"Living in the Real World" ~ Lola's Log

St. Petersburg, FL - Kenwood-Melrose Community - A Lovely multi-family home in distress is at long last on it's way to a new owner! This one's been on (again, off again) the negotiating table for nearly a year...an example of everything that can go right and wrong in this tricky market, and the New World of short sales and bank-owned property purchases. The seller has become a dear friend, after several difficult years of falling rents and rising repairs on her hoped-for future-retirement property.  This was one of the short sale stories you don't often hear about--legitimate claim of not only financial loss, but health issues, employment issues, and the like. This was an example of "The Little Guy" who has been so thoroughly decimated by market conditions and shrinking property values. After several years of trying to stay above water by renting the units, about a year and half ago she threw in the towel and we put the place on the market--first at what she owed, soon after as a short sale. Last November a good buyer was found--not here in Florida, but way up the coast, nine States away--he offered a reasonable amount, conventional financing, which at that point could still be had (or so he was told) for less than 20% down.  He had the means to do this, and it's worth it, because his own mother will be living on the property, just down the street from the buyer's sister. The offer was presented to the lender for approval, and we waiting...and waited...through the holidays.  Thanksgiving, Christmas, Hannukah, Kwanzaa, New Years, Chinese New Year... Weekly calls brought no results--this was neither an owner-occupied residence on either the buyer or the seller's side, so it was very low priority for the bank to review. After two months I was told to enter the file into the new Equator system and things began to pick up--we had an approval by April (hurrah!), but then the issues on the buyer's side began--they would no longer apprvoe a loan at the 15-18% he had wanted to put down--it had to be the full 20%.  So, we re-negotiated a lower price--plenty of room, based on the intial appraisal. And then it happened--as we were preparing to rejoice, apparently on our way to closing--the file just got dropped by the buyer's lender.  We called, called, called, and nothing--we had the nerve to apply for a loan during the originator's MONTH of vacation, so she failed to touch the file for 30 days...while our short sale approval time ticked away. We requested and received one extension...then a second, while the loan officer suddenly jammed her file into gear and requested docs, docs, more docs from the buyer.  They wanted everything, including his first-born, last BM, and what he had for breakfast the night that Elvis died (was reported missing...?).  And still, no loan commitment...as the deadline for closing came yet again...and went.  Then, the ultimate insult--the loan processor actually asked my buyer if he was 'disabled'...can they do that?!  I think there may be laws about that sort of thing--but she did--because after all of their slapstick handling of the file, he had a few challenges with letters and faxes. So the approval expired, and over a month ago I was forced to re-initiate the short sale approval, from the beginning (see "My Bank of America Hate Song", below).  Frustrated?  Just a little... The good news is, between the first and second appraisal the market has come up just a smidge, enough that I had to re-negotiate all over again. The better news is that it's nearly over...at long last!

st pete: Historical Mirror Lake District ~ St. Petersburg Florida ~ Vibrant and Artsy Downtown - 05/19/08 12:18 PM Mirror Lake-now considered an Historical District, is home to many of the most familiar of St. Pete's well-known sites, such as, well--Mirror Lake, the Lyceum, the Coliseum, the famous Lawn Bowling and Shuffleboard Courts, and the old St. Petersburg High School, which has been converted to condos.  Baywalk is also within ... (6 comments)

st pete: Eclectic Arts, Architecture, and Nature in Downtown St. Petersburg, Florida - 05/09/08 11:40 PM A sampling of some of the many fine features of beautiful St. Petersburg, Florida--no longer "Heaven's Waiting Room", but home to the unique architecture of the historic Old Northeast, the Arts-friendly and flourishing in the downtown area, sail-happy Vinoy Basin, and nature abundant throughout the city. Take a short video jaunt ... (0 comments)

st pete: There are Some Really Great Rentals in North St. Pete--Kenwood Area - 02/28/08 11:25 AM A Video Tour of a lovely Kenwood area home with Mother-in-Law apartment, both are available right now! The apartment is only $700/month INCLUDING ALL utilities--that's power, water, sewer, and garbage, which means a significant savings on deposits alone.  The main house is an adorable dollhouse--with a fireplace, formal dining, and interior laundry ... (0 comments)

bofa: My "Bank of America Hate Song" (Dance to Follow...) - 08/31/10 02:08 PM
Nine Months, Three Days and Twenty-one Hours
Is the Time it Takes
For Me to Finally
BLOW!!
(but at least I try to do it with a smile!!)
(Open THIS window to hear the original Fight Song for Notre Dame--it's a classic!)

I don;t know about you, but I've always thought one of the main premises and strengths of our great country is encapsulated in the RIGHT and PRIVILIGE of homeownership.  Apparently, Bank of America has a different idea, one which puts a specific cap on the percentage of Americans who could and should actually own homes--from The Wall Street Journal:

Bank of America urges funding for investors

NEW YORK - Sept. 29, 2010 - Analysts from Bank of America have a unique proposal: Instead of further funding TARP to help distressed homeowners hold onto their properties, give the money to property management companies that would then buy property and turn it into rentals.

