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.
Showing posts with label State News. Show all posts
Showing posts with label State News. Show all posts
Friday, August 20, 2010
Monday, July 26, 2010
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.
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.
Wednesday, June 30, 2010
14,830 Reasons The Home Buyer Tax Credit Should Be Extended!
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.
Wednesday, June 23, 2010
$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?
Photos Courtesy of Associated Press
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?
Photos Courtesy of Associated Press
Monday, May 24, 2010
What would happen if a hurricane hit the oil slick in the Gulf?
While we here in Tampa Bay sit wondering when and if the oil is going to hit our coast, MIT hurricane experts are concerning themselves with another scenario which could have even worse consequences. What would happen if a hurricane hit the oil slick in the Gulf? With hurricane season upon us and no end in sight to the BP oil disaster, this is a very real possibility.
Check out this article to find out the different scenarios and how they play out.
What would happen if a hurricane hit the oil slick in the Gulf? - By Chris Mooney
Check out this article to find out the different scenarios and how they play out.
What would happen if a hurricane hit the oil slick in the Gulf? - By Chris Mooney
Wednesday, April 28, 2010
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.
While not all the details are included, Reuters wrote a great article that highlights the key points of the policy.
Tuesday, September 01, 2009
$8,000 Tax Credit for Down Payment
The deadline for the $8,000 tax credit is quickly approaching and the state has approved doing short term loans so that the tax credit can be used for your down payment but where is the money?
While the state has approved doing the short term loans, each county is responsible for managing the money that's been allocated for these loans. The problem is that each individual county must set up guidelines for loaning the money as well as for collecting the money at the end of the loan. This has been a slow process that most counties haven't yet completed. Since each county will have different guidelines it is also imperative that a homebuyer select their desired county to live in early in the process.
One set of guidelines that we have been given is for Pasco County. In order to qualify for the "Florida Homebuyer Opportunity Program" the homebuyer must first take a Homebuyers Class prior to signing a contract. Once a contract is signed the buyer must go through the approval process with a lender then they must be approved by the county. After approval by the county, it will take five days to receive a check. Because of all these steps it will be a lengthy process from start to finish.
The problem with the delay in setting up these guidelines and the lengthy process in the guidelines which have been established is that the deadline to purchase is quickly approaching. A homebuyer only has three months in which to go through a Homebuyers Class, find a home, apply for a mortgage, wait for the lender's approval and then to apply for the county money. That's assuming that you're considering purchasing in a county which has already set up the guidelines.
While the state has approved doing the short term loans, each county is responsible for managing the money that's been allocated for these loans. The problem is that each individual county must set up guidelines for loaning the money as well as for collecting the money at the end of the loan. This has been a slow process that most counties haven't yet completed. Since each county will have different guidelines it is also imperative that a homebuyer select their desired county to live in early in the process.
One set of guidelines that we have been given is for Pasco County. In order to qualify for the "Florida Homebuyer Opportunity Program" the homebuyer must first take a Homebuyers Class prior to signing a contract. Once a contract is signed the buyer must go through the approval process with a lender then they must be approved by the county. After approval by the county, it will take five days to receive a check. Because of all these steps it will be a lengthy process from start to finish.
The problem with the delay in setting up these guidelines and the lengthy process in the guidelines which have been established is that the deadline to purchase is quickly approaching. A homebuyer only has three months in which to go through a Homebuyers Class, find a home, apply for a mortgage, wait for the lender's approval and then to apply for the county money. That's assuming that you're considering purchasing in a county which has already set up the guidelines.
Wednesday, June 03, 2009
Update - $8k Tax Credit
The recently passed $8,000 Tax Credit Down Payment Assistance program passed by the State of Florida seemed doomed when FHA announced that the assistance program could not be used as down payment. The program isn't doomed but FHA has set some guidelines.
You still must have 3.5% of your own funds (or funds gifted from family members) to put toward the down payment. However, the $8,000 tax credit can be used toward closing costs, interest rate buy down or as additional down payment above the 3.5% required. This will still help those individuals who could come up with a portion of the funds needed but couldn't come up with 3.5% AND closing costs. Let's face it, when you're buying your first home you can use all the help you can get.
