Recent legislation and dramatic moves by Fannie Mae and Freddie Mac could help relieve the condo crisis and help failing condo associations.

Since 2006, the value of condos in parts of Florida has decreased by half. Investors and their tenants have walked away from units and stopped paying association dues. This has crippled associations and resulted in poor maintenance and repair schedules and decreased values further.

Until recent changes in lending restrictions by Fannie Mae and Freddie Mac to allow those wanting to own and occupy a condo, the low occupancy and high association fee delinquency rates all but squashed the chance for getting a loan for the purchase. Fannie Mae and Freddie Mac, set up by Congress to buy mortgages from private lenders, had imposed lending restrictions in failing complexes because they were afraid of being hit by large assessments for maintaining the buildings if approved borrowers defaulted on their loan. This limited purchases to cash buyers. And “buyer beware” as the dues and assessments were likely to climb higher with increasing numbers of investor units were leased to tenants with no real investment in making a condo complex a home with value added.

Now Fannie Mae has been giving lending approval to dozens of buildings after assessment to determine if the cash reserves are there or at least a plan is in place to raise that cash. Almost 100 complexes from Clearwater to Homestead have been given Fannie’s special approval. Fannie Mae already has added 35,000 units in the Miami area to its approved lending list and assessments continue. This will allow owner occupants who are committed to paying the dues to maintain a successful condominium.

At the end of March, Freddie Mac began waiving its lending rules and has started backing mortgages on units in troubled complexes if the seller’s loan is already owned or securitized by Freddie.

4,300 units are now listed for sale in Southwest Florida. Sales could also be revived by end of session reforms under SB1196 that encourages investors to purchase blocks of condo units. Along with easing requirements for things like “retro-fitting” fire sprinklers the 50 bills included requirements for lenders to pay more in Past-due assessments on foreclosed properties and will allow associations to divert tenant rents to pay for delinquent assessments owed by unit owners. The bill creates the “Distressed Condominium Relief Act” to address provisions governing insurance coverage, association record keeping requirements, and tenant obligations to the association.

There is also “bulk buyer” language addressing issues surrounding investor purchases. Investors may have walked away adding to the problem but as the pendulum swings back, investors will also be part of the solutions.

It sounds like some of the burden will be parsed out to all parties involved. If a bank forecloses or accepts a short sale the lender has been hard-pressed to pay much more that 6 months of dues to release a lien and in case of a foreclosure, the association lien will be foreclosed on as well as the owner. Now, perhaps along with some recovery of loan amounts the lender will pay the association some of the delinquent dues.

The SB 1196 provisions will also allow associations to divert tenant rents to pay for delinquent assessments owed by unit owners.

The bill does not require that the tenant pay any unpaid past monetary obligations of the unit owner thereby protecting the tenant from any unpaid past monetary owner obligations.

Senate 1196: Relating to Community Associations [CPSC]

Is available for public review at flsenate.gov. Follow current updates relating to real estate market changes at realestateexpertsflorida.com.

The Huntington Beach real estate market has seen foreclosures become the norm as of late as individuals face financially distressed scenarios more often than every before. When individuals or families are distressed financially one of the first things they often lose is their home. Unable to pay a mortgage payment or stuck with a mortgage payment that they can no longer afford due to an adjustable-rate mortgage more people than ever before are losing their homes.

In these trying times however in the midst of losing one’s home, any individual facing the scenario should seriously consider working with the Huntington Beach real estate agent to help avoid foreclosure. More and more Huntington Beach real estate agents these days are being trained specifically in the business of foreclosures and short sales so that they can help families avoid foreclosure whenever possible and help them through a difficult and complex process when they cannot. This page has been specifically designed for homeowners facing difficult financial situations in foreclosures. It is our hope that the information here will encourage you to not only contact a Huntington Beach real estate agent for help but will give you hope and encourage you to fight to keep your the home you’ve worked so hard to obtain.

There are many different programs at both the state and federal level that can help homeowners stay in their homes. The following is a list of such programs and should you have any questions about these programs please don’t hesitate to contact a Huntington Beach real estate agent.

Forbearance or Repayment Plan

These days many banks/lenders are more willing to work with homeowners because it is cheaper to keep them in their homes than it is to foreclose and resell a home. In a forbearance or repayment plan scenario a lender will allow a homeowner to repay back payments over a long period of time in order to ease the burden of debt. This option won’t necessarily work for everybody who applies for it but it is indeed a very good and solid option that anyone facing a Huntington Beach foreclosures should seriously consider. Of course a lender must approve this plan and approval is done on a homeowner to homeowner basis.

