Opps! Bad news for Buyers of Condominiums in Cape Coral, Fort Myers, Naples etc.
New Underwriting Guidelines
AIG, a major private mortgage insurance company, will no longer underwrite coverage if you own a condominium in an area where property values are declining. For condo owners, this means you could face some serious obstacles in the future if you want to sell or refinance your condo. This new underwriting guidelines is important because it has the potential to both discourage new homeownership and make it nearly impossible for current owners to preserve the value of their homes.
About the New Guidelines
AIG’s decision is novel because it has nothing to do with applicants’ assets or credit scores. Rather, it is about the direction the market is headed in the area where the property is located. If the condominium subdivision is in a declining market area, owners may find it impossible to find insurance coverage if they decide to sell or refinance. Other insurers might continue underwriting such coverage but will probably follow AIG’s lead to some extent by demanding higher down payments for entry-level homebuyers.
Similar Changes for Lenders
In a similar change, Fannie Mae and Freddie Mac have announced more stringent underwriting guidelines for lenders that write loans for condominium buyers. As a result, the loan officer must verify the accuracy of a long list of descriptors about the condo and its surrounding area. The loan officer must look into the subdivision characteristics, association operation budgets, legal documentation of the subdivision, amount of reserves, percentage of late payers, percentage of non-owner occupants, and many other factors before writing the loan. Before the new guidelines, this information was usually supplied in the form of something called a Condo Cert. What is different now is that the loan officer must go to great lengths to verify its accuracy.
How It Affects Condo Owners & Buyers
These new underwriting guidelines have important implications for both current condo owners and prospective buyers. The changes in insurance underwriting will make it very difficult for condo owners in declining markets to sell or refinance. The additional underwriting guidelines for lenders could make it nearly impossible for lenders to issue condo loans if they do not have the staff needed to accomplish the requirements. Many experts speculate that these new guidelines will have a profound effect on condominium values as a whole. Especially for condo associations in declining markets, budgets, costs, and reserves will need to be carefully revisited if they want to meet the requirements of the new guidelines. Ultimately, these changes could discourage new condo ownership and make it impossible for current condo owners to protect the value of their homes.
But as usual we have the answer!
Our loan specialist has no problems with this. We are looking out for you.
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The number 1 reason some buyers are not buying Cape Coral Real Estate right now!
#1 They think the market has not bottomed out yet.
Are they right?
- Perhaps they are.
- Perhaps not.
Is it worth the wait?
How can it cost me money if I wait?
How savvy investors look at it! What they look for.
- Low interest rates. As the market improves, interest rates go up. They have already gone up 1%. How much will that cost. Ask your lender. Not hundreds but many thousands.
- They look for a large supply to get the best home out of many. Now is the time.
- When there are a large number of homes for sale, sellers are in completion with other homes. Their Realtors let them know. They are more apt to consider an offer during high competition.
- True the investor knows that they may offer on homes that are priced slightly higher but they can get a really nice home for a bargain and negotiate the price while market conditions are right.
- An investor knows that waiting for the bottom is like trying to gaze into a crystal ball. It is a big gamble.
- The right home at the right price is what investors are after.
To sum it up!
Waiting until the elusive market bottoms out severely narrows the number of homes available. What is left is what home buyers do not want. You want a great home at a great price. Right?. Waiting narrows opportunities. The interest rates rise costing thousands. An offer can be made now equaling the possible lower market value in the future. If foreign investors, the exchange rate will rise costing a fortune. Investors know the news is usually many months behind the market conditions. They contact an Exclusive buyers agent that is savvy with how to help investors.
Be a savvy investor today!
Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.
Call me Today! 239-770-0686 Email Jb@sunnyspotrealty.net Visit website http://www.sunnyspotrealty.net/
Sunny Spot Realty Inc. Cape Coral Real Esate Exclusive buyers agents
Offers made to lenders on Cape Coral Florida Foreclosures. Submitted or not?
Did this ever happen to you?
- Priced @ 77k foreclosed home.
- Made an 92k offer, cash, no contingencies except inspection, close 30 days.
- Offer rejected by listing agent, no reason.
- See later: sales price lower than your offer.
What could have happened?
This is totally unethical and possibly illegal but……
The listing agent could have his own offer from a buyer he obtained,which would earn him or her double the commission by not having to split it with another agent.
The rules are wrong and stacked in the favor of the dishonest few!
The Florida Real Estate Commission has a rule that another agent may not contact the seller nor demand a rejection in writing or reason for the rejection. Wow! That means we must trust all agents to be totally honest and not swayed by getting another 15k on a 500k home by misplacing another offer.
