Buy Owner Files For Liquidation But Takes On New Clients

Buy Owner, a broker-free service for individuals who would like to sell their home without hiring a REALTOR, has filed for liquidation.  They have filed for a liquidation of the company as a whole in attempts to keep the business up and running rather than liquidate individual assets;  however, it's unclear at this time if that will happen.

It's my understanding that the basic concept of Buy Owner is to charge sellers an up-front fee to advertise their properties on the BuyOwner.com website and to assist them in completing the sales contracts.

In the article written by The Palm Beach Post and republished by the Florida Association of Realtors, Philip J. von Kahle, managing director for Michael Moecker & Associates, which is the assignee for Buy Owner, is quoted as saying, "The phones, as far as people interested in the service, remain very active, and we are signing up new clients everyday."  So the business is being liquidated but you're still taking people's money for a service which may not be around in a few months.  To me, this sounds like greed.  I wonder if they have told any of their clients that they are liquidating the company.

The Ultimate Runaround With Chase Bank!

Short sale properties have become all too prevalent in the Tampa Bay market.  Their purpose is to preserve some of the seller's credit and save the lenders thousands of dollars in attorney's fees.  This sounds like a worthwhile plan for both sides but apparently the lenders don't see it that way.  They seem to enjoy giving the sellers and REALTORS the runaround.  A recent event with Chase Bank has reiterated this fact to me.

In January, a qualified first time home buyer looking to take advantage of the First Time Home Buyer Tax Credit, submitted an offer on a home which I had listed.  After submitting all the paperwork, waiting, resubmitting paperwork and then renegotiating the purchase price at Chase's request, we were hopeful that the property would close prior to the tax credit expiring.  Well, rather than contacting us with a closing date, the negotiator for Chase Bank decided that he didn't have enough paperwork.  He requested tax returns which hadn't been filed because Chase Bank wouldn't send the seller a statement of interest he had paid on his mortgage in 2009.  The negotiator said that either the seller file his tax returns or he was closing the file.  The seller complied but the negotiator still wasn't happy.  He then required the seller to create a profit and loss sheet for a business, which they could clearly see from the bank statements, had only brought in $30 for the year.  Still this wasn't enough.  Now we're at a crossroads.  The seller is out of town on a missionary trip and the negotiator says that if the seller doesn't submit ANOTHER bank statement and sign his electronically filed tax returns by the end of the week he's closing the file. 

Really Mr. Negotiator, you don't have sufficient paperwork to see that this seller doesn't have enough money to pay for his $69,000 home?  We have a buyer who would love to buy the home at the price you requested so that Chase Bank doesn't have to pay thousands of dollars in attorney's fees to foreclose and this isn't good enough for you?

Chase Bank is not the only culprit.  Negotiators with many of the banks seem to be on a power trip and revel in the ability to bring even more burden upon these desperate homeowners.  They make sellers and REALTORS jump through a string of hoops and make buyers wait sometimes eight months for an answer and closing date.  The lenders and their negotiators could care less about the home owners, REALTORS or buyers.  The ridiculous part is, if lenders would get their act together and put a system in place to quickly close these short sale properties they would not only avoid the costly foreclosure fees, they would be able to hold the value on properties.

New Home Buyer Tax?

Beginning September 7th, the cost of mortgage insurance on FHA loans will be increasing.  FHA loans only require 3.5% down payment which makes them a preferred loan for most first time home buyers.  To avoid the increased mortgage insurance and higher mortgage payment, you must have your FHA case number assigned prior to this change.

Here's a cheesy but informative video from the Florida Association of Mortgage Professionals (FAMB) which explains the increase and exactly how it affects the buyer.
 

Appraisal Relief

Finally, it looks like we may a have little help with some of the horrible appraisal issues.

For the last few years lenders have been undervaluing properties.  They would not only order an on-site appraisal but many times they would also do a "desktop appraisal" which is slightly better than checking Zillow.  Upon receiving the on-site appraisal conducted by a certified appraiser, the lender would would question it based up the information that they received from their desktop appraisal.  They then refuse to accept the full value given by the appraiser.

The reason lenders have gotten into the routine of undervaluing properties is because of Fannie Mae's policies on over-valuing.  Any lender caught over-valuing properties could be forced by Fannie Mae to buy back the mortgage at a substantial cost.