In a recent research paper, Bank of America analysts suggested that the government spend as much as $400 billion to encourage property management companies to buy properties and rent them out. That, according to research, would bring the homeownership level to "a more natural level of 62 percent to 64 percent" from its current 67 percent.

Under Bank of America's recommendation, investors would be prevented from reselling the properties quickly.

Source: The Wall Street Journal, Emily Peck (09/27/2010)

I have an even better idea:  Instead of further using TARP funds to bail out huge corporate entities such as Bank of America--why not use them to help bail out some of our small businesses* who rely on income from rental properties?  Not just "property management companies", but private residential (SFR)investors...

*AKA:  'greedy landlords' currently forced into bankruptcy and foreclosure due to non-paying tenants and costly evictions.

What do YOU think?

Ok, I admit it--I am known as a "PollyAnna"...glass-half-full, yes I am one of the happy fluffy people.  That does, not, however, mean that I stick my head in the sand, ignore the obvious, or persistently dive head-first into the you-know-what!

The fact is, a big part of my business for the past year has been providing BPOs to banks--which means I have a bird's eye view (not to mention a trusted source of market info) of my local market--and I will tell you what I've been telling my clients, customers, and friends for the past 6 months: 

The Market in Tampa Bay IS Stabilizing

And now we have National statistics to back up my local assessment--we are long past any false upticks due to the homebuyer tax credit by now, and yet:

Home prices up 1% in June

WASHINGTON (AP) - Sept. 1, 2010

and:

Pending home sales rise

WASHINGTON - Sept. 2, 2010

The first reports home price increases due to the tax credit: 

"The Standard & Poor's/Case-Shiller 20-city home price index posted a 1 percent increase in June from May and was up 4.2 percent from a year ago. Home prices nationally were up 4.8 percent in the second quarter compared with the first quarter, largely due to government tax credits of up to $8,000 that caused sales to surge."

Whereas, for future homes sales, a look at those which are pending would be the best indicator of future trends:

The Pending Home Sales Index (PHSI), a forward-looking indicator, rose 5.2 percent to 79.4 based on contracts signed in July from a downwardly revised 75.5 in June; it's 19.1 percent below July 2009 when it was 98.1. Pending sales data reflects contracts and not closings, which normally occur with a lag time of one or two months.

This is exactly the data which I've been reporting--that for the past 6 months, since the tax credit expired, home sales have been stable and rising, on a neighborhood-by-neighborhood basis.  Some neighborhoods are still rocky, other have been INcreasing in value for the past 12 months.

Email me and I'll be happy to look at YOUR neighborhood!

Nine Months, Three Days and Twenty-one Hours

Is the Time it Takes

For Me to Finally

BLOW!!

(but at least I try to do it with a smile!!)

(Open THIS window to hear the original Fight Song for Notre Dame--it's a classic!)

• Thinking we would expedite the process of short sale approval, my buyer went to the same bank for his loan that was also approving the short sale (guess who).
• Six months later we got our short sale approval.
• The loan officer processing the loan application took two weeks off, leaving no one in charge of the file.
• ...and then came back
• and took another week and a half off.
• Her supervisor didn't seem to care much that we were supposed to be closing and the loan application hadn't been touched;
• Two months after that we are still getting bounced around, being told "more docs more docs more docs"
• When the buyer had multi-faxed everything requested.
• We've gotten two extensions to close the file from the 3rd party lender (BofA);
• And three weeks ago were told the file was going into underwriting...yet
• TODAY, when the last extension has now expired we've been told that yet again!

maybe this will close sometime this year...

The Equator system may finally be showing signs of helping the short sale process, however here is yet another example of how Bank of America is responsible for the UNservicing of America's homeowners!

NEWS:   BIG news on the FHA front. If you have possible FHA buyers shopping around, (or if you are one!) they need to get into contract ASAP – Come Sept 7th there are some MAJOR changes happening. The govt’s way of ‘helping’ is actually ‘hurting’ …are you surprised?

Example:

                                         FHA TODAY:                                             FHA ON 9/7/10:

Base Loan                        $150,000.00                                               $150,000.00

+ FHA financed prem              $3,375.00   2.25%                                     $1,500.00   1.00%

Total Loan Amount             $153,375.00                                              $151,500.00

P&I Payment                          $ 777.13                                                     $767.63

**+FHA monthly factor              $ 70.29  *0.55%                                        $123.72    *0.98%

Monthly Pmt                            $ 847.42                                                    $891.35

Monthly Difference $ 43.93

Qualification Difference $8,670.00

Look what that does to the buyers qualification!

So if they were qualified for $150k now it’s only $141k

BUYERS NEED TO MOVE NOW!!!!

 Have a Great Day and Be Happy! Remember, just about everyone you meet is going thru some kind of trial in their life – Be extra nice to Everyone!