I spoke with a mortgage broker that told me on occasion he was aware of other offers not presented to the owner by the listing agent.
Bidselect.com has the answer. Not all are using this method. They should for all offers.
How can you protect your client as a Buyers Agent?
Until F.R.E.C. is enlightened and banks are aware, we can do only one effective thing.
On the offer, put “Buyer shall call the seller directly should this offer not become an executed contract to obtain and verify the reason(s).”
This will do four things;
- Put the listing agent on notice that the buyer will call the owner.
- Should the lender find out the listing agent is not submitting the highest and best offer, he will lose all foreclosed listings.
- The lender will become aware of this potential issue.
- Enhance your value as a buyers agent.
Don’t stop there. Get the information on the seller and have the buyer call. After all, it is only right. Get the Florida Real Estate Commission to change the rules. When the seller accepts an offer they must sign. Why not rejection with reason(s) and signatures?
*disclaimer
Only a very few agents are doing this. I deplore their ethics and would like them to lose their license. I do not wish to create a panic that every offer is treated this way. These are rare occurrences that brings our industry down to a level that is not even near acceptable.
I am not as rich as they are but I am honest and proud of it. You can read about me > Joseph Beauvais
You are welcome to visit my web site for Exclusive Buyers agents. Cape Coral Real Estate .
Please help by writing F.R.E.C. and adding this little extra on all offers so I am not the only one making sure my offer is submitted.
This is not unique to Cape Coral Florida Real Estate Foreclosure homes. Search Blogs for this occurance.
Has this happened to you?
(polls)
Sunny Spot Realty Inc.
Cape Coral Real Estate. Search thousands of Cape Coral, Bonita Springs, Naples, Captiva, Sanibel & Ft Myers or Fort Myers beach homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County Florida. Cape Coral Foreclosures
Foreclosures Cape Coral Florida Real Estate 1 home 45 offers.
Talk about a hot market.
We put in an offer on 2115 SW 48th ter in Cape Coral Florida. This was a foreclosure on the market only 4 days.
My client put in an offer of 5k over asking price, cash, close in 30 day. Had proof of funds and put 5k money order down with an additional 5k in a few days. No contingencies except for an inspection.
The listing agent informed us that there were 45 offers on this home.
It was only on the market 5 days.
Yesterday we received notice that a better offer was accepted.
If you are considering waiting for a while to purchase the best deals, Don’t.
The bottom of Cape Coral Florida Real Estate market has hit and gone. It is on the increase.
As an Exclusive Buyers’ agent for this area I can still find you super deal but you must act fast and be prepared.
- Get prequalified for a loan in writing and within 60 days. (I can help!)
- Or, if cash, bring a (30 day) bank statement of funds in your account.
- Bring cash or money order for 5,000 “not personal check” for down payment.
- Be prepared to offer way over asking price on foreclosures that we find as the best deals.
- Contact Sunny Spot Realty team for Exclusive buyers’ agents services.
You cannot expect part time agents or listing agents to get you a steal, write a letter perfect “legal” offer that bank attorneys will accept.
Believe me, you had better contact us now or lose out on the best opportunities in your life.
Why?
- Supply is large. Choices are plentiful.
- Demand verses supply is still low.
- Interest rates still at their lowest since 1971.
- Prices are at the lowest I have seen in my long career.
I do not want you to have regrets because you did not listen. If you are even considering a purchase in the next 5 years, act today!
Call or email to set up an appointment with me or the other 4 Exclusive buyers agents.
(239) 770-0686. Email JB@sunnyspotrealty.net,
Web site to search Cape Coral Real Estate. Search thousands of Cape Coral, Bonita Springs, Naples, Captiva, Sanibel & Ft Myers or Fort Myers beach homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County Florida. www.sunnyspotrealty.net
Your Exclusive Buyers' agents sourceCape Coral Florida Real Esate
Fannie Mae, Freddie Mac will up it foreclosure asking price by 20% in Lee County Florida due to multiple offers thousands over…..
Yes folks, as I have be stating, Fannie Mae, Freddie Mac have informed (unofficially) that in Lee County Florida to include;
Alva, Boca Grande, Bokeelia, Bonita Springs, Captiva, Cape Coral, Estero, Fort Myers (County Seat), Fort Myers Beach, Fort Myers Shores, Fort Myers Villas, Lehigh Acres, North Fort Myers, Page Park, Pine Island Center, Punta Rassa, Sanibel, San Carlos Park, St. James City, Tice, Waterway Estates, Lehigh acres, Estero and more
Will be increasing the asking prices of their foreclosed homes by some20% for all new listings due to so many offers submitted on each home with offers of thousands over the asking prices in this bidding war.
