According to the Government Accountability Office, Florida came in number 3 in the nation, with nearly $65,000 first time homebuyers that took advantage of one of the IRS tax credits under the Housing, Recovery and Assistance acts.

Although Florida ranked number three, California took the number one spot with over $814 million returned to first time homebuyers, reflecting nearly 117,000 claims. On a nationwide scale, nearly $23.5 billion were returned and 3.32 million submitted claims!  

There were three different credits that were offered to Americans; The Housing Act, which provided a maximum of $7,500 in refundable tax credit funds which must be repaid by the taxpayer, The Recovery Act, which provided a maximum of $8,000 in which the repayment is waived and the Assistance Act, which extended the credit to the spring of this year as well as providing 2nd time qualified homebuyers up to $6,500.

The tax credit had such an impact on the real estate market over the last year, that since the expiration of the tax credit over of the spring of this year, home sales have dropped significantly.


 

After a concerning decline in the pending home sales over the last few months, the National Association of Realtors (NAR) Pending Home Sales Index (PHSI) showed an incline of 5.2%!

Pending home sales reflect contracts that were signed during the 30 day period.  As the closing process can take a few months, the Pending Home Sales Index provides a look into the upcoming future of the real estate market. 

According to Lawrence Yun, Chief Economist for NAR, “Affordability could reach a generational high in the second half of this year because of rock-bottom mortgage interest rates, helped partly by the Fed’s very accommodative monetary policy, the loan underwriting standards are tighter, but homebuyers can improve their chances of getting a loan by staying well within their budget.”

Across the nation the PHSI rose in the Northeast, Midwest, South and the West. 

A recent quote on CNN Sunday by Shaun Donovan, HUD Secretary, has caused plenty of turmoil in the real estate industry.  After stating that a restoration of the homebuyer tax credit is "not off the table" and that it is "too soon to say" if the tax credit would be revived, Donovan's remarks sparked controversy among real estate professionals.

HUD spokesperson tried to back pedal yesterday by claiming that "There are no discussions underway to revive the credit." However, just the talk of a revision could cause the home sales to stall even further.  The existing home sales in July showed a drastic decline, and if the figures for August are anything like July's a push for Government interference could certainly rise.  The Pending Home Sales Index will be released by the National Association of Realtors (NAR) on Thursday, September 2, 2010.

 

A mortgage foreclosure is a legal proceeding in which a lender terminates a homeowner’s right to the property in question. When a borrower defaults on a mortgage that is held by the lender, the lender has the right to repossess the property. Once the property has been repossessed by the lender, the bank can then sell the property and keep all of the proceeds to pay off the remaining amount left on the mortgage as well as any legal costs that incurred during the foreclosure process.

If the property does not sell after the foreclosure process, the borrower will remain liable for the amount due on the mortgage. The lender is required to sell the property at a price that is near the fair market value (FMV), however more often than not the lender sells the home at a discounted price in order to recover the amount lost on the mortgage. A foreclosure usually results in a loss for both the lender and the borrower, which is the reason that many homeowners will look at a short sale option before the mortgage ends up in foreclosure.

The first change to the flood plain designations in Collier County, Florida have been released, showing that nearly 1/3 of Golden Gate Estates is currently in a flood zone. This has left residents curious as to how their homes have fallen in a flood zone if their homes are well above sea level.

The new flood plain maps that were released by the Federal Emergency Management Agency (FEMA) have placed nearly 10,500 homeowners in need of flood insurance if they are unable to receive a certificate of elevation from a surveyor.  

For the next 90 days FEMA will begin to publish formal notices in the Naples Daily News that will begin the appeal process.  According to Bill Lorenz, County Land Development Services Director,  “This is the time that the public can file any scientific-based appeal of why they think the mapping is not correct.”  If you wish to search for which zone your home is located in, feel free to visit the Collier County website.

Maps are expected to be finalized by the beginning of 2011 and FEMA will issue a final determination letter, the flood insurance rules will not kick in until roughly six months after the distribution of the letter.





 

Puerto Rico is a fantastic option for people looking to buy investment property. It is already a US territory, which makes the process of buying property a little easier. Nonetheless, Puerto Rico is a separate nation and has laws governing the buying and selling of real estate that you need to understand for an effective buy.

The office that governs property taxes in Puerto Rico is called CRIM (Centro de Recaudacion de Ingresos Municipales). This is a centralized board that has offices in each region. When you buy a property here, you have to contact the local CRIM office for information on how to properly pay real estate taxes.

Currently the tax rate in Puerto Rico is a flat levy of 1.03 percent. Additionally you wll pay 1 percent more for the value of all personal property within the home, and three percent for the land value. CRIM is well within its rights to reassess values at any time and will sometimes backdate adjusted taxes. Needless to say, this makes things a little confusing, which is why depending on the local CRIM department is nothing less than essential if you want to own property here.

On the upside, Puerto Rico is only 1,000 miles away from Florida, making it easily accessible by plane. The island’s Latin flavor, warm beaches, championship golf courses, coral reefs and surfing – well, there’s really something for everyone. If you buy a home here specifically for renting to vacationers you should have no trouble keeping it booked. Just remember to leave a week for yourself in the winter!

Mortgage giant, Freddie Mac announced this week that mortgage rates have hit an all time low for the 9th time in 10 weeks. Mortgage rates on 30 year fixed rate mortgages have continued to decline since the spring of this year. Although the rates have continued to fall, home sales don't seem to be moving as the unemployment rate and high credit standards seem to be blocking forward motion in sales.