Reinstatement

Reinstatement much like a forbearance and repayment plan aren’t going to be right for everybody nor will everybody who applies for reinstatement be approved. In a reinstatement home owners can simply request the total amount owed to the mortgage company and then pay off. Reinstatement’s like most other plans must first be approved by the lender in working with a Huntington Beach real estate agent who understands reinstatement’s can better your chances for approval and success.

Mortgage Modifications

If there is one program that every homeowners facing foreclosure should look into it’s definitely mortgage modification. Not only is this option one of the more common and most sought after options for those looking to avoid foreclosure but many basic become much more lenient these days and are willing to with homeowners to keep them in the home and will therefore allow a mortgage to be modified to some degree. This can include the reduction of interest rates, the amount owed alone or even the principal the loan. Other times it can include any of the following together as well. If you’re unsure of whether or not you’ll qualify for mortgage modification be sure to speak with a Huntington Beach real estate agent before you ever consider contacting your lender.

Property Rentals

Individuals and families looking to avoid foreclosure, should without a doubt, look into the possible rental of their property. Like all others this program must first be approved by a lender and you’ll definitely need the help of a Huntington Beach real estate agent but once approved renting your home out allows you keep your home while at the same time use the rental income as means to pay your mortgage.

Bankruptcy

One of the first things people consider when they’re staring down the barrel of foreclosure is bankruptcy. While it’s not always the best option or the first one homeowner should jump to, it can be a very useful tool in protecting your assets especially your home. Bankruptcy laws do vary from state to state however and not all states will allow homes to be protected into bankruptcy so be sure to speak with a Huntington Beach real estate agent if you’re homeowner facing foreclosure and considering bankruptcy.

Friendly Foreclosure

Deed in lieu of foreclosure will commonly known as “friendly foreclosures” basically allows a homeowner to return the property to their lender rather than go through the entire foreclosure process. A friendly foreclosure allows a homeowner to walk away as little damage done to them financially and saves the lender from having to spend exorbitant amounts of money on the foreclosure process as well. If you’re interested in a friendly foreclosure of course you’ll need permission from the lender would you’ll also want to have a reliable Huntington Beach real estate agent on your side who knows the complexities as well as the ins and outs of this process.

Refinancing a Home

In some cases a lender will allow a homeowner who has paid a sufficient amount of money into their home tto simply refinance or home. Though refinancing might sound simple it’s actually a very detailed and complex process one that will require you to work with a good Huntington Beach real estate agent.

Military Option

If a homeowner can prove that they entered into debts prior to military deployment they might qualify for relief under the Servicemembers Civil Relief Act. The Act is designed to help military personnel keep their home and deploy with a focused mind and with as little stress as possible. Military options can ensure that a veteran returns home to his/her home. A Huntington Beach real estate agent that specializes in foreclosures can assist military personnel with the options.

Selling the Home

Homeowners who have enough equity in their homes can approach a lender and request that they allow them to list their property with a qualified Huntington Beach real estate agent. This is perhaps the best option of all what all others have been exhausted because it will allow a homeowner to not only pay back the loan with the money made from the sale but perhaps walk away with a few dollars in their pocket as well and no damage done to their credit.

The Short Sale

A short sale is a fantastic option for an individual or family who is facing foreclosure and has no other options left. A short sale generally occurs when a homeowner owes more than their current property is worth. When this happens a lender may qualify them for a short sale and buy back the property allowing homeowners to walk away with very little damage done to their credit or at the very least less damage than a foreclosure would have brought. Not all homeowners going to qualify for short sale so be sure to speak with a qualified Huntington Beach real estate agent if you think short sale is right for you.

Most lending in Australia before being approved requires a bank valuation to be completed and this is where lending can get complicated. The reason being the bank definition of value and that employed by the free market tend to be poles apart.

Leading Melbourne Mortgage Broker What If We Finance CEO Spiro Kolokithas says “most people believe value to be what a willing buyer and seller are prepared to exchange the property for under no pressure to sell. Conversely bank valuations employ a different principle. This is often referred to as market value”

Research and experience by What If We Finance shows banks tend to value property at the price that can be achieved over a short period of time. Usually 1 to 3 months. Most bank valuers will look for evidence to support their valuations. They will look for sales of similar properties in the past 6 months and as the property market can be quite dynamic, this can produce valuations results that do not make sense.