The Down Payment Assistance program should start some time in July (no definite date has been set yet). Just remember that in order to qualify for the $8,000 tax credit the home must be purchased by December 1, 2009.
You still must have 3.5% of your own funds (or funds gifted from family members) to put toward the down payment. However, the $8,000 tax credit can be used toward closing costs, interest rate buy down or as additional down payment above the 3.5% required. This will still help those individuals who could come up with a portion of the funds needed but couldn't come up with 3.5% AND closing costs. Let's face it, when you're buying your first home you can use all the help you can get.
The Down Payment Assistance program should start some time in July (no definite date has been set yet). Just remember that in order to qualify for the $8,000 tax credit the home must be purchased by December 1, 2009.
Saturday, May 30, 2009
New Info on Down Payment Assistance Using $8k Tax Credit
WASHINGTON – May 29, 2009 – The U.S. Department of Housing and Urban Development (HUD) released more details today about its program to help first-time home buyers use a tax credit as part of a down payment.
HUD announced the program on May 12 at the National Association of Realtors® Housing Summit. In the interim, HUD posted an announcement and then immediately took it down, leading to speculation that the program would be pulled. In response, HUD said the rules had simply not been finalized, and the original announcement had been posted in error.
“We’ve been eager for word from the federal government since the new FHA downpayment assistance plan was announced, and even more so after the program details were first published and then quickly pulled,” says John Sebree, FAR vice president of public policy. “Luckily, that turns out to be a minor setback and there will be a federal downpayment program to complement the $30 million we were successful in securing in the Florida budget.”
The most significant change involves the amount of downpayment required by qualified first-time homebuyers. FHA mortgages require a 3.5 percent downpayment, and the $8,000 tax credit cannot be used to override that requirement. Once the 3.5 percent downpayment requirement has been met, however, the tax credit can be applied to additional costs, including a higher downpayment, paying points to lower the mortgage rate, and/or closing costs. Lenders will treat the tax credit money as a second lien on the home until it’s paid back.
“Mortgage industry leaders have indicated that this type of product may not be immediately available to consumers,” says Sebree. Since lenders will oversee the tax credit loan, they must create internal programs to handle the process.
HUD announced the program on May 12 at the National Association of Realtors® Housing Summit. In the interim, HUD posted an announcement and then immediately took it down, leading to speculation that the program would be pulled. In response, HUD said the rules had simply not been finalized, and the original announcement had been posted in error.
“We’ve been eager for word from the federal government since the new FHA downpayment assistance plan was announced, and even more so after the program details were first published and then quickly pulled,” says John Sebree, FAR vice president of public policy. “Luckily, that turns out to be a minor setback and there will be a federal downpayment program to complement the $30 million we were successful in securing in the Florida budget.”
The most significant change involves the amount of downpayment required by qualified first-time homebuyers. FHA mortgages require a 3.5 percent downpayment, and the $8,000 tax credit cannot be used to override that requirement. Once the 3.5 percent downpayment requirement has been met, however, the tax credit can be applied to additional costs, including a higher downpayment, paying points to lower the mortgage rate, and/or closing costs. Lenders will treat the tax credit money as a second lien on the home until it’s paid back.
“Mortgage industry leaders have indicated that this type of product may not be immediately available to consumers,” says Sebree. Since lenders will oversee the tax credit loan, they must create internal programs to handle the process.
Monday, May 11, 2009
2009 Florida Budget Approved... and Good News For Home Buyers!
After an extended session, the Florida Legislature has adjourned and approved a $66.5 billion budget.
The budget includes a few positive items for home owners and new home buyers. The highlight is $30.1 million for down payment assistance programs. Beginning July 1, those who qualify for the federal first-time home buyers tax credit will be able to apply for down payment assistance in advance of closing, and then repay the amount borrowed when they get their tax refund. So, even though $30.1 million was added to the budget for this program it will not cost taxpayers a penny!
