analyst who covers builders for FTN Midwest Securities.

But if the government can prod lenders to loosen credit standards and buy enough mortgage-backed securities to keep mortgage rates low, the tax credit could make a difference, said Mark Zandi, chief economist at Moody’s Economy.com. “I don’t think it’s enough to jolt the housing market back to life, but it’s a plus,” he said. Last year, Congress enacted a $7,500 tax credit for first-time buyers, but that had to be paid back over 15 years and the impact on home sales was negligible.

First-time buyers, in last year’s law, were defined as those who haven’t owned their own homes for three years. “The bulk of the market right now is first-time buyers,” he said. First-time homebuyers bought 2.2 million new and existing homes last year, according to the National Association of Realtors, making up about 41 percent of total U.S. home sales, up from 39 percent in 2007 and 36 percent in 2006.

Concerns about the bill’s overall costs, plus criticism that a much larger credit would not benefit borrowers on the verge or foreclosure, and mainly help people with healthy enough incomes to buy a house helped sink plans for a much larger credit. The homebuilding industry mounted an unsuccessful push for a credit for up to $20,000 for all buyers, flying builders in from around the country last month for a massive lobbying push that wound up falling short. “What the builders wanted was massive relief – not targeted toward where the real problem was – paid for by everybody,” said Thomas Lawler, a Northern Virginia housing economist. “That seemed to be pretty egregious.”

Sales fell in the fourth quarter of last year around the country, except for six states where buyers have been able to snap up foreclosed homes at a bargain: Nevada, California, Arizona, Florida, Minnesota and Virginia, the National Association of Realtors said Thursday. Nationwide, the median sales price was $180,100, down 12 percent from a year ago.

State Farm Pulling Out of Florida

2009-01-27T12:36:00.003-05:00

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!

West Bay Parkway PLans Continue

2009-01-20T11:22:00.002-05:00

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.

Foreclosure Can Be Your Friend

2009-01-15T11:36:00.002-05:00

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.

FNMA Tests Short Sale Pgm

2009-01-13T10:30:00.002-05:00

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.

Immediate Help for Homeowners

2009-01-12T09:56:00.004-05:00

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.

Doggie Days are Comin'

2009-01-09T09:05:00.004-05:00

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!

Website to Increase Healthy Homeownership

2009-01-08T08:36:00.004-05:00

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.

Real Estate Strategy: BUY!

2009-01-03T10:28:00.002-05:00

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.

Just Do It!

2009-01-02T10:38:00.003-05:00

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! “

New Year's Eve at Pier Park

2008-12-26T09:12:00.002-05:00

This year will be a first. Pier Park will be closing their streets to vehicular traffic. Margaritaville, in conjunction w/businesses owners and marketers at Pier Park, will host a street festival complete w/live music, food, stilt walkers, face painters, and other festivities beginning at 5:30 PM New Year's Eve. The Beach Ball Drop will occur at midnight coupled with a fireworks display over the Gulf of Mexico. Simon Group marketers are hoping to make it an annual event. I, for one, intend 2 go. C ya at the Park!

Good News for Renters

2008-12-23T09:31:00.002-05:00

Over the past year or so, foreclosures have had an unintended effect on renters ... their eviction. Homeowners, looking to get every last dime out of a sour investment, rent their homes ... the owner doesn't pay the mortgage ... never divulges, to the unsuspecting long term renters, the home is in foreclosure proceedings ... then ... renters get served notice they've got 30 days (sometimes less) to vacate. No reprieve! Well, now, it appears, there IS a reprieve on the horizon.

FNMA and FMAC are finalizing a plan to help renters stay in their homes even if the owner enters foreclosure. Under the new plan, renters, who show they can afford the rent, will sign a new lease with FNMA or FMAC while the property is up for sale.

While to us laypeople this policy makes perfect sense ... you have to wonder who, at these quasi-governmental agencies, thought it up, presented it and sold it to their superiors. In the 28 years I was associated / employed with the Federal Govt ... they were NEVER this accommodating! All I can say is - it's about time! I guess some negatives DO produce some positives.

Your Credit Score and You

2008-12-22T11:34:00.001-05:00

Last year, if your credit score was “tarnished,” the Federal Housing Administration didn’t care. You could obtain a house loan credit score “sight unseen” … not any more.
The financial problems on Wall Street coupled with the housing crisis have, as most Americans know, forced lenders to tighten the credit reins. Never before has a good FICO Score been so important. It takes time to build up a credit score. And you need to remember that NO ONE can look out for you better than YOU can!

Check your credit. Get your free annual credit reports . Pay attention to mistakes – get them corrected.

Good Deals for Folks Looking to Retire

2008-12-19T09:17:00.002-05:00

Retirement hot spots like Panama City Beach and the State of Florida in general, have been hit with falling prices. There are tens of thousands of homes for sale which means that in today's market, there's a lot of choice ... and room to bargain. For those folks looking to relocate or retire in the next few years, we'd suggest you vacation with us this winter. Check out our market. In the 2 to 3 years it'll take you to relocate, prices and rates are likely to rise. In our market, for instance, recent RealtyTrac and MLS searches indicate Panama City is showing signs of a slowing inventory and firming of prices.