What If We Finance experience also shows that bank valuers are not influenced by properties on the market. Generally, sales must have occurred within the last 6 months.

Bank Valuers will consider property features but as no two properties are identical, valuations tend to be more of an art than a science.

Bank Valuers are often assigned responsibility for specific suburbs and they may not the area too well. They will drive out to their area, take photos and go back to the office and complete the valuation. They are often swamped with valuation and may not spend too much time on a valuation.

What If We Finance CEO Spiro Kolokithas “we have had instances where a bank valuer lives and works in Malvern (a Melbourne suburb) and conducts valuations in Cranbourne. We found valuations form this bank were consistently 20 or so per cent lower than those of other banks. “

So what should you do to avoid a bank valuation coming below your expectations/ What If We Finance recommends you undertake the following:

Look at comparable sales – you can look at property research reports or talk to real estate agents. Be mindful a real estate agent may overinflate property prices or not use comparable properties

Commission your own valuation – Residential valuations start at around $500. Chose a bank panel valuer and tell the valuer the valuation is for bank mortgage purposes. The benefit is you control the valuation; you meet the valuer, brief them on the property and see the valuation result in advance. Banks may order their own valuation but if the same valuer is used it is highly likely the valuation result will be the same.

Use a Mortgage Broker. Your Mortgage Broker can advise you on different bank policies and which banks tend to have the most favourable valuations this will ensure the bank valuation is in line with your expectations.

First you should learn what the term “short sale” means. A short sale is a home that someone is trying to sell for less than what they owe on it. Thus, they are selling it without a profit. Because of this a short sale must be approved by their mortgage lender. All offers must be submitted to the lender and approval is entirely in their hands. For this reason there may be a lot of hurdles you have to tackle.

Whether or not you are prepared to deal with the difficulties is the first decision you should make. Many people get discouraged with the process and determine it wasn’t worth the hassle. One of the major problems people often have when dealing a short sale is time. It can often takes months before the lender comes to an agreement on how much of a loss they are willing to take. Plus, mortgage analysts can sit on the paperwork for as long as they want and can deny any offer they do not consider fair. Another issue with short sales is other people can submit offers even if yours is still being reviewed. Under normal circumstances only one offer can be submitted at a time. This can make the potential purchaser anxious and frustrated because better offers can submitted on top of yours. As well, you as a buyer will not know what the seller and the lender are willing to accept. The seller and the lender may have a figure in mind but they have no obligation to disclose that information to you. So it is often just a stab in the dark. This is why it is best to work with a realtor who can acquire comparative prices in the area and give you an estimated appraisal value. The closer you are to the estimated appraisal value the better your chances are of having your offer accepted. Last but not least, a problem many potential buyers also run into is that the selected home is in need of repairs and the lender will not agree to fund the money for repairs. This is something you have to be prepared for because usually the lender will not agree to pay for repairs or an inspection and it could end up being at your expense.

On the bright side there are many good things about purchasing a short sale home and there are ways to make the process a little bit smoother. If you are willing to sit and wait on a particular house for a while it may be worth the wait. Often, people purchase short sale homes for prices well below market value. This is because when home values go down appraisal values go down. So, if you are lucky you can snag a home for much less if you had purchased it at another time when the market was higher.

Among the things you can do to make the process easier is, as mentioned, work with a realtor who has experience in short sales. As well, don’t get your heart set on a short sale home because they can be competitive and may easily go to someone else who puts in a better offer. Therefore, it is best to start off with your highest offer so the lender will respond quicker. If you start off too low they will most likely reject it outright. Something else to keep in mind is that very often people end up getting so hooked on a home that they will continue to increase their offer after it is rejected only to come out spending more than what they wanted. A final recommendation is to have your realtor check into whether the short sale is being handled by one lender or two because your odds are better of getting the deal you want when one lender is involved. Plus, the process will often be at a quicker pace. When the mortgage is owned by two or more banks the process can take an extremely long time and they may never agree on how much they are willing to lose.

peggyslappeyproperties.atlantanewhomesdirectory.com The Springs at Rock House offers bank approved short sales with 100% percent financing and owner financing available. Amenities include an oversized swimming pool with mushroom water feature & a large clubhouse and playground. Plus great Gwinnett schools!