Another plus for home owners is a reduction in eviction filing fees from $265 to $180. With the current housing market, there are a huge number of rental properties in Land O' Lakes, Lutz, Wesley Chapel and throughout Tampa Bay. A lot of homeowners either are barely breaking even or renting their properties with a loss. This decrease in eviction costs will help homeowners who need to have tenants removed.
Also, passed with the new budget is a constitutional amendment that will ask voters to limit increases in property tax assessments on all non-homestead properties to 5 percent annually, a rate cap for Citizens policyholders of 10% per year and a bill that puts the burden of proving that a property tax assessment is correct on the appraiser, not the property owner.
The budget includes a few positive items for home owners and new home buyers. The highlight is $30.1 million for down payment assistance programs. Beginning July 1, those who qualify for the federal first-time home buyers tax credit will be able to apply for down payment assistance in advance of closing, and then repay the amount borrowed when they get their tax refund. So, even though $30.1 million was added to the budget for this program it will not cost taxpayers a penny!
Another plus for home owners is a reduction in eviction filing fees from $265 to $180. With the current housing market, there are a huge number of rental properties in Land O' Lakes, Lutz, Wesley Chapel and throughout Tampa Bay. A lot of homeowners either are barely breaking even or renting their properties with a loss. This decrease in eviction costs will help homeowners who need to have tenants removed.
Also, passed with the new budget is a constitutional amendment that will ask voters to limit increases in property tax assessments on all non-homestead properties to 5 percent annually, a rate cap for Citizens policyholders of 10% per year and a bill that puts the burden of proving that a property tax assessment is correct on the appraiser, not the property owner.
Monday, May 04, 2009
Chinese Drywall Issues Hit Tampa Bay Area
While the rest of the world is focused on Swine Flu, Tampa Bay REALTORS are keeping a close eye on the chinese drywall issues. We've just found out about the first case in the Tampa Bay area. It was announced last month that Lennar Corp was named in the class action lawsuit regarding Chinese drywall. It's recently come to our attention that Lennar is currently repairing townhomes in Tarpon Springs which had the defective drywall installed. WFTS news in Tampa recently aired a story about one of the families that Lennar has relocated during the repair process. For the full story you can visit their website.
Land O' Lakes and Wesley Chapel have been hit hard by the real estate market crash. Will they also be a casualty of Chinese drywall? I'll keep you posted as more news comes available.
Land O' Lakes and Wesley Chapel have been hit hard by the real estate market crash. Will they also be a casualty of Chinese drywall? I'll keep you posted as more news comes available.
Friday, May 01, 2009
End of Session Recap
The Florida House and Senate have completed their 60th day of the 2009 session. While this is the day they should be adjourning, the 2009 regular session of the Florida Legislature has been extended a full week. The purpose of the extension was to allow more time to finalize the budget.
During the regular session there has been a lot accomplished regarding home ownership. We're still waiting for more information to come our way but a few of the highlights are a constitutional amendment that will ask voters to limit increases in property tax assessments on all non-homestead properties, a cap on rate increases for Citizens policyholders and a bill heading to the Governor's office which would put the burden of proving that a property tax assessment in correct on the property appraiser, not the property owner.
As I hear more information I will pass it along to you. In the meantime, we're watching and waiting for the budget to be finalized. It looks good that the $30 million for down payment assistance to help "front-load" the federal first-time homebuyer tax credit will get approved in the budget. If you're not sure what this is, be sure to check my previous post (Need help with your downpayment?) for more information.
During the regular session there has been a lot accomplished regarding home ownership. We're still waiting for more information to come our way but a few of the highlights are a constitutional amendment that will ask voters to limit increases in property tax assessments on all non-homestead properties, a cap on rate increases for Citizens policyholders and a bill heading to the Governor's office which would put the burden of proving that a property tax assessment in correct on the property appraiser, not the property owner.
As I hear more information I will pass it along to you. In the meantime, we're watching and waiting for the budget to be finalized. It looks good that the $30 million for down payment assistance to help "front-load" the federal first-time homebuyer tax credit will get approved in the budget. If you're not sure what this is, be sure to check my previous post (Need help with your downpayment?) for more information.
Wednesday, April 29, 2009
Need help with your downpayment?