Starting September 1st lenders selling their loans to Fannie Mae will no longer be able to arbitrarily reduce appraisal values.  If they don't agree with the appraiser's value they may contact the appraiser in an attempt to resolve the disagreement.  If they are not able to come to an agreement, the lender may then order a second appraisal.  In either case, the lender will not be allowed to simply drop the value that supports a sales contract.

Hopefully, this will help hold values and prevent delayed closings due to appraisal issues.  If you'd like to read more please read the full article from the Florida REALTORS website.

14,830 Reasons The Home Buyer Tax Credit Should Be Extended!

If you're looking to cash in on the home buyer tax credit, today is your last day to close.  There have been talks of an extension for a while but it can't seem to get the support from our lawmakers.

Currently, there are an estimated 14,830 home sales in Florida which will be delayed past the June 30th deadline.  These are buyers which qualify for the tax credit in all aspects except for their delayed closing.  Why are there so many delayed closing?  Short Sales!

Short sales can take from 2 months to typically around 6 months to close, although I have had one take as long as a year.  The delay is due to the lenders having so many short sale files and either not enough negotiators or individuals which aren't properly trained.  Unfortunately, the one's being penalized in this process are the buyers.

For more information on the number of delayed closing nationwide and a better grasp of the impact this could have, please take a moment to reach the statistics put out by the National Association of REALTORS.

Strategic Default will get you "locked out" by Fannie Mae

In a strategic move, some homeowners have decided to walk away from their homes even though they could still afford the payments.  They simply decide that their value is too low and they either short sale or allow the bank to foreclose. 

Fannie Mae, making a clear statement, announced Wednesday that they will "lock out" borrowers from getting new loans for seven years if they "strategically default" on their loan.  Typically, if a person does a short sale then they can't purchase for two years.  Fannie Mae is hoping this step will discourage homeowners from walking away from their home because of equity loss.

The Tampa Bay market has seen it's share of equity loss with some homes losing as much as 50%.  I can understand the thinking behind why people "strategically default" but I don't think they realize how much it hurts the market.  When I say it hurts the "market", I'm referring to your neighbors, family, friends and anyone else that owns a home in the area.  That one person that "strategically defaults" brings down the value of all the others who choose not to default.

Please take a moment to read the Wall Street Journal article regarding Fannie Mae's "lock out" plan as well as how their trying to help the homeowners that truly can't afford their mortgages.

$75 million for a 13 bedroom UNFINISHED mansion?

Much of the US has seen the effects of the slowed economy, from the job market to the housing market.  David Siegel, billionaire and CEO of the time-share firm Westgate Resorts, is no exception.

A year ago, Siegel halted construction on his 90,000 square foot mansion when the effects of the economy took their toll on his industry.  Recently, he put the unfinished mansion on the market for $75 million.


The sprawling mansion, located outside Orlando, has 23 bathrooms, 13 bedrooms, 10 kitchens, three pools, a bowling alley, skating rink and so much more.  Nicknamed "Versailles" by Siegel, the mansion is currently the largest home for sale in the United States.

The home, which is being sold as-is, has no interior walls, carpet or tile.  Do you think Siegel will get anywhere close to his $75 million asking price?

Click to see images of the $75 million mansion. 

Photos Courtesy of Associated Press

Sandra Bullock's House for Sale

The housing market has slowed the sale of celebrity homes for sale in Tampa Bay.  Will it affect the sale of Sandra Bullock's home in California?

Bullock's 3,626 square foot home in Sunset Beach features a gorgeous ocean front view and and sports an asking price of $5.5 million.  The question is, will it sell quickly because it belongs to an Oscar-winning actress?  The Orange County Register spoke with the agent that has the house listed for sale and who has worked with many celebrity home buyers.  Read what she has to say.

Will Sandra Bullock's house sell for $6 mill? | sell, bullock, house - Business - The Orange County Register

New Guidelines for Short Sales

As of April 5th, lenders have new guidelines for the short sale process.  These new guidelines have been put in place in an attempt to speed up the process which can take an average of 4-6 months.  Along with speeding the process, the new guidelines also offer monetary incentives to both the banks and the homeowner. 