Although the expiration of the FED program that pumped $1.25 trillion into mortgage backed securities spiked concern with economists that mortgage rates would rise significantly, the European Debt crisis caused investors to shift funds into safer US Treasury bonds.  As the mortgage rates are so closely tied in with long term treasury bonds, they can change drastically even on a given day.

Freddie Mac collects rates from lenders across the nation weekly Monday through Wednesday. The rates this week came in at 4.36%, reflecting the lowest rates since Freddie Mac began tracking rates in 1971.   

 

Due to the expiration of the Homebuyer Tax Credit sales of existing homes were expected to fall and fall they did.  During the month of July home sales dropped 27.2% in a monthly comparison, according to the National Association of Realtors (NAR).

Sales are currently at the lowest level in over a decade, and are expected to continue at this pace for months to come.  According to Lawrence Yun, Chief Economist at NAR, "Even with sales pausing for a few months, annual sales are expected to reach 5 million in 2010 because of healthy activity in the first half of the year. To place it in perspective, annual sales averaged 4.9 million in the past 20 years, and 4.4 million over the past 30 years.”

Home prices on the other hand are starting to rise.  The national median existing home price was up in an annual comparison by .7% in July, while distressed home sales remained firm from June accounting for 32% of the home sales during the month of July.  

Yun went on to say, “Thanks to the homebuyer tax credit, home values have been stable for the past 18 months despite heavy job losses, over the short term, high supply in relation to demand clearly favors buyers. However, given that home values are back in line relative to income, and from very low new-home construction, there is not likely to be any measurable change in home prices going forward.”

This leaves the opportunities for potential homebuyers unlimited!  Mortgage rates are at record lows, home prices are remaining stable and there is no limit to the homes on the market at the moment.  If there was ever a time to purchase home, it's now, these circumstances won't last forever.





 

Mortgage rates on a 30 year fixed rate mortgage broke another record last week, falling to 4.42%, according to mortgage giant Freddie Mac.  These rates reflect the lowest rate seen since Freddie Mac began tracking rates in 1971.

Freddie Mac collects mortgage rates from lenders across the country weekly, Monday through Wednesday.  As rates are so closely tied in with long term treasury bonds, the rates are capable of fluctuate significantly, even on a given day.

Rates on a 15-year fixed rate mortgage dropped to 3.90%, continuing to decline since spring of this year.  Rates began falling when the European Debt Crisis reared its ugly head and investors began moving their funds into safer treasury bonds.
 

The controversy continues over Amendment 3, a proposed amendment to the Florida Constitution that would allow homebuyers that have not owned a home in 8 years a claim to a property tax break.  In addition to the tax break, the amendment would lower the annual tax appraisal cap for rental property and commercial property to 5%.

The controversy is not over what the amendment will do for homeowners, but  the wording of the amendment in the ballot box!  Recently, a judge removed the amendment from the ballot altogether.  The effective date of the property tax is not mentioned in the amendment, causing the judge concern on whether voters would be able to understand the explanation of the amendment.

The Florida Supreme court has yet to decide whether or not the amendment should be back on the ballot.  According to Trey Price, Florida Realtors public policy representative,  "If Amendment 3 does, in fact, not appear on the November ballot, Florida Realtors' State and Local Taxation Subcommittee is ready to discuss the next steps and plan for a better amendment for 2012. Economists are telling us that commercial property assessments are unlikely to exceed 5 percent in the coming two years, so that is somewhat good news."
 

Thanks to funds received from the Government formed Neighborhood Stabilization Program, 22 homes have been purchased in Broward and Palm Beach Counties in Florida by the Habitat for Humanity as well as other non-profit contractors in an effort to rehabilitate and re-sell these foreclosures.

According to a survey conducted by Bankrate, Inc., a online financial rate website, the closing costs across the nation are on the rise. National average shows that closing costs are nearly $1,000 more this year that they were in 2009.

If you're a veteran who served at least 90 days of active duty during a declared war, or over 181 days of peace time service, you are eligible for a VA loan to help purchase a home. Note that only active veterans or those honorably discharged qualify.

First things first, go online to the Department of Veteran Affairs: Regional Loan Centers and find the nearest loan center in your area. Give them a call. This center can then provide you with a list of VA approved lenders to contact. Also ask if they have any recommendations. Not all approved VA lenders are created equal.

You can also visit the VA Mortgage Center: VA Loan Eligibility Requirements online to review any requirements about which you may be uncertain. Call several of the approved lenders and get a feel for their level of experience. If you can get a face-to-face meeting, all the better. Choose the one that you feel most comfortable with, and that illustrates the greatest amount of hands-on experience with VA loan processing.

While you can only have one active loan at a time, currently you can obtain up to $417,000 toward a house (as of 2010). Thanks to all who serve and happy house hunting.

Mortgage rates hit another record low this week coming in at 4.44% on a 30-year fixed rate mortgage, according to mortgage giant, Freddie Mac. Mortgage rates are closely tied in with long-term treasury bonds and as investors continue to shift their money from stocks to treasury bonds, the yields continue to drop.

Fishing in the Federal Waters off the Florida Panhandle has been reopened, according to Federal officials, as no oil has been spotted in the last 30 days in the 5,144 sq mile area of the Gulf of Mexico!