The Florida Senate recently added $55 million in their budget for down payment assistance. The great thing about this, even though they are adding $55 million to the budget it won't actually cost the state a dime.
Their plan is to offer short term loans to home buyers who qualify for the $8,000 tax credit being offered by the federal government. Once the home buyer receives their federal check, they would then repay the loan from the state. This would allow the state to offer assistance without costing tax payers.
I know many first time home buyers in the Tampa Bay area who could make the monthly mortgage payments but simply don't have enough money for the down payment. With home prices dropping and interest rates at an all time low, now would be the perfect time for them to achieve their dream of home ownership. This program would allow them that opportunity. Our only hurdle now is for the House to concur with the Senate position and fund the program.
Their plan is to offer short term loans to home buyers who qualify for the $8,000 tax credit being offered by the federal government. Once the home buyer receives their federal check, they would then repay the loan from the state. This would allow the state to offer assistance without costing tax payers.
I know many first time home buyers in the Tampa Bay area who could make the monthly mortgage payments but simply don't have enough money for the down payment. With home prices dropping and interest rates at an all time low, now would be the perfect time for them to achieve their dream of home ownership. This program would allow them that opportunity. Our only hurdle now is for the House to concur with the Senate position and fund the program.
Thursday, April 02, 2009
Chinese Drywall Issues
ORLANDO, Fla. – April 2, 2009 – Drywall imported from China continues to make headlines nationwide, and a growing number of lawsuits have been filed in Florida. In response to the problem, FAR’s Business Forms Forum Task Force is considering a new form that addresses Chinese drywall problems. Task force members are slated to discuss the issue again on April 6.
Attorneys with Higer Lichter Givner, The Blumstein Law Firm and Podhurst Orseck have filed a federal class action lawsuit on behalf of Florida homeowners Janet Morris-Chin and Dajan Green. They’ve targeted Knauf Plasterboard Tianjin Co. Ltd., and the foreign company that distributed that company’s drywall within the United States, Rothchilt International Ltd.
Drywall manufactured in China was used in U.S. homes between 2004 and 2007. According to the lawsuit, toxic chemicals that emanate from the drywall have damaged houses, fixtures and personal property. Members of the class action are also seeking medical monitoring for any adverse effects of prolonged exposure to the toxic chemicals.
“We have filed a national class action because more than 60,000 homes in 13 states are believed to have defective Chinese drywall,” says Victor M. Diaz with Podhurst Orseck. “We anticipate that when the Consumer Products Safety Commission completes its investigation, this product will be recalled across the country. This could be potentially one of the largest product liability cases related to home construction in U.S. history.”
Read More...
Courtesy of Florida Association of Realtors
Attorneys with Higer Lichter Givner, The Blumstein Law Firm and Podhurst Orseck have filed a federal class action lawsuit on behalf of Florida homeowners Janet Morris-Chin and Dajan Green. They’ve targeted Knauf Plasterboard Tianjin Co. Ltd., and the foreign company that distributed that company’s drywall within the United States, Rothchilt International Ltd.
Drywall manufactured in China was used in U.S. homes between 2004 and 2007. According to the lawsuit, toxic chemicals that emanate from the drywall have damaged houses, fixtures and personal property. Members of the class action are also seeking medical monitoring for any adverse effects of prolonged exposure to the toxic chemicals.
“We have filed a national class action because more than 60,000 homes in 13 states are believed to have defective Chinese drywall,” says Victor M. Diaz with Podhurst Orseck. “We anticipate that when the Consumer Products Safety Commission completes its investigation, this product will be recalled across the country. This could be potentially one of the largest product liability cases related to home construction in U.S. history.”
Read More...
Courtesy of Florida Association of Realtors
Thursday, March 19, 2009
$8,000 Home Buyer Tax Credit - Do You Qualify?
The government is now offering an $8,000 First Time Home Buyer tax credit. You may be thinking, "I don't qualify for that, I've owned a home in the past." Well, you may still qualify. For this tax credit, the IRS defines a first time home buyer as anyone who has not owned a home in the last three years.