While not all the details are included, Reuters wrote a great article that highlights the key points of the policy.

Green home? Not even close!

If you're going to be named U.N. environmental ambassador maybe you should think about the environment when building your own home.  This is what environmentalist are saying about Gisele Bunchen's new home.  They feel the 20,000 sq. ft.  home is excessively large and aren't very thrilled that it features such amenities as an elevator, six car garage, guest house and lagoon style swimming pool.  To find out some of the other features in the home you can read this article from the Boston Herald.

Do you think environmentalists are going overboard or do you think celebrity homes have gotten out of control?

Real estate woes - Scarlett Johansson's $2 million loss

Here in Tampa Bay, we've seen house prices dip considerably but we're not the only ones with housing woes.  Real estate has dipped all across the county and celebrities aren't excluded.  It appears Scarlett Johansson is feeling the pressures of the market as well.  Take a look at the home that she's selling for a $2 million loss.

Now's The Time To Buy... Find Out Why

You've been hearing that phrase a lot lately, mostly from REALTORS. Well, your banker, Donald Trump and the President have all said it too. Now NY Times Best Selling author, David Bach, explains why this really is the best time to buy.

Smart Homeowners Are Buying Now by David Bach

Now is the time... Time Magazine & Trump agree!

Time magazine recently posted an article, "Recession Shopping: 10 Things To Buy Right Now" and included along with cars and stocks is housing!

During recent interview with Goodmorning America, Donald Trump was asked about the housing market. Trump's advice today is, "This is a great time to go out and buy a home".

Do you see the trend? With home prices dropping up to 50% in some areas, interest rates at record lows and up to an $8,000 tax incentive for home buyers that haven't owned a home for the last three years, now really is the time to buy. You can find brand new homes in Land O' Lakes, Lutz and Wesley Chapel in the low to mid $100k's and resale homes are even cheaper. It's time to get off the fence and into a home.

Nonprofit adds home refinancing initiative

WASHINGTON – March 10, 2009 – HOPE NOW, a nonprofit alliance of mortgage companies, housing counselors and others in the lending business, has added a new tool to its website enabling homeowners to initiate a loan modification or refinance with their lenders by submitting online application.

The new online intake form, at www.hopenow.com, asks homeowners for information about their lender and mortgage, as well questions about their income, debt, expenses and other things needed to proceed with a loan modification.

HOPE NOW said it launched the online tool in anticipation of the Obama administration’s $75 billion home rescue plan detailed last week. Lenders are expecting a large number of inquiries from homeowners seeking help in the coming months.

Once homeowners submit their application through the website, it is then routed directly to their mortgage servicing company or lender. Borrowers should get confirmation from their lender within a week that the process has begun, HOPE NOW said in a statement.

The nonprofit said that homeowners dealing directly with their mortgage company could receive help faster.

To make an online application, visit www.hopenow.com or call (888) 995-HOPE.

Courtesy of www.floridarealtors.org
Copyright © 2009 The Miami Herald, Monica Hatcher. Distributed by McClatchy-Tribune Information Services.

Fannie Mae & Countrywide Tackle Shortsales

Fannie Mae is testing a new way to handle short sales. In this new pilot program Fannie Mae will test a new process by which Fannie Mae pre-approves the list price. Then if a buyer make a full price offer the lender will accept the offer as long as the transaction meets standard requirements. For the purposes of the pilot, Fannie Mae has validated a specific list of properties that have already met the following criteria:

The property must be secured by a Fannie Mae mortgage.
The mortgage must be serviced by Countrywide Home Loans.
The property must be a potential short-sale (i.e., the list price is less than the unpaid balance on the mortgage).

There are only about 400 homes in Orlando and Phoenix that have been selected for the pilot. That may be only a small handful of the "short sale" properties that we need to clear off the market but its a start. If this program works it could clear the path for other lenders to step up and do the same.

As it is, the typical time from offer to closing on a "short sale" property is four to six months. Most buyers don't or can't wait this long so they don't even consider "short sale" properties. These properties then just sit on the market and clog the system then eventually become bank owned (REO) properties and are priced below market value. Once sold, these properties make their mark on the value of the surrounding homes in the area. In order to preserve home prices we need to get these properties off the market as soon as possible and this program, if successful, could very well do that.