This is to lower the burden of processors getting overloaded with offers and responses.
It will be a test to see where the offers level out and stabilize. Prices could go higher or they may decided that a lesser amount increase of only 15% is warranted and subject to review.
This is only the beginning here in Cape Coral, Fort Myers, Bonita Springs and Naples areas I service.
All of the rest of the lenders selling foreclosures will very soon follow suit.
If you have been waiting for our market to bottom out, “you have missed the bottom”.
I have warned my clients as an Exclusive Buyers agent over and over not to wait.
What will you wait for next? Interest rates to rise?
That is next.
If you are now ready, you may still get a steal. “You cannot steal in slow motion.”
We have some 68 buyers we are working with now, first come first served by my staff of Exclusive buyers agents.
Contact Joseph Beauvais (239) 770-0686 yesterday!
Web site http://www.sunnyspotrealty.net/
You may search yourself but this is wasting time.
Email: Jb@sunnyspotrealty.net
Cape Coral Real Estate. Search thousands of Cape Coral, Bonita Springs, Naples, Captiva, Sanibel & Ft Myers or Fort Myers beach homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County Florida. Cape Coral Foreclosures
The recently passed Economic Stimulus Plan. Done Deal! GREAT news…
The recently passed Economic Stimulus Plan. Done Deal! GREAT news…
You might be thinking that there is already a Home Buyer Tax Credit in effect; it helped some, but not all that much. Yep. But take a look at the reasons why this newer version is much more buyer-friendly than the one that took effect last July (‘08).
* The NEW tax credit is for $8,000. (Before it was for $7500.)
* The NEW tax credit is available for home purchases made between 1/1/09 thru 11/30/09. (Before it was 4/9/08 thru 6/30/09.)
* This is a GREAT benefit… The NEW tax credit has NO repayment requirement! (Before the homeowner paid back $500/yr for 15 years, i.e., full payback.)
* The NEW tax credit has a 3-year recapture requirement (if the home is sold within 3 years). (Before if the home sold within the 15-year repayment period, the outstanding was recaptured on sale.)
* The NEW tax credit allows for MRBs… bond loans. (Before there was NO credit for state/local bond funding.)
THERE are five good reasons to “talk the NEW Homebuyer Tax Credit up” it’s improved, and it’s NOW. Not all that familiar with the overall tax credit to begin with? Here are bullet points:
* The dollar amount of the credit is actually 10% of the purchase price, up to a max credit of $8,000. (Ex: $72,000 purchase price = $7,200 tax credit.)
* The credit is available for principal residences only (owner occupied).
* The credit is available to first time homebuyers — note that the definition of a first time HB is a purchaser (and purchaser’s spouse) who has not owned a principal residence in three years previous to purchase. Owning a second home(s) or an investment property(s) does not disqualify a person as long as the principal residence rule is intact.
* There are income limits — To receive full credit the max AGI (adjusted gross income) for individuals is $75K; for joint returns it’s $150K. There is a phase out above those caps.
* Any house, anywhere — new/old, cheap/expensive, REO/short sale/regular, a manufactured or a hi-rise — if the buyer is “eligible”, the credit is there.
Now, the best part about this is that this is an actual tax CREDIT — it’s not a tax DEDUCTION!!! As such, this is a dollar-for-dollar tax REDUCTION — the buyer’s tax liability for the year of purchase may be reduced, eliminated, OR he/she might even receive a “refund”. (Example: The Purchaser is eligible for the full $8,000 credit; he/she has a total tax liability of $2700; the $2700 wipes to -0-, and the purchaser will receive a refund of $5,300 from the filed tax return.) Money INTO the pocket BECAUSE it was bought….. Likely at a great price; likely at a great rate; likely with a PITI that competes loudly with renting.
Stay tuned for March 4th for the final “details” on many of the 2009 Stimulus plans and beyond that for some interpretation and decisions on how it will all work.
Present by Joseph Beauvais
Sunny Spot Realty inc. Web site http://www.sunnyspotrealty.net/
Click. Exclusive Buyers agent “about”
Cape Coral Real Estate. Search thousands of Cape Coral, Bonita Springs, Naples, Captiva, Sanibel & Ft Myers or Fort Myers beach homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County Florida.
Cape Coral Real Estate News Flash update Florida Fort Myers, Bonita Springs & Naples
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Article:
Cape Coral Real Estate & surrounding area market conditions are starting to be very hot. Homes in demand are the newer ones priced around 79,000. Pool homes could be found at this price very newish. Now pool homes built after 2005 are seing a rise in price. Few brand new homes are selling due to the cost of building materials being higher than the existing homes that are at, near of foreclosures. You can buy foreclosed brand new homes now at prices you will never see again.
Cape Coral seems to be the hottest market in low end properties between 60,000 to 300,000.
Salt water font home have the best potential for appreciation very soon due to supply and demand
Reason; you cannot build any more salt water canals. “supply and demand”
Condominiums are 2nd in demand under residential homes that are #1 for selling. Last in demand is vacant land. This is always the case. Builders not building, land will not sell well. This is the best opportunity for long term investments “vacant salt water land”. Another is fresh water land that has a lower acquisition price and also lower appreciation. Both have near no maintence or care needed except for taxes and mowing
Mortages are down and the lowest since 1971.(around 5% depending on credit scores etc.) Banks are still very tight with loans and this is the biggest obsticle with buyers.
The present market conditions are very favorable for buyers. Interest rates at their expected lowest rates. Demand is still fairly low and supply is high. These conditions combined are the best possible to find a home at a price not to believe.
In 4 to 5 years from now a buyer will realize that this was the best investment they have made in their lives. Conclusion: Buy now - Cape Coral Real Estate is HOT HOT HOT!
Cape Coral, Fort Myers, Fort Myers beach, and Bonita Springs Florida Real Estate market conditions and stats as of 1-18-09
4,599 residential properties for sale in Cape Coral
524 foreclosed homes offered by Realtors
2,102 of these are short sales.
104 Bank approved short sales
310 Pending sales since 1-1-09 residential properties
5,772 residential properties for sale in Fort Myers
470 foreclosed homes offered by Realtors
1,379 of these are short sales.
51 Bank approved short sales
206 Pending sales since 1-1-09 residential properties
527 residential properties for sale in Bonita Springs
70 foreclosed homes offered by Realtors
80 of these are short sales.
3 Bank approved short sales
13 Pending sales since 1-1-09 residential properties
718 residential properties for sale in Fort Myers Beach
4 foreclosed homes offered by Realtors
20 of these are short sales
0 Bank approved short sales
14 Pending sales since 1-1-09 residential properties
146% increase in sales for this past month.
Why you must have a buyers agent Foreclosures|short sales Cape Coral Real Estate
Cape Coral Fl Real Estate Joseph Beauvais
Now more than ever I am seeing many serious errors inputted to the MLS and spread automatically to many sites that you the public search.
Some information is so serious it could cost you thousands of dollars.
I recently found a foreclosure listed in the MLS and my buyer and I viewed the home. The mls stated that the home had central sewer and water in. I called the agent and asked if it indeed had these utilities rather than a well and septic. Answer: yes!, After we looked at the home I noticed that it had a well pump. I again called the agent. “it is in a paid” was the answer. I then looked for the meter box. None. I asked the buyer to call the agent for fear of the agent getting annoyed. “it is in a paid” was told to the buyer. Where is the meter? Answer, it probably is burried in the grass.
I then went online to the city of Cape Corals web site. I found that the utilities were not in until 2012. This home is a corner lot so the future assessments would be around 25k with hook up, plumbing assessments and permit fees
The buyer would never have found out at, before or after closing unless they would have searched on their own.
The buyers thanked me and were very glad they used a buyers agent.
Short sales are not good unless they are bank approved. Read about short sales.
The public is not aware that the listing agent does not work for their interest. Only a true buyers agent that does not take listings protects you. Why? A buyers agent is a single agency with feduciary duties only to the buyers. I protect you alone.
In my views there should be a listing agent and a buyers agent for each sale. Each representing seperate parties in the transaction. Visit Cape Coral Real estate web site to search thousands of home in Cape Coral and surrounding areas.
Call me Now! (239) 770-0686 Email; Jb@sunnyspotrealty.net
. Cape Coral Real Estate. Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.
Low down payment going away 1-9-09. Cape Coral Real Estate news
Going Going …….
NEW LOAN LIMIT for FHA in Lee County is $271,050.
FHA allows the buyer to put a minimum of 3% down (changing to 3.5% in 2009). Down payment may be gifted.
If your going to buy and want to keep cash reserves now is the time.
Buying into Cape Coral Real Estate could not be better.
Visit Cape Coral Real Estate to see thousands of homes for a steal. Cape Coral Real Estate
*Remember you cannot steal in slow motion.
I am a exclusive buyers agent of 23 years. Serving Cape Coral, Fort Myers and surrounding areas.
Foreclosure specialist.
Cape Coral Real Estate/Joseph Beauvais
Cape Coral Real Estate news by Joseph Beauvais
Email: jb@sunnyspotrealty.net or call 239-770-0686
Cape Coral Real Estate – Cape Coral Real Estate. Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.