The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $8,000. So if you buy a $70,000 home then you can get $7,000 or if you buy a home over $80,000 then you can receive the full $8,000 tax credit. Unlike previous First Time Home Buyer tax credits, this credit does not have to be repaid. And, if you buy soon, you may be able to amend your 2008 taxes so that you get the tax credit now rather than waiting until the end of 2009. You'll have to speak with your accountant or tax advisor for more information on amending your taxes.
There are income restrictions but they are pretty lenient. For single taxpayers, the maximum income is $75,000 and for married couples the maximum is $150,000 to qualify for the full tax credit.
Just another great reason why now really is the time to buy!
If you would like more information on this tax credit, you can visit FederalHousingTaxCredit.com. If you would like to take advantage of the tax credit you can call me at (813) 317-4300.
The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $8,000. So if you buy a $70,000 home then you can get $7,000 or if you buy a home over $80,000 then you can receive the full $8,000 tax credit. Unlike previous First Time Home Buyer tax credits, this credit does not have to be repaid. And, if you buy soon, you may be able to amend your 2008 taxes so that you get the tax credit now rather than waiting until the end of 2009. You'll have to speak with your accountant or tax advisor for more information on amending your taxes.
There are income restrictions but they are pretty lenient. For single taxpayers, the maximum income is $75,000 and for married couples the maximum is $150,000 to qualify for the full tax credit.
Just another great reason why now really is the time to buy!
If you would like more information on this tax credit, you can visit FederalHousingTaxCredit.com. If you would like to take advantage of the tax credit you can call me at (813) 317-4300.
Tuesday, February 24, 2009
Crist pushes property tax breaks
On February 20th, Gov. Charlie Crist proposed giving new property tax breaks to first-time homebuyers and further lightening the tax burden for business, landlords and snowbirds. The proposed property tax breaks for first-time homebuyers could be as much as $5,000.
Crist gave only broad overviews of his latest proposals as he introduced his new budget. The proposals are aimed at invigorating Florida's declining real estate market and helping businesses cope with the recession.
Proposals on the table:
• Limiting the amount that the taxable value of business property, rental housing and second homes can increase each year. Last year, Floridians voted for a constitutional amendment that, among other things, capped increases of taxable value on this type of property at 10 percent a year. Crist’s proposal would further limit the amount of an increase to 5 percent a year. The change would reduce tax revenue for local governments by an estimated $130 million the first year.
• Taxing only half the property value for first-time homebuyers, with a maximum exemption of $250,000 – or about $5,000 in taxes. The new break would be phased out during the first five years of ownership, though buyers would still be eligible for the homestead exemption available to all homeowners. Legislation needed for the constitutional amendment was filed by Sen. Evelyn Lynn, R-Daytona Beach, and Rep. Carl Domino, R-Juno Beach. The measure would reduce annual tax revenue by about $64 million.
• Ensuring that Florida homeowners do not get higher property tax bills in times when house values are declining. A constitutional amendment called Save Our Homes has for years limited growth in the assessed value of homes to 3 percent a year. As a result, many assessments are so far below market value that they are edging up even at a time when prices are dropping. Bills proposed by Sen. Mike Fasano, R-New Port Richey, and Rep. Marcelo Llorente, R-Miami, would pave the way for what Crist called the Homeowner Fairness Bill. The Governor’s Office estimated the measure would reduce tax revenue by $21 million the first year.
• Making it easier for owners to challenge tax assessments by requiring property appraisers to prove their work is valid. The burden of proof is now on owners to show that an appraisal is unfair. This measure, which does not require voter approval, would reduce tax revenue by an estimated $90 million starting in 2009.
Crist gave only broad overviews of his latest proposals as he introduced his new budget. The proposals are aimed at invigorating Florida's declining real estate market and helping businesses cope with the recession.
Proposals on the table:
• Limiting the amount that the taxable value of business property, rental housing and second homes can increase each year. Last year, Floridians voted for a constitutional amendment that, among other things, capped increases of taxable value on this type of property at 10 percent a year. Crist’s proposal would further limit the amount of an increase to 5 percent a year. The change would reduce tax revenue for local governments by an estimated $130 million the first year.