History, Charm, Nature & a Developing Coast

2008-12-18T11:12:00.000-05:00

Growth is bustling in Panama City Beach, but the area’s beauty remains unspoiled. Once a tiny, lesser-known, rural area, Panama City Beach, Florida today is well known for its sugar white sandy beaches, emerald green waters, lagoons and rivers, venues for recreational boating, sailing and fishing. What makes folks want to come back time and time again is the reality that still much of the area is undeveloped and, oh, so pristine. Thanks to the State of Florida, Panama City Beach enjoys neighboring St Andrews State Park that includes picnic pavilions, camp sites, dedicated reefs (enhancing one’s snorkeling and scuba diving experience), restrooms, showers, a boat launch, piers, a bait shop and a dedicated venue for shell collectors, and Shell Island, accessible only via the connecting waterway by boat. If you’re into fishing, you can wet your line in both fresh and salt water in the Panama City Beach area. With any luck, you’ll reel in bonita, king mackerel, speckled trout, mahi-mahi, and/or pompano. Both off shore boat excursions and stationary pier fishing are available. Panama City Beach boasts outstanding restaurants, antique shops, flea markets and art galleries with more businesses relocating here everyday. The area lies between the planned paradise development Seaside (the location of the 1997 hit motion picture “The Truman Show”) and Apalachicola (home to the BEST and MOST RENOWNED oyster beds in the State). Once you have experienced Panama City Beach yourself, don’t be surprised if it sneaks into your mind long after you’ve returned home. Pristine beaches, salt air, quiet days and gentle breezes have that legacy.

FED Cuts Rate to Zero - BIG DEAL!

2008-12-17T09:00:00.005-05:00

The Fed cut it's discount rate to near 0% yesterday. There is not much more ammunition left in the Fed's arsenal to make further cuts and investors wonder what they can do next to shore up our credit system. If you have a prime-based HELOC, that does not have a "floor", you should be turning cartwheels today, but don't expect too much to happen with mortgage rates.

The financial markets already anticipated a cut of 0.5% and that effect was factored in to today's rates. This morning, the market is poised in anticipation of wiping out most of the yesterday's gains as the realization that, "It may not do that much to help" sinks in. On the flip side, if the stock market continues to rise, demand for the Tbills will drop off and could conceivably send those yields up. (Complicated system - that does NOT favor the little guy!) So, a continued rise in stocks MAY put downward pressure on the price of Tbills and drive mortgage rates back up. (Isn't this fun!)

Suffice it to say, the short term psychological reactions will wane very quickly. This FED rate drop will most likely be "short term". Then, as the markets re-gain their composure, rates will return to their previous levels and erase those short term gains. What's the good news?

Rates will still remain at historically low levels; and, we could see a much slower trend downward. But, most likely Banks and Lending Institutions will hoard the spreads to try to recover some of their huge losses in their servicing portfolios and investment banking divisions. (Opportunistic SOB's!)

To become a fact, the 4.5% mortgage (that seems to have everyone's attention) would require extreme intervention by the Fed. We all got wind of that # in the press over the last couple of weeks. What it did was actually slow the recovery! How? Buyers who were otherwise comfortable with the rates in the (historically low) mid 5% range and were ready to buy have now moved back to the sidelines in anticipation of these low rates. It COULD happen, but according to one of our local professionals, the general feeling is that "Even if the FED starts buying mortgages directly, the banks will still try to figure out how to pocket the spread and increase their miserable bottom lines."

With rates at an average of 5.25%, the difference in the payment will be around $45.00 per $100,000. I think when consumers become aware of what that monetary difference is, it will change their perception of whether they need to wait around or not. Now IS the time to buy!

(Special Thanks to Grady Brown, Wells Fargo Mortgage Consultant, for this content; For addntl info - 850-522-6162)

Panhandle's Hottest Little Town

2008-12-16T10:06:00.003-05:00

Do some homework and your research will show you Panama City Beach is where many Americans are moving and real estate, although tempered with today's market, is still projected to boom! This “hot little town” not only offers everything from good education to affordable housing, but a solid military presence (NAS Panama City and Tyndall AFB) and a growing job market as well. Most investors, retirees and job seekers hunting for the right town in the sunshine State are seeking an area capable of providing a tempered lifestyle, warm weather, excellent hospitals, crystal clear water, and distinct weather seasons. Panama City Beach has it all!!

According to Renee Rackett, Broker/Associate WealthCreation, "As more people are exposed to this area through vacationing, more want to make a permanent investment by buying a second home or condo. Armed with disposable income, these individuals are turning to the Florida Panhandle and Panama City Beach. The coastal market is shifting. Destin, San Destin, and Perdido Key buyers are heading east. So, shoulder markets, such as Panama City, are now benefiting from buyer’s hunger."

We believe knowledge and information is power – so, we try to stay in contact with you … our buyers … to keep you up to date on the happenings in this area. If you haven't been here lately ... you haven't been here! Happy Holidays!

Condos at Bargain Basement Prices

2008-12-15T08:04:00.002-05:00

If you missed the auction this past week-end at Origin of Seahaven but you'd like to get in on the "steal" ... you're up that well known tributary without the proverbial paddle! "Incredible" is the only word that comes to mind.

The first sale was a 3 bedroom unit for $270,000. At 1781 sq ft, that makes the square foot selling price of that unit $151.60! The next unit, a 2 bedroom condo, sold for just over $200,000. At $201,000, the 1306 sq ft 2 bedroom 2 bath unit fared only slightly better than it's 3 bedroom sister. It garnered a mere $153.90 sq ft.

I guess I shouldn't be too surprised. I mean, Palazzo and Ocean Reef sold for just over $200 sq ft and they're beachfron properties. Seahaven, while of first class construction, is, in fact, not Gulfront, rather Gulfview. As such, probably should command a 10% discount. Even so ... buyers at Saturday's auction finally got what Ocean Reef, Marina Landing and Palazzo failed to deliver ... condos at an "Absolute" auction for a bargain basement price.

Fix Your Credit ... Cost to You? = $0

2008-12-12T12:09:00.002-05:00

One of our affiliates has located a company offering credit repair. They currently have about 35 people that are in the process of improving their credit scores. The company providing this service actually helped write the FICO credit scoring model. Interested? Give us a call (Our contact numbers are posted on our home page). We’ll get you where you need to be!