This information supplied by: 

DeLynn Gaston  

**mortgage interest rates are Amazingly in the 4's**

Open Mortgage dba

Blue Marlin

727-939-8453 office

727-412-1617 cell

In a release on August 11, HUD announced an additional $3 Billion in funding for targeted homeowner assistance.  The "Hardest Hit Fund" was announced in February of this year, in an effort to stave off further market erosion and in hopes of stabilizing an economy still shaky from the high unemployment and foreclosure rates.  Florida, one of the hardest hit states (and also one of the biggest bubbles), is slated to receive 12% ($238,864,755) of these funds for homeowners still struggling to make payments on their mortgages. 

OBAMA ADMINISTRATION ANNOUNCES ADDITIONAL SUPPORT FOR TARGETED FORECLOSURE-PREVENTION PROGRAMS TO HELP HOMEOWNERS STRUGGLING WITH UNEMPLOYMENT
Treasury's Hardest Hit Fund Will Provide $2 Billion of Additional Assistance in 17 states and the District of Columbia; HUD to Launch a New $1 Billion Program to Help Unemployed Borrowers in Other Areas

So, what does it take to qualify?  According to HUD, who will be contributing $1 billion to the program:

HUD Emergency Homeowners Loan Program

This new program will complement Treasury's Hardest Hit Fund by providing assistance to homeowners in hard hit local areas that may not be included in the hardest hit target states. Those areas are still being determined.

The program will work through a variety of state and non-profit entities and will offer a declining balance, deferred payment "bridge loan" (zero percent interest, non-recourse, subordinate loan) for up to $50,000 to assist eligible borrowers with payments on their mortgage principal, interest, mortgage insurance, taxes and hazard insurance for up to 24 months.

Under the program, eligible borrowers must:

1. Be at least three months delinquent in their payments and have a reasonable likelihood of being able to resume repayment of their mortgage payments and related housing expenses within two years;
2. Have a mortgage property that is the principal residence of the borrower, and eligible borrowers may not own a second home;
3. Demonstrate a good payment record prior to the event that produced the reduction of income.

HUD will announce additional details, including the targeted communities and other program specifics when the program is officially launched in the coming weeks.

If You, or Anyone You Know Is Having Trouble Making Their Mortgage Payments

Stay tuned for updates on this program--September 1st is the projected rollout.  If you or anyone you know would like to discuss your options with a seasoned professional--call me for a FREE consultation!

You know--it has seemed as though things are picking up a bit, and the stats don't lie!  Sale of residential homes are at only a two-month inventory in Palm Harbor, Florida right now.  Here are some groovy numbers for ya:

• 241 is the number of actively marketed listings
• 79 is the number of listings under contract, with contingencies (likely short sales)
• 72 is the number for pending sales, (normally within 30 days); and
• 77 is the number of homes SOLD in the past 60 days

This means nearly half of the Palm Harbor market was either sold and closed in the past 60 days, or is under contract to close in the next 60 days.  That's GOOD!!  Well, good if you're a seller, or waiting breathlessly for the market to start turning back upward...because the good word is: "IT IS!"  At least in Palm Harbor...

The bad news is if you're a buyer looking in Palm Harbor, waiting up there on a fence--better jump quick before it's too late (again), and you are priced right out of the market!  Only a few years back I was talking to a friend of mine from Safety Harbor, another great North Pinellas community, and she was saying she'd have to move her family out of Pinellas County so that her nearly-adult children could still live nearby! 

So WHAT ARE YOU WAITING FOR?!?  Go HERE and sign up to search Palm Harbor homes right now!  Before they're ALL GONE!!! 

Real World Properties, Inc. | Real World Properties, Inc. | (727) 656-6206 1515 Bayshore Blvd. #25, Dunedin, FL Discover the Hidden Treasure of Dunedin! Sunsets from your front porch, and right off the Pinellas Trail! 2BR/2+1BA Townhouse   offered at $128,000 Year Built 1982 Sq Footage 1,250 Bedrooms 2 Bathrooms 2 full, 1 partial Floors Unspecified Parking 1 Covered spaces Lot Size Unspecified HOA/Maint $398 per month DESCRIPTION Looking for a great townhome close to Pinellas Trail and all that Downtown Dunedin has to offer? Look no further--this has everything a smart buyer could want--lovely, small community right off the Trail and only a mile from downtown! The beautiful waters of Old Clearwater Bay are just across Bayshore Blvd, and only 3 miles to Dunedin Causeway and Honeymoon Island State Park; 7 miles to Clearwater Beach! An amazing property with that Florida feel, and a rare opportunity for such a great buy--NOT a short sale!   see additional photos below PROPERTY FEATURES - Central A/C - Central heat - Living room - Dining room - Dishwasher - Refrigerator - Stove/Oven - Washer - Dryer - Laundry area - inside - Balcony, Deck, or Patio - Swimming pool COMMUNITY FEATURES - Covered parking - Guest parking - Swimming pool(s)   ADDITIONAL PHOTOS Old Clearwater Bay View Old Growth Oak Canopy Private Patio Real Florida Feel! Contact info: Real World Properties, Inc. Real World Properties, Inc. (727) 656-6206 For sale by agent/broker Equal Opportunity Housing Posted: Jul 9, 2010, 12:24pm PDT

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Answer: 18

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