• Taxing only half the property value for first-time homebuyers, with a maximum exemption of $250,000 – or about $5,000 in taxes. The new break would be phased out during the first five years of ownership, though buyers would still be eligible for the homestead exemption available to all homeowners. Legislation needed for the constitutional amendment was filed by Sen. Evelyn Lynn, R-Daytona Beach, and Rep. Carl Domino, R-Juno Beach. The measure would reduce annual tax revenue by about $64 million.
• Ensuring that Florida homeowners do not get higher property tax bills in times when house values are declining. A constitutional amendment called Save Our Homes has for years limited growth in the assessed value of homes to 3 percent a year. As a result, many assessments are so far below market value that they are edging up even at a time when prices are dropping. Bills proposed by Sen. Mike Fasano, R-New Port Richey, and Rep. Marcelo Llorente, R-Miami, would pave the way for what Crist called the Homeowner Fairness Bill. The Governor’s Office estimated the measure would reduce tax revenue by $21 million the first year.
• Making it easier for owners to challenge tax assessments by requiring property appraisers to prove their work is valid. The burden of proof is now on owners to show that an appraisal is unfair. This measure, which does not require voter approval, would reduce tax revenue by an estimated $90 million starting in 2009.
Friday, February 13, 2009
State Farm Withdrawal Is Approved
Florida Insurance Commissioner Kevin McCarty today announced an approval of State Farm Insurance Florida's withdrawal from the state, but subject to several major conditions:
• State Farm Florida shall surrender its Certificate of Authority within 30 days, which is needed to write or renew policies.
• State Farm shall not place any of its policies in Citizens Property Insurance Corp.
• State Farm shall allow its agents to place property insurance policies directly with other private insurance companies.
• State Farm shall issue pro-rata premium refunds to any policyholder seeking to voluntarily cancel or non-renew, and not short-rate the return premium for any policy in any line, including automobile, boat or property insurance.
• State Farm shall consider all offers to buy or assume all or part of its business.
Story courtesy of the Florida Association of Realtors
• State Farm Florida shall surrender its Certificate of Authority within 30 days, which is needed to write or renew policies.
• State Farm shall not place any of its policies in Citizens Property Insurance Corp.
• State Farm shall allow its agents to place property insurance policies directly with other private insurance companies.
• State Farm shall issue pro-rata premium refunds to any policyholder seeking to voluntarily cancel or non-renew, and not short-rate the return premium for any policy in any line, including automobile, boat or property insurance.
• State Farm shall consider all offers to buy or assume all or part of its business.
Story courtesy of the Florida Association of Realtors
Friday, January 23, 2009
Got Citizens Insurance? Can you afford to keep it?
A task force is recommending that Citizens Property Insurance be allowed to end a three-year rate freeze and start aggressively hiking homeowner rates.
The task force recommended that the Legislature caps Citizens' annual rate increase to 10 percent on average statewide. They are urging that Citizens' begin raising rates in January 2010.
It seems a bit ironic that this news is coming now considering that I just read last week that the weather gurus are predicting an active hurricane season for 2009.
The task force recommended that the Legislature caps Citizens' annual rate increase to 10 percent on average statewide. They are urging that Citizens' begin raising rates in January 2010.
It seems a bit ironic that this news is coming now considering that I just read last week that the weather gurus are predicting an active hurricane season for 2009.
Thursday, January 22, 2009
Florida's $2.6 billion budget deficit gets final approval
Cuts totaling $1.2 billion most heavily hit education, health care and social services. Gov. Charlie Christ is expected to to sign the measure with just a few line-item vetoes.
While school districts were warned of the cuts months in advance, its still not going to be easy for them. Teachers in one district were asked to remove any personal appliances in order to save on electricity. These personal appliances include lamps on teachers desks. Apparently children may be the future but we don't money in the budget for the "future".
While school districts were warned of the cuts months in advance, its still not going to be easy for them. Teachers in one district were asked to remove any personal appliances in order to save on electricity. These personal appliances include lamps on teachers desks. Apparently children may be the future but we don't money in the budget for the